The decentralized energy system market size has grown rapidly in recent years. It will grow from$339.91 billion in 2024 to $386.95 billion in 2025 at a compound annual growth rate (CAGR) of 13.8%. The growth during the historic period can be attributed to increasing energy demand, declining costs of renewable energy technologies, the need for enhanced energy security, government incentives, and a growing consumer preference for green energy.
The decentralized energy system market size is expected to see rapid growth in the next few years. It will grow to$643.86 billion in 2029 at a compound annual growth rate (CAGR) of 13.6%. The growth in the forecast period can be attributed to the increasing adoption of electric vehicles, the expansion of smart grids, stricter carbon regulations, decentralization of power markets, rising energy prices, and a growing demand for energy independence. Major trends during this period include the use of blockchain for energy transactions, artificial intelligence (AI)-powered energy management, advanced battery storage solutions, smart inverters, Internet of Things (IoT)-enabled energy devices, integration of hydrogen systems, and the implementation of predictive maintenance tools.
The rising demand for renewable energy is expected to boost the growth of the decentralized energy system market in the future. Renewable energy is produced from natural sources that are continuously replenished, including sunlight, wind, water, geothermal heat, and biomass, providing an environmentally friendly alternative that lowers greenhouse gas emissions. This demand is growing due to increasing environmental concerns and the necessity to reduce greenhouse gases, as renewable energy generates little to no emissions, making it a cleaner and more sustainable substitute for fossil fuels. Decentralized energy systems support renewable energy adoption by enabling local generation of power, which is especially useful in remote or off-grid locations. These systems improve energy resilience by integrating sources like solar and wind, enhancing efficiency, and lessening dependence on centralized grids. For example, in March 2025, the International Renewable Energy Agency (IRENA), a United Arab Emirates-based intergovernmental organization, reported that global renewable energy capacity increased from 3,862,881 megawatts (MW) in 2023 to 4,448,051 megawatts (MW) in 2024. Thus, the growing demand for renewable energy is driving the expansion of the decentralized energy system market.
Leading companies in the decentralized energy systems market are developing advanced technologies, including smart energy solutions, to improve energy efficiency, enable real-time monitoring, and optimize energy distribution within decentralized grids. Smart energy solutions are technology-driven systems that enhance the generation, distribution, and consumption of energy using advanced tools such as the Internet of Things (IoT), artificial intelligence (AI), and renewable energy integration to boost efficiency and sustainability. For instance, in February 2025, ENVIRIA Energy Holding GmbH, a Germany-based renewable energy firm, introduced PeakHive, a smart energy solution that integrates renewable energy sources, storage, and digital management to promote energy independence and sustainability. This solution offers lower energy costs, greater self-sufficiency, and potential revenue streams through innovative leasing models.
In August 2024, Deutz AG, a Germany-based engine manufacturer, acquired Blue Star Power Systems Inc. for an undisclosed sum. Through this acquisition, DEUTZ aims to evolve into a full-service provider of decentralized electricity generation solutions, expanding its footprint in the U.S. energy market and driving profitable growth. Blue Star Power Systems Inc. is a U.S.-based power generation company that delivers customized generator solutions supporting decentralized energy systems across multiple industries.
Major players in the decentralized energy system market are ENGIE SA, Tesla Inc., Siemens AG, General Electric Company, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Duke Energy Corporation, NextEra Energy Inc., Eaton Corporation plc, Nexans S.A., Vattenfall AB, SunPower Corporation, Enel X S.r.l, Enphase Energy, Bloom Energy Corporation, Ballard Power Systems Inc., EDF Group, Doosan Enerbility Co. Ltd, and Peschla + Rochmes GmbH.
North America was the largest region in the decentralized energy system market in 2024. The regions covered in decentralized energy system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the decentralized energy system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
A decentralized energy system is an energy network where power generation and distribution occur locally, often utilizing renewable sources such as solar, wind, or small-scale hydro. Its primary goal is to improve energy security, decrease dependence on centralized grids, and enable more efficient and sustainable energy management by allowing communities or individuals to generate and consume energy on-site. These systems typically incorporate smart technologies and energy storage solutions to optimize both energy production and consumption.
The main types of decentralized energy systems include wind power, hydropower, solar power, combined heat and power (CHP) and other thermal power stations, bioenergy, geothermal energy, and other variants. Wind power involves generating electricity through small-scale wind turbines situated close to where the energy is used, rather than relying on large centralized wind farms. The technologies involved encompass solar photovoltaic, wind turbines, combined heat and power, energy storage, and other innovations. Applications cover various sectors including industries, commercial establishments, large buildings, municipalities, and communities. Key end users include utility providers, independent power producers, microgrid operators, and others.
