Please Wait.....
Report
Distributed Generation (DG) - A Global Market Overview
Market Report I 2025-09-18 I 337 Pages I Industry Experts
Global Distributed Generation (DG) Market Trends and Outlook
Distributed Generation (DG), also known as on-site or decentralized generation, involves small-scale, grid-connected or standalone power systems located close to consumption points. By harnessing renewable sources such as solar PV, wind, fuel cells, biomass, and small hydro, DG minimizes transmission losses, enhances resilience, and promotes sustainability. Rising adoption is supported by stricter emission targets, tax rebates like the US Investment Tax Credit, declining costs of solar, wind, and battery storage, and the growing role of microgrids and electric vehicles in grid modernization. DG provides tailored solutions for residential, commercial, and industrial users, improving efficiency and reducing dependence on centralized plants.
The global DG market is forecast to reach US$751.6 billion by 2032 from US$327.2 billion in 2025, growing at a CAGR of 12.6% between 2025 and 2032. Key growth drivers include industrialization, urbanization, and electrification trends that amplify energy demand, while ecological awareness, subsidies, and renewable mandates accelerate adoption. At the same time, barriers such as high upfront investment, long payback periods, storage and maintenance costs, and limited financing in developing regions constrain growth. Nevertheless, continued innovation in DERs, advanced storage, and distributed energy management platforms is expected to strengthen DG's role in achieving clean, reliable, and cost-effective power generation worldwide.
Distributed Generation (DG) Regional Market Analysis
Asia-Pacific, with a 42.9% share in 2025, stands as the largest and fastest-growing regional market, projected to expand at nearly 15% CAGR through 2035. Population growth, industrial activity, and rapid urbanization are fueling demand for localized clean energy, particularly solar PV, wind, rooftop solar, and microgrids. Supportive regulations, subsidies, and renewable mandates-such as China's 2060 carbon neutrality goal-are reinforcing DG expansion, while rising EV penetration, smart grids, and hybrid systems further bolster adoption across the region.
Distributed Generation (DG) Market Analysis by Technology
Solar Photovoltaic (PV) cells dominate DG technologies with 42.9% share in 2025, driven by steep cost declines, modularity, and favorable policies such as net metering and feed-in tariffs. Global solar PV capacity surpassed 2.2 TW in 2024 with strong adoption across residential, commercial, and utility-scale applications. In contrast, Fuel Cells are expected to record the fastest CAGR of 15.6% during 2025-2032, supported by hydrogen investments, durability improvements, and their ability to provide continuous zero-emission power for critical infrastructure such as hospitals, data centers, and industrial microgrids.
Distributed Generation (DG) Market Analysis by Power Rating
Systems in the 5 kW-250 kW range lead the DG market due to suitability for residential, commercial, and small industrial settings, benefiting from incentives like tax credits and net metering while offering cost-effectiveness and grid integration advantages. However, DG systems below 5 kW are projected to grow the fastest at a CAGR of 15.3% through 2032, driven by affordability, household-scale rooftop solar demand, and deployment in developing regions through microfinancing, subsidies, and compact storage-paired solar solutions.
Distributed Generation (DG) Market Analysis by Application
On-Grid applications dominate with 73.3% share in 2025 and are also forecast to post the fastest CAGR of 14.5% during 2025-2032. Policies such as ITC and PTC in the US, along with similar subsidies globally, are accelerating on-grid adoption by making distributed solar PV and fuel cells financially attractive. These systems support grid stability, reduce GHG emissions, and improve efficiency by enabling energy exchange with utilities and large-scale rooftop solar or wind integration.
Distributed Generation (DG) Market Analysis by End-Use Sector
The Industrial sector leads DG demand with 35% share in 2025, as manufacturing plants, data centers, and industrial parks seek reliable, cost-effective, on-site energy solutions supported by tax incentives and electrification programs. Meanwhile, the Residential sector is projected to register the fastest CAGR of 13.2% between 2025 and 2032, fueled by rooftop solar affordability, rising electricity prices, environmental awareness, and supportive policies enabling households to achieve energy independence and reduce carbon footprints.
