The global market for distributed generation technologies reached nearly $65.8 billion in 2015. This market is expected to increase from nearly $69.7 billion in 2016 to $109.5 billion in 2021 at a compound annual growth rate (CAGR) of 9.5% for 2016-2021.
Study Goals and Objectives
This Research’s goal in conducting this study was to assess and describe the current status of the worldwide Distributed Energy Generation (DG) industry for all major technologies, and to assess the potential growth of that industry. More specifically, the study included the following objectives:
(1) summarize existing DG technologies and promising technologies under development;
(2) evaluate the existing DG industry, focusing on producers of each major viable technology; and
(3) assess market potential for DG technologies over a 5-year period, from 2016 through 2021. This report also serves to update a previous report on the same topic that provided projections through 2015.
Reasons for Completing This Study
Driving the development of DG technologies and markets is an increasing global awareness of the many advantages of non-traditional energy generation sources:
-Backup power and energy shortage alternatives.
-Supplemental sources during peak power consumption and grid congestion.
-Use of secondary sources of fuel including renewables and other forms of green energy.
-Improvements in power quality.
-Reductions in greenhouse gas (GHG) emissions.
DG represents one of several potential solutions being widely implemented to address these issues. In many situations, increased reliance on DG sources including solar, wind, fuel cell and other technologies may be a key component in attaining power service reliability, energy security, and the environmental goals of political entities around the globe. This study assesses market opportunities that will facilitate the continued global growth of DG.
Intended Audience
We have completed completely revised and updated study – the third iteration of this report over the last decade – of DG technologies which includes relevant market and production information, technological descriptions and issues, applications, market factors and potential, as well as an overview of incentives and regulations in major global markets. This study is of central interest to manufacturers of DG technologies, distributors, suppliers, entrepreneurs and entrepreneurial companies interested in expanding into the DG sector. It will also be of interest to corporate planners and strategists, infrastructure engineering firms and energy market researchers as well as energy/fuel suppliers who are engaged in renewable and alternative energy and fuels production and distribution.
Scope of Report
The scope of this investigation includes all major viable DG technologies as well as an abbreviated assessment of potentially viable and emerging DG technologies. This Research analyzes each technology, determines its current market status, examines its impact on future markets and presents forecasts of growth over the next five years. Technological issues, including the latest trends, and the industry's current and projected regulatory environment are assessed and discussed.
Our Research analyzes the global industry from both a manufacturing and an implementation point of view and examines government roles including regulatory support and requirements, feed-in tariffs and promotional incentives for various DG technologies. The report reviews the most relevant DG technologies, discusses recent trends in capacity installation and unit sales, and provides industry overviews and market assessments for each technology.
Estimated market values presented in the market chapter are based on manufacturers’ total revenues. Projected and forecasted revenue values are in constant U.S. dollars unadjusted for inflation.
Information Sources
Both primary and secondary research methodologies were used in preparing this report. Background information, including reviews of each DG technology and its implementation status, were collected from domestic and international government and industry sources. Specific citations and references are provided as needed to support this study with website links to government and industry studies, white papers, and other relevant information available to the public.
Our research on present and historic market trends was conducted via secondary internet research, direct interviews with industry insiders and both internal and publicly available company data. Annual corporate sales documentation within each sector was also aggregated where relevant to a particular DG technology.
Methodology
Based on the results of our surveys and other data collected in support of this study, This Research analyzed the potential applications for each technology and forecast sales through 2021. Market size and installed capacity figures were calculated based on data obtained from these sources. In some cases, when available, data regarding the total percentage of market share represented by surveyed parties and other available data sources were used to provide an estimate of the entire market size and/or installed capacity. Additionally, when available, the data provided in this report were benchmarked against other industry data (these were available for solar and, to a limited extent, for small wind and fuel cells) to ensure relevance, applicability and accuracy.
Market projections were estimated based on a number of sources and factors, particularly those discussed in Chapter 5 as well as relevant regulations and incentives considered in Chapter 4. Projections were tempered at the national level as Our Research considered national level market factors that were most likely to drive or dampen market development through 2021. Regional factors were also considered in some areas, especially in Europe, where the economies and market development of many individual countries are more closely related than, for example, individual countries in Asia or the Middle East.
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