Distributed Generation Market Size, Share, Growth Analysis, By Technology(Fuel Cells, Micro-Turbines), By Application(On-Grid, and Off-Grid.), By End User(Commercial, Industrial) - Industry Forecast 2024-2031

Distributed Generation Market size was valued at USD 83.9 billion in 2019 and is poised to grow from USD 92.68 billion in 2023 to USD 204.6 billion by 2031, growing at a CAGR of 10.43% in the forecast period (2024-2031).

The market is highly competitive owing to the increasing competition at the level as the market is leading towards the lowering of the technological cost. The companies are investing in research and development to innovate new technologies. 'General Electric', 'Siemens AG', 'ABB Ltd.', 'Schneider Electric SE', 'Mitsubishi Electric Corporation', 'Wartsila Corporation', 'Capstone Turbine Corporation', 'Cummins Inc.', 'Caterpillar Inc.', 'Vestas Wind Systems A/S', 'Rolls-Royce Holdings plc', 'Doosan Fuel Cell America Inc.', 'Ballard Power Systems Inc.', 'Bloom Energy Corporation', 'EnSync Energy Systems', 'Ameresco Inc.', 'Northern Power Systems Corporation', 'Sharp Corporation', 'SunPower Corporation', 'First Solar Inc.'

That over duration of the forecast period, the market is anticipated to be driven by rising awareness of environmental awareness, escalating government regulations and goals for reducing greenhouse gas (GHG) emissions, and growing energy demand. Increased R&D efforts for the creation of new technologies are also anticipated to support market expansion.

For many nations around the world, the supply of power in rural areas is still a significant challenge. Due to the limitations on the ability to transmit power where and when it is needed, the economic development of already developed or developing areas outpaces the extension of the electrical supply in rural areas and with other regions experiencing the unavailability of energy. As a result, it was necessary to make local options for electricity transmission available. Distributed energy generation system adoption has so benefited greatly from these circumstances. Furthermore, market growth is expected as a consequence of the energy loss from centralised power sources. Due to inefficiencies in the transmission process driven on by the electricity's long road, the electricity generated from centralised sources like hydropower, nuclear power, coal, and natural gas tends to lose energy. While power produced by distributed systems has good power quality. However, the main factor impeding market growth is the reluctance to embrace dispersed generation technology. This is due to the fact that these systems require a lot of room and are frequently placed close to the end-user, a concept that is not widely accepted by users. These systems also have poor aesthetic appeal and raise issues with land use.

It is anticipated that North America will have a high growth rate during the forecast period. It is expected that the huge demand for wind energy in North America and the quickly rising demand for solar energy among commercial and industrial units may fuel the demand for distributed generation technologies.