by Distributed generation involves producing electricity near the place it will be consumed from various smaller-scale and modular sources like solar panels, small wind turbines, fuel cells, and diesel back-up generators. This helps meet residential and commercial electricity needs and reduce the burden on large utility-scale power stations. Distributed generation brings benefits like reduced transmission and distribution costs, increased system resilience and reliability, lower greenhouse gas emissions, and greater consumer choice in electricity supply. As more businesses and households look to source power from renewable resources or act as generators to help reduce bills, distributed energy is gaining momentum.
The global Distributed Generation Market is estimated to be valued at US$ 270.46 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the key trends driving growth in the distributed generation market is the rise in adoption of solar photovoltaic (PV) technologies. Solar PVs provide a clean and affordable way to produce electricity on-site at homes, businesses, industries, and off-grid locations. With continued technological advancements and falling solar module prices, the economics of distributed solar are becoming increasingly viable compared to grid power. This has propelled global installed solar PV capacity which is projected to reach over 1,500 gigawatts by 2025 according to some estimates. The proliferation of rooftop and ground-mounted solar distributed generation systems is expected to be a major factor fueling revenue in this market over the forecast period.
Porter’s Analysis
Threat of new entrants: The distributed generation market requires high initial investments in infrastructure and technology which create significant barriers for new companies to enter this market.
Bargaining power of buyers: The buyers in this market includes industrial, commercial and residential end users. Individual buyers have moderate bargaining power since there are many providers but larger industrial and commercial buyers have higher bargaining power to negotiate on price and quality.
Bargaining power of suppliers: The key components and technologies required in distributed generation systems such as solar PV panels, wind turbines, batteries etc have several global suppliers. This gives buyers negotiating power to find alternative suppliers.
Threat of new substitutes: The main substitutes are conventional centralized grid infrastructure. However, distributed generation provides additional benefits like decentralized access, reliability and environmental friendliness which reduce threats from substitutes.
Competitive rivalry: The distributed generation market has the presence of many technology providers, installers and system integrators competing for market share.
Key Takeaways
The global Distributed Generation Market Demand is expected to witness high growth over the forecast period of 2023 to 2030.
Regional analysis: Asia Pacific region is expected to grow fastest due to rising energy demand and increasing investments in renewable energy sources by China, India and other south Asian countries. China currently leads the Asia Pacific Distributed Generation market supported by government subsidies and initiatives for solar and wind energy adoption. North America and Europe are also major markets for distributed generation technologies.
Key players: Key players operating in the Distributed Generation market are Adaptivation, Inc., AbleNet, Inc., Amedia Corporation, Access Ingenuity, LVI Low Vision International, American Thermoform, Cambium Learning, Dolphin Computer Access Ltd., HumanWare Group, ViewPlus, and VFO. These players are focusing on developing innovative products and solutions to strengthen their market position and address the growing needs of industrial, commercial and residential end users globally. Strategic partnerships for technology enhancements and geographical expansion remain key strategies by distributed generation market players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
