Distributed Energy Generation (DEG) Market Size, Share & Trends Report

Distributed Energy Generation (DEG) Market Size, Share & Trends Analysis Report By Technology (Wind turbine, Solar photovoltaic, Reciprocating engines), By Application, By Region, And Segment Forecasts, 2018 - 2025

  • Published Date: Mar, 2018
  • Base Year for Estimate: 2016
  • Report ID: 978-1-68038-027-9
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2015
  • Number of Pages: 109

Industry Outlook

The global distributed energy generation (DEG) market size was valued at USD 168.1 billion in 2016. Incentives and schemes by governments such as feed-in-tariff in Asia Pacific and North America are expected to fuel the demand for DEG systems. Government schemes aim at promoting the installation of these systems in residential, commercial, and industrial applications.

North America DEG market

Electricity generated from the distributed renewable systems is preferred to conventional energy system owing to advantages including lower operating cost and reduced per unit electricity cost. In addition, environmental benefits associated with renewable energy generation are anticipated to stoke the growth of the market.

Rising awareness regarding clean energy resources is likely to augment the demand for distributed energy generation systems. Renewable energy plays a key role in alleviating the rise in greenhouse gas emissions. These systems are more affordable than conventional electricity generation. Thus, the demand for clean energy coupled with the economical pricing of the product is anticipated to positively influence the market over the forecast period.

Recent policies and regulatory development in North America have resulted in the growth of the overall market. Factors such as long-term extension of tax credits in the U.S., successful implementation of energy auctions in Mexico, and provincial renewable energy policy improvement in Canada are resulting in a higher deployment rate of distributed energy generation technologies in the region.

Spiraling the use of solar photovoltaic (PV) rooftop systems for residential and commercial applications is estimated to be one of the key trends stimulating market growth. In addition, the module production costs of solar PV and PV modules have fallen by about 50% in the past few years.

Technology Insights

Demand for the wind turbine technology is poised to register a significant CAGR between 2017 and 2025. Challenging economic conditions and growing budget constraints are projected to restrain the market growth. However, growing environmental concerns are expected to be the key factor contributing to the growth of the market.

The global demand for fuel cell was valued at USD 59.61 billion in 2016 and likely to register a noteworthy during the forecast period. Fuel cells convert chemical energy into electrical energy and have lower emission levels. This segment is anticipated to maintain lead in the market throughout the forecast period.

Prices of solar PV have declined since 2008 by 80% and are expected to decline further and policies and renewable energy targets have increased since 2014, which, in turn, is estimated to augment the distributed energy generation market.

Application Insights

Rising electricity costs and frequent outages issues, especially in rural and underdeveloped areas are projected to have a positive impact on the market. In addition, supportive regulations and favorable government policies including net metering are poised to trigger the number of distributed energy generation installations globally.

The commercial & industrial sector dominated the market. Increasing adoption of solar PV modules for electricity generation due to their ability to provide clean and quality power is expected to propel the demand for distributed energy generation systems over the forecast period.

Global DEG market

Heating and ventilation of floor spaces along with cooking and cooling applications are fueling the demand for these systems globally. Technological advancements are leading to high capacity utilization factor, which is likely to drive the demand for solar PV installations in buildings and institutions.

Regional Insights

Asia Pacific will continue to be the leading revenue contributor to the global market until 2025. It is also the fastest-growing region during the forecast period, owing to a lack of electricity in rural areas in emerging economies. India is anticipated to the sight of high growth rate in the region.

Europe market is estimated to witness healthy growth during the forecast period. Attractive government schemes including feed-in tariff (FIT) and net metering are backing the growth of the regional market.

North America is projected to be a prominent region in the global marketplace. The demand for solar PV and wind turbines in the region is registering an increase due to burgeoning energy demand from industrial facilities including refining, metals, and food processing, and commercial facilities.

Most countries in the Central & South America (CSA) region are in the initial phases of development, thus increasing the requirement for energy in the region. The rate of development of these economies is highly dependent on energy consumption. Hence, the rising requirement for sustainable development, lack of grid connectivity, and industrialization are poised to supplement the growth of the regional market.

Distributed Energy Generation Market Share Insights

Extensive research & development (R&D) efforts are being taken by various players and organizations including the Department of Energy U.S. (DOE), Ministry of Power (India), San Diego Gas and Electric for the development and innovation of new distributed energy generation technologies. Some of the major players include E.ON SE, Capstone Turbine Corporation, General Electric (GE), Vestas Wind Systems A/S, SIEMENS AG, and Caterpillar Power Plants.

Competition among market players has led to a reduction in prices of DEG systems in the past few years. Prices of these technologies are expected to reduce further with upcoming innovations in the market. Companies are using carbon fibers for manufacturing wind turbine blades, which is likely to reduce the cost of wind energy generation and increase the efficiency of turbines.

Report Scope 



Base year for estimation


Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Volume in megawatt, Revenue in USD million, and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Middle East & Africa, and Central & South America

Report coverage

Revenue forecast, volume forecast, company share, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, & country levels, and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global DEG market report based on application, technology, and region:

  • Technology Outlook (Volume, Megawatts; Revenue, USD Million, 2014 - 2025)

    • Wind Turbine

    • Reciprocating Engines

    • Fuel Cells

    • Solar Photovoltaic

    • Gas & Steam Turbines

  • Application Outlook (Volume, Megawatts; Revenue, USD Million, 2014 - 2025)

    • Residential

    • Commercial & Industrial

  • Regional Outlook (Volume, Megawatts; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • Italy

    • Asia Pacific

      • China

      • India

    • Middle East & Africa

      • Brazil

    • Central & South America

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