views
![Distributed Generation Market Role in Energy Transition](https://s3.us-west-2.amazonaws.com/timessquarereporter.com/upload/media/posts/2024-06/19/distributed-generation-market-role-in-energy-transition_1718797300-b.jpg)
The distributed generation market is transforming the energy landscape by increasing adoption of sustainable energy sources driven by climate change concerns.
Distributed generation involves electricity generation at or near the point of consumption. It utilizes smaller-scale power generation technologies including solar panels, wind turbines, reciprocating engines and fuel cells. Distributed generation provides advantages like reduced transmission and distribution losses, ability to use renewable resources, power reliability and energy security. The need for distributed generation is rising due to growing demand for reliable and sustainable energy along with awareness about environmental protection.
The Global Distributed Generation Market is estimated to be valued at US$ 364.46 Billion in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the distributed generation market are Siemens AG, General Electric, Schneider Electric SE, Mitsubishi Motors Corporation, and Capstone, Activ Solar GmbH, Ballard Power Systems Inc., Fortis Wind Energy, GE Power & Water, Juwi Inc., Sharp Corporation, Cummins Inc. (U.S.), Caterpillar Inc. (U.S.). These players are focusing on solar PV and wind power technologies to gain considerable market share.
The demand for distributed generation is growing rapidly due to increasing awareness about environmental protection and rising energy costs. Rapid urbanization and industrialization in developing nations have increased the demand for reliable power supply which is driving the adoption of distributed generation systems.
With supportive government policies and regulations, declining technology costs and increasing environmental concerns, distributed generation market is expanding globally. Key players are focusing on partnerships, mergers and acquisitions for strengthening their presence across international markets.
Market Key Trends
One of the key trends in distributed generation market is increasing integration of renewable energy sources like solar and wind power for distributed power generation. Distributed wind and solar installations allow utilization of intermittent resources like wind and solar at or near the point of consumption without transmission and distribution losses. This boosts the reliability and sustainability of energy supply.
Porter’s Analysis
Threat of new entrants: The distributed generation market requires high initial capital investments for infrastructure development limiting the threat of new entrants. However, declining technology costs are lowering entry barriers.
Bargaining power of buyers: Individual buyers have lower bargaining power compared to large corporate consumers and utilities in the distributed generation market due to bulk purchase volumes.
Bargaining power of suppliers: Leading battery manufacturers and renewable energy equipment suppliers have significant influence on pricing and supply in the distributed generation industry.
Threat of new substitutes: Advancements in energy storage technologies pose a potential threat of substitution to distributed generation technologies relying on intermittent renewable sources like solar and wind.
Competitive rivalry: The distributed generation market experiences intense competition among major players like Siemens AG, General Electric and Schneider Electric SE driving innovation and declining prices.
Geographically, North America accounts for the largest share of the distributed generation market currently owing to supportive government policies and high electricity prices encouraging self-generation in the US and Canada.
Asia Pacific is poised to become the fastest growing regional market for distributed generation between 2024 to 2031 led by strong growth in solar rooftop installations in China, India as well as emerging economies looking to fulfill rising energy needs through decentralized renewable sources.
![disclaimer](https://www.timessquarereporter.com/disclaimer-timessquarereporter.jpg)
Comments
0 comment