Renewable Distributed Energy Generation (RDEG) Technologies Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Germany, India, UK - Size and Forecast 2024-2028

Renewable Distributed Energy Generation Technologies Market Size 2024-2028 

The renewable distributed energy generation (RDEG) technologies market size is forecast to increase by USD 141.6 billion at a CAGR of 10.8% between 2023 and 2028. The market is experiencing significant growth due to increasing electricity demand and high costs associated with grid expansion. RDEG technologies, including Solar Photovolvoltaic (PV) systems, wind Turbines, Fuel Cells, and Gas Turbines, are gaining popularity as viable alternatives to traditional power generation methods. However, challenges persist, such as intermittency and low efficiency of solar PV systems, which necessitate the adoption of CHP technology for improved energy utilization.

Moreover, the regulatory landscape continues to evolve, with policies promoting the use of renewable energy sources to reduce Greenhouse Gas (GHG) emissions. Environmental concerns and the need to mitigate climate change are driving the demand for RDEG technologies. As cybersecurity attacks on power grids become increasingly common, microgrids are being adopted for enhanced protection. Despite these advancements, addressing intermittency and improving efficiency remain key challenges for the RDEG Technologies market.

What will be the Renewable Distributed Energy Generation Technologies Market Size During the Forecast Period?

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Renewable Distributed Energy Generation (RDEG) technologies refer to power generation systems that generate electricity from renewable sources, such as solar photovoltaic (PV), wind, fuel cells, gas turbines, reciprocating engines, microturbines, and others, at or near the point of consumption. This approach to energy production offers numerous benefits, including energy security, carbon reductions, and the use of clean energy sources. The global RDEG market is witnessing significant growth due to the increasing demand for clean energy and the need for energy security. The regulatory landscape is also favoring the adoption of RDEG technologies, with various governments offering incentives and subsidies to encourage investment in renewable energy.

Similarly, solar PV and wind energy are currently the most widely adopted RDEG technologies. Solar PV systems convert sunlight into electricity, while wind turbines generate electricity from wind. These technologies offer high efficiency, low maintenance costs, and a long lifespan. In the US, solar PV capacity has been growing steadily, with an increasing number of homes and businesses adopting solar panels to meet their energy needs. Fuel cells, gas turbines, reciprocating engines, microturbines, and other RDEG technologies also offer advantages in terms of clean energy generation and decentralized business models. Fuel cells convert chemical energy into electricity through a chemical reaction, producing only water as a byproduct.

Additionally, gas turbines and reciprocating engines are efficient and versatile, while microturbines offer high efficiency and low emissions. Environmental concerns and the need to reduce greenhouse gas emissions are driving the adoption of RDEG technologies. These systems offer a cleaner alternative to traditional power generation methods, reducing reliance on fossil fuels and contributing to a more sustainable energy future. Investment in RDEG technologies is expected to continue, with decentralized generating systems becoming increasingly popular. Capstone, a leading provider of power generation solutions, is one of the companies at the forefront of this trend, offering a range of solutions for various industries and applications.

In conclusion, energy consumption patterns are also evolving, with an increasing focus on decentralized and distributed energy systems. RDEG technologies offer a flexible and cost-effective solution to meet the energy needs of businesses and communities, particularly in remote areas or during power outages. In conclusion, the RDEG market is poised for continued growth, driven by the need for clean energy, energy security, and the regulatory landscape. Solar PV and wind energy are currently the most widely adopted technologies, but fuel cells, gas turbines, reciprocating engines, microturbines, and other RDEG technologies also offer advantages in terms of clean energy generation and decentralized business models. Investment in RDEG technologies is expected to continue, with a focus on decentralized generating systems and meeting the evolving energy needs of businesses and communities.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Technology
  • Solar PV
  • Others
• Geography
  • APAC
    • China
    • India
  • Europe
    • Germany
    • UK
  • North America
    • US
  • South America
  • Middle East and Africa

By Technology Insights

The solar PV segment is estimated to witness significant growth during the forecast period. Renewable Distributed Energy Generation (RDEG) technologies refer to power generation systems that are located near the point of consumption, reducing the need for long-distance transmission. Solar Photovoltaic (PV) systems are a significant component of this market, accounting for a large share in 2023. The US, along with countries like China, India, and the EU, are investing heavily in solar PV technology to diversify energy resources and decrease reliance on fossil fuels. In 2022, China added 65 Gigawatts (GW) of solar PV capacity, contributing to a global total of 300 GW. The environmental concerns surrounding Greenhouse Gas (GHG) emissions and the increasing demand for clean energy are major factors fueling the growth of the RDEG technologies market. Other technologies, such as wind turbines, fuel cells, gas turbines, and Combined Heat and Power (CHP) technology, also contribute to this market. The regulatory landscape for renewable energy is evolving, with incentives and policies encouraging the adoption of distributed energy generation.

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The solar PV segment was valued at USD 144.90 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

APAC is estimated to contribute 57% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In the Asia Pacific (APAC) region, China, Japan, and India are leading the way in the market. This market is projected to expand significantly over the upcoming years. The need for decentralized energy solutions has increased due to insufficient grid infrastructure in certain areas. Renewable energy sources like wind and solar are being utilized to power mini-grids and microgrids, providing electricity to both rural communities and industries. The increasing carbon footprint in countries such as China and India has driven a focus towards clean energy generation through wind and solar power. The RDEG technologies market in APAC is poised for substantial growth, with solutions such as Wind, Reciprocating Engines, Microturbines, Fuel Cells, and Gas Turbines contributing to this expansion. Investment in these technologies is expected to continue, as they offer decentralized business models that can address energy needs in a more efficient and sustainable manner.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Driver

Rising electricity demand and the high cost of grid expansion are the key drivers of the market. The global energy landscape is witnessing a significant shift towards renewable distributed energy generation (RDEG) technologies as the world's population grows and urbanization accelerates. Renewable energy sources, such as solar energy, hydropower, biogas, and biomass, are increasingly being adopted for decentralized generating power stations. The demand for electricity has been on the rise, with global consumption increasing by 2.2% in 2023 compared to the previous year. This growth is driven by the increasing number of people gaining access to electricity, which surpassed one billion for the first time in history. However, there are still many remote areas and villages around the world that remain without access to electricity.

