The global distributed energy generation market size is expected to reach USD 713.90 billion by 2030, registering a CAGR of 5.8% from 2025 to 2030, according to a new report by Grand View Research, Inc. The increasing need for energy and the high costs of grid expansion are the major factors driving the market growth. Low prices of Distributed Energy Generation (DEG) as compared to the conventional power generation methods are expected to provide a boost to the market.
Moreover, inventions in DEG techniques, including floating solar PV, is expected to drive the market. Declining costs of solar PVs is playing a contributory role in the expansion of the market. Feed-in tariffs in regions, such as North America, Europe, and the Asia Pacific, are poised to stir up the growth of the market. Favorable government policies and other government regulations including net metering are expected to increase the number of DEG installations at residential locations, such as underdeveloped and rural areas.
Extensive R&D, field trials, and demonstration projects have resulted in decreasing costs of DEG technologies, which, in turn, augmented market growth. China, India, and Japan are some of the key countries where energy demand has risen significantly. The grid connections are incapable of meeting such high demands that are further supplemented with energy loss problems and blackouts. As a result, institutions, schools, and universities opt for small power-generating stations using renewable sources. This is expected to grow the demand for this market.
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Growing demand for green energy owing to the increasing population across the globe coupled with rapid urbanization in developing countries is expected to be the main catalyst for the demand for DEG systems
The fuel cells technology segment led the global market accounting for the largest market share and will continue to grow at a steady pace over the forecast years
The Solar Photovoltaic (PV) segment held the largest revenue share of 62.47% in 2024
The Asia-Pacific region held the largest share of 34.32% in the global distributed energy generation market in 2024
China, in particular, is expected to account for the maximum share of the Asia Pacific regional market
Grand View Research has segmented the global distributed energy generation market report on the basis of technology and region:
Distributed Energy Generation Technology Outlook (Volume in GW; Revenue in USD Million, 2018 - 2030)
Wind Turbine
Solar Photovoltaic
Reciprocating Engine
Fuel Cells
Gas & Steam Turbine
Distributed Energy Generation Regional Outlook (Volume in GW; Revenue in USD Million, 2018 - 2030)
North America
U.S.
Canada
Mexico
Europe
Germany
UK
France
Asia Pacific
China
India
Japan
South Korea
Latin America
Brazil
Middle East & Africa
Saudi Arabia
UAE
List of Key Players in Distributed Energy Generation Market
Tesla, Inc.
Siemens AG
Schneider Electric SE
General Electric (GE)
ABB Ltd.
Enel Green Power
SMA Solar Technology AG
Bloom Energy Corporation
NextEra Energy, Inc.
Honeywell International Inc.
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