Distributed energy generation market to reach $573 B by 2025
The global distributed energy generation market size is expected to reach $573.7 B by 2025, registering a CAGR of 16 % during the forecast period 2020-2026.
Image for illustrative purposes
The global distributed energy generation (DEG) market is undergoing rapid expansion, projected to reach $573.7 B by 2025, growing at a CAGR of 16 % from 2020 to 2026. This growth reflects a major shift in how power is generated, moving away from centralised systems toward smaller, localised energy sources that improve efficiency and resilience.
DEG systems – ranging from rooftop solar and wind turbines to fuel cells and combined heat and power (CHP) setups – enable electricity generation close to the point of use, minimising transmission losses and maximising system flexibility. They are essential for supporting smart grid initiatives and enabling communities to reduce reliance on fossil fuels.
Regional insights
North America, led by the United States, benefits from strong net metering policies and incentives, with California alone hosting over 1.5 million distributed solar installations. In Europe, ambitious decarbonisation targets and the REPowerEU strategy are driving adoption across Germany, the Netherlands, and the UK. Meanwhile, Asia-Pacific markets like China and India are scaling rooftop solar schemes and microgrids to meet energy access goals in rural areas.
Key growth drivers
Several factors are propelling DEG adoption globally. First, climate policies and net-zero pledges make DEG vital for emissions reduction. Second, energy storage and smart technologies improve reliability and real-time control. Third, DEG enhances energy security by ensuring supply during blackouts or disruptions. Finally, by reducing energy losses and enabling on-site generation, DEG lowers costs and increases user independence.
As technological advances continue and policy support strengthens, DEG systems are expected to play a central role in the global clean energy transition.
Key players in the market include Siemens AG, General Electric (GE), and Schneider Electric among others.
Source: altenergymag.com
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