Distributed Power Generation Market Size (2024 - 2029)

Distributed Power Generation Market Analysis

The distributed power generation market is expected to register a CAGR of more than 8% during the forecasted period.

COVID-19 negatively impacted the market in 2020. Currently, the market has reached pre-pandemic levels.

• Over the medium term, the increasing shift toward renewable distributed power generation, mainly distributed solar PV installation, owing to declining renewable power generation and system costs, coupled with supportive government policies worldwide.
• On the other hand, consumers tend to prefer grid power over off-grid power owing to the low initial investment and no space requirement to generate electricity. This is expected to hamper the growth of the distributed power generation market over the forecast period.
• Nevertheless, the growing environmental concerns, international mandates to curb carbon emissions, and conducive policies by the governments of several countries to install renewable energy sources provide an opportunity for the distribution power generation market.
• Asia-Pacific holds the largest market share and has witnessed increasing energy demand in countries such as China, India, and ASEAN member states. China has a widespread manufacturing sector, which creates a need for power for operations. Thus, distributed power generation is used in this region to supply uninterrupted power.

Distributed Power Generation Industry Segmentation

Distributed energy refers to the on-site generation and utilization of electricity. It is also termed the decentralized generation of electricity. The distributed generation sources typically include solar, wind, waste-to-energy, and combined heat and power. The market for decentralized energy generation is increasing since many countries are opting for distributed generation as a local option for producing electricity in areas that are not connected to the grid.

The distributed power generation market is segmented by technology and geography (North America, Europe, Asia-Pacific, South America, the Middle East, and Africa). By technology, the market is segmented into solar PV, diesel gensets, natural gas gensets, microgrids, and other technologies. The report covers the market size and forecasts for all the major regions. For each segment, market sizing and forecasts have been done based on revenue (USD million).