Distributed Generation (DG) Market Report Scope
This global report on Distributed Generation (DG) analyzes the market based on Technology, Power Rating, Application and End-Use Sector for the period 2022-2032 with projections from 2025 to 2032 in terms of value in US$. In addition to providing profiles of major companies operating in this space, the latest corporate and industrial developments have been covered to offer a clear panorama of how and where the market is progressing.
Key Metrics
Analysis Period: 2022-2032
Base Year: 2025
Forecast Period: 2025-2032
Units: Value market in US$
Companies Mentioned: 20+
Distributed Generation (DG) Market by Geographic Region
- North America (The United States, Canada and Mexico)
- Europe (France, Germany, Italy, Russia, Spain, the United Kingdom and Rest of Europe)
- Asia-Pacific (China, India, Japan, South Korea and Rest of Asia-Pacific)
- South America (Argentina, Brazil and Rest of South America)
- Middle East & Africa
Distributed Generation (DG) Market by Technology
- Fuel Cells
- Micro Turbines
- Reciprocating Engines
- Solar Photovoltaic (PV) Cells
- Wind Turbines
- Other Technologies [Incl. Combustion Turbines, Combined Heat & Power (CHP), Gas & Steam Turbines and Micro-Hydropower]
Distributed Generation (DG) Market by Power Rating
- Below 5 kW
- 5 kW-250 kW
- 250 kW-1 MW
- Above 1 MW
Distributed Generation (DG) Market by Application
- Off-Grid
- On-Grid
Distributed Generation (DG) Market by End-Use Sector
- Commercial
- Industrial
- Residential
PART A: GLOBAL MARKET PERSPECTIVE
1. Introduction
- Distributed Generation (DG) Outline
- Distributed Generation (DG) Defined
- Distributed Generation (DG) Technology
o Fuel Cells
o Micro Turbines
o Reciprocating Engines
o Solar Photovoltaic (PV) Cells
o Wind Turbines
o Other Technologies [Incl. Combustion Turbines, Combined Heat & Power (CHP), Gas & Steam Turbines and Micro-Hydropower]
- Distributed Generation (DG) Power Rating
o Below 5 kW
o 5 kW-250 kW
o 250 kW-1 MW
o Above 1 MW
- Distributed Generation (DG) Application
o Off-Grid
o On-Grid
- Distributed Generation (DG) End-Use Sector
o Commercial
o Industrial
o Residential
2. Key Market Trends
3. Key Market Players
- Alstom SA
- Ansaldo Energia SpA
- Ballard Power Systems, Inc.
- Bloom Energy Corp
- Capstone Green Energy Corp
- Capstone Turbine Corp
- Caterpillar Energy Solutions GmbH
- Cummins, Inc.
- Destinus Energy
- Doosan Enerbility
- Doosan Fuel Cell Co Ltd
- E.ON SE
- ENERCON Global GmbH
- First Solar, Inc.
- FuelCell Energy, Inc.
- General Electric
- Mitsubishi Electric Corp
- Mitsubishi Power Americas, Inc.
- Rolls-Royce plc
- Schneider Electric
- Sharp Corp
- Siemens Energy AG
- Suzlon Energy Ltd
- Toyota Turbine and Systems, Inc.
