The global market for Distributed Generation (DG) was estimated at US$308.6 Billion in 2024 and is projected to reach US$633.2 Billion by 2030, growing at a CAGR of 12.7% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Distributed Generation (DG) market.
The rise of DG has been fueled by advances in renewable energy technologies, cost reductions in solar and wind power, and the increasing efficiency of energy storage systems. Solar PV and wind turbines have seen significant technological improvements, making them more viable and attractive options for distributed energy production. Governments and regulatory bodies worldwide have also played a crucial role by implementing policies and incentives that encourage the adoption of DG. Net metering, feed-in tariffs, and tax credits are some of the measures that have spurred investment in distributed generation. Additionally, the integration of smart grid technologies has enhanced the management and distribution of electricity generated from DG sources, ensuring reliability and stability in power supply.
The growth in the Global Distributed Generation market is driven by several factors. The increasing demand for clean and sustainable energy solutions is a major driver, as both consumers and businesses seek to reduce their carbon footprint and energy costs. Technological advancements in renewable energy sources, particularly solar and wind, have made DG more affordable and efficient, prompting wider adoption. The rising prevalence of energy storage solutions, such as batteries, supports the integration of intermittent renewable sources by ensuring a stable energy supply. Additionally, the push for energy independence and resilience against grid disruptions, especially in regions prone to natural disasters or with unstable grids, drives the demand for distributed generation. Urbanization and the need for reliable power in expanding metropolitan areas also contribute to the market`s growth. Furthermore, regulatory support and financial incentives from governments worldwide play a significant role in accelerating the adoption of DG technologies, making it a pivotal component in the transition towards a more sustainable and resilient energy infrastructure.
Global Distributed Generation (DG) Market - Key Trends and Drivers Summarized
Global Distributed Generation (DG) refers to the decentralized production of electricity through small-scale energy sources located close to the point of use rather than centralized large-scale power plants. This approach includes technologies such as solar photovoltaic (PV) systems, wind turbines, microturbines, fuel cells, and combined heat and power (CHP) systems. DG systems are connected to the local grid or operate independently, providing flexibility, resilience, and sustainability in energy supply. They are particularly beneficial in remote or rural areas where grid connectivity is challenging and in urban settings for reducing the load on centralized power systems.The rise of DG has been fueled by advances in renewable energy technologies, cost reductions in solar and wind power, and the increasing efficiency of energy storage systems. Solar PV and wind turbines have seen significant technological improvements, making them more viable and attractive options for distributed energy production. Governments and regulatory bodies worldwide have also played a crucial role by implementing policies and incentives that encourage the adoption of DG. Net metering, feed-in tariffs, and tax credits are some of the measures that have spurred investment in distributed generation. Additionally, the integration of smart grid technologies has enhanced the management and distribution of electricity generated from DG sources, ensuring reliability and stability in power supply.
The growth in the Global Distributed Generation market is driven by several factors. The increasing demand for clean and sustainable energy solutions is a major driver, as both consumers and businesses seek to reduce their carbon footprint and energy costs. Technological advancements in renewable energy sources, particularly solar and wind, have made DG more affordable and efficient, prompting wider adoption. The rising prevalence of energy storage solutions, such as batteries, supports the integration of intermittent renewable sources by ensuring a stable energy supply. Additionally, the push for energy independence and resilience against grid disruptions, especially in regions prone to natural disasters or with unstable grids, drives the demand for distributed generation. Urbanization and the need for reliable power in expanding metropolitan areas also contribute to the market`s growth. Furthermore, regulatory support and financial incentives from governments worldwide play a significant role in accelerating the adoption of DG technologies, making it a pivotal component in the transition towards a more sustainable and resilient energy infrastructure.
Scope of Study:
The report analyzes the Distributed Generation (DG) market in terms of units by the following Segments, and Geographic Regions/Countries:- Segments: Technology (Fuel Cells, Solar PV Cells, Wind Turbines, Gas & Steam Turbines, Reciprocating Combustion Engines, Other Technologies); Application (On-Grid, Off-Grid); End-Use (Commercial, Industrial, Residential)
- Geographic Regions/Countries: World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Fuel Cells segment, which is expected to reach US$95.3 Billion by 2030 with a CAGR of a 11.4%. The Solar PV Cells segment is also set to grow at 14.8% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, estimated at $45.3 Billion in 2024, and China, forecasted to grow at an impressive 17.2% CAGR to reach $178.8 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Distributed Generation (DG) Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Distributed Generation (DG) Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Distributed Generation (DG) Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as Capstone Green Energy Corporation, Caterpillar, Inc., Cummins, Inc., Doosan Heavy Industries & Construction Co., Ltd., E.ON SE and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Some of the 52 companies featured in this Distributed Generation (DG) market report include:
- Capstone Green Energy Corporation
- Caterpillar, Inc.
- Cummins, Inc.
- Doosan Heavy Industries & Construction Co., Ltd.
- E.ON SE
- Ballard Power Systems, Inc.
- Ansaldo Energia SpA
- Ameresco, Inc.
- Bloom Energy Corporation
- ENERCON GmbH
- Convion Ltd.
- Doosan Fuel Cell America, Inc.
- EDF Renewable Energy
- Caterpillar Inc.
- Emergya Wind Technologies B.V.
This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:
- Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
- Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
- Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
- Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
- Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
- Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
- Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Capstone Green Energy Corporation
- Caterpillar, Inc.
- Cummins, Inc.
- Doosan Heavy Industries & Construction Co., Ltd.
- E.ON SE
- Ballard Power Systems, Inc.
- Ansaldo Energia SpA
- Ameresco, Inc.
- Bloom Energy Corporation
- ENERCON GmbH
- Convion Ltd.
- Doosan Fuel Cell America, Inc.
- EDF Renewable Energy
- Caterpillar Inc.
- Emergya Wind Technologies B.V.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 548 |
| Published | July 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 308.6 Billion |
| Forecasted Market Value ( USD | $ 633.2 Billion |
| Compound Annual Growth Rate | 12.7% |
| Regions Covered | Global |
