Global Distributed Generation Market Is Estimated To Witness High...

Global Distributed Generation Market Is Estimated To Witness High Growth Owing To Increasing Demand for Renewable Energy Sources & Government

Posted 2023-10-09 13:38:52

The Global Distributed Generation Market is estimated to be valued at US$ 83.9 billion in 2021 and is expected to exhibit a CAGR of 10.43% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The Distributed Generation market refers to the generation of electricity from smaller-scale power systems located near the point of consumption. It includes a wide range of technologies such as solar photovoltaic, wind turbines, fuel cells, and microturbines. These decentralized power systems provide numerous benefits, including reduced transmission losses, improved grid reliability, and increased utilization of renewable energy sources. Moreover, distributed generation systems also offer energy independence to end-users, especially in remote areas. The demand for distributed generation is driven by the increasing need for reliable and clean energy sources and favorable government policies and incentives supporting the deployment of distributed energy resources.

Market Dynamics:
The growth of the Distributed Generation market can be attributed to two main drivers. Firstly, the increasing demand for renewable energy sources is driving the adoption of distributed generation systems. These systems enable the generation of electricity from renewable sources such as solar and wind, thereby reducing greenhouse gas emissions and dependence on finite fossil fuel resources. Moreover, the declining costs of renewable energy technologies and the improving efficiency of distributed generation systems are further fueling their adoption.

Secondly, government initiatives towards sustainable development and the promotion of clean energy are also contributing to the growth of the distributed generation market. Governments across the globe are implementing favorable policies, regulations, and incentives to encourage the deployment of distributed energy resources. These initiatives aim to reduce carbon emissions, enhance energy security, and promote energy resilience.

SWOT Analysis

Strength: The distributed generation market is driven by the rising demand for electricity in remote areas and the increasing focus on renewable energy sources. The market offers benefits such as reduced transmission losses, improved grid stability, and enhanced energy security.

Weakness: One of the weaknesses of the distributed generation market is the high initial investment required for setting up distributed generation systems. Another weakness is the lack of standardized interconnection and integration policies, which may hinder market growth.

Opportunity: The distributed generation market has opportunities for growth due to supportive government policies and incentives promoting renewable energy adoption. There is also increasing potential for hybrid systems, combining distributed generation with energy storage technologies, to improve energy management and grid resilience.

Threats: The distributed generation market is facing threats from regulatory challenges and uncertainties, which may impact investor confidence and hinder market growth. Another threat is the competition from centralized power generation sources, especially in regions with already established infrastructure.

Key Takeaways

The global Distributed Generation Market Share is expected to witness high growth, exhibiting a compound annual growth rate (CAGR) of 10.43% over the forecast period of 2022-2030. This growth is driven by increasing electricity demand in remote areas and the focus on renewable energy sources.

In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the distributed generation market. This can be attributed to the rising energy demand, increasing investments in renewable energy projects, and supportive government initiatives in countries like China and India.

Key players operating in the distributed generation market include Siemens AG, General Electric, Schneider Electric SE, Mitsubishi Motors Corporation, Capstone, Activ Solar GmbH, Ballard Power Systems Inc., Fortis Wind Energy, GE Power & Water, Juwi Inc., Sharp Corporation, Cummins Inc., and Caterpillar Inc. These key players contribute to the market growth through their technological innovations, strategic partnerships, and geographic expansion efforts.