DC Distribution Network Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)

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The DC Distribution Network Market is expected to grow at a CAGR of approximately 8.15% during the forecast period from 2022 to 2027, reaching the value of USD 23.63 billion in 2027 from USD 14.13 billion in 2020.

New York, July 25. 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “DC Distribution Network Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https://www.reportlinker.com/p06309349 /?utm_source=GNW
During the COVID-19 pandemic, the market was hit hard as several commercial and industrial buildings remained closed due to lockdown and the overall economies of countries and businesses were hit hard. The emergence of the direct current (DC) distribution network in several applications from low to high voltage is one of the catalysts for the transformation of the electricity distribution market. Factors such as the growth of the renewable energy sector and its compatibility with battery storage devices, and advantages over AC distribution, such as power sharing between systems with different frequencies, are expected to drive the market during the forecast period. High upfront cost and high complexity compared to generic distribution networks are the factors likely to hinder the growth of the market studied.

Highlights
Electric vehicle (EV) fast charging systems are expected to see significant demand, driven by growing environmental concerns and growing demand for DC infrastructure.
The DC distribution network is considered to be an important factor when it comes to future aspects of smart grids. Furthermore, it is estimated that solar power will provide one-third of the world’s energy demand by 2060, which will proliferate DC distribution in the future, as solar power generates direct current.
Asia-Pacific is expected to dominate the market with the majority of demand coming from countries such as India and China.

Main market trends

Fast charging systems for electric vehicles will experience significant growth

Along with the ever-increasing number of electric vehicles around the world and pressure from governments everywhere to reduce vehicle emissions to zero by 2050, there is a strong need for more efficient charging solutions. Various studies indicate that the acceptance of electric mobility depends on the frequency of charging stations and the duration of the charging process. For electric vehicles, it is important to meet these market requirements.
High-power DC charging stations are the solution to reducing charging time. It can be noted that a typical electric vehicle can charge around 80% of its battery capacity in less than 10 minutes with a high power DC charging system. DC fast charging avoids all on-board charger limitations and required conversion by supplying DC power directly to the battery. In this way, the charging speed can be increased significantly.
Electric vehicles only accept direct current. Thus, the governments of the United States, China and the European Union have focused on the use of DC distribution networks in electric vehicle charging infrastructure. The DC distribution network helps completely bypass the AC to DC conversion process, allowing the charge to go directly to the battery. Governments in these regions have provided various standards and incentives for fast DC charging equipment, which is expected to create more opportunities for the DC distribution network market during the forecast period.
Hence, based on the above-mentioned factors, electric vehicle fast charging systems are expected to witness significant demand for the DC distribution grid market during the forecast period.

Asia-Pacific will dominate the market

The Asia-Pacific region is expected to experience significant demand for DC distribution networks, primarily due to growth in electricity demand in the region and associated power infrastructure needs.
Environmental pollution is one of the main global concerns, and Asia-Pacific countries, such as China and India, are among the biggest producers of greenhouse gases in the world.
Government agencies in Asia-Pacific countries have launched many strategies to gradually reduce carbon emissions by increasing investment in R&D of renewable energy sources. For example, installed solar capacity in Asia-Pacific has increased from 96.2 GW in 2015 to 501.6 GW in 2021.
The rapid increase in solar energy adoption is attributed to the falling cost of solar energy equipment, which has been fueled by continued R&D initiatives and the scaling up of production activities in the region.