Global Distributed Generation Market to notice investment potential to reach US$ 35.56 Bn by 2025, According to Transparency Market Research
Transparency Market Research has published a new report titled
“Distributed
Generation Market” (Technology: Solar Photovoltaic, CHP, Wind
Turbine, Reciprocating Engines, Micro Turbines, and Fuel Cells;
Application: On-Grid and Off-Grid; End Use: Residentigoooal, Building
& Institutions, Commercial, and Industrial): Global Industry
Analysis, Size, Share, Growth, Trends, and Forecast, 2017–2025.”
According to the report, the global distributed generation market
Y-o-Y investment potential was valued at US$ 15.03 Bn in 2016 and is
estimated to reach US$ 35.56 Bn by 2025, expanding at a modest CAGR
of 8.2% between 2017 and 2025.
In terms of market growth potential as well as Y-o-Y investment potential share, Asia Pacific led the distributed generation in 2016, followed by Europe and North America, by comprising over 95% of the global investment share.
In terms of Y-o-Y investment potential, Asia Pacific is expected to
observe a firm growth in its share during the forecast period, while
there is expected to be a decline in the shares for the Europe and
North America. Expansion in the distributed generation market in Asia
Pacific is primarily ascribed to the expansion of distributed
generation installed capacity and the ever-increasing demand from
industrial and residential end-users and rising demand of power from
off-grid areas. The cost of expansion of electricity grid in off-grid
areas is high which would increase the cost of electricity to the
consumers. Growing installed power generation capacity of renewable
energy based distributed generation in off-grid sectors and CHP
technology based distributed generation in On-grid sector would boost
the Y-o-Y investment potential in Asia-Pacific.
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Asia Pacific shows strong potential for the distributed generation
market in the forecast period due to the high growth in installed
capacity of distributed generation systems, supportive government
policies, growing demand from industrial & residential sectors,
and reduction of carbon emissions from power generation sources in
the region. Popularity of renewable energy based distributed
generation systems which generates low cost and clean energy would
also drive the market for distributed generation in the region. China
and Japan are the major drivers for growth of renewable energy based
distributed generation systems in the region. China has installed
highest solar PV capacity in 2016 around the globe with major
upcoming projects based on solar PV are under construction, which is
projected to raise the cumulative installed solar PV capacity in
upcoming time. Japan has also harnessed floating solar PV technology
to raise its total installed solar PV capacity.
The demand for distributed generation in Europe is high in 2016 and
mostly accounted by countries such as the Netherlands, Denmark,
Russia, Spain, and Germany. The Western Europe is comparatively
mature market than Eastern Europe with higher demand for distributed
generation as well as high renewable energy based distributed
generation systems such as solar PV and wind turbines technologies,
the off-grid application segment is anticipated to show comparatively
higher promise in terms of growth potential.
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North America and Europe are considered as mature markets due to the
presence of well-established renewable energy infrastructure,
government incentives on use of renewable energy based electricity,
stringent environmental emission regulations, and to connect off-grid
and natural calamities affected areas with small mini/micro grids
running on power produced from distributed generation systems, which
enables major players in distributed generation systems in these
regions to establish their presence in their respective local
markets.
The U.S. accounts for the major share of the distributed generation
manufacturers market in North America. The aging power transmission &
distribution infrastructure, growing popularity of renewable energy
distributed generation systems in off-grid and bad-grid areas,
growing installations of fuel cells in combination with CHP systems
coupled with awareness among the consumers regarding distributed
generation in the region, is primarily viewed as a driver for the
overall distributed generation market in North America.
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Distribution generation market in Middle East & Africa is
projected to grow during the forecast period owing to high reserves
of natural gas in the region which would encourage the power
producers to shift the focus on natural gas for power production in
forecasted period. Gas turbines in combination with CHP technology
would produce surplus power in less price. This would also help in
providing cheap and affordable district cooling service to buildings
& institutions during summer time thus saving huge capital
expenses for cooling services. Most of the off-grid areas in
countries of Sub Saharan Africa do not have access to grid connected
electricity. Small to mid-scale renewable energy based distributed
generation systems are gaining popularity in the Sub Saharan Africa
providing clean and low cost electricity to the consumers. Lack of
grid connected electricity infrastructure in African countries,
growing construction and industrialization activities in GCC
countries, developing economic conditions, growing urbanization in
Africa, and high availability of natural resources in the region with
government support towards use of renewable technologies would boost
the Y-o-Y investment potential for distributed generation market in
Middle East & Africa. Distributed generation market is projected
to grow by the CAGR of 5.9% during the forecasted period.
The Distributed Generation market is still developing in Latin
America. Brazil and Mexico are the major countries having a
significant renewable energy based distributed generation installed
capacity. The market for the distributed generation has a great
potential in the region during the forecasted period.
The cumulative installed capacity of global distributed generation
market is expected to grow at a CAGR of 7.7% in terms of volume.
Major distributed generation systems produces electricity for the
support of the national electricity grid but on other hand it
represent a great investment potential for off-grid sector.
Major players in the distributed generation market include Alstom
S.A., E.ON. SE, Caterpillar Power Plants, Siemens Energy, Doosan Fuel
Cell America, Ballard Power Systems, Bloom Energy, General Electrical
Power, Sharp Corporation, Enercon, Fuel Cell Energy, Rolls-Royce
Power Systems, Mitsubishi Hitachi Power Systems Americas, Inc.,
Capstone Turbine Corporation, and OPRA Turbines BV.
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