North America Distributed Power Generation Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | > 7.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Distributed Power Generation Market Analysis
The North American distributed power generation market is expected to record a CAGR of more than 7% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently, the market has reached pre-pandemic levels.
- Over the long term, rising environmental concerns, increasing government policies for incentives and tax benefits for solar panel installation, and the high cost of grid expansion are expected to significantly drive the market.
- However, a reduced tax credit for solar power generation in the United States from 2022 is expected to slightly hamper the growth of the market during the forecast period.
- Commercial and industrial sectors are showing a growing interest in distributed solar power generation due to various economic benefits. Distributed solar power also acts as a constant source of energy to eliminate downtimes and equipment damage due to voltage fluctuations in conventional power grids. This factor is expected to create a huge opportunity for distributed power generation market in the region.
- The United States is expected to dominate the market over rising environmental concerns and economic benefits of domestic distributed power generation.
North America Distributed Power Generation Market Trends
This section covers the major market trends shaping the North America Distributed Power Generation Market according to our research experts:
Solar PV Sector to Witness Significant Growth
- The solar PV sector is expected to witness significant growth during the forecast period. It is the most popular form of distributed power generation due to its relatively low setup cost, declining prices of solar panel manufacturing, and increasing government subsidies.
- Increasing demand for clean energy is one of the primary drivers for the region's distributed solar power generation market. The small-scale solar capacity installations in the United States increased by 5.4 GW in 2021, up by 23% from the 2020 level (4.4 GW). Most of the small-scale solar capacity added in 2021 was installed on homes. Residential installations totaled more than 3.9 GW in 2021, compared to 2.9 GW in 2020.
- Rooftop solar offers the benefits of modern electricity services to households with no access to electricity, thus reducing electricity costs on islands and in other remote locations that are dependent on oil-fired generation and enabling residents and small businesses to generate their electricity.
- Commercial and industrial systems remain the largest growth segment as they are usually more inexpensive and have a relatively stable load profile during the day, which can enable larger savings on electricity bills, depending on the policy scheme in place.
- According to the survey by the Solar Energy Industries Association (SEIA),conducted in September 2022, the US solar market is expected to nearly triple over the next five years. Recently, the US President Joe Biden also signed the largest climate bill in the country, which may further boost the growth of the country's solar energy market.
- Therefore, such factors are expected to drive the North American distributed power generation market during the forecast period.
United States is Expected to Dominate the Market
- The United States dominated the North American distributed power generation market in 2021. The country is expected to continue its dominance in the coming years as well. The United States holds vast potential for the expansion of distributed energy systems (DES), notably in the form of off-grid and residential solar. Inefficiencies in the power grid infrastructure, power supply shortages, and the scalability of decentralized technology pave the way for the deployment in the country.
- California leads the distributed solar PV sector in the country, with more than 1,000 MW residential solar PV installations in 2021. The state has a total residential installed capacity of over 5,000 MW.
- Different states have set different goals to increase their individual renewable energy targets. For example, Hawaii has set a 100% renewable target by 2045, while Arizona has set a 45% renewable by 2030 and 100% clean energy by 2045. These individual targets are expected to help further boost the country's distributed solar power generation market.
- In 2021, the new solar photovoltaic capacity installations in the United States reached approximately 23.6 gigawatts. Solar had the largest share of new electricity-generating capacity in the country.
- In November 2021, Orsted and Eversource selected Siemens Energy to supply transmission system for a 924-MW Offshore Wind Farm in the United States. The plant is located more than 30 miles east of Montauk Point, New York, and will generate clean energy to power nearly 600,000 homes in New York. It is expected to be operational in 2025.
- In May 2022, Green Lantern Solar developed a 500-kW solar project in Weathersfield, Vermont. The project will supply clean energy to a local retirement community in Vermont. The solar project is estimated to generate approximately USD 150,000 annually in credits divided among the off-takers.
- Hence, due to such developments, the United States is expected to dominate the North American distributed power generation market during the forecast period.
North America Distributed Power Generation Industry Overview
North America's distributed power generation market is fragmented. Some of the major companies (in no particular order) include Caterpillar Inc., Total SA, Seimens AG, Schneider Electric SE, and Sunrun Inc.
North America Distributed Power Generation Market Leaders
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Caterpillar Inc.
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Total SA
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Seimens AG
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Schneider Electric SE
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Sunrun Inc
*Disclaimer: Major Players sorted in no particular order
North America Distributed Power Generation Market News
- In October 2022, LONGi, a leading solar technology company, announced its plan to expand its presence in Canada. As part of the expansion, the company is introducing its flagship distributed solar module, the Hi-MO 5 54-cell module, to the Canadian residential and commercial sector.
- In May 2022, Hanwha Q Cells announced its plans to build a 1.4 GW solar panel factory in the United States. The company also plans to invest USD 320 million in the expansion plan, of which USD 170 million will be devoted to constructing a 1.4 GW factory in the United States.
North America Distributed Power Generation Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Market Dynamics
4.4.1 Drivers
4.4.2 Restraints
4.5 Supply Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitutes Products and Services
4.6.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Technology
5.1.1 Solar PV
5.1.2 Wind
5.1.3 Combined Heat and Power (CHP)
5.1.4 Other Technologies
5.2 Geography
5.2.1 United States
5.2.2 Canada
5.2.3 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Total SA
6.3.2 Caterpillar Inc.
6.3.3 Ballard Power Systems Inc.
6.3.4 Total SA
6.3.5 Seimens AG
6.3.6 Toshiba Fuel Cell Power Systems Corporation
6.3.7 Sunrun Inc.
6.3.8 Capstone Turbine Corporation
6.3.9 Cummins Inc.
6.3.10 Schneider Electric SE
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Distributed Power Generation Industry Segmentation
Distributed energy generation refers to various technologies that generate electricity at or near its place of use, such as solar panels and combined heat and power.
The North American distributed power generation market is segmented by type. By technology, the market is segmented by solar PV, wind, combined heat and power (CHP), and other technologies. For each segment, the installed capacity and forecasts have been done based on gigawatts (GW).
| Technology | |
| Solar PV | |
| Wind | |
| Combined Heat and Power (CHP) | |
| Other Technologies |
| Geography | |
| United States | |
| Canada | |
| Rest of North America |
North America Distributed Power Generation Market Research FAQs
What is the current North America Distributed Power Generation Market size?
The North America Distributed Power Generation Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)
Who are the key players in North America Distributed Power Generation Market?
Caterpillar Inc. , Total SA , Seimens AG , Schneider Electric SE and Sunrun Inc are the major companies operating in the North America Distributed Power Generation Market.
What years does this North America Distributed Power Generation Market cover?
The report covers the North America Distributed Power Generation Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the North America Distributed Power Generation Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Distributed Power Generation Industry Report
Statistics for the 2024 North America Distributed Power Generation market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Distributed Power Generation analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