- Vestas Wind Systems A/S
4. Key Business & Product Trends
5. Global Market Overview
- Global Distributed Generation (DG) Market Overview by Technology
o Distributed Generation (DG) Technology Market Overview by Global Region
- Fuel Cells
- Micro Turbines
- Reciprocating Engines
- Solar Photovoltaic (PV) Cells
- Wind Turbines
- Other Technologies [Incl. Combustion Turbines, Combined Heat & Power (CHP), Gas & Steam Turbines and Micro-Hydropower]
- Global Distributed Generation (DG) Market Overview by Power Rating
o Distributed Generation (DG) Power Rating Market Overview by Global Region
- Below 5 kW
- 5 kW-250 kW
- 250 kW-1 MW
- Above 1 MW
- Global Distributed Generation (DG) Market Overview by Application
o Distributed Generation (DG) Application Market Overview by Global Region
- Off-Grid
- On-Grid
- Global Distributed Generation (DG) Market Overview by End-Use Sector
o Distributed Generation (DG) End-Use Sector Market Overview by Global Region
- Commercial
- Industrial
- Residential
PART B: REGIONAL MARKET PERSPECTIVE
- Global Distributed Generation (DG) Market Overview by Geographic Region
REGIONAL MARKET OVERVIEW
6. North America
- North American Distributed Generation (DG) Market Overview by Geographic Region
- North American Distributed Generation (DG) Market Overview by Technology
- North American Distributed Generation (DG) Market Overview by Power Rating
- North American Distributed Generation (DG) Market Overview by Application
- North American Distributed Generation (DG) Market Overview by End-Use Sector
- Country-wise Analysis of North American Distributed Generation (DG) Market
o The United States
- United States Distributed Generation (DG) Market Overview by Technology
- United States Distributed Generation (DG) Market Overview by Power Rating
- United States Distributed Generation (DG) Market Overview by Application
- United States Distributed Generation (DG) Market Overview by End-Use Sector
o Canada
- Canadian Distributed Generation (DG) Market Overview by Technology
- Canadian Distributed Generation (DG) Market Overview by Power Rating
- Canadian Distributed Generation (DG) Market Overview by Application
- Canadian Distributed Generation (DG) Market Overview by End-Use Sector
o Mexico
- Mexican Distributed Generation (DG) Market Overview by Technology
- Mexican Distributed Generation (DG) Market Overview by Power Rating
- Mexican Distributed Generation (DG) Market Overview by Application
- Mexican Distributed Generation (DG) Market Overview by End-Use Sector
7. Europe
- European Distributed Generation (DG) Market Overview by Geographic Region
- European Distributed Generation (DG) Market Overview by Technology
- European Distributed Generation (DG) Market Overview by Power Rating
- European Distributed Generation (DG) Market Overview by Application
- European Distributed Generation (DG) Market Overview by End-Use Sector
- Country-wise Analysis of European Distributed Generation (DG) Market
o France
- French Distributed Generation (DG) Market Overview by Technology
- French Distributed Generation (DG) Market Overview by Power Rating
- French Distributed Generation (DG) Market Overview by Application
- French Distributed Generation (DG) Market Overview by End-Use Sector
o Germany
- German Distributed Generation (DG) Market Overview by Technology
- German Distributed Generation (DG) Market Overview by Power Rating
- German Distributed Generation (DG) Market Overview by Application
- German Distributed Generation (DG) Market Overview by End-Use Sector
o Italy
- Italian Distributed Generation (DG) Market Overview by Technology
- Italian Distributed Generation (DG) Market Overview by Power Rating
- Italian Distributed Generation (DG) Market Overview by Application
- Italian Distributed Generation (DG) Market Overview by End-Use Sector
o Russia
- Russian Distributed Generation (DG) Market Overview by Technology
- Russian Distributed Generation (DG) Market Overview by Power Rating
- Russian Distributed Generation (DG) Market Overview by Application
- Russian Distributed Generation (DG) Market Overview by End-Use Sector
o Spain
- Spanish Distributed Generation (DG) Market Overview by Technology
- Spanish Distributed Generation (DG) Market Overview by Power Rating
- Spanish Distributed Generation (DG) Market Overview by Application
- Spanish Distributed Generation (DG) Market Overview by End-Use Sector
o United Kingdom
- United Kingdom Distributed Generation (DG) Market Overview by Technology
