The Distributed Energy Generation Market Size is valued at USD 372.6 Bn in 2023 and is predicted to reach USD 970.8 Bn by the year 2031 at an 12.9% CAGR during the forecast period for 2024-2031.
Distributed Energy Generation (DEG) refers to electricity production systems close to the point of use, rather than centralized power plants. It typically involves smaller, modular energy sources like solar panels, wind turbines, fuel cells, and small natural gas generators that generate power locally instead of relying on a large grid. This decentralized approach has gained popularity for providing reliable, often renewable energy with reduced transmission loss and greater resilience against power disruptions. Distributed energy systems boost energy security and resilience, especially during natural disasters or grid failures, by reducing dependence on centralized plants. Many of these sources, such as solar and wind, are renewable and produce less pollution, supporting environmental sustainability. Their modular design allows for easy scaling based on local energy needs, making them suitable for both urban and remote areas.
Distributed generation allows energy to be produced from a variety of sources, including biomass, reciprocating engines, wind, solar, and turbines, providing flexibility in energy production. One key advantage of distributed generation is its ability to deliver power in isolated locations without the need for long-distance electrical transmission systems. Microgrids collect energy from multiple sources, using only what is necessary and feeding any surplus back into the grid, with excess energy stored in batteries for later use, especially valuable in off-grid settings.
Despite this, as awareness of alternative energy options increases, the market continues to grow, driven by the environmental benefits and lower costs of distributed generation compared to traditional energy sources. With the global population growing and more people living in urban areas, there is an increasing demand for reliable and sustainable energy sources. DEG technologies are particularly beneficial in urban areas, where they can reduce grid congestion and improve energy efficiency. Demand is also rising due to technological advancements and improvements in user-friendliness, supporting the expansion of the global distributed generation market
The Distributed Energy Generation Market is segmented based on technology, and end-use industries. Based on the technology, the market is divided into micro-turbines, combustion turbines, micro-hydropower, reciprocating engines, fuel cells, wind turbines, solar PV, and others. Based on the end-use industries., the market is divided into Commercial and industrial.
Based on the technology, the market is divided into micro-turbines, combustion turbines, micro-hydropower, reciprocating engines, fuel cells, wind turbines, solar PV, and others. Among these, Solar energy is widely available across most regions, making it a feasible option for both residential and commercial users. Solar PV costs have decreased significantly over the years, making it more affordable for both large-scale and small-scale installations. Solar PV provides a clean, renewable energy source, which aligns with global efforts to reduce carbon emissions and move towards sustainable energy systems. Many governments offer subsidies, tax credits, and incentives to promote the adoption of solar PV, further boosting its market share.
Many governments offer financial incentives, subsidies, tax credits, and favorable policies to promote solar PV installation. In some regions, net metering policies allow consumers to sell excess solar power back to the grid, creating an additional revenue stream and further incentivizing adoption. With increasing global focus on reducing greenhouse gas emissions and combating climate change, solar PV is seen as a clean, renewable alternative that supports sustainability goals. As countries aim to meet their environmental targets, the shift toward solar PV is likely to accelerate.
Based on the end-use industries., the market is divided into Commercial and industrial. Among these, Industrial facilities typically have large, continuous energy requirements, making distributed generation solutions cost-effective and reliable for meeting these demands. Many industries invest in combined heat and power (CHP) systems, fuel cells, and even solar PV to achieve both electricity and thermal energy efficiency. Industrial operations are highly sensitive to power disruptions. Distributed generation systems, such as microgrids, provide energy security and allow industries to maintain continuous operations during grid outages. Industrial facilities often use a combination of generation types, like micro-turbines, reciprocating engines, and solar PV, creating a resilient hybrid system that further reduces costs and enhances operational reliability.
