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Distributed Generation (DG) - Global Market Trajectory & Analytics

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    Report

  • 548 Pages
  • July 2022
  • Region: Global
  • Global Industry Analysts, Inc
  • ID: 3440904

Global Distributed Generation (DG) Market to Reach US$386.7 Billion by the Year 2026


Distributed generation, also termed as Embedded Generation refers to small-to-medium scale modular power generation plants that are embedded into the distribution network at a point closer to the site of consumption than the central station power generators. Liberalization and deregulation of energy markets, and the accelerated restructuring of electric power utilities, along with commercial factors such as simpler land acquisition, reduced construction time of modular distributed power generation modules, and lower transmission costs are primary factors driving the trend towards distributed power. The huge void created by power plant retirements in developed economies in North America and Western Europe, and the ever-growing requirement for electric power from populous emerging economies, is unlocking new opportunities for distributed power generation. Rapidly growing demand for energy worldwide and escalating cost of grid network expansion are fueling growth in the market. Also favoring the market is the growing success of R&D initiatives, demonstration projects and field trials, which are leading to a reduction in cost of distributed energy technologies and hence fueling their adoption. Renewable energy-based DG systems are expected to benefit from the rapidly rising awareness about the advantages of clean energy sources and their role in reducing greenhouse gas emissions. With governments promoting establishment of DG systems in residential, industrial and commercial applications, the market for DG is poised for growth.

Amid the COVID-19 crisis, the global market for Distributed Generation (DG) estimated at US$245.8 Billion in the year 2022, is projected to reach a revised size of US$386.7 Billion by 2026, growing at a CAGR of 10.6% over the analysis period. Fuel Cells, one of the segments analyzed in the report, is projected to grow at a 9.6% CAGR to reach US$68.6 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Solar PV Cells segment is readjusted to a revised 12.4% CAGR for the next 7-year period. This segment currently accounts for a 31.7% share of the global Distributed Generation (DG) market. Distributed fuel cell generation systems, with their sophisticated attributes deliver low emissions, high reliability and help commercial customers save costs. Factors such as federal emission standards and deregulation of the energy industry spur growth in the segment. The adoption of strict regulations on carbon emissions, growing awareness about pollution attributed to conventional energy sources, and provision of financial incentives in the form of tax credits, rebates, net metering and feed-in-tariffs, are all leading to high growth in solar PV DG market.

The U.S. Market is Estimated at $38.8 Billion in 2022, While China is Forecast to Reach $97.7 Billion by 2026


The Distributed Generation (DG) market in the U.S. is estimated at US$38.8 Billion in the year 2022. The country currently accounts for a 16% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$97.7 Billion in the year 2026 trailing a CAGR of 14.7% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6.9% and 7.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.6% CAGR while Rest of European market (as defined in the study) will reach US$116.2 Billion by the end of the analysis period. Rising demand for energy from industrial, commercial and residential sectors is leading to strong growth of DG systems in the North America region. Favorable government policies, incentives such as tax credits and focus on renewable energy are expected to foster market growth. The macro goal of achieving a resilient energy union in the EU and the early mover advantage that the region experienced is expected to drive market expansion in Europe. The growing drive for rural electrification in developing economies is driving demand for distributed generation. The fast pace industrialization in developing economies and the rising demand for quality and reliable power from energy intensive industries are also enhancing importance of DG systems.

Wind Turbines Segment to Reach $83.5 Billion by 2026


Wind turbine technology is also expected to post strong growth in the years ahead, with increasing focus on environmental protection driving its adoption. Technological advancements that have decreased the cost and increased the size of large wind turbines, and favorable government policies have driven widespread installation of wind farms with large-scale wind turbines of range 1 to 10MW capacity in recent years. In the global Wind Turbines segment, USA, Canada, Japan, China and Europe will drive the 10.3% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$34 Billion will reach a projected size of US$67.8 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$13.9 Billion by the year 2026.

Select Competitors (Total 52 Featured):

  • ABB Limited
  • Ameresco, Inc.
  • Ansaldo Energia S.p.A.
  • Bergey WindPower Company
  • Bloom Energy Corporation
  • Canadian Solar Inc.
  • Capstone Green Energy Corporation
  • Caterpillar, Inc.
  • Clarke Energy
  • Cummins, Inc.
  • E.ON SE
  • Emergya Wind Technologies B.V.
  • Flex Energy Solutions
  • FuelCell Energy, Inc.
  • GE Power
  • Huawei Technologies Co., Ltd.
  • Mitsubishi Heavy Industries Ltd.
  • Schneider Electric
  • Siemens AG
  • SMA Solar Technology AG
  • Vestas Wind Systems A/S
  • Wärtsilä Corporation

What`s New for 2022?

