The global distributed energy generation market was valued at USD 263.5 Bn in 2020 and is expected to reach USD 532.3 Bn by 2027, with a growing CAGR of 10.6% during the forecast period.
Solar panels and combined heat and power are examples of distributed generation technologies that create energy at or near the point of use. Distributed generation can service a single structure, such as a home or company, or it can be part of a microgrid (a smaller grid that is also connected to the larger energy delivery system), such as at a big industrial complex, military base, or college campus.
Increasing demand for energy generation due to rising urbanization is expected to boost the distributed energy generation market growth. The growing per capita income in developing countries such as India, China, Brazil, Argentina is poised to increase the urbanization rate in various cities of these countries. For instance, Argentina is one of Latin America's largest economies, with a Gross Domestic Product (GDP) of around USD 400 billion. Additionally, Argentina has abundant energy and agricultural resources. Within the country's 2.8 million square kilometres of land, the upcoming projects include Buenos Aires – Mitre Passenger Railway Line Modernization Project. & Buenos Aires water supply and sanitation with a focus on vulnerable areas that were approved in April & Feb 2021, respectively. Such development projects shall need various energy source for their operations and are poised to foster the demand for distributed energy generation.
Moreover, over the projected period, the distributed energy generation market is expected to be driven by the government policies and GHG emission reduction targets. In addition, increased R&D initiatives for the development of new technologies are likely to boost the distributed energy generation sector growth. For instance, in two energy auctions held on July 8, 2021, Brazil issued contracts for around 984.71 MW of renewable power capacity, according to power sector regulator Aneel. The contracts signed reflect a total investment of BRL 4 billion (USD 761 million/EUR 642 million) in the future.
By Technology
By End-use
By Region
The unique insights provided by this report also include the following:
Based on technology, the solar PV segment accounted for the largest market share for the global distributed energy generation industry owing to increasing demand for renewable energy
Solar PV’s are utilized in producing electricity in order to sell it to the power grid, lighting systems, telecommunications, and for farms for agriculture and livestock. For instance, the upcoming projects such as part of the USD13.6 billion, 5,000MW Mohammed bin Rashid al-Maktoum Solar Park Phase IV in Dubai’s desert, which costs USD 4.295 billion are anticipated to increase the demand for distributed energy generation. It includes the world's highest molten salt tower plant, which will rise 260 metres tall that is expected to generate 100 megawatts of power.
Based on end-use, industrial segment accounted for the largest market share in the overall distributed energy generation market size due to the low cost of product installation and easy access to utility regions
Process and assembly, steam and cogeneration, process heating and cooling, and lighting, heating, and air conditioning for buildings are all examples of how energy is used in the industrial segment of distributed energy generation sector. Basic chemical feedstocks are also consumed by the industrial sector. Renewable technologies provide superior efficiency, energy security, pollution reduction, and robustness than conventional electricity production methods, and governments around the world are developing legislation to boost their implementation of renewable energy projects. Along the entire expanding distributed energy generation industry, digital is becoming increasingly vital. Technology advancements, including as peer-to-peer solutions and blockchain, the integration of different distributed energy resources, smart pricing, and grid interaction are anticipated to shape the future of distributed energy generation market. For instance, In July 2020, ABB introduced analytics software and services that combine operational, engineering, and IT data to provide actionable intelligence.
Based on regions, Asia-Pacific accounted for the largest market share in 2020 owing to growing population & urbanization
Geographically, Asia-Pacific is estimated to dominate the distributed energy generation market during the forecast period. The increased demand for energy as a result of rising population and rapid urbanization in countries like India, China, Indonesia, and Malaysia is expected to be a major driver of the market. China's distributed energy generation sector is predicted to be driven by the country's rising disposable income levels. The upcoming solar projects in Asia-Pacific is anticipated to drive the demand for distributed energy generation. According to China's solar manufacturing association, up to 65 Gigawatts (GW) of solar power capacity will be added in 2021. "Price changes along the solar supply chain will determine utility-scale solar projects in the coming months. Additionally, In India, more than 7000 MW of electricity producing capacity is in the works. India is the third-largest solar power producer in Asia and the fourth largest in the globe. The Indian government now wants to increase solar energy usage to 100 GW by 2022. Currently, the country is only utilising 38% of its overall renewable energy capability. Rajasthan will also be home to the one of the world's largest solar farms.
The report also provides in-depth analysis of distributed energy generation market dynamics such as drivers, restraints opportunities and challenges
Drivers
Restraints
Opportunities
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report.
The outbreak of novel coronavirus has majorly affected the market. The COVID-19 pandemic has slowed the growth of the distributed energy generation market. Throughout the business, there has been a downward trend in demand and price reductions. Various regions, particularly Europe, have been severely impacted, with electricity costs reaching all-time lows in the first quarter of FY2020.Due to the severity of the covid-19, organizations manufacturing department were put on hold. Additionally, on-site installations were put on hold as a result of lockdowns. Due to the global lockdown, manufacturers of solar and wind energy gear are experiencing significant challenges with order execution. For instance, the impact of COVID-19 has been significant in Argentina. During 2020, the country suffered a decline in GDP of ~9 %
The report also provides an in-depth analysis of key trends in distributed energy generation market
The report also provides an in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the distributed energy generation market are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.
Research Methodology
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