Research Study of Distributed Energy Generation Systems Market

Distributed energy generation system is a term which encompasses a diverse array of generation, storage, and energy monitoring and control solutions. This includes power generation, combined heat and power, energy storage (including electric vehicles), and distributed energy management systems. These systems can be tailored to meet specific requirements including cost reductions, energy efficiency, security of supply, and carbon reduction. The distributed energy generation systems market is segmented on the basis of technology, end user, and geography.

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Prominent trend identified in the global distributed energy generation systems market is increasing investment for micro grids due to lack of proper macro grid connectivity in several countries. In November 2016, International Energy Agency (IEA), estimated that 1.2 billion people, around 17% of the world’s population have no or a very limited access to electricity with the majority of this population located in Sub-Saharan Africa and East Asia.

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Based on region, the distributed energy generation systems market is categorized into North America, Europe, Latin America (LATAM), Asia-Pacific (APAC), and the Middle East and Africa (MEA). Europe holds a significant market share, owing to increase in energy consumption mainly by commercial and industrial sectors, financial support by local governments in Europe, and investments by distributed energy generation manufacturers. Additionally, the APAC market is expected to grow at a high rate during the forecast period, owing to financial incentive schemes by governments and availability of cheap labor in the region.

The demand for distributed energy generation systems is increasing gradually, owing to factors such as volatile crude oil and natural gas prices, increasing concerns regarding energy consumption and greenhouse emissions, and grid connectivity. For instance, crude oil prices rose up to $85/bbl in October 2018 and fell down to $50/bbl in December 2018. Likewise, natural gas prices are also fluctuating on season basis, where natural gas prices rise in winters and fall down in summers. These fluctuating prices have subsequently increased focus toward the adoption of renewable energy sources such as solar, biomass, wind, and hydroelectric power.

On the basis of end user, the distributed energy generation systems market is differentiated into residential, commercial, and industrial. Commercial and industrial together hold a significant share both in terms of value and volume, owing to re-usability of accessible resources such as industrial waste and heat energy. Additionally, government initiatives toward green solutions, growing demand for reliable power, and easy availability of energy resources are expected to boost the growth of the market during forecast period.

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