  • Global competitiveness and key competitor percentage market shares
  • Market presence across multiple geographies - Strong/Active/Niche/Trivial
  • Online interactive peer-to-peer collaborative bespoke updates
  • Access to the digital archives
  • Complimentary updates for one year

Table of Contents

I. METHODOLOGYII. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
  • Impact of COVID-19 Pandemic and Looming Global Recession: 2020 Marked as a Year of Disruption & Transformation
  • World Economic Growth Projections (Real GDP, Annual % Change) for 2020 through 2022
  • COVID-19 Impact, Market Reset & the New Normal: Beyond the Current Challenges, The Pandemic Will Fuel Energy Transition
  • Recommendations for the Power & Energy Sector in the Post-Pandemic Era
  • The Pandemic Speeds up Demand Side Management Application through DERs
  • Distributed Generation: A Prelude
  • Types of Distributed Generation Resources
  • Major Distributed Generation Technologies with Typical Installed Capacity Range
  • Categorization of Distributed Generation Technologies by Capacity Installations
  • Fuel Cells
  • Solar Photovoltaic (PV) Systems
  • Distributed Wind Turbines
  • Gas Turbines
  • Reciprocating Engines
  • Microturbines
  • Microhydroelectric Generators
  • Distributed Power Generation: A Game Changer for the Electric Power Industry
  • Solar Photovoltaic Technology Leading the Growth Run
  • Commercial Segment: Largest End Use Market
  • Europe: The Largest Regional Market
  • Developing Regions Exhibit Fast Paced Growth
  • World Distributed Generation Market (2021 & 2027): Percentage Breakdown of Revenues for Developed and Developing Regions
  • World Distributed Generation Market: Geographic Regions Ranked by CAGR (Revenues) for 2020-2027: China, Asia-Pacific, Latin America, Middle East, Africa, Europe, USA, Canada, and Japan
  • Key Trends in the Distributed Energy Resources Market
  • Major Factors Driving Deployment of Distributed Generation in Developed and Developing Economies
  • Environmental Benefits
  • Utility Benefits
  • Reliability and Energy Security Benefits
  • Grid Expansion and Equipment Benefits
  • Favorable Government Regulations and Policies: Critical for Market Penetration
  • Domestic Targets for Greenhouse Gas Emissions of Select Regions/Countries
  • Distributed Solar: The High Growth Segment
  • Global Distributed PV Capacity Growth (in GW) by End-Use for the Period 2007-12, 2012-18 and 2019-24
  • Distributed Wind Power Becoming a More Accessible Option for Farmers in the US
  • US Distributed Wind Annual Capacity in MW for 2014-2018
  • Growing Interest in Distributed Fuel Cell Generation Systems to Benefit Stationary Fuel Cells
  • SOFCs: Ideal for Distributed Power Generation
  • Natural Gas Offers Significant Opportunities in Distributed Generation of Electricity
  • Reciprocating Combustion Engines (RCEs) Apt for Flexible Peaking
  • Growing Prominence of Distributed Power Generation Benefits Market Prospects for Combustion Turbines
  • Distributed Power Technologies: Brief Details on Power Technology, Size Range, Power Efficiency Range, Fuel Options and Applications
  • Micro Turbines Witness Increasing Deployment in Distributed Energy Generation
  • Competitive Scenario
  • Recent Market Activity
  • Select Global Brands
  • Distributed Generation (DG) - Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
  • Robust Demand for Electricity Closer to the Point of Consumption Drives Proliferation of DG Technologies
  • Projected Global Demand for Electricity (MWh): 2015, 2020, 2025, 2030 & 2035
  • Global Primary Energy Consumption (Billion toe): Growth Trajectory for the Period 1990-2040
  • Global Energy Consumption (Billion toe) by Country/Region (1995, 2017 and 2040): Breakdown for USA, China, India, Russia, Brazil, EU, Middle East and Rest of World
  • Estimated Global Power Generation Infrastructure Requirement (in US$ Billion) for China, India, Latin America, and North America over the Period 2010-2030
  • Inefficiencies in Traditional Power Generation Model: Foundation for Market Growth
  • High DG Penetration in the Long Run to Lead to Utility Companies’ ‘Death Spiral’
  • Growing Focus on Renewable Energy: A Strong Growth Driver
  • Leading Wind Power Countries Worldwide: Ranking Based on Key Wind Power Facts
  • Global Investments (US$ Billion) in Renewable Energy by Source: 2018
  • World Installed Base of Wind Energy (in Megawatts) by Geographic Region: 2018, 2021 & 2024
  • Smart Grids to Complement Integration of DG Resources in Electric Utility Network
  • Innovative Application of Smart Grid in Enabling Energy Security
  • Distributed Generation: A Key Enabler of Smart Cities
  • Number of Smart Cities Worldwide by Geographic Region (2025E)
  • Microgrids and Distributed Generation Transform Electricity Management Forever
  • Global Distributed Generation Capacity in Microgrids by Type (2021): Percentage Breakdown of Capacity Installations for Diesel Generators, Fuel cells, Natural Gas Generators, Small Wind Turbines, Solar PV Systems, and Others
