Distributed-generation solar will account for 65% of the worlds installed distributed energy capacity within the next decade, creating a market worth $42 billion, according to Frost & Sullivan.
China and India are important market players, as their rapid pace of industrialization and widening demand-supply gap is creating a vast market for distributed energy, it said, noting the importance of high sales of gas engine-based combined heat and power (CHP) plants in Japan.
Inadequate power infrastructure for the growing electrification needs in Indonesia, Vietnam and the Philippines is attracting investments in efficient and flexible distributed power solutions.
Asia-Pacific will eventually account for roughly 50% of the global distributed-generation PV market over the next 10 years, with annual revenues of more than $21 billion, added the Texas-based consulting firm.
Several global trends are catalyzing the distributed energy market, it said, pointing to higher electrification, falling PV costs and the rising use of battery storage technologies.
Growth will also be facilitated by the introduction of supportive regulatory frameworks and smart energy programs, creating new revenue streams the will push total revenues to $65.39 billion by the end of this year, from about $59.41 billion in 2015.
Frost & Sullivans 2016 Global Distributed Energy Outlook report focuses on a range of markets, including distributed-generation PV, storage, micro grids and CHP.?