Massive Growth in Distributed Generation Market

  • The On-Grid Segment is expected to lead the Distributed Generation Market.
  • The reciprocating engines segment is expected to be the largest in the distributed generation market.
  • Europe is expected to be the leading market for distributed generation.

The global distributed generation market is expected to grow from an estimated $60.04 billion in 2017 to $103.38 billion by 2022, at a CAGR of 11.48% from 2017 to 2022. The market is set to witness growth, due to increasing mandates to reduce global greenhouse gas emissions, decreasing costs of solar technology, and rising demand for electricity from the industrial, commercial, and residential sectors.

The On-Grid Segment is expected to lead the Distributed Generation Market

On-grid systems are cost-effective and convenient to install. The global market for distributed generation facilities that employ grid-tied arrangements have been the highest. Driven by the capability to provide perfect solutions for various end-users and contribution to reduce harmful emissions from fossil fuel power plants, the segment is expected to grow at a decent pace during the forecast period.

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The reciprocating engines segment is expected to be the largest in the distributed generation market

The reciprocating engines segment is expected to be the largest segment of the distributed generation market, by technology, in 2017. Due to their small size, low unit cost, and useful thermal output, these engines are widely used for power generation. Increased combined heat and power installations and the demand for flexible and quick start-up technologies for power generation are the main reasons for a large market share held by the segment.

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Europe expected to be the leading market for distributed generation

In this report, the distributed generation market has been analyzed with respect to five regions, namely, North America, Europe, Asia Pacific, South America, and the Middle East and Africa. The European market is expected to lead the distributed generation market owing to the continued increase in energy consumption mainly from the industrial and commercial sectors, which contributed to the largest demand for distributed generations. The increasing demand for electrical energy due to urbanization and industrialization, as well as rising government mandates to achieve sustainable goals, is likely to drive the market. The demands from the IT and telecommunication sectors are also driving the distributed generation market.

Market Ecosystem:

Distributed generation refers to power generation at the point of consumption. The distributed generation market starts with the manufacturing of basic components of distributed power technologies which include turbines, engines, solar panels, combustion chambers, motors, and catalyst layers. In the later stage, the assembling of distributed generation technologies takes place where all the components are integrated. This equipment is then distributed to various industrial, commercial, and residential end-users where they are commissioned. The leading players in the distributed generation market include  Siemens (Germany), GE (US), Schneider (France), Mitsubishi (Japan), Doosan (South Korea), and Capstone (US).

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Siddhant Patil

Energy & Power Consultant


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