  • DG Prosumers Continue to Depend on Utility Grids, Equitable Cost Sharing a Major Priority
  • Virtual Power Plants (VPPs): The DG Technology with Tremendous Growth Potential
  • Affordable, Efficient Energy Storage Technologies to Magnify the Disruptive Effect of DG
  • Commercialization of Stationary Fuel Cells to Revolutionize DG Market
  • Solar PV Attains Grid Parity: A Major Milestone for DG
  • Surging Demand from Telecom Network Operators Augurs Well for the DG Market
  • Favorable Demographic and Urbanization Trends Strengthens Market Prospects
  • World Population by Geographic Region (2000-2050) (in Millions)
  • Rapid Urbanization: A Mega Growth Driver for Distributed Generation
  • World Population Urbanization Rate (%) by Region/Country: 2016 & 2040
  • Key Challenges Hampering Large Scale Deployment of Distributed Generation
  • Technical Barriers
  • Lower Energy-Efficiency, Higher Costs of DG Equipment
4. GLOBAL MARKET PERSPECTIVEIII. MARKET ANALYSIS
UNITED STATES
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • Challenging Times Ahead for US Utilities as Distributed Generation Market Surges Ahead
  • US Distributed Generation Capacity by Resources (2021): Percentage Breakdown of Capacity for Coal, Gas, Renewable Energy Resources, and Others
  • Increasing Adoption of DG in the US
  • Wholesale Distributed Generation Market Poised to Witness Robust Growth
  • The United States: A Key Market for Solar PV based Distributed Generation
  • Cumulative Installed Solar PV Capacity (in MWdc) in the US for Years 2014, 2017 and 2020
  • US Annual Solar PV Installations (in MWdc) for Years 2010, 2015 and 2020
  • COVID-19 Crisis Puts Tremendous Pressure on the US Solar Industry
  • Lucrative Incentives and Supportive Policy Driving New York’s Community Solar Capacity
  • Corporate Procurement and Community Solar Model Amplify Non-Utility and Non-Residential Distributed Generation Market
  • Non-Residential Solar PV Installations (in MWdc) for Years 2015, 2020 and 2025
  • Corporate Solar Capacity in the US: Installed Capacity (in MW) for Select Companies in H1 2020
  • Residential Segment Characterized by Continued Diversification
  • Residential Solar PV Installations (in MWdc) for Years 2015, 2020 and 2025
  • Falling Prices to Accelerate Market Expansion of Solar Distributed Generation
  • Solar PV Prices (in $/Watt) in the US for Years 2010 through 2020
  • Prices of Residential Solar PV System by Segment (in $/Watt) for 2014, 2017 and 2020
  • Mixed Prospects for Distributed Wind Power Market in the US
  • US Distributed Wind Systems Market with 2014 and 2030 Targets for Levelized Cost of Energy, Capacity Factor, and Average Installed Cost
  • US Manufacturers to Leverage Innovation to Capture a Slice of the Global Distributed Wind Market
  • High CAPEX Continues to Constrain Fuel Cells Market
  • DERMS Market to Grow in Sync with DG Penetration
CANADA
  • Brief Market Overview
JAPAN
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)
  • Focus on Renewable Power to Spur Growth of Japan’s Distributed Wind Power Market
CHINA
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
EUROPE
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
  • Germany: Biggest Electricity as well as Distributed Energy Market in Europe
FRANCE
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)
GERMANY
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)
ITALY
UNITED KINGDOM
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)
SPAINRUSSIAREST OF EUROPE
ASIA-PACIFIC
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
  • Developing Asian Countries Offer Significant Growth Opportunities
  • Indonesia: Strong Business Case for Small Scale Distributed Power Generation
  • Thailand: Government Support Pivotal in Driving Adoption of DG Technologies
AUSTRALIA
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Australia for 2022 (E)
INDIA
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in India for 2022 (E)
SOUTH KOREAREST OF ASIA-PACIFIC
LATIN AMERICA
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Latin America for 2022 (E)
MIDDLE EAST
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Middle East for 2022 (E)
AFRICA
  • Distributed Generation (DG) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Africa for 2022 (E)
IV. COMPETITION
  • Total Companies Profiled: 52

Companies Mentioned

A selection of companies mentioned in this report includes:

  • ABB Limited
  • Ameresco, Inc.
  • Ansaldo Energia S.p.A.
  • Bergey WindPower Company
  • Bloom Energy Corporation
  • Canadian Solar Inc.
  • Capstone Green Energy Corporation
  • Caterpillar, Inc.
  • Clarke Energy
  • Cummins, Inc.
  • E.ON SE
  • Emergya Wind Technologies B.V.
  • Flex Energy Solutions
  • FuelCell Energy, Inc.
  • GE Power
  • Huawei Technologies Co., Ltd.
  • Mitsubishi Heavy Industries Ltd.
  • Schneider Electric
  • Siemens AG
  • SMA Solar Technology AG
  • Vestas Wind Systems A/S
  • Wärtsilä Corporation