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Published Date: 2013-08-26Number of Pages: 151

Distributed Energy Generation (DEG) Systems Market for CHP, Solar Photovoltaic, Wind Turbine and Fuel Cells in Residential, Building, Institution and Commercial Applications - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2012 - 2018

Over the past couple of decades, the demand for energy has rose significantly. Technological evolution has led to production of electrical appliances catering to several human needs. This in turn has fuelled energy demand. DEG systems are gaining popularity owing to its beneficial properties. They play a crucial role in catering the rising energy demand. The DEG systems are more economical, safer and eco friendly compared to conventional energy generation systems. Insufficient power supplied by centralized power systems coupled with their rising prices are expected to lay groundwork for the DEG systems market. 

Insufficient centralized electricity supply, paradigm shift in energy generation towards green technology, increased awareness towards carbon footprint reduction coupled with revised FIT (Feed in Tariff) rates are expected to spur the market growth. Furthermore, the high cost of the raw materials act as a major barrier to the market. However, price decline in coming years is expected to overcome the restraint. Depleting fossil fuel coupled with their rising prices impacts the cost of energy generation.

CHP (Combined Heat and Power) and solar PV technology segments are major contributors to the DEG systems market which is followed by wind turbines, microturbines and fuel cell segments. Today’s renewable systems are cost competitive and the most economic option for off-grid electrification. Low prices are likely to open new opportunities for the market which has helped reach grid parity quickly in this high priced electricity markets. The 2004/8/EC directive was developed by the European Commission (EC) in 2004 to trim down emissions (greenhouse gases) and support cogeneration systems. This promotes DEG systems market that contributes positively to the security of energy supply.

Currently DEG systems are widely preferred over the conventional power generating systems due to substantial loss of energy over transmission lines. The grid connected systems dominated the market in 2011 while the off grid systems are rapidly growing segments due to growing energy demand in areas without grid connection network. 
Europe dominated the market owing to the glut of investments made by manufacturers and financial support provided by government. Europe acquired maximum market share which was followed by Asia Pacific and North America. Europe and Asia Pacific are the prominent centers for DEG. Asia Pacific market is expected to grow significantly chiefly due to the availability of cheap labor and financial incentive schemes minimizing the production cost. Capstone has a strong presence in Asia Pacific supplying microturbines. The abundance of solar radiation and wind power is expected to spur the market growth in Europe and MEA (Middle East and Africa).

The DEG market is dominated by large multinationals worldwide. GE Energy dominated the market in 2012. GE Energy dominated the market on account of its strong brand value and strong distribution network worldwide. Technological evolution affected the market scenario and participants equally. Research and development keeps the manufacturers on their toes which encourages them to formulate new business strategy. Heliatek adopted product differentiation strategy by developing organic solar cells. Mitsubishi Power Systems and Vestas Wind Systems had a global presence coupled with effective distribution network.

Capstone Turbine corporation supplies DEG systems to Asia Pacific region marking its strong presence. GE Energy operates under three verticals, GE Energy Management, GE Oil & Gas and GE Power & Water. GE Energy offers wind turbines and solar technology as part of its renewable energy portfolio and sells steam turbines and generators to the electric utility industry. The company is focusing on both organic and inorganic growth. Organic growth is through innovative technological development whereas inorganic growth is through acquisition. GE’s WindBOOST service technology can be considered as organic growth.

north-america-deg-systems-market-volume-by-technology-segment-2011-2018

Distributed energy generation eliminates the need to build a transmission capacity, thereby reducing line loss. These systems find applications in residential, commercial and small industrial sectors. The great advantage in discovering distributed energy generation systems was to create amenities that meet growing energy demands satisfactorily.

This research study analyzes the market size of Distributed Energy Generation (DEG) systems, both in terms of volume (annual installation capacity) and revenue. The DEG market has been segmented on the basis of technology, end use, application, and geography, in order to provide a holistic picture of the market. Market data for all segments has been provided on a regional level for the period 2011 to 2018. A comprehensive competitive landscape including company market share analysis has also been provided in this report.

Key technologies analyzed in the report include solar photovoltaic, combined heat and power (CHP), wind turbine, reciprocating engines, micro-turbine and fuel cells. DEG end use market segments estimated in this study include residential sector, buildings & institutions and commercial & industrial establishments. Major applications analyzed in this report include on- grid and off grid systems. Regional data has been provided for North America, Europe, Asia Pacific, Middle East & Africa (MEA) and Rest of the World (RoW).

This report also includes Porter’s five forces model analysis, value chain analysis, and market attractiveness analysis by technology. Some of the key market participants that deal in DEG systems include GE Energy, Siemens Energy, Vestas, Enercon, Suzlon, Caterpillar, Alstom, E.ON Group, Mitsubishi Power Systems, First Solar, Yingli Solar, Fuel Cell Energy, Ballard Power Systems Inc. and Clearedge Power. The report provides an overview of these companies followed by their financial revenue, business strategies, and recent developments.

This research is designed to estimate, analyze, and forecast the annual installed capacity of DEG systems across the global market. The research provides in-depth analysis of DEG system manufacturers, product sales, trend analysis by segments, and annual installed capacity by geography. The report covers all the major technologies, applications and end use segments of the DEG systems market. It also provides detailed analysis, historical data and statistically refined forecast for the segments covered. 

Distributed energy generation is also known as decentralized energy generation. It is the term used for systems that generate electricity near the point of consumption, as opposed to centralized generation sources such as large utility-owned power plants, that require long distance transmission lines to transmit energy.

The market size for DEG systems has been estimated on the basis of regional installed capacity and indicators in end use industries. This report also discusses various technologies, applications and numerous end uses of DEG systems. All the market revenues have been calculated by considering the whole system installation cost including numerous components and parts of DEG systems (turbines/engines/prime movers, generators, fuel recovery units, compressors, filters, valves, pipes, boilers, chillers, control systems and enclosures) plus installation labor, engineering and project management cost during the construction period.

The major technologies include solar photovoltaic, combined heat and power (CHP), wind turbine, reciprocating engines, micro-turbine and fuel cells. The major end uses considered under the DEG systems market cover the residential sector, buildings & institutions and commercial & industrial establishments. Major applications analyzed in this report include on grid and off grid systems. The market is also analyzed based on geography that constitutes different regions including North America, Europe, Asia Pacific, Middle East & Africa (MEA) and Rest of the World (RoW).

The price for DEG systems are volatile in nature and keeps on changing depending upon the technology, application and the type of end use market. The prices of overall DEG systems are decreasing, leading to a slight squeeze in profit margins. The study presents a comprehensive assessment of the stakeholder strategies, winning imperatives for them by segmenting the DEG market as below:
  • Distributed Energy Generation Systems Market: Technology Analysis
    • Solar photovoltaic
    • Combined heat and power (CHP)
    • Wind turbine
    • Reciprocating engines
    • Micro-turbine
    • Fuel cells
  • Distributed Energy Generation Systems Market: End User Analysis
    • Residential
    • Buildings and Institutions
    • Commercial and Industrial
  • Distributed Energy Generation Systems Market: Application Analysis
    • On Grid
    • Off Grid
  • Distributed Energy Generation Systems Market: Regional Analysis
    • North America
    • Europe
    • Asia-Pacific
    • MEA (Middle East & Africa)
    • Rest of the World (Brazil and Mexico)


 
 
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