Embedded Power Generation Market
Embedded Power Generation Market Forecasts to 2032 - Global Analysis By Fuel Type (Natural Gas, Diesel, Biogas, Renewable Energy, Hydrogen, Coal and Other Fuel Types), Capacity, Deployment Mode, Technology, End User and By Geography
|
Years Covered |
2024-2032 |
|
Estimated Year Value (2025) |
US $22.24 BN |
|
Projected Year Value (2032) |
US $39.37 BN |
|
CAGR (2025-2032) |
8.5% |
|
Regions Covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
|
Countries Covered |
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa |
|
Largest Market |
Asia Pacific |
|
Highest Growing Market |
North America |
According to Stratistics MRC, the Global Embedded Power Generation Market is accounted for $22.24 billion in 2025 and is expected to reach $39.37 billion by 2032 growing at a CAGR of 8.5% during the forecast period. The decentralised production of electricity at or close to the point of use, as opposed to depending on centralised power facilities, is known as embedded power generation. Small-scale technologies like microturbines, solar panels, wind turbines, and combined heat and power (CHP) systems are all part of it. In order to increase energy efficiency, lower gearbox losses, and boost dependability, these systems are usually installed into residential, commercial, or industrial buildings. An essential part of contemporary, sustainable energy infrastructures, embedded power generation promotes grid resilience, reduces emissions, and permits increased energy independence.
According to the Inteational Energy Agency (IEA), there are approximately 770 million people globally without access to electricity, and embedded power generation systems could be a key solution to bridge this energy gap.
Market Dynamics:
Driver:
Rising demand for decentralized energy systems
Localised energy production is made possible by these systems, which lessen transmission losses and dependency on central grids. On-site generating is becoming more and more popular among consumers and businesses due to its increased energy security and dependability. Decentralised solutions are now more economical and ecologically beneficial thanks to developments in renewable technologies. By enacting laws and offering incentives, governments are also promoting these kinds of systems. Consequently, embedded power generation is emerging as a key element of contemporary energy systems.
Restraint:
High initial investment and maintenance cost
Advanced technology, specialised tools, and trained labour are needed to set up embedded systems, which raises the cost of capital. It can be difficult for many small and medium-sized businesses to set aside enough money for installation. Furthermore, the systems become less appealing due to the constant costs associated with maintenance and servicing. Adoption is further deterred by uncertainty over return on investment. Market penetration is slowed by these financial obstacles, particularly in developing nations.
Opportunity:
Integration of renewable energy technologies
Wind turbines, biomass systems, and solar panels all improve energy efficiency and lessen reliance on centralised networks. These methods reduce greenhouse gas emissions, which promotes sustainable growth. To reach carbon neutrality targets, governments and businesses are investing more in renewable energy. Embedded renewable systems are becoming more dependable and economical because to technological developments. This change meets the growing energy needs of both urban and rural areas, which propels market expansion.
Threat:
Regulatory and grid integration challenges
The implementation of embedded systems is complicated by regionally disparate policies and standards. Complicated interconnection rules and drawn-out permitting procedures raise expenses and erode investor confidence. Because of antiquated infrastructure, grid operators frequently find it difficult to integrate decentralised power sources. Small-scale producers are deterred by unclear rules about net metering and payment. All of these problems limit the use of integrated power solutions and slow industry growth.
Covid-19 Impact
The COVID-19 pandemic significantly impacted the embedded power generation market by disrupting supply chains, delaying project timelines, and reducing investments in new installations. Industrial slowdowns and decreased energy demand during lockdowns hindered market growth. However, the crisis also highlighted the importance of reliable, decentralized energy systems, prompting renewed interest in embedded power solutions for resilience. Post-pandemic recovery, along with government stimulus for clean energy, is expected to drive market resurgence and accelerate adoption of distributed power technologies.
