Global Distribution Generation Market: Snapshot
Owing to the increased funds diverting towards the development of renewable energy generation infrastructure, the global distribution generation has acquired immense popularity. In the past few years, there is an increased inflow of new vendors and policy makers are more focused towards the distribution generation market due to the constant demand for clean energy. All conductive policies are encouraging the adoption of clean energy and this may be presumed to drive the distribution generation market in the coming years.
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Various other factors influence the distributed generation market to grow. There is a constant rise in demand for electricity in both developed as well as developing nations for industrial and residential purposes. There is this increasing cost and strict regulations that limits the use of power that is generated from fossil fuels. Development in off-grid locations are also being focused by power distribution infrastructure which further adds to the growth and demand of the distributed generation market.
The factor that may restrict the growth of the market is the reluctance of investment in the distribution generation market. However, because of their compact size, practical thermal output and low unit cost, these distribution generation engines are widely used for power generation. Quick and flexible start-up technologies used for generating power are the main reasons that may boost up the demand for distributed generation market in the coming years.
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The global distribution generation market is presumed to witness a promising growth within the forecast period of 2017 to 2025. It is presumed to rise at US$35.56 bn by 2025 with a CAGR of 8.2 %.
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The global distributed generation market is studies with respect to key geographies Latin America, Europe, North America, Middle East and Africa, and Asia Pacific. Out of these Asia pacific is estimated to exhibit the most promising investment potential over the years. A steady increment in the revenue is expected in the global distributed generation market. Due to the rise in strict implications on environment protection laws, and increased focus on off-grid locations to be provided with energy, the market in Asia Pacific is anticipated to benefit to a large extent.
Owing to the vast rise in new solar PV projects and high installed solar PV capacities, the key enablers of growth in Asia Pacific market are Japan and China. Government policies have also enabled positive development of the market in the region, hence increasing focus on developing renewable energy-based generation.
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