Abstract

The global energy sector is experiencing a rapid transformation, driven by the widespread deployment of distributed energy resources (DER) and microgrid technologies. As the transition toward decentralized, flexible, and resilient energy systems accelerates, stakeholders across regions are rethinking how electricity is generated, managed, and consumed.

This Analyst Insight accompanies the Global DER Deployment Database 3Q25 and the Microgrid Deployment Tracker 3Q25, providing additional context and analysis on market trends, technology adoption, and emerging opportunities. Together, these resources offer a comprehensive view of the evolving landscape, highlighting how North America and Asia-Pacific continue to lead in DER and microgrid capacity, with the U.S. and China as dominant markets.

Solar PV, energy storage, and demand response (DR) remain the most widely adopted technologies, while commercial and industrial (C&I) and residential segments are driving much of the new growth. The shift toward decentralized energy is fostering new business models, spurring private-sector investment, and intensifying competition among technology providers. DER and microgrids are increasingly complementing—and in some cases replacing—traditional central generation, reshaping infrastructure, policy, and investment priorities worldwide.

By integrating insights from the latest Guidehouse Research databases and trackers, this report informs market analysis and strategic decision-making, supporting stakeholders in identifying and capturing emerging opportunities in renewables, storage, and grid-edge solutions. The analysis highlights the forces driving change and the implications for energy infrastructure, regulation, and investment across global markets.

What Questions Does This Report Answer? 

• What are the most significant trends in global DER and microgrid deployment, and which regions are leading in capacity growth?
• Which technologies are driving new DER and microgrid installations?
• How are changing policy environments, tariffs, and market drivers influencing DER and microgrid adoption in the U.S. and globally?
• How is annual and cumulative capacity for DER and microgrids expected to grow through 2034?
• How are software solutions like DERMS enabling greater grid flexibility and supporting DER integration?
• What opportunities and challenges are emerging for stakeholders in the residential, C&I, and community segments?
• What practical recommendations can help stakeholders leverage incentives, prioritize technologies, and address grid deficiencies in the clean energy transition?

Who Would Benefit from This Report? 

• Solar and energy storage technology providers
• Microgrid developers and vendors
• Energy suppliers, utilities, and grid operators
• Energy service companies (ESCOs)
• EV charging vendors and service providers
• Software vendors (DERMS, grid flexibility solutions)
• Genset and microturbine vendors
• Fuel cell vendors
• Microgrid vendors
• Government agencies and policymakers
• Investor community

Key Market Forecasts in This Report

• Annual DER Capacity Additions by Region, World Markets: 2025–2034
• Cumulative DER Capacity by Technology, World Markets: 2025–2034
• Microgrid Capacity by Region and Segment, World Markets: 3Q 2025