Distributed Power Generation Market - Growth, Trends, and Forecast (2020 - 2025)

The market is segmented by Technology (Solar PV, Wind, Combined Heat and Power (CHP) and Other Technologies), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa)

Market Snapshot

Study Period:


Base Year:


Fastest Growing Market:

Middle East and Africa

Largest Market:

Asia Pacific


Greater Than 10 %

Major Players:

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Market Overview

The global distributed power generation market is expected to grow at a CAGR of more than 10% over the period of 2020-2025. The global distributed power generation market is driven by the evolving landscape, in terms of innovations in technology and business models, government policies, and greater need for energy security, resiliency, and reduction in greenhouse gases emissions. However, expansion of transmission & distribution (T&D) networks in order to improve the electricity accessibility is expected to reduce the reliance on distributed power generation sources and this, in turn, is expected to hinder the growth of the market studied.

  • Solar PV based distributed power generation is expected to be the fastest growing technology type in the distributed power generation market owing to the declining cost of solar PV and its associated systems.
  • African and Southeast Asian countries have low electrification rate in the world, and with increasing electrification projects, a huge opportunity lies for distributed power generation market at a large scale.
  • Asia-Pacific has dominated the distributed power generation market, with the majority of the demand coming from China, India, and Japan.

Scope of the Report

The distributed power generation market report include:

Solar PV
Combined Heat and Power (CHP)
Other Technologies
North America
South America
Middle-East and Africa

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Key Market Trends

Solar PV Based Distributed Power Generation to Witness a Significant Growth

  • Globally, distributed solar PV capacity is forecast to increase by over 200% during the forecast period, reaching more than 500 GW by 2024. Compared with the previous six-year period, expansion is expected to more than double, with the share of distributed applications in total solar PV capacity growth increasing from 36% to 45%.
  • Rooftop solar offers the benefits of modern electricity services to households that had no access to electricity, reducing electricity costs on islands and in other remote locations that are dependent on oil-fired generation, as well as enabling residents and small businesses to generate their own electricity.
  • During the forecast period, the share of the rooftop segment is expected to increase, on account of decreasing solar PV costs, supportive government policies for residential solar PV, FIT programs and incentives, and targets set by the governments for solar energy.
  • Commercial and industrial systems remain the largest growth segment because they are usually more inexpensive and have a relatively stable load profile during the day that can enable larger savings on electricity bills, depending on the policy scheme in place.

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Asia-Pacific to Dominate the Market

  • Asia-Pacific has dominated the distributed power generation market in 2018 and is expected to continue its dominance in the coming years as well. The region holds vast potential for the expansion of distributed energy systems (DES), notably in the form of off-grid and residential solar. Inefficiencies in the power grid infrastructure, power supply shortages, and the scalability of decentralized technology pave way for the deployment in the region, particularly in China and India.
  • In 2017, the National Energy Administration and National Development and Reform Commission of China introduced an initiative which provided an opportunity to expand distributed energy resources in the country. The Chinese government continues to draft and implement legislation supporting distributed energy resources (DERs) integration and competition within the segment.
  • Similarly, countries such as India, Japan, and South Korea have set their renewable energy targets and this, in turn, is expected to drive the distributed power generation market in the region during the forecast period.

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Competitive Landscape

The distributed power generation market is fragmented. Some of the key players in this market include Ansaldo Energia SpA, Ballard Power Systems Inc., Caterpillar Inc., Siemens AG, and General Electric Company.

Table Of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2025

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry


    1. 5.1 Technology

      1. 5.1.1 Solar PV

      2. 5.1.2 Wind

      3. 5.1.3 Combined Heat and Power (CHP)

      4. 5.1.4 Other Technologies

    2. 5.2 Geography

      1. 5.2.1 North America

      2. 5.2.2 Europe

      3. 5.2.3 Asia-Pacific

      4. 5.2.4 South America

      5. 5.2.5 Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Ansaldo Energia SpA

      2. 6.3.2 Ballard Power Systems Inc.

      3. 6.3.3 Bloom Energy

      4. 6.3.4 Capstone Turbine Corporation

      5. 6.3.5 Caterpillar Inc.

      6. 6.3.6 Cummins Inc.

      7. 6.3.7 Fuelcell Energy Inc.

      8. 6.3.8 General Electric Co.

      9. 6.3.9 Schneider Electric SE

      10. 6.3.10 Siemens AG

      11. 6.3.11 Sunverge Energy

    4. *List Not Exhaustive

** Subject to Availability

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