Growing government support and mandates are largest
drivers for C&I DER adoption
BOULDER, Colo.,
April 16,
2024 /PRNewswire/ -- A new report
from Guidehouse Insights assesses the global market for
distributed energy resources (DER) in commercial and industrial
(C&I) buildings.
As the threat of the climate change becomes a larger concern in
the minds of decision makers around the world, many nations have
passed large spending packages in the last three years focused on
the manufacture and deployment of DER technologies. According to a
new report from Guidehouse Insights, annual revenues for the global
DER for C&I market are expected to grow from $146.4 billion in 2024 to $321.2 billion by 2033 at a compound annual
growth rate (CAGR) of 9.1%.
"With mounting internal and external pressure to decarbonize, as
well as an increasingly positive average ROI, DER in the C&I
space are expected to see considerable growth over the next
decade," says Grant Samms, research
analyst with Guidehouse Insights. "As operators of commercial and
industrial sites continue to invest in the benefits of DER
resilience and sustainability, the latest wave of government
funding will strengthen the case for their adoption of DER."
Even so, the needs of C&I sites vary widely and common DER
deployment models may not be directly applicable. Concerns over
potential downtime, safety of hazardous materials, and higher
energy capacity requirements mean that C&I plant managers must
sometimes be creative to capitalize on DER.
Growing government support and mandates are the largest driver
for C&I DER adoption. Aside from regulatory requirements,
companies are eager to adopt clean DER to help themselves meet
internal climate goals. Significant financial reasons also exist
for these adoptions, such as lower energy costs and the ability to
participate in grid services like load management. While these
forces are strong, the sector does have significant barriers to
deployment including capacity needs that are higher than most DER
can meet, fire safety issues, and low awareness of DER
applicability, according to the report.
The report, Distributed Energy Resources in Commercial and
Industrial Buildings, examines the global market for DER
technologies in industrial and commercial buildings, including
solar PV, generator sets, distributed energy storage systems, and
EV charging systems. It analyzes current market issues, technology
trends, drivers, barriers, and the policy landscape. Market
analyses for revenue and capacity are segmented by technology,
vertical, and region, and extend through 2033. An executive summary
of the report is available for free download on the Guidehouse
Insights website.
About Guidehouse Insights
Guidehouse Insights, the
dedicated market intelligence arm of Guidehouse, provides research,
data, and benchmarking services for today's rapidly changing and
highly regulated industries. Our insights are built on in-depth
analysis of global clean technology markets. The team's research
methodology combines supply-side industry analysis, end-user
primary research, and demand assessment, paired with a deep
examination of technology trends, to provide a comprehensive view
of emerging resilient infrastructure systems. Additional
information about Guidehouse Insights can be found at
www.guidehouseinsights.com.
About Guidehouse
Guidehouse is a leading global
provider of consulting services to the public sector and commercial
markets, with broad capabilities in management, technology, and
risk consulting. By combining our public and private sector
expertise, we help clients address their most complex challenges
and navigate significant regulatory pressures focusing on
transformational change, business resiliency, and technology-driven
innovation. Across a range of advisory, consulting, outsourcing,
and digital services, we create scalable, innovative solutions that
help our clients outwit complexity and position them for future
growth and success. The company has more than 16,000 professionals
in over 55 locations globally. Guidehouse is led by seasoned
professionals with proven and diverse expertise in traditional and
emerging technologies, markets, and agenda-setting issues driving
national and global economies. For more information, please visit
www.guidehouse.com.
* The information contained in this press release concerning
the report, Distributed Energy Resources in Commercial and
Industrial Buildings, is a summary and reflects the
current expectations of Guidehouse Insights based on market data
and trend analysis. Market predictions and expectations are
inherently uncertain and actual results may differ materially from
those contained in this press release or the report. Please refer
to the full report for a complete understanding of the assumptions
underlying the report's conclusions and the methodologies used to
create the report. Neither Guidehouse Insights nor Guidehouse
undertakes any obligation to update any of the information
contained in this press release or the report.
For more information, contact:
Cecile Fradkin for Guidehouse
Insights
+1.646.941.9139
cfradkin@scprgroup.com
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SOURCE Guidehouse Insights