The decentralized energy system market research report is one of a series of new reports that provides decentralized energy system market statistics, including decentralized energy system industry global market size, regional shares, competitors with a decentralized energy system market share, detailed decentralized energy system market segments, market trends and opportunities, and any further data you may need to thrive in the decentralized energy system industry. This decentralized energy system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The decentralized energy system market consists of sales of solar panels, wind turbines, battery storage systems, inverters, microgrid controllers, smart meters, energy management software, and other related hardware used for local energy generation and distribution. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
The decentralized energy system market size is expected to see rapid growth in the next few years. It will grow to$643.86 billion in 2029 at a compound annual growth rate (CAGR) of 13.6%. The growth in the forecast period can be attributed to the increasing adoption of electric vehicles, the expansion of smart grids, stricter carbon regulations, decentralization of power markets, rising energy prices, and a growing demand for energy independence. Major trends during this period include the use of blockchain for energy transactions, artificial intelligence (AI)-powered energy management, advanced battery storage solutions, smart inverters, Internet of Things (IoT)-enabled energy devices, integration of hydrogen systems, and the implementation of predictive maintenance tools.
The rising demand for renewable energy is expected to boost the growth of the decentralized energy system market in the future. Renewable energy is produced from natural sources that are continuously replenished, including sunlight, wind, water, geothermal heat, and biomass, providing an environmentally friendly alternative that lowers greenhouse gas emissions. This demand is growing due to increasing environmental concerns and the necessity to reduce greenhouse gases, as renewable energy generates little to no emissions, making it a cleaner and more sustainable substitute for fossil fuels. Decentralized energy systems support renewable energy adoption by enabling local generation of power, which is especially useful in remote or off-grid locations. These systems improve energy resilience by integrating sources like solar and wind, enhancing efficiency, and lessening dependence on centralized grids. For example, in March 2025, the International Renewable Energy Agency (IRENA), a United Arab Emirates-based intergovernmental organization, reported that global renewable energy capacity increased from 3,862,881 megawatts (MW) in 2023 to 4,448,051 megawatts (MW) in 2024. Thus, the growing demand for renewable energy is driving the expansion of the decentralized energy system market.
Leading companies in the decentralized energy systems market are developing advanced technologies, including smart energy solutions, to improve energy efficiency, enable real-time monitoring, and optimize energy distribution within decentralized grids. Smart energy solutions are technology-driven systems that enhance the generation, distribution, and consumption of energy using advanced tools such as the Internet of Things (IoT), artificial intelligence (AI), and renewable energy integration to boost efficiency and sustainability. For instance, in February 2025, ENVIRIA Energy Holding GmbH, a Germany-based renewable energy firm, introduced PeakHive, a smart energy solution that integrates renewable energy sources, storage, and digital management to promote energy independence and sustainability. This solution offers lower energy costs, greater self-sufficiency, and potential revenue streams through innovative leasing models.
In August 2024, Deutz AG, a Germany-based engine manufacturer, acquired Blue Star Power Systems Inc. for an undisclosed sum. Through this acquisition, DEUTZ aims to evolve into a full-service provider of decentralized electricity generation solutions, expanding its footprint in the U.S. energy market and driving profitable growth. Blue Star Power Systems Inc. is a U.S.-based power generation company that delivers customized generator solutions supporting decentralized energy systems across multiple industries.
Major players in the decentralized energy system market are ENGIE SA, Tesla Inc., Siemens AG, General Electric Company, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Duke Energy Corporation, NextEra Energy Inc., Eaton Corporation plc, Nexans S.A., Vattenfall AB, SunPower Corporation, Enel X S.r.l, Enphase Energy, Bloom Energy Corporation, Ballard Power Systems Inc., EDF Group, Doosan Enerbility Co. Ltd, and Peschla + Rochmes GmbH.
North America was the largest region in the decentralized energy system market in 2024. The regions covered in decentralized energy system report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the decentralized energy system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
A decentralized energy system is an energy network where power generation and distribution occur locally, often utilizing renewable sources such as solar, wind, or small-scale hydro. Its primary goal is to improve energy security, decrease dependence on centralized grids, and enable more efficient and sustainable energy management by allowing communities or individuals to generate and consume energy on-site. These systems typically incorporate smart technologies and energy storage solutions to optimize both energy production and consumption.
The main types of decentralized energy systems include wind power, hydropower, solar power, combined heat and power (CHP) and other thermal power stations, bioenergy, geothermal energy, and other variants. Wind power involves generating electricity through small-scale wind turbines situated close to where the energy is used, rather than relying on large centralized wind farms. The technologies involved encompass solar photovoltaic, wind turbines, combined heat and power, energy storage, and other innovations. Applications cover various sectors including industries, commercial establishments, large buildings, municipalities, and communities. Key end users include utility providers, independent power producers, microgrid operators, and others.