Furthermore, RDEG technologies offer a solution to this challenge by providing decentralized power generation, reducing reliance on traditional power stations and large-scale energy sources. The adoption of these technologies is expected to continue growing due to their environmental benefits and cost-effectiveness. From a business perspective, investing in RDEG technologies presents a lucrative opportunity for companies looking to tap into the expanding renewable energy market.

Market Trends

The microgrids for protection against cybersecurity attacks is the upcoming trend in the market. The shift towards renewable distributed energy generation (RDEG) technologies, including solar photovoltaic and wind energy, is gaining momentum as countries prioritize energy security and carbon reductions. Microgrids, a crucial component of RDEG, enable the use of renewable technology as a clean energy source, even during power outages. However, the implementation of these systems presents new challenges, particularly in ensuring cybersecurity.

Similarly, smart grids, which rely on supervisory control and data acquisition (SCADA) systems for monitoring and controlling infrastructure, are increasingly vulnerable to cyber-attacks. These attacks can compromise the functionality of the grid by introducing malware into SCADA systems. Consequences can range from equipment damage to significant financial losses. For instance, in 2022, the US and Ukraine experienced cyber-attacks on their respective power grids. To mitigate these risks, it is essential to implement strong cybersecurity measures. This includes regular system updates, employee training, and multi-factor authentication. Additionally, collaboration between grid operators, cybersecurity experts, and law enforcement agencies is crucial in preventing and responding to cyber-attacks. By prioritizing cybersecurity, we can ensure the safe and effective integration of renewable distributed energy generation technologies into our power grids.

Market Challenge

Intermittency and low efficiency of solar PV systems is a key challenge affecting the market growth. Renewable Distributed Energy Generation (RDEG) technologies, including geothermal power, continue to gain traction in the US market. Solar initiatives have been a significant driver of RDEG's growth due to the cost-effectiveness of solar power systems. The number of residential and commercial installations has risen substantially due to the decreasing prices of solar technology. However, solar power's intermittent nature poses a challenge to its widespread adoption. Solar Power Technology, specifically Solar Photovoltaic (PV), is subject to various factors that impact its output. These factors include panel efficiency, shade, and solar irradiation, which can fluctuate throughout the day. As a result, solar energy's inconsistent production can affect the reliability of the power supply.

Despite this challenge, RDEG's environmental benefits make it an attractive alternative to traditional energy sources. On-grid and off-grid solar systems offer flexibility in energy production and consumption, allowing businesses and households to reduce their carbon footprint while saving on energy costs. In summary, solar Power Technology, specifically Solar Photovoltaic (PV), is influenced by various factors that impact its output. These factors include panel efficiency, shade, and solar irradiation, which can fluctuate throughout the day. As a result, solar energy's inconsistent production can affect the reliability of the power supply. Nevertheless, RDEG's environmental benefits make it an appealing alternative to traditional energy sources. On-grid and off-grid solar systems provide flexibility in energy production and consumption, enabling businesses and households to decrease their carbon footprint and save on energy costs.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ABB Ltd. - The company offers renewable distributed energy generation technologies such as 4 pole contactors for power switching, enclosures, and power supplies.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Andritz AG
• Ballard Power Systems Inc.
• Bergey Wind Power Co.
• Bloom Energy Corp.
• Canadian Solar Inc.
• Caterpillar Inc.
• City Windmills Ltd.
• Doosan Corp.
• E.ON SE
• Envision Group
• First Solar Inc.
• FuelCell Energy Inc.
• Huawei Technologies Co. Ltd.
• JA Solar Technology Co. Ltd.
• JinkoSolar Holding Co. Ltd.
• Kingspan Group Plc
• Northern Power Systems Srl
• Reliance Industries Ltd.
• Siemens AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Renewable Distributed Energy Generation (RDEG) technologies have gained significant attention in the global energy market due to their ability to provide clean, decentralized power generation. Solar Photovoltaic (PV) and Wind Energy are the most common RDEG technologies, with Solar PV capacity experiencing exponential growth in recent years. Microgrids, which allow for the integration of these technologies, provide energy security and enable carbon reductions. The regulatory landscape plays a crucial role in the adoption of RDEG technologies. Governments worldwide are implementing policies to encourage the use of renewable technology, recognizing the environmental benefits and economic advantages. However, challenges such as economic disruptions, trade restrictions, and investment reluctance hinder the growth of the market.

In summary, RDEG technologies offer various decentralized business models, including on-grid and off-grid solutions for residential and commercial applications. Technologies such as Capstone microturbines, fuel cells, gas turbines, and CHP technology provide cost-effective and efficient power generation. Environmental concerns, including greenhouse gas emissions, remain a significant driver for the adoption of RDEG technologies. Solar, wind, hydro power, biogas, biomass, and geothermal power are all renewable energy sources that contribute to clean energy generation. Energy management and demand response systems are essential components of RDEG systems, ensuring efficient energy consumption and optimal performance. In conclusion, the RDEG market is poised for growth due to its ability to provide clean, decentralized power generation, energy security, and carbon reductions. However, regulatory support, cost-effectiveness, and environmental benefits must be addressed to overcome challenges and accelerate market growth.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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