The distributed energy generation (DEG) systems market is highly fragmented and led by a large number of multinationals worldwide. The top five companies accounted for 38.5% of the market in 2012. Key players operating in the market are GE Energy, Siemens Energy, Caterpillar, E.ON Group, and Mitsubishi Power Systems. Players are increasingly focusing on product innovation, states a new report by Transparency Market Research (TMR). Companies are also collaborating with major organizations. A case in point would be Nokia Siemens. The company collaborated with Ballard Power Systems Inc., to develop fuel cell systems, which offers backup to mobile networks during power blackout.
The presence of existing conventional energy systems poses a threat to the DEG market. The availability of low cost high energy density batteries also poses a threat to the market. The distributed energy generation systems market is known for its brand value, with key players marking their presence strongly. The high potential of the market attracts new players but they have to meet with entry barriers such as EPA regulations and high capital investments.
Growing Concerns over Energy Consumption and Emission to Boost Demand for DEG Systems
The demand for DEG systems has increased substantially owing to factors such as unstable geopolitical conditions surrounding oil production, rising energy prices, and increasing concerns regarding energy consumption and emissions. The fluctuating oil and coal prices have increased the insecurity among energy consumers. This has subsequently caused a shift towards the generation of energy from renewable sources. Thus, the demand for DEG systems is increasing since these systems make use of different sources such as biomass, wind, and hydropower.
Source : http://www.openpr.com/news/451663/Distributed-Energy-Generation-DEG-Systems-Market-Estimated-To-Reach-A-Value-Of-US-155-8-bn-Plays-An-Important-Role-In-Electric-Power-Distribution-System.html
View all SMART GRID Bulletins click here
Enter your email-id to subscribe to theSMARTGRID Bulletins