- United Kingdom Distributed Generation (DG) Market Overview by Power Rating
- United Kingdom Distributed Generation (DG) Market Overview by Application
- United Kingdom Distributed Generation (DG) Market Overview by End-Use Sector
o Rest of Europe
- Rest of Europe Distributed Generation (DG) Market Overview by Technology
- Rest of Europe Distributed Generation (DG) Market Overview by Power Rating
- Rest of Europe Distributed Generation (DG) Market Overview by Application
- Rest of Europe Distributed Generation (DG) Market Overview by End-Use Sector
8. Asia-Pacific
- Asia-Pacific Distributed Generation (DG) Market Overview by Geographic Region
- Asia-Pacific Distributed Generation (DG) Market Overview by Technology
- Asia-Pacific Distributed Generation (DG) Market Overview by Power Rating
- Asia-Pacific Distributed Generation (DG) Market Overview by Application
- Asia-Pacific Distributed Generation (DG) Market Overview by End-Use Sector
- Country-wise Analysis of Asia-Pacific Distributed Generation (DG) Market
o China
- Chinese Distributed Generation (DG) Market Overview by Technology
- Chinese Distributed Generation (DG) Market Overview by Power Rating
- Chinese Distributed Generation (DG) Market Overview by Application
- Chinese Distributed Generation (DG) Market Overview by End-Use Sector
o India
- Indian Distributed Generation (DG) Market Overview by Technology
- Indian Distributed Generation (DG) Market Overview by Power Rating
- Indian Distributed Generation (DG) Market Overview by Application
- Indian Distributed Generation (DG) Market Overview by End-Use Sector
o Japan
- Japanese Distributed Generation (DG) Market Overview by Technology
- Japanese Distributed Generation (DG) Market Overview by Power Rating
- Japanese Distributed Generation (DG) Market Overview by Application
- Japanese Distributed Generation (DG) Market Overview by End-Use Sector
o South Korea
- South Korean Distributed Generation (DG) Market Overview by Technology
- South Korean Distributed Generation (DG) Market Overview by Power Rating
- South Korean Distributed Generation (DG) Market Overview by Application
- South Korean Distributed Generation (DG) Market Overview by End-Use Sector
o Rest of Asia-Pacific
- Rest of Asia-Pacific Distributed Generation (DG) Market Overview by Technology
- Rest of Asia-Pacific Distributed Generation (DG) Market Overview by Power Rating
- Rest of Asia-Pacific Distributed Generation (DG) Market Overview by Application
- Rest of Asia-Pacific Distributed Generation (DG) Market Overview by End-Use Sector
9. South America
- South American Distributed Generation (DG) Market Overview by Geographic Region
- South American Distributed Generation (DG) Market Overview by Technology
- South American Distributed Generation (DG) Market Overview by Power Rating
- South American Distributed Generation (DG) Market Overview by Application
- South American Distributed Generation (DG) Market Overview by End-Use Sector
- Country-wise Analysis of South American Distributed Generation (DG) Market
o Argentina
- Argentine Distributed Generation (DG) Market Overview by Technology
- Argentine Distributed Generation (DG) Market Overview by Power Rating
- Argentine Distributed Generation (DG) Market Overview by Application
- Argentine Distributed Generation (DG) Market Overview by End-Use Sector
o Brazil
- Brazilian Distributed Generation (DG) Market Overview by Technology
- Brazilian Distributed Generation (DG) Market Overview by Power Rating
- Brazilian Distributed Generation (DG) Market Overview by Application
- Brazilian Distributed Generation (DG) Market Overview by End-Use Sector
o Rest of South America
- Rest of South American Distributed Generation (DG) Market Overview by Technology
- Rest of South American Distributed Generation (DG) Market Overview by Power Rating
- Rest of South American Distributed Generation (DG) Market Overview by Application
- Rest of South American Distributed Generation (DG) Market Overview by End-Use Sector
10. Middle East & Africa
- Middle East & Africa Distributed Generation (DG) Market Overview by Technology
- Middle East & Africa Distributed Generation (DG) Market Overview by Power Rating
- Middle East & Africa Distributed Generation (DG) Market Overview by Application
- Middle East & Africa Distributed Generation (DG) Market Overview by End-Use Sector
PART C: GUIDE TO THE INDUSTRY
PART D: ANNEXURE
1. RESEARCH METHODOLOGY
2. FEEDBACK
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security