Distributed Energy Resource Market Size, Share, Opportunities, And Trends By Type (Solar Panel, Small Wind Farms, Generators, Battery Storage System, Others), By End-User (Residential, Commercial, Industrial), And By Geography - Forecasts From 2023 To 2028

The distributed energy resource market is estimated to grow at a CAGR of 17.24% during the forecast period.

Distributed Energy Resources (DERs) are compact, interconnected electricity generation or demand resources that are linked to the broader electric grid situated near load centers for efficiency, these power-producing entities can function independently or cumulatively, thereby enhancing the grid's value and stability. Distributed energy resources encompass various types, including solar panels, small wind farms, generators, and battery storage systems. The burgeoning trend of power generation decentralization, alongside the escalating demand for electricity and the cost-effectiveness of distributed energy resources, collectively serve as pivotal drivers propelling the growth of the distributed energy resource industry.

Emerging power generation decentralization bolsters the distributed energy resource market growth.

Distributed energy resources are instrumental in the decentralization of power generation due to their inherent design of localized energy production. Distributed energy resources, being small-scale and located close to load centers, provide energy directly to the immediate vicinity, bypassing the need for complex, large-scale grid infrastructure. This decentralization process is gaining momentum worldwide, primarily driven by governmental initiatives and promotions. For instance, in February 2022, the Ministry of New and Renewable Energy unveiled a framework dedicated to promoting decentralized renewable energy (DRE) livelihood applications. This framework aimed to foster a conducive ecosystem that facilitates expansive access to DRE, thereby accelerating its adoption and use.

Rising electricity demand boosts distributed energy resource market size.

Distributed energy resources play a pivotal role in meeting growing electricity demand due to their capability to generate power locally and supply it directly to the end-users. The increased electrification of various sectors, rapid urbanization, population growth, and digitalization has accelerated electricity demand, and distributed energy resources offer an efficient solution to meet this surge. According to the U.S. Energy Information Administration, in 2021, the U.S generated 4,109.70 billion kilowatt-hours of electricity, which experienced a rise of 3.2% in 2022, amounting to a total of 4,243.14 billion kilowatt-hours.

Cost-effectiveness drives the distributed energy resource market.

The declining costs of distributed energy resources technologies, especially solar and wind, are major catalysts driving the remarkable growth of the distributed energy resource industry. Due to the upfront investment for installing solar panels and wind turbines becoming more affordable, a broader range of consumers and businesses are considering adopting distributed energy resources to generate clean and renewable energy on-site. The cost-effectiveness of these technologies positions DERs as competitive alternatives to conventional energy sources, fostering a sustainable energy landscape and reducing carbon emissions. For instance, in 2021, the cost of electricity generated from onshore wind decreased by 15%, offshore wind by 13%, and solar photovoltaic (PV) systems by 13% in comparison to the costs observed in 2020.

Asia-Pacific is projected to dominate the distributed energy resource market.

Asia Pacific will hold a significant share of the market due to proactive government initiatives and substantial investments in renewable energy. Hence major APAC economies are rolling out favourable policies, providing financial incentives, and implementing ambitious renewable energy targets, which are fuelling the proliferation of distributed energy resources. For instance, in February 2023, the Indian government unveiled a substantial investment of $4.3 billion in the clean energy sector, reinforcing the country's commitment to renewable energy sources. Also, in 2022, China made a substantial investment of $546 billion in the clean energy sector. The hefty investment was allocated across multiple areas including solar and wind energy, as well as electric vehicles and battery technologies.

Intermittent nature may restrain the distributed energy resources market.

Certain renewable energy sources integral to the distributed energy resource market, notably solar and wind, inherently possess an intermittent and variable nature. Their energy production is inherently tied to weather conditions like sunlight for solar panels and wind for turbines. This means that their output is not constant and fluctuates based on time of day, season, and weather patterns, leading to periods of overproduction or underproduction. This unpredictability can pose significant challenges in managing and maintaining the stability and reliability of the energy grid, as it necessitates sophisticated balancing of energy supply and demand. Consequently, this aspect can potentially restrain the growth of the distributed energy resource market,

