Market overview
The global distributed generation market is worth USD 46.6 bn in 2026 and is forecast to reach USD 87.5 bn by 2036, growing at a 6.5% CAGR. United States is the largest country market and Reciprocating engine gensets is the largest by technology segment.
| Scope | On-site power generation equipment sold to businesses, utilities and communities: reciprocating-engine gensets, small gas turbines, combined heat and power units, microturbines and fuel cells (rooftop solar excluded). |
|---|---|
| Industry | Services and Utilities |
| Value 2025 | USD 44.0 bn |
| Value 2026 | USD 46.6 bn |
| Value 2036 | USD 87.5 bn |
| CAGR 2026-2036 | 6.5% |
| Volume 2026 | 105,473 MW |
| Volume 2036 | 188,354 MW |
| Average price 2026 | USD 442,200 per MW |
| Report price | Starts from USD 1,999 |
| Published | November 2026 |
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Distributed Generation market size and forecast, 2026-2036
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Year | Market value |
|---|---|
| 2026 | USD 46.6 bn |
| 2027 | USD 49.7 bn |
| 2028 | USD 52.9 bn |
| 2029 | USD 56.3 bn |
| 2030 | USD 60.0 bn |
| 2031 | USD 63.9 bn |
| 2032 | USD 68.1 bn |
| 2033 | USD 72.5 bn |
| 2034 | USD 77.2 bn |
| 2035 | USD 82.2 bn |
| 2036 | USD 87.5 bn |
Distributed Generation market segmentation
By technology
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Reciprocating engine gensets | 62.0% | 54.4% | USD 28.9 bn | 5.1% |
| Gas turbines (up to 50 MW) | 14.0% | 11.7% | USD 6.5 bn | 4.6% |
| Combined heat and power units | 12.0% | 12.1% | USD 5.6 bn | 6.6% |
| Fuel cells | 8.0% | 18.1% | USD 3.7 bn | 15.6% |
| Microturbines and others | 4.0% | 3.7% | USD 1.9 bn | 5.6% |
By fuel
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Diesel | 42.0% | 28.5% | USD 19.6 bn | 2.4% |
| Natural gas | 42.0% | 41.6% | USD 19.6 bn | 6.4% |
| Hydrogen, biogas and others | 16.0% | 29.9% | USD 7.5 bn | 13.4% |
By end use
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Commercial and data centres | 34.0% | 43.8% | USD 15.9 bn | 9.2% |
| Industrial | 27.0% | 22.9% | USD 12.6 bn | 4.8% |
| Utilities and microgrids | 17.0% | 15.9% | USD 7.9 bn | 5.8% |
| Residential | 12.0% | 9.7% | USD 5.6 bn | 4.3% |
| Oil, gas and mining | 10.0% | 7.7% | USD 4.7 bn | 3.8% |
By power rating
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Under 100 kW | 21.0% | 18.0% | USD 9.8 bn | 4.9% |
| 100 kW to 1 MW | 33.0% | 31.0% | USD 15.4 bn | 5.8% |
| 1 MW to 10 MW | 30.0% | 32.0% | USD 14.0 bn | 7.2% |
| 10 MW to 50 MW | 16.0% | 19.0% | USD 7.5 bn | 8.3% |
By operating mode
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Standby and backup | 44.0% | 38.0% | USD 20.5 bn | 5.0% |
| Prime and continuous power | 38.0% | 41.0% | USD 17.7 bn | 7.3% |
| Peak shaving and grid support | 18.0% | 21.0% | USD 8.4 bn | 8.2% |
Top 25 countries for distributed generation by revenue
Countries are ranked by revenue earned from sales in the country, not by where the product is made. The ten largest hold 74.0% of 2026 revenue and the 25 countries below together hold 93.7%.