The decentralized energy system market research report is one of a series of new reports that provides decentralized energy system market statistics, including decentralized energy system industry global market size, regional shares, competitors with a decentralized energy system market share, detailed decentralized energy system market segments, market trends and opportunities, and any further data you may need to thrive in the decentralized energy system industry. This decentralized energy system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The decentralized energy system market consists of sales of solar panels, wind turbines, battery storage systems, inverters, microgrid controllers, smart meters, energy management software, and other related hardware used for local energy generation and distribution. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Decentralized Energy System Market Characteristics3. Decentralized Energy System Market Trends And Strategies4. Decentralized Energy System Market - Macro Economic Scenario Including The Impact Of Interest Rates, Inflation, Geopolitics, Trade Wars and Tariffs, And Covid And Recovery On The Market32. Global Decentralized Energy System Market Competitive Benchmarking And Dashboard33. Key Mergers And Acquisitions In The Decentralized Energy System Market34. Recent Developments In The Decentralized Energy System Market
5. Global Decentralized Energy System Growth Analysis And Strategic Analysis Framework
6. Decentralized Energy System Market Segmentation
7. Decentralized Energy System Market Regional And Country Analysis
8. Asia-Pacific Decentralized Energy System Market
9. China Decentralized Energy System Market
10. India Decentralized Energy System Market
11. Japan Decentralized Energy System Market
12. Australia Decentralized Energy System Market
13. Indonesia Decentralized Energy System Market
14. South Korea Decentralized Energy System Market
15. Western Europe Decentralized Energy System Market
16. UK Decentralized Energy System Market
17. Germany Decentralized Energy System Market
18. France Decentralized Energy System Market
19. Italy Decentralized Energy System Market
20. Spain Decentralized Energy System Market
21. Eastern Europe Decentralized Energy System Market
22. Russia Decentralized Energy System Market
23. North America Decentralized Energy System Market
24. USA Decentralized Energy System Market
25. Canada Decentralized Energy System Market
26. South America Decentralized Energy System Market
27. Brazil Decentralized Energy System Market
28. Middle East Decentralized Energy System Market
29. Africa Decentralized Energy System Market
30. Decentralized Energy System Market Competitive Landscape And Company Profiles
31. Decentralized Energy System Market Other Major And Innovative Companies
35. Decentralized Energy System Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Decentralized Energy System Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on decentralized energy system market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for decentralized energy system ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The decentralized energy system market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) By Type: Wind Power; Hydropower; Solar Power; Combined Heat And Power (CHP) And Other Thermal Power Stations; Bioenergy; Geothermal Energy; Other Types2) By Technology: Solar Photovoltaic; Wind Turbines; Combined Heat And Power; Energy Storage; Other Technologies
3) By Applications: Industries; Commercial; Large Buildings; Municipalities; Communities; Other Applications
4) By End User: Utility Providers; Independent Power Producers; Microgrid Operators; Other End Users
Subsegments:
1) By Wind Power: Onshore Wind; Small or Micro Wind Turbines; Offshore Wind2) By Hydropower: Small Hydropower; Mini Hydropower; Micro Hydropower
3) By Solar Power: Solar Photovoltaic (PV); Concentrated Solar Power
4) By Combined Heat And Power (CHP) And Other Thermal Power Stations: Natural Gas Combined Heat And Power (CHP); Waste Heat Recovery Systems; Biomass Combined Heat And Power (CHP); Fuel Cell-Based Combined Heat And Power (CHP); Coal-Based Combined Heat And Power (CHP)
5) By Bioenergy: Biogas; Waste-to-Energy; Biomass (Solid); Biofuels (Liquid)
6) By Geothermal Energy: Binary Cycle Power Plants; Enhanced Geothermal Systems; Flash Steam Power Plants; Dry Steam Power Plants
7) By Other Types: Fuel Cells; Ocean Energy; Hybrid Renewable Systems
Key Companies Profiled: ENGIE SA; Tesla Inc.; Siemens AG; General Electric Company; Schneider Electric SE
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
- ENGIE SA
- Tesla Inc.
- Siemens AG
- General Electric Company
- Schneider Electric SE
- Honeywell International Inc.
- ABB Ltd.
- Duke Energy Corporation
- NextEra Energy Inc.
- Eaton Corporation plc
- Nexans S.A.
- Vattenfall AB
- SunPower Corporation
- Enel X S.r.l
- Enphase Energy
- Bloom Energy Corporation
- Ballard Power Systems Inc.
- EDF Group
- Doosan Enerbility Co. Ltd
- Peschla + Rochmes GmbH.