Key Developments

• June 2023: Leap expanded its operations into New England by rolling out grid service offerings. This strategic move aims to spur the growth of Distributed Energy Resources (DERs) within Massachusetts and Rhode Island, marking Leap's commitment to proliferating sustainable energy solutions in these regions.
• April 2022: The Intellihub Group, a prominent smart metering and energy data business in Australia and New Zealand, announced the acquisition of leading energy technology company GreenSync. This transaction merges Intellihub’s advanced smart metering platform with GreenSync's cloud-based distributed energy resource interoperability software, known as deX, thereby creating a synergistic solution that enhances the capabilities of both entities in the distributed energy resources market.
• December 2021: GE Digital acquired Opus One Solutions, a strategic move designed to expedite the energy transition. The integration of both companies' technology portfolios aims to catalyze the widespread and swift adoption of renewables and Distributed Energy Resources (DERs) throughout all facets of the grid. This acquisition reinforces GE Digital's commitment to fostering a more sustainable and decentralized energy landscape.
• January 2020: Operational intelligence leader OSIsoft announced the launch of a Distributed Energy Resources (DER) collaborative. This initiative aims to cultivate a community-centric data ecosystem, designed to facilitate the integration of DERs into the marketplace, further enhancing the accessibility and viability of distributed energy solutions.

Company Products

• Distributed Energy Solution: General Electric's Distributed Energy solutions present an array of benefits. They offer a reduction in operational costs and an enhancement in power reliability, which are vital for efficient and uninterrupted energy consumption. Additionally, they support the electrification of transportation, providing a more sustainable alternative to conventional fuels. Importantly, these solutions contribute to reducing carbon footprints, aligning with global efforts to combat climate change and promote a greener future.

Segmentation

• By Type
  • Solar Panel
  • Small Wind Farms
  • Generators
  • Battery Storage System
  • Others
• By End-User
  • Residential
  • Commercial
  • Industrial
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Other

1. INTRODUCTION

1.1. Energy Transition Status

1.2. Sector-wise Analysis: Examination of Key Industries and Their Implications

1.2.1. Transport

1.2.2. Buildings

1.2.3. Industry

1.2.4. Power

1.3. Socio-Economic Impact of Energy Transition

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. ENERGY AND POWER INDUSTRY OVERVIEW

4.1. Introduction

4.2. Energy Industry Overview

4.2.1. Global Energy Production (in EJ)

4.2.1.1. Americas

4.2.1.2. Europe

4.2.1.3. Middle East & Africa

4.2.1.4. Asia Pacific

4.2.2. Energy Mix, By Fuel

4.3. Power Industry Overview

4.3.1. Global Power Generation (in TWh)

4.3.2. Power Mix

4.3.2.1. Renewable

4.3.2.2. Non-Renewable

4.4. Russian-Ukraine War Impact

4.4.1. Supply Shocks

4.4.2. Rising Energy Prices

4.4.3. Repercussions On Economic Policy

5. MARKET DYNAMICS

5.1. Market Drivers

5.2. Market Restraints

5.3. CO2 Emissions

5.3.1. Coal

5.3.2. Oil

5.3.3. Natural Gas

5.4. Clean Energy Investment

5.4.1. Electricity Generation

5.4.2. Energy Infrastructure

5.4.3. End-Use

5.5. Recommendations

6. GOVERNMENT REGULATIONS/POLICIES

6.1. Introduction

6.1. Net Zero Commitments

6.2. Remuneration Schemes

7. DISTRIBUTED ENERGY RESOURCE MARKET, BY TYPE

7.1. Introduction

7.2. Solar Panel

7.3. Small Wind Farms

7.4. Generators

7.5. Battery Storage System

7.6. Others

8. DISTRIBUTED ENERGY RESOURCES MARKET, BY END-USER

8.1. Introduction

8.2. Residential

8.3. Commercial

8.4. Industrial

9. DISTRIBUTED ENERGY RESOURCES MARKET, BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. USA

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1.  Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. Germany

9.4.2. UK

9.4.3. France

9.4.4. Spain

9.4.5. Others

9.5. Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Others

9.6. Asia Pacific

9.6.1. China

9.6.2. Japan

9.6.3. South Korea

9.6.4. India

9.6.5. Australia

9.6.6. Others

10. RECENT DEVELOPMENT AND INVESTMENTS

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Market Share Analysis

11.3. Vendor Competitiveness Matrix

12. COMPANY PROFILES

12.1. General Electric

12.2. Siemens

12.3. Black & Veatch Holding Company

12.4. ABB Ltd.

12.5. Spirae LLC

12.6. Itron Inc.

General Electric

Siemens

Black & Veatch Holding Company

ABB Ltd.

Spirae LLC

Itron Inc.