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| # | Country | Value 2026 | Share 2026 | Value 2036 | CAGR 2026-36 |
|---|---|---|---|---|---|
| 1 | United States | USD 11.2 bn | 24.0% | USD 22.2 bn | 7.1% |
| 2 | China | USD 7.5 bn | 16.0% | USD 13.5 bn | 6.1% |
| 3 | India | USD 4.2 bn | 9.0% | USD 9.2 bn | 8.2% |
| 4 | Japan | USD 2.3 bn | 5.0% | USD 3.7 bn | 4.7% |
| 5 | Germany | USD 1.9 bn | 4.0% | USD 3.2 bn | 5.7% |
| 6 | Saudi Arabia | USD 1.9 bn | 4.0% | USD 3.4 bn | 6.2% |
| 7 | United Kingdom | USD 1.4 bn | 3.0% | USD 2.5 bn | 5.8% |
| 8 | Brazil | USD 1.4 bn | 3.0% | USD 2.5 bn | 6.1% |
| 9 | Indonesia | USD 1.4 bn | 3.0% | USD 2.6 bn | 6.5% |
| 10 | Nigeria | USD 1.4 bn | 3.0% | USD 2.8 bn | 7.2% |
| 11 | South Korea | USD 1.3 bn | 2.9% | USD 2.3 bn | 5.6% |
| 12 | Italy | USD 1.2 bn | 2.5% | USD 2.0 bn | 5.6% |
| 13 | Canada | USD 1.0 bn | 2.2% | USD 1.8 bn | 5.6% |
| 14 | Mexico | USD 891 mn | 1.9% | USD 1.9 bn | 7.7% |
| 15 | Australia | USD 779 mn | 1.7% | USD 1.3 bn | 5.6% |
| 16 | Egypt | USD 681 mn | 1.5% | USD 1.4 bn | 7.8% |
| 17 | Russia | USD 597 mn | 1.3% | USD 876 mn | 3.9% |
| 18 | Iraq | USD 522 mn | 1.1% | USD 1.1 bn | 7.8% |
| 19 | Pakistan | USD 457 mn | 1.0% | USD 963 mn | 7.7% |
| 20 | United Arab Emirates | USD 401 mn | 0.9% | USD 692 mn | 5.6% |
| 21 | Turkey | USD 350 mn | 0.8% | USD 604 mn | 5.6% |
| 22 | Philippines | USD 308 mn | 0.7% | USD 648 mn | 7.7% |
| 23 | Spain | USD 271 mn | 0.6% | USD 464 mn | 5.5% |
| 24 | South Africa | USD 233 mn | 0.5% | USD 403 mn | 5.6% |
| 25 | Vietnam | USD 205 mn | 0.4% | USD 499 mn | 9.3% |
| Rest of world | USD 2.9 bn | 6.3% | USD 4.9 bn | 5.3% |
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
Competitive landscape
Group 1: Global leaders
- Caterpillar
- Cummins
- Rolls-Royce Power Systems
- Generac
- Wartsila
- Rehlko
- INNIO
- Siemens Energy
- GE Vernova
Group 2: Regional and specialist players
- Bloom Energy
- Capstone Green Energy
- Kirloskar Oil Engines
- Mitsubishi Heavy Industries
- Weichai Power
- Yanmar
- MAN Energy Solutions
- Jakson Group
Group 3: Emerging and niche players
- FuelCell Energy
- Himoinsa
- Tecogen
- 2G Energy
- Clarke Energy
Research methodology
Every figure on this page comes from the research framework that we apply to all of the markets we cover. The 2025 base for the distributed generation market is built from the volume sold and the price that buyers pay, and is cross-checked against the size of the wider industry the market belongs to. Where a market can be sized in more than one way, the routes are compared before a figure is set.
The forecast runs year by year from the 2025 base to 2036. Growth in each year reflects demand from the industries that buy the product, adoption of new technology, pricing, regulation and replacement cycles. Volume and price are modelled together, so revenue in each year equals volume multiplied by average price. The 2026 to 2036 compound annual growth rate of 6.5% is calculated from the resulting values.
The market is divided by technology, by fuel, by end use, by power rating, by operating mode. The 25 largest countries are ranked by revenue earned from sales to buyers in each country, not by where the product is made. Segment values and country values add up to the market total in every year, and every report is checked for consistency before it is published.
Companies are placed in three groups: global leaders, regional and specialist players, and emerging and niche players. The groups describe how companies compete in the market. They are not a ranking and they are not market shares.
Our analysts also carry out primary research. Customized reports add interviews with key opinion leaders, such as senior executives, technical specialists and buyers, to test the assumptions behind the numbers for the question being asked.
Frequently asked questions
How big is the distributed generation market?
The global distributed generation market is estimated at USD 44.0 bn in 2025 and USD 46.6 bn in 2026.
How fast will the distributed generation market grow?
It is forecast to reach USD 87.5 bn by 2036, a compound annual growth rate of 6.5% from 2026, an increase of USD 40.9 bn.
Which country is the largest market for distributed generation?
United States is the largest market by revenue at USD 11.2 bn in 2026, 24.0% of the global total. The three largest countries together hold 49.0%.
Which country is growing fastest?
Among the ten largest markets, India is growing fastest at 8.2% a year from 2026 to 2036.
Which distributed generation segment is largest?
In the by technology split, Reciprocating engine gensets is the largest segment with 62.0% of 2026 revenue.
Who are the leading distributed generation companies?
Global leaders include Caterpillar, Cummins, Rolls-Royce Power Systems, Generac.
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