During the projection period, rising government regulations and goals for reducing greenhouse gas (GHG) emissions will propel the market for distributed energy generation to expand. Because of the advantages of renewable technology, such as energy security, resiliency, and carbon reductions, several states and municipal governments are developing policies to encourage the increased deployment of renewable technologies. Increased R&D efforts to create new technologies are also anticipated to fuel market expansion. DEG systems are also less expensive than conventional power generation methods. As a result, the demand for a clean energy source and the affordability of the products are anticipated to positively affect market growth throughout the foreseeable future. These market trends for distributed energy generation have been noticed across the globe.
COVID-19 IMPACT
Numerous other economic disruptions have been brought on by the COVID-19 epidemic, which has wreaked havoc on the global economy. China, one of the major exporters of DEG goods, has suffered a huge decline in its trading sector due to trade restrictions enacted in several regions of the nation. Market effects are likely if businesses stop making new investments and the government cuts subsidies. However, it is projected that the loosening of limitations, rising energy demand, and increased consumer awareness of green energy will aid in regaining the market.
DRIVING FACTORS
Increased Spending on Research and Development to Move the Market Forward
The U.K., the U.S., Japan, Germany, and China are among the top nations investing in the development of fuel cell technology. The development and improvement of fuel cell-powered cars is the primary focus of international research and development efforts, which will open up prospects in the fuel cell market. However, research and development initiatives for portable power production units, utilities, and unmanned aerial vehicles (UAVs) for the defense industry have greatly increased in recent years. The use of fuel cells to produce electricity has seen an increase in overall investments due to the increased focus on renewable energy sources by governments worldwide.
RESTRAINING FACTORS
Fuel Cell Battery Pices will Constrain the Market
Renewable energy sources will have the fastest growth in the electrical sector, increasing from 24% in 2017 to over 30% of total power consumption by 2023, according to the International Energy Agency (IEA). Solar P.V. is predicted to be followed by wind, hydropower, biofuel, and renewables in that order, as they make up 70% of the increase in global electricity generation over this time. The amount invested in producing renewable energy worldwide in 2017 was USD 750 billion. The usage of batteries for off-grid and grid energy storage has expanded, helped by battery cost reductions, as these technologies gain popularity for power generation. Key participants in the market for improvements in distributed energy generation face significant obstacles for all of these reasons.
SEGMENTATION
By Technology
By technology, the market is segmented into micro-turbines, combustion turbines, micro-hydropower, reciprocating engines, fuel cells, wind turbines, solar P.V. and others. The solar P.V. category dominated the market in 2021. An electrical current is produced when solar rays strike P.V. modules made of semiconductor materials. Due to decreased feed-in tariffs and rising wind turbine installations in China, wind turbine technology will advance rapidly.
By End User Industry
By end user industry, the market is segmented into residential, commercial and industrial. The industrial category dominated the market in 2021. Given that renewable technology offers more efficiency, energy security, pollution reduction, and robustness than conventional power-generating methods, governments worldwide are adopting regulations to encourage its adoption in various applications.
REGIONAL INSIGHTS
North America is projected to hold the largest distributed energy generation market share over the forecast period. Governmental incentives, solar installation policies, and growing environmental concerns are anticipated to impact the market substantially. In addition, the market for distributed power generation in North America has grown due to technological developments that have reduced the cost of producing solar panels and improved efficiency.
On the other hand, Europe distributed energy generation market is anticipated to grow significantly over the forecast period. As more governments set goals for renewable energy and put more supportive policies in place, the regional market for solar P.V. and wind turbines is expected to expand dramatically. By 2030, GHG emissions must be cut by 40%, according to the European Commission. Another common CHP technology in Europe is fuel cells. The demand for CHP systems is increasing in various applications, such as oil and gas production facilities, residential buildings, and other commercial applications, due to its advantages over a single-fueled generator and its low installation cost.
LIST OF KEY COMPANIES PROFILED:
- Vestas, CATERPILLAR
- Capstone Green Energy Corporation
- Doosan Heavy Industries & Construction
- Toyota Tsusho Corporation
- Rolls-Royce plc
- General Electric
- Mitsubishi Electric Corporation
- Schneider Electric
- Siemens
KEY INDUSTRY DEVELOPMENTS:
- January 2021: The Energy Center for Distributed-Energy-Enabled Homes will be unveiled by Schneider Electric. The use of solar power, batteries, E.V. chargers, and whole-home energy management is growing in popularity.
- June 2019: Ameresco finished its 10MW Distributed Energy Security project, which cost US$91 million. This system is capable of withstanding temblor and seismic conditions.
| Attributes | Details |
| Study Period | 2016-2030 |
| Base Year | 2021 |
| Estimated Year | 2023 |
| Forecast Period | 2023-2030 |
| Historical Period | 2016-2020 |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Technology, By End User Industry and By Geography |
| By Technology |
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| By End User Industry |
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| By Region |
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