Global Distributed Generation Market Size Study & Forecast, by Technology (Wind Turbine, Solar Photovoltaic, Reciprocating Engine, Fuel Cells, Gas & Steam Turbine) and Regional Forecasts 2025-2035

The Global Distributed Generation Market is valued at approximately USD 476.18 billion in 2024 and is projected to rise at a CAGR of nearly 5.8% throughout the forecast period 2025-2035. Distributed generation (DG) refers to a decentralized network of small-scale energy systems-often renewable-that are strategically installed near consumption points to enhance efficiency, reduce transmission losses, and strengthen grid resilience. These systems, ranging from rooftop solar and micro wind installations to fuel cells and combined heat & power (CHP) units, allow businesses and communities to generate power independently or in parallel with the grid. The market's trajectory gains momentum from the rapid global shift toward clean energy portfolios, the intensifying demand for reliable electricity supply, and the worldwide pursuit of decarbonization commitments. Additionally, as energy costs fluctuate and grid vulnerabilities surface more prominently, industries and consumers increasingly adopt distributed assets to ensure stability and operational continuity.

The rising adoption of renewable-based DG systems has compelled policymakers and private stakeholders alike to ramp up investments aimed at modernizing power infrastructures. Solar photovoltaic systems, in particular, have surged due to technological improvements, declining module costs, and supportive regulatory frameworks that encourage prosumer-driven ecosystems. According to multiple international energy outlooks, global solar capacity additions continue to outpace conventional power generation, illustrating a structural shift toward modular and scalable technologies. Simultaneously, distributed wind turbines, hydrogen-powered fuel cells, and high-efficiency gas turbines are being integrated into hybrid energy solutions that can operate autonomously or complement existing grid architectures. However, despite the accelerating momentum, market expansion may be moderated by intermittent supply challenges, capital-cost disparities across regions, and uneven regulatory landscapes.

The detailed segments and sub-segments included in the report are:

By Technology:

• Wind Turbine
• Solar Photovoltaic
• Reciprocating Engine
• Fuel Cells
• Gas & Steam Turbine

By Region:

North America

• U.S.
• Canada

Europe

• UK
• Germany
• France
• Spain
• Italy
• ROE

Asia Pacific

• China
• India
• Japan
• Australia
• South Korea
• RoAPAC

Latin America

• Brazil
• Mexico

Middle East & Africa

• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Solar Photovoltaic is Expected to Dominate the Market

Among the various technologies, solar photovoltaic (PV) installations continue to command the largest share of the distributed generation landscape. Their dominance stems from rapidly falling installation costs, abundant solar resource availability, and an extensive pipeline of rooftop and utility-scale deployments across both developed and emerging economies. Commercial and residential consumers increasingly pivot toward solar systems to hedge against grid instability, generate cost savings, and leverage government incentives such as feed-in tariffs, net-metering schemes, and tax benefits. While wind turbines and gas-based systems remain integral, solar PV's unmatched scalability and favorable regulatory environment ensure its position as the market's most influential segment.

Gas & Steam Turbines Lead in Revenue Contribution

In terms of revenue contribution, gas & steam turbines presently lead the market due to their long-standing role in industrial applications and their ability to deliver continuous, high-capacity power output. These systems are especially critical in manufacturing hubs, refineries, and commercial complexes that rely on reliable CHP solutions. Their technological evolution-marked by innovations in turbine efficiency, reduced emissions profiles, and sophisticated integration with smart grid frameworks-has bolstered their market revenue footprint. At the same time, fuel cells and advanced reciprocating engines are gaining market traction, particularly where low-carbon and hydrogen-ready solutions are prioritized. This creates a dynamic landscape in which mature turbine systems continue to generate substantial revenue, while newer technologies accelerate adoption through innovation-driven momentum.

The key regions included in the Global Distributed Generation Market study encompass Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa. North America held a dominant position in 2025 owing to its robust renewable energy policies, extensive adoption of rooftop solar, and rapid integration of advanced distributed energy resources (DER). The region's modernized grid, paired with significant investments in clean power infrastructure and microgrid deployments, enables widespread penetration of distributed assets. Meanwhile, Asia Pacific is anticipated to be the fastest-growing region throughout the forecast period. This growth derives from soaring electricity demand fueled by population expansion, industrial acceleration, and the ambitious renewable energy targets set by China, India, Japan, and Southeast Asian nations. Europe also remains a critical contributor due to its aggressive decarbonization strategies, mature energy storage ecosystem, and well-established distributed energy frameworks.

Major market players included in this report are:

• Siemens AG
• General Electric Company
• Schneider Electric SE
• Caterpillar Inc.
• Mitsubishi Heavy Industries
• Bloom Energy
• Vestas Wind Systems A/S
• First Solar, Inc.
• Cummins Inc.
• Wartsila Corporation
• ABB Ltd.
• Capstone Green Energy
• Doosan Fuel Cell Co., Ltd.
• Tesla, Inc.
• Hitachi Energy

Global Distributed Generation Market Report Scope:

• Historical Data - 2023, 2024
• Base Year for Estimation - 2024
• Forecast Period - 2025-2035
• Report Coverage - Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, and Trends
• Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa
• Customization Scope - Free report customization (equivalent to up to 8 analysts' working hours) with purchase. Addition or alteration to country, regional & segment scope*

The objective of the study is to define market sizes of different segments & countries for recent years and to forecast their values for the coming decade. The report incorporates both qualitative and quantitative insights across the participating nations, outlining the driving forces, restraints, and emerging challenges that shape the industry's long-term trajectory. It additionally highlights investment opportunities within niche micro-markets, offering stakeholders a strategic lens to allocate resources effectively. The report further delivers a comprehensive assessment of the competitive landscape, product innovations, and strategic moves adopted by leading players, while detailing the complete segmentation architecture of the Global Distributed Generation Market.

Key Takeaways:

• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional-level analysis for each market segment.
• Detailed analysis of the geographical landscape with country-level insights across major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of the competitive structure of the market.
• Demand-side and supply-side analysis of the market.