Many Asia-Pacific countries have implemented favorable policies, incentives, and subsidies to encourage the adoption of distributed generation, especially solar PV and wind, as they aim to diversify their energy sources and reduce reliance on fossil fuels. China, Japan, South Korea, and India, among others, have set ambitious renewable energy targets and are committed to reducing greenhouse gas emissions, positioning distributed generation as a key strategy for achieving these goals. Rapid urbanization, industrialization, and economic growth in countries like China, India, and Southeast Asian nations are driving significant increases in energy demand, which distributed generation can help meet efficiently.
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Report Attribute |
Specifications |
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Market Size Value In 2023 |
USD 372.6 Bn |
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Revenue Forecast In 2031 |
USD 970.8 Bn |
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Growth Rate CAGR |
CAGR of 12.9% from 2024 to 2031 |
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Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
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Historic Year |
2019 to 2023 |
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Forecast Year |
2024-2031 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive Market structure, growth prospects, and trends |
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Segments Covered |
By Technology, and End-use Industries |
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Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South Korea; South East Asia |
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Competitive Landscape |
Vestas, Caterpillar, Capstone Green Energy Corporation, Doosan Corporation, Toyota, Turbine and Systems, Rolls-Royce Plc, General Electric, Mitsubishi Electric Corporation, Schneider Electric, Siemens Ag, Ballard Power Systems Inc., Suzlon Energy Ltd., Vestas Wind Systems A/S, ENERCON GmbH, First Solar, Sharp Corporation, Tesla Inc., NextEra Energy, Inc., Canadian Solar Inc., SunPower Corporation |
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Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing and Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
Chapter 2. Executive Summary
Chapter 3. Global Distributed Energy Generation Market Snapshot
Chapter 4. Global Distributed Energy Generation Market Variables, Trends & Scope
4.1. Market Segmentation & Scope
4.2. Drivers
4.3. Challenges
4.4. Trends
4.5. Investment and Funding Analysis
4.6. Porter's Five Forces Analysis
4.7. Incremental Opportunity Analysis (US$ MN), 2024-2031
4.8. Global Distributed Energy Generation Market Penetration & Growth Prospect Mapping (US$ Mn), 2023-2031
4.9. Competitive Landscape & Market Share Analysis, By Key Player (2023)
4.10. Use/impact of AI on Distributed Energy Generation Industry Trends
Chapter 5. Distributed Energy Generation Market Segmentation 1: By Technology, Estimates & Trend Analysis
5.1. Market Share by Technology, 2023 & 2031
5.2. Market Size (Value US$ Mn) & Forecasts and Trend Analyses, 2019 to 2031 for the following Technology:
5.2.1. Micro-turbines
5.2.2. Combustion Turbines
5.2.3. Micro-hydropower
5.2.4. Reciprocating Engines
5.2.5. Fuel Cells
5.2.6. Wind Turbines
5.2.7. Solar PV
5.2.8. Others
Chapter 6. Distributed Energy Generation Market Segmentation 2: By End-use Industries, Estimates & Trend Analysis
6.1. Market Share by End-use Industries, 2023 & 2031
6.2. Market Size (Value US$ Mn) & Forecasts and Trend Analyses, 2019 to 2031 for the following End-use Industriess:
6.2.1. Commercial
6.2.2. Industrial
Chapter 7. Distributed Energy Generation Market Segmentation 6: Regional Estimates & Trend Analysis