The diesel segment is expected to be the largest during the forecast period
The diesel segment is expected to account for the largest market share during the forecast period, due to its reliability and efficiency in remote and off-grid applications. Diesel generators offer quick start-up times and consistent power supply, making them ideal for backup and emergency power systems. Their robust design supports continuous operation in harsh environments across industrial, commercial, and residential sectors. Technological advancements have improved fuel efficiency and reduced emissions, enhancing their market appeal. Additionally, the widespread availability of diesel fuel ensures easy deployment and maintenance globally.
The commercial buildings segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the commercial buildings segment is predicted to witness the highest growth rate by driving demand for reliable and decentralized energy solutions. These buildings often require uninterrupted power for operations, pushing the adoption of on-site generation technologies like solar panels, fuel cells, and microturbines. Increasing emphasis on sustainability and green certifications motivates businesses to integrate cleaner embedded systems. Rising energy costs further encourage commercial facilities to invest in cost-effective, self-sufficient power sources. Additionally, advancements in smart energy management systems enhance efficiency and control, making embedded generation more attractive for commercial users.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share due to increasing energy demand, expanding industrialization. Countries like China, India, and Japan are heavily investing in decentralized power systems to enhance energy security and reduce transmission losses. Supportive government policies and a strong focus on renewable energy integration further fuel market expansion. Additionally, the rise in smart grid infrastructure and distributed energy resources is encouraging the adoption of embedded power generation technologies across both urban and rural sectors in the region.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR by mature infrastructure and a strong emphasis on sustainability and emission reduction. The U.S. and Canada are focusing on replacing aging centralized grids with more resilient, localized power sources. Growth is primarily driven by the rising adoption of clean energy technologies, microgrids, and combined heat and power (CHP) systems. While the market is not growing as rapidly as in Asia Pacific, it benefits from robust R&D, technological innovation, and regulatory support for energy independence and grid stability.
Key players in the market
Some of the key players profiled in the Embedded Power Generation Market include General Electric (GE), Siemens AG, Caterpillar Inc., Cummins Inc., Schneider Electric, Mitsubishi Heavy Industries Ltd., Rolls-Royce Holdings plc, Wärtsilä Corporation, ABB Ltd., Kohler Co., MTU Onsite Energy, Capstone Turbine Corporation, Generac Holdings Inc., Doosan Corporation, Yanmar Co., Ltd., Atlas Copco AB, Aggreko plc and Himoinsa S.L.
Key Developments:
In May 2025, Siemens entered into an agreement with TURN2X to become its preferred supplier and technology partner. The collaboration aims to scale up TURN2X’s green energy production, leveraging Siemens’ advanced technology portfolio to significantly enhance TURN2X’s production capabilities in the embedded power generation sector.
In September 2024, Cummins announced a partnership with Bosch Global Software, ETAS, and KPIT to launch Eclipse CANought, an open-source project for commercial vehicle telematics. The project, part of the Eclipse Software Defined Vehicle initiative, will be integrated into telematics offerings starting in 2025, simplifying software integration and enabling secure, standardized access to vehicle ECUs.
In July 2024, Siemens AG and Boson Energy signed a Memorandum of Understanding to collaborate on waste-to-hydrogen technology. This partnership focuses on converting non-recyclable waste into hydrogen, supporting the transition to green energy and embedded power generation solutions.
