Transparency Market Research
Energy demand has increased substantially over the past decade and is expected to increase in the next five to six years. Insufficient centralized electricity supply, paradigm shift in energy generation towards green technology, increased industry awareness coupled with revised Feed in Tariff (FIT) rates are expected to spur market growth.
Failure of conventional energy generation model which incurs substantial capital investment for power generation and distribution through transmission is expected to lay groundwork for distributed energy generation (DEG) systems market. Price competency in key technologies is likely to attract more consumers globally thereby bolstering the market. Presently highly priced DEG systems are a key challenge for market participants; however, price moderation over the next few years is expected to help the market overcome this issue.
Crucial technology segments estimated and analyzed in this study include CHP, that accounted for over 48 percent of global capacity in 2011, followed by solar PV, wind turbine, reciprocating engines, micro turbines and fuel cells. The market is also segmented into on grid and off grid segments. In 2011, on grid segment dominated the DEG systems market while off grid segment accounted for just over 1 percent of the market. Key DEG applications include residential, buildings and institutions and commercial and industrial installations. Commercial and industrial applications dominated the market, accounting for over 74 percent global market in 2011.
Europe dominated the DEG systems market in and accounted for over 39 percent of global DEG installations in 2011. The provision of financial incentive schemes in China, India and Japan supplemented with low production cost are primary factors expected to drive the product demand in Asia Pacific. North America pioneered the solar PV technology, utilized for generating electricity. North America DEG market revenues are expected to reach $37.33 billion in 2018. The absence of grid connection led to generation of energy through off grid DEG systems in Africa. Growing energy demand in the Middle East and Africa is expected to fuel the growth rate of DEG systems market.
Key participants in this market include GE Energy, Siemens Energy, Caterpillar Power Plants, Mitsubishi Power Systems, Vestas, Alstom, E.On SE, and Capstone Turbine Corporation among others. The report provides an overview of these companies followed by their financial revenue, business strategies, product portfolio and recent developments.