7.1. Global Distributed Energy Generation Market, Regional Snapshot 2023 & 2031
7.2. North America
7.2.1. North America Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by Country, 2024-2031
7.2.1.1. US
7.2.1.2. Canada
7.2.2. North America Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by Technology, 2024-2031
7.2.3. North America Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by End-use Industries, 2024-2031
7.3. Europe
7.3.1. Europe Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by Country, 2024-2031
7.3.1.1. Germany
7.3.1.2. U.K.
7.3.1.3. France
7.3.1.4. Italy
7.3.1.5. Spain
7.3.1.6. Rest of Europe
7.3.2. Europe Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by Technology, 2024-2031
7.3.3. Europe Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by End-use Industries, 2024-2031
7.4. Asia Pacific
7.4.1. Asia Pacific Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by Country, 2024-2031
7.4.1.1. India
7.4.1.2. China
7.4.1.3. Japan
7.4.1.4. Australia
7.4.1.5. South Korea
7.4.1.6. Hong Kong
7.4.1.7. Southeast Asia
7.4.1.8. Rest of Asia Pacific
7.4.2. Asia Pacific Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by Technology, 2024-2031
7.4.3. Asia Pacific Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts By End-use Industries, 2024-2031
7.5. Latin America
7.5.1. Latin America Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by Country, 2024-2031
7.5.1.1. Brazil
7.5.1.2. Mexico
7.5.1.3. Rest of Latin America
7.5.2. Latin America Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by Technology, 2024-2031
7.5.3. Latin America Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by End-use Industries, 2024-2031
7.6. Middle East & Africa
7.6.1. Middle East & Africa Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
7.6.1.1. GCC Countries
7.6.1.2. Israel
7.6.1.3. South Africa
7.6.1.4. Rest of Middle East and Africa
7.6.2. Middle East & Africa Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by Technology, 2024-2031
7.6.3. Middle East & Africa Distributed Energy Generation Market Revenue (US$ Million) Estimates and Forecasts by End-use Industries, 2024-2031
Chapter 8. Competitive Landscape
8.1. Major Mergers and Acquisitions/Strategic Alliances
8.2. Company Profiles
8.2.1. Vestas
8.2.1.1. Business Overview
8.2.1.2. Key Product/Service Offerings
8.2.1.3. Financial Performance
8.2.1.4. Geographical Presence
8.2.1.5. Recent Developments with Business Strategy
8.2.2. Caterpillar
8.2.3. Capstone Green Energy Corporation
8.2.4. Doosan Corporation
8.2.5. Toyota Turbine and Systems
8.2.6. Rolls-Royce Plc
8.2.7. General Electric
8.2.8. Mitsubishi Electric Corporation
8.2.9. Schneider Electric
8.2.10. Siemens Ag
8.2.11. Ballard Power Systems Inc.
8.2.12. Suzlon Energy Ltd.
8.2.13. Vestas Wind Systems A/S
8.2.14. ENERCON GmbH
8.2.15. First Solar
8.2.16. Sharp Corporation
8.2.17. Tesla Inc.
8.2.18. NextEra Energy, Inc.
8.2.19. Canadian Solar Inc.
8.2.20. SunPower Corporation
Global Distributed Energy Generation Market- By Technology
Global Distributed Energy Generation Market- By End-use Industries
Global Distributed Energy Generation Market – By Region
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
InsightAce Analytic follows a standard and comprehensive market research methodology focused on offering the most accurate and precise market insights. The methods followed for all our market research studies include three significant steps – primary research, secondary research, and data modeling and analysis - to derive the current market size and forecast it over the forecast period. In this study, these three steps were used iteratively to generate valid data points (minimum deviation), which were cross-validated through multiple approaches mentioned below in the data modeling section.
Through secondary research methods, information on the market under study, its peer, and the parent market was collected. This information was then entered into data models. The resulted data points and insights were then validated by primary participants.
Based on additional insights from these primary participants, more directional efforts were put into doing secondary research and optimize data models. This process was repeated till all data models used in the study produced similar results (with minimum deviation). This way, this iterative process was able to generate the most accurate market numbers and qualitative insights.
Secondary research
The secondary research sources that are typically mentioned to include, but are not limited to:
The paid sources for secondary research like Factiva, OneSource, Hoovers, and Statista
Primary Research:
Primary research involves telephonic interviews, e-mail interactions, as well as face-to-face interviews for each market, category, segment, and subsegment across geographies
The contributors who typically take part in such a course include, but are not limited to:
Data Modeling and Analysis:
In the iterative process (mentioned above), data models received inputs from primary as well as secondary sources. But analysts working on these models were the key. They used their extensive knowledge and experience about industry and topic to make changes and fine-tuning these models as per the product/service under study.
The standard data models used while studying this market were the top-down and bottom-up approaches and the company shares analysis model. However, other methods were also used along with these – which were specific to the industry and product/service under study.