Fuel Types Covered:
• Natural Gas
• Diesel
• Biogas
• Renewable Energy
• Hydrogen
• Coal
• Other Fuel Types
Capacities Covered:
• Up to 100 kW
• 100–500 kW
• 500 kW–1 MW
• 1–5 MW
• Above 5 MW
Deployment Modes Covered:
• On-grid
• Off-grid
• Hybrid Systems
Technologies Covered:
• Combined Heat and Power (CHP)
• Micro Turbines
• Fuel Cells
• Solar Photovoltaic (PV)
• Wind Turbines
• Reciprocating Engines
• Gas Turbines
• Stirling Engines
• Other Technologies
End Users Covered:
• Utilities
• Commercial Buildings
• Manufacturing Industries
• Data Centers
• Educational Institutes
• Healthcare Facilities
• Remote Areas
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Technology Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Embedded Power Generation Market, By Fuel Type
5.1 Introduction
5.2 Natural Gas
5.3 Diesel
5.4 Biogas
5.5 Renewable Energy
5.6 Hydrogen
5.7 Coal
5.8 Other Fuel Types
6 Global Embedded Power Generation Market, By Capacity
6.1 Introduction
6.2 Up to 100 kW
6.3 100–500 kW
6.4 500 kW–1 MW
6.5 1–5 MW
6.6 Above 5 MW
7 Global Embedded Power Generation Market, By Deployment Mode
7.1 Introduction
7.2 On-grid
7.3 Off-grid
7.4 Hybrid Systems
8 Global Embedded Power Generation Market, By Technology
8.1 Introduction
8.2 Combined Heat and Power (CHP)
8.3 Micro Turbines
8.4 Fuel Cells
8.5 Solar Photovoltaic (PV)
8.6 Wind Turbines
8.7 Reciprocating Engines
8.8 Gas Turbines
8.9 Stirling Engines
8.10 Other Technologies
9 Global Embedded Power Generation Market, By End User
9.1 Introduction
9.2 Utilities
9.3 Commercial Buildings
9.4 Manufacturing Industries
9.5 Data Centers
9.6 Educational Institutes
9.7 Healthcare Facilities
9.8 Remote Areas
9.9 Other End Users
10 Global Embedded Power Generation Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa
11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies
12 Company Profiling
12.1 General Electric (GE)
12.2 Siemens AG
12.3 Caterpillar Inc.
12.4 Cummins Inc.
12.5 Schneider Electric
12.6 Mitsubishi Heavy Industries Ltd.
12.7 Rolls-Royce Holdings plc
12.8 Wärtsilä Corporation
12.9 ABB Ltd.
12.10 Kohler Co.
12.11 MTU Onsite Energy
12.12 Capstone Turbine Corporation
12.13 Generac Holdings Inc.
12.14 Doosan Corporation
12.15 Yanmar Co., Ltd.
12.16 Atlas Copco AB
12.17 Aggreko plc
12.18 Himoinsa S.L.
List of Tables
1 Global Embedded Power Generation Market Outlook, By Region (2024-2032) ($MN)
2 Global Embedded Power Generation Market Outlook, By Fuel Type (2024-2032) ($MN)
3 Global Embedded Power Generation Market Outlook, By Natural Gas (2024-2032) ($MN)
4 Global Embedded Power Generation Market Outlook, By Diesel (2024-2032) ($MN)
5 Global Embedded Power Generation Market Outlook, By Biogas (2024-2032) ($MN)
6 Global Embedded Power Generation Market Outlook, By Renewable Energy (2024-2032) ($MN)
7 Global Embedded Power Generation Market Outlook, By Hydrogen (2024-2032) ($MN)
8 Global Embedded Power Generation Market Outlook, By Coal (2024-2032) ($MN)
9 Global Embedded Power Generation Market Outlook, By Other Fuel Types (2024-2032) ($MN)
10 Global Embedded Power Generation Market Outlook, By Capacity (2024-2032) ($MN)
11 Global Embedded Power Generation Market Outlook, By Up to 100 kW (2024-2032) ($MN)
12 Global Embedded Power Generation Market Outlook, By 100–500 kW (2024-2032) ($MN)
13 Global Embedded Power Generation Market Outlook, By 500 kW–1 MW (2024-2032) ($MN)
14 Global Embedded Power Generation Market Outlook, By 1–5 MW (2024-2032) ($MN)
15 Global Embedded Power Generation Market Outlook, By Above 5 MW (2024-2032) ($MN)
16 Global Embedded Power Generation Market Outlook, By Deployment Mode (2024-2032) ($MN)
17 Global Embedded Power Generation Market Outlook, By On-grid (2024-2032) ($MN)
18 Global Embedded Power Generation Market Outlook, By Off-grid (2024-2032) ($MN)
19 Global Embedded Power Generation Market Outlook, By Hybrid Systems (2024-2032) ($MN)
20 Global Embedded Power Generation Market Outlook, By Technology (2024-2032) ($MN)
21 Global Embedded Power Generation Market Outlook, By Combined Heat and Power (CHP) (2024-2032) ($MN)
