Distributed Power Generation Market Growth, Size, Share, Trends, and Forecast 2032

The global Distributed Power Generation market size accrued earnings worth approximately USD 321.46 Billion in 2023 and is predicted to gain revenue of about USD 426.71 Billion by 2032, is set to record a CAGR of nearly 5.5% over the period from 2024 to 2032. The study includes drivers and restraints for the distributed power generation market along with the impact they have on the demand over the forecast period. Additionally, the report includes the study of opportunities available in the distributed power generation market on a global level.

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Distributed Power Generation Market Overview

Distributed power generation, also known as a decentralized generation, is an alternative reliable and secured power source generated out of various less damaging sources. However, distributed generation refers to power generation at the point of consumption. Generating power on-site, rather than centrally, eliminates the cost, difficulty, interdependencies, and inefficiencies linked with transmission and distribution. The emergent rate of distributed power generation operation also suggests that unusual energy based solutions will play a gradually more important role in the smart grid and modern utility. In various cases, distributed power generators can provide lower-cost electricity and higher power reliability and security with less environmental cost than can traditional power generators.

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Distributed Power Generation Market Growth Dynamics

Distributed power generation market is primarily driven by growth in decentralized energy production. Rising interest regarding expenditure obtain during installation of transmission lines for power generation of large-scale power plants is expected to enhance industry growth. High maintenance and operating cost may hamper the growth of distributed power generation market. The global distributed power generation market offers new growth opportunities, due to federal and state regulatory support of “green” energy, and rapid technological developments of distributed generation in the utility system.

In order to give the users of this report a comprehensive view on the distributed power generation, we have included a detailed competitive scenario and product portfolio of key vendors. To understand the competitive landscape in the market, an analysis of Porter’s Five Forces model for the distributed power generation market has also been included. The study encompasses a market attractiveness analysis, wherein product segments are benchmarked based on their market size, growth rate, and general attractiveness.

Distributed Power Generation Market: Report Scope

Distributed Power Generation Market Segmentation Analysis

Distributed power generation market is segmented on the basis of type, sources and end use. On the basis of type, the global distributed power generation market is segmented into on grid and off-grid. On-grid was the largest type of global distributed power generation market in 2023. Grid-connected installations are mainly used as a durable investment to supply energy for local loads and for the replace of power with utility grids. These are utilized for power generation by a variety of end-users including industries and manufacturing applications.

On the basis of sources, the market is segmented into the fuel cell, microturbines, solar PV, combined heat & power, wind turbines and reciprocating engine. Among these sources, solar PV generator set was the leading segment of the global distributed power generation market in 2023. Due to the declining costs of solar photovoltaic cells, witnessed a significant increase in the installation of solar PVs in recent years. Almost 40% of the total operating costs diesel accounts for telecom operators will initiate adopting distributed energy systems such as microturbines and solar hybrid power systems.

On the basis of end use, the market is segmented into commercial, residential, and industrial. In 2023, the industrial segment was the most attractive end use of the global distributed power generation market. Recyclable from available sources such as heat energy and industrial waste is expected to result in high industry penetration for distributed power generation in commercial and industrial end-use during the forecast year. Price competence is estimated to be an added advantage to residential demand in the sector during the forecast period.

Distributed Power Generation Market Regional Analysis

Based on regional segmentation, Asia Pacific dominated the market of distributed power generation in 2023 and accounted the significant share of the market. The requirement of a reliable grid infrastructure mainly the South East Asian countries, where the population extends across several islands, will constrain the demand for off-grid power systems during the forecast period. In the U.S, rising production of shale gas and tight oil coupled with increasing performance of hydraulic fracturing is expected to open new distributed energy generation market avenues over the forecast period.

The regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Each region has been further segmented into major countries such as the U.S., Canada, Mexico, the U.K., France, Germany, Russia, Poland, China, India, Japan, South Korea, ASEAN, Brazil, and Argentina. This segmentation includes demand for distributed power generation based on type, sources, and end-use in all the regions and countries.

The report covers detailed competitive outlook including the market share and company profiles of the key participants operating in the global market,

• Ansaldo Energia
• Ballard Power Systems
• Bloom Energy
• Capstone Turbine
• Ingersoll-Rand plc
• General Electric Energy LLC
• Sharp Corporation
• JA Solar Holdings Co. Ltd.
• Suntech Power Holdings Co. Ltd.
• Siemens AG
• UTC Power LLC
• and Yingli Green Energy.

This report segments the global distributed power generation market as follows: 

Distributed Power Generation Market: Type Analysis

• On Grid
• Off Grid  

Distributed Power Generation Market: Sources Analysis

• Fuel Cell 
• Micro Turbine
• Solar PV
• Combined Heat & Power  

Distributed Power Generation Market: End-Use Analysis

• Commercial
• Residential
• Industrial 

Distributed Power Generation Market: Regional Analysis

• North America
  • The U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• Middle East and Africa