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Distributed Generation (DG) - Global Market Trajectory & Analytics

  • ID: 3440904
  • Report
  • May 2021
  • Region: Global
  • 548 pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • ABB Limited
  • Ansaldo Energia S.p.A.
  • Canadian Solar Inc.
  • Cummins, Inc.
  • FuelCell Energy, Inc.
  • Siemens AG

Global Distributed Generation (DG) Market to Reach US$680.2 Billion by the Year 2027


Amid the COVID-19 crisis, the global market for Distributed Generation (DG) estimated at US$266.8 Billion in the year 2020, is projected to reach a revised size of US$680.2 Billion by 2027, growing at a CAGR of 14.3% over the analysis period 2020-2027.Reciprocating Combustion Engines, one of the segments analyzed in the report, is projected to grow at a 13.2% CAGR to reach US$179.1 Billion by the end of the analysis period.After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Fuel Cells segment is readjusted to a revised 13.9% CAGR for the next 7-year period. This segment currently accounts for a 18.8% share of the global Distributed Generation (DG) market.

The U.S. Accounts for Over 27% of Global Market Size in 2020, While China is Forecast to Grow at a 18.6% CAGR for the Period of 2020-2027


The Distributed Generation (DG) market in the U.S. is estimated at US$72 Billion in the year 2020. The country currently accounts for a 26.98% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$151.7 Billion in the year 2027 trailing a CAGR of 18.4% through 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 10.2% and 12.5% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 11.3% CAGR while Rest of European market (as defined in the study) will reach US$151.7 Billion by the year 2027.

Solar Photovoltaic (PV) Segment Corners a 16.4% Share in 2020


In the global Solar Photovoltaic (PV) segment, USA, Canada, Japan, China and Europe will drive the 16.7% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$32.8 Billion in the year 2020 will reach a projected size of US$96.5 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$103.5 Billion by the year 2027, while Latin America will expand at a 19.5% CAGR through the analysis period.

