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GLOBAL MARKET ESTIMATES RESEARCH & CONSULTANTS

Ankita Roy, Treesha Banerjee and Liza Dsouza from Global Market Estimates throw the spotlight on the
growing Distributed Energy Generation Market

Market Analysis:

It is estimated that the globally distributed energy generation (DEG) market will grow steadily during
the forecast period. Decentralization of power generation is expected to be one of the primary growth
factors. Global warming concerns are projected to drive countries into adopting affordable, reliable,
and clean energy alternatives. This is expected to reduce the usage of non-renewable resources and
fossil fuels in most of the manufacturing units, which in turn will encourage companies to adopt power
management systems.

The ability of DEG to use conventional and unconventional resources to produce electricity is expected
to promote environment friendly households and industries. These sources involve solar, wind, and
tidal energy used by households, industries, commercial and non-commercial establishments.

Regional Analysis (2016 vs 2025)

USD Million

North Europe Asia Pacific Middle East Centra &

America & Africa South
America

2016 2025

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GLOBAL MARKET ESTIMATES RESEARCH & CONSULTANTS

Technology Insights:

Combined heat and power (CHP) can use a variety of fossil fuel and renewable sources. CHP is one of
the most reliable and cost effective source of power in the commercial and industrial sectors. It has
an efficiency of 65-70% which is a large number as compared to the other processes of energy
production.

Fuel cells are an environment friendly way of providing electricity by using clean energy; they are
extensively used in power plants and passenger vehicles. They operate at a high efficiency as
compared to other combustion systems. Hydrogen fuel cells have no harmful carbon dioxide
emissions as its by-product is water.

Micro turbines are used for stationary power generation application; they produce heat and electricity
on a small scale. Micro turbines are efficient, compact, economical, and have a lower emission rate.
Micro turbines provide an efficient and clean solution to direct mechanical drive markets such as air-
conditioning and compression.

Reciprocating engines are used in order to convert pressure into rotational motion. Motor vehicles
use internal combustion engine, Sterling engine and steam engines which is an external combustion
engine. Wind turbines generate electricity from kinetic energy derived from wind. They can generate
large amounts of power in both offshore and onshore locations.

Solar PV cells convert sunlight directly into electricity. PV panels are cost effective, safe and easy to
install. On average, one installation works for over 20 years. It is a sustainable option due to soaring
prices and increased pressure put on fossil fuels.

Application Insights:

The distributed energy generator market is anticipated to have a high demand as compared to
conventional solutions on account of its reliability, sustainability, and cost efficiency. The demand for
conventional sources of generating electricity and power has been replaced to a large extent by the
renewable resources.

Economical installation cost and easy accessibility for the utility sector in the on-grid systems was the
largest application of DEG in 2013, accounting to 90% capacity. There is no storage for this kind power
supply.

Introducing and providing electricity in the remote rural areas, especially in Asia-Pacific has helped the
development off-grid DEG application. This system has battery storage and therefore ensures
immediate supply of electricity for the times it is urgently needed.

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GLOBAL MARKET ESTIMATES RESEARCH & CONSULTANTS

End Use Insights:

More than 70% usage of distributed energy generation was by commercial and industrial users. Over
the next eight years it is estimated that the reusability of the sources such as heat energy and industrial
wastes will have high penetration in the commercial and industrial end-uses. In terms of capacity
growth, building and institutions are expected to grow at a high rate over the forecast period.

Regional Insights:

Government policies in Europe for reducing carbon emission are expected to expand the demand for
DEG. Regulatory norms such as green energy in North America had led to significant growth of this
industry in 2016.

Numerous government policies in Asia Pacific such as infrastructure development and innovative
regulations are expected to contribute to the growth of DEG. Key players include General Electric
Energy, Suntech Power Holding Co. Ltd, Yingli Green Energy, UTC Power LLC, First Solar, Sharp
Corporation, Siemens AG and JA Solar Holding Co. Ltd.

Market Share Analysis (2017)

Company A Company B Company C Company D Others

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GLOBAL MARKET ESTIMATES RESEARCH & CONSULTANTS

Competitor Analysis:

The market appears to be fragmented due to numerous vendors who are focusing on increasing their
R&D investments to reduce the per MW cost of micro turbines and improve efficiency of their
products.

The partnership between Shanghai Electric Representative and Ansaldo Energia has given Ansaldo
Energia access to Chinese market where they have received orders for 15 gas turbines which are
currently being supplied and installed, representing a market share of more than 30% in 2016. Other
leading vendors of the market are Capstone Turbine, First Solar, Bloom Energy and Ballard Power
Systems.

The report segments the Distributed Energy Generation Market on the basis of:

By Technology:

CHP
Fuel Cells
Micro Turbines
Reciprocating Engines
Wind Turbines
Solar PV Cells

By Application:

On-Grid
Off-Grid

By End-Use:

Residential
Commercial
Industrial

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GLOBAL MARKET ESTIMATES RESEARCH & CONSULTANTS

By Region:

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

* This article contains text from the Distributed Energy Generation Market Forecast to 2025 report
prepared by Global Market Estimates. For more information or to buy the report, please
visit: https://www.globalmarketestimates.com/distributed-energy-generation-deg-market-analysis/

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