by Distributed generation involves generating electricity from renewable energy resources such as solar and wind close to the point of consumption. Products such as solar panels, wind turbines, and other distributed energy resources allow businesses and homeowners to produce their own electricity, reducing reliance on traditional centralized power plants. With growing concerns of climate change and rising energy costs, distributed generation provides a greener and more affordable alternative through decentralized power production.
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
The rising shift towards decentralized power generation has been a major driver for the distributed generation market over the past decade. Issues like transmission losses associated with moving power over long distances from centralized plants, coupled with unreliable grids in some parts of the world has encouraged more localized power production through distributed energy resources. Additionally, favorable government policies in many countries offering incentives for adoption of renewable energy has further propelled this shift towards distributed power models. This trend is expected to continue in the coming years supported by technological advancements reducing costs of solar PV and energy storage solutions.
SWOT Analysis
Strength: Distributed generation provides cleaner and more environment friendly power generation as it reduces dependence on fossil fuels. It also reduces transmission and distribution losses as power is generated closer to the point of consumption.
Weakness: Initial installation cost of distributed generation systems like solar panels can be high. Intermittency of renewable sources like solar also poses operational challenges. Maintaining grid stability with high penetration of distributed generation requires advanced technology.
Opportunity: Increasing focus on renewable energy provides growth opportunities for distributed solar PV installations across both commercial and residential sectors. Facilitative government policies towards clean energy adoption can boost the market.
Threats: Fluctuations in raw material prices affect the cost of distributed generation systems. Established utility business models face competition from new market entrants providing distributed energy solutions. Grid integration issues pose technical threats if not addressed properly.
Key Takeaways
The global Distributed Generation Market Demand is expected to witness high growth over the forecast period driven by supportive policies and focus on cleaner sources of energy.
Regional analysis: North America represents the largest and most advanced market for distributed generation currently led by the US. Europe is another major regional market driven by decarbonization commitments of countries. The Asia Pacific region is witnessing fastest growth in distributed solar installations led by China, India and Japan. Developing economies offer huge untapped market potential.
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 innovations to reduce costs and overcome technical challenges associated with high renewable energy integration into electricity grids. Distributed energy resources are expected to play a key role in achieving emissions reductions targets globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