Select Competitors (Total 52 Featured) -

  • ABB Limited
  • AES Distributed Energy
  • Ameresco, Inc.
  • Ansaldo Energia S.p.A.
  • Bergey WindPower Company
  • Bloom Energy Corporation
  • Canadian Solar Inc.
  • Capstone Turbine Corporation
  • Caterpillar, Inc.
  • Clarke Energy
  • Cummins, Inc.
  • E.ON SE
  • 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
  • XZERES Wind Corp.
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • ABB Limited
  • Ansaldo Energia S.p.A.
  • Canadian Solar Inc.
  • Cummins, Inc.
  • FuelCell Energy, Inc.
  • Siemens AG
I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Influencer Market Insights
  • World Market Trajectories
  • 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
  • Reciprocating Engines
  • Fuel Cells
  • Solar Photovoltaic (PV) Systems
  • Distributed Wind Turbines
  • Gas Turbines
  • Microturbines
  • Microhydroelectric Generators
  • Distributed Power Generation: A Game Changer for the Electric Power Industry
  • Solar Photovoltaic Technology Leading the Growth Run
  • Commercial Segment: A High Growth End Use Market
  • Europe: The Largest Regional Market
  • While Developed Regions Remain Primary Revenue Contributors, Developing Regions Exhibit Fast Paced Growth
  • Exhibit 1: World Distributed Generation Market (2019 & 2025): Percentage Breakdown of Revenues for Developed and Developing Regions
  • Exhibit 2: World Distributed Generation Market: Geographic Regions Ranked by CAGR (Revenues) for 2018-2025: China, Asia-Pacific, Europe, USA, Rest of World, Latin America, Canada and Japan
  • Myriad Benefits of Distributed Generation Drives Widespread Adoption
  • 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
  • Global Economic Outlook
  • Exhibit 3: Global Economic Outlook: Real GDP Growth Rates (%) by Country/Region for the Years 2017 through 2020
  • Reciprocating Combustion Engines (RCEs): The largest Segment
  • Distributed Solar: The High Growth Segment
  • Exhibit 4: 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
  • Exhibit 5: 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
  • 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
  • Impact of Covid-19 and a Looming Global Recession
2. FOCUS ON SELECT PLAYERS
  • ABB Limited (Switzerland)
  • AES Distributed Energy (USA)
  • Ameresco, Inc. (USA)
  • Ansaldo Energia S.p.A. (Italy)
  • Bergey WindPower Company (USA)
  • Bloom Energy Corporation (USA)
  • Canadian Solar Inc. (Canada)
  • Capstone Turbine Corporation (USA)
  • Caterpillar, Inc. (USA)
  • Clarke Energy (UK)
  • Cummins, Inc. (USA)
  • E.ON SE (Germany)
  • Flex Energy Solutions (USA)
  • FuelCell Energy, Inc. (USA)
  • GE Power (USA)
  • Huawei Technologies Co., Ltd. (China)
  • Mitsubishi Heavy Industries Ltd. (Japan)
  • Schneider Electric (France)
  • Siemens AG (Germany)
  • SMA Solar Technology AG (Germany)
  • Vestas Wind Systems A/S (Denmark)
  • Wärtsilä Corporation (Finland)
  • XZERES Wind Corp. (USA)
3. MARKET TRENDS & DRIVERS
  • Robust Demand for Electricity Closer to the Point of Consumption Drives Proliferation of DG Technologies
  • Exhibit 6: Projected Global Demand for Electricity (MWh): 2015, 2020, 2025, 2030 & 2035
  • Exhibit 7: Global Primary Energy Consumption (Billion toe): Growth Trajectory for the Period 1990-2040
  • Exhibit 8: 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
  • Exhibit 9: 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 (2018): Ranking Based on Key Wind Power Facts
  • Exhibit 10: Global Investments (US$ Billion) in Renewable Energy by Source: 2018
  • Exhibit 11: 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
  • Microgrids and Distributed Generation Transform Electricity Management Forever
  • Exhibit 12: Global Distributed Generation Capacity in Microgrids by Type (2019): 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
  • Exhibit 13: World Population by Geographic Region (2000-2050) (in Millions)
  • Rapid Urbanization: A Mega Growth Driver for Distributed Generation
  • Exhibit 14: 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 PERSPECTIVE

III. MARKET ANALYSIS

UNITED STATES
  • Challenging Times Ahead for US Utilities as Distributed Generation Market Surges Ahead
  • Exhibit 15: US Distributed Generation Capacity by Technology Type (2019): Percentage Breakdown of Capacity for Coal, Natural Gas, Renewable Energy Resources, and Others
  • 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
  • High CAPEX Continues to Constrain Fuel Cells Market
  • US Manufacturers to Leverage Innovation to Capture a Slice of the Global Distributed Wind Market
  • DERMS Market to Grow in Sync with DG Penetration
CANADA
  • Brief Market Overview
JAPAN
  • Focus on Renewable Power to Spur Growth of Japan’s Distributed Wind Power Market
CHINA

EUROPE
  • Germany: Biggest Electricity as well as Distributed Energy Market in Europe
FRANCE

GERMANY

ITALY

UNITED KINGDOM

SPAIN

RUSSIA

REST OF EUROPE

ASIA-PACIFIC
  • 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

INDIA

SOUTH KOREA

REST OF ASIA-PACIFIC

LATIN AMERICA

ARGENTINA

BRAZIL

MEXICO

REST OF LATIN AMERICA

MIDDLE EAST

IRAN

ISRAEL

SAUDI ARABIA

UNITED ARAB EMIRATES

REST OF MIDDLE EAST

AFRICA

IV. COMPETITION
  • Total Companies Profiled: 52
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • ABB Limited
  • AES Distributed Energy
  • Ameresco, Inc.
  • Ansaldo Energia S.p.A.
  • Bergey WindPower Company
  • Bloom Energy Corporation
  • Canadian Solar Inc.
  • Capstone Turbine Corporation
  • Caterpillar, Inc.
  • Clarke Energy
  • Cummins, Inc.
  • E.ON SE
  • 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
  • XZERES Wind Corp.
Note: Product cover images may vary from those shown
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