22 Global Embedded Power Generation Market Outlook, By Micro Turbines (2024-2032) ($MN)
23 Global Embedded Power Generation Market Outlook, By Fuel Cells (2024-2032) ($MN)
24 Global Embedded Power Generation Market Outlook, By Solar Photovoltaic (PV) (2024-2032) ($MN)
25 Global Embedded Power Generation Market Outlook, By Wind Turbines (2024-2032) ($MN)
26 Global Embedded Power Generation Market Outlook, By Reciprocating Engines (2024-2032) ($MN)
27 Global Embedded Power Generation Market Outlook, By Gas Turbines (2024-2032) ($MN)
28 Global Embedded Power Generation Market Outlook, By Stirling Engines (2024-2032) ($MN)
29 Global Embedded Power Generation Market Outlook, By Other Technologies (2024-2032) ($MN)
30 Global Embedded Power Generation Market Outlook, By End User (2024-2032) ($MN)
31 Global Embedded Power Generation Market Outlook, By Utilities (2024-2032) ($MN)
32 Global Embedded Power Generation Market Outlook, By Commercial Buildings (2024-2032) ($MN)
33 Global Embedded Power Generation Market Outlook, By Manufacturing Industries (2024-2032) ($MN)
34 Global Embedded Power Generation Market Outlook, By Data Centers (2024-2032) ($MN)
35 Global Embedded Power Generation Market Outlook, By Educational Institutes (2024-2032) ($MN)
36 Global Embedded Power Generation Market Outlook, By Healthcare Facilities (2024-2032) ($MN)
37 Global Embedded Power Generation Market Outlook, By Remote Areas (2024-2032) ($MN)
38 Global Embedded Power Generation Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
Frequently Asked Questions
In case of any queries regarding this report, you can contact the customer service by filing the “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
Yes, the samples are available for all the published reports. You can request them by filling the “Request Sample” option available in this page.
Yes, you can request a sample with your specific requirements. All the customized samples will be provided as per the requirement with the real data masked.
All our reports are available in Digital PDF format. In case if you require them in any other formats, such as PPT, Excel etc you can submit a request through “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
We offer a free 15% customization with every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.
We have 3 different licensing options available in electronic format.
- Single User Licence: Allows one person, typically the buyer, to have access to the ordered product. The ordered product cannot be distributed to anyone else.
- 2-5 User Licence: Allows the ordered product to be shared among a maximum of 5 people within your organisation.
- Corporate License: Allows the product to be shared among all employees of your organisation regardless of their geographical location.
All our reports are typically be emailed to you as an attachment.
To order any available report you need to register on our website. The payment can be made either through CCAvenue or PayPal payments gateways which accept all international cards.
We extend our support to 6 months post sale. A post sale customization is also provided to cover your unmet needs in the report.
Request Customization
We offer complimentary customization of up to 15% with every purchase. To share your customization requirements, feel free to email us at info@strategymrc.com or call us on +1-301-202-5929. .
Please Note: Customization within the 15% threshold is entirely free of charge. If your request exceeds this limit, we will conduct a feasibility assessment. Following that, a detailed quote and timeline will be provided.
WHY CHOOSE US ?
Assured Quality
Best in class reports with high standard of research integrity
24X7 Research Support
Continuous support to ensure the best customer experience.
Free Customization
Adding more values to your product of interest.
Safe & Secure Access
Providing a secured environment for all online transactions.
Trusted by 600+ Brands
Serving the most reputed brands across the world.
