Distributed Energy Generation Systems Market Overview:
Distributed Power Generation System is a term that surrounds a broad range of power generation, storage, monitoring and control solutions. This includes combined power, heat and power generation, energy storage (including electric vehicles) and distributed energy management systems. These systems can be designed to meet specific requirements, consisting cost reduction, energy efficiency, and security of supply and reduction of carbon emissions. The distributed power generation systems market is segmented on the basis of technology, end user, and geography.
Impact of Covid-19 on the Distributed Energy Generation Systems Market:
The COVID-19 pandemic has significantly bogged down the Chinese economy along with various other trade shocks. China, which is one of the largest exporters of distributed power generation products, has seen a huge decline in the commercial sector, due to lockdowns imposed in various parts of the country. This will likely affect the market as companies pull back from new investment and the government cuts subsidies.
Distributed Energy Generation Systems Market drivers and restraints:
The demand for decentralized power generation systems is gradually increasing, due to factors such as the volatility of crude oil and natural gas prices, growing concerns about energy consumption and greenhouse gas emissions, and network connectivity. In addition, natural gas prices also fluctuate seasonally, with natural gas prices increasing in winter and decreasing in summer. These fluctuating prices subsequently increased the focus on adopting renewable energy sources such as solar, biomass, wind and hydropower. A shift towards green technologies such as solar, wind, hydropower and biomass is also expected to drive the growth of the distributed power generation systems market, as these systems have a relatively lower environmental impact. These systems not only reduce carbon emissions to the environment, but also reduce energy loss along transmission lines due to decentralized operation in these processes. The major factors limiting the market for distributed power generation systems are the reluctance to spend on distributed power generation technologies, as their installation and commissioning requires a lot of capital and resources, and a shift towards Decentralized business models is a time consuming process.
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Report segmented as:
Distributed Energy Generation Systems Market Segmented by Technology
- Wind Turbine
- Solar Photovoltaic
- Reciprocating Engines
- Fuel Cells
- Gas & Steam Turbine
Distributed Energy Generation Systems Market Segmented by Application
- Commercial & Industrial
Asia-Pacific led the global market in 2020, accounting for the largest share of over 48%. Growing demand for energy due to population growth, as well as rapid urbanization in countries such as India, China, 'Indonesia and Malaysia will probably be the key market growth factor. The call for products in China, in particular, is widely met by the country's urban cities. The rise in disposable income in the country is also expected to boost the Chinese market.
North America is anticipated to experience significant growth during the forecast period. The solar PV is the fastest growing segment due to falling costs, more widely distributed products through solar rental, and third party ownership models.
The demand for products in Europe is largely served by Germany and Italy. Demand for solar photovoltaic and wind power is expected to grow rapidly in the regional market due to increasing renewable energy targets and the number of supporting policies put in place by governments. The European Commission has set itself a target of reducing GHG emissions by 45% by 2040.
Fuel cells are another important technology used in Europe along with cogeneration. It offers advantages over a single fuel generator, and its cost-effective installation increases the demand for cogeneration systems in a variety of applications, including residential buildings, oil and gas production facilities, and others commercial applications.
MEA is expected to grow at a significant rate due to the increased adoption of distributed power generation for industrial applications. The solar photovoltaic system market has seen substantial growth, especially in South Africa, due to the growing need for clean energy, which in turn is expected to fuel the MEA market. The availability of solar and wind power in MEA countries, especially Saudi Arabia and Egypt, is one of the major factors driving various end-use industries to switch to renewable energy sources.
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The Scope of the report:
This report offers the current product and services market evaluation and the future estimation of the market. It helps us understand the market better through size anticipation and CAGR calculation to estimate the next market. It has a broader segmentation for better understanding of the enterprising of the market at a low level by segregating the market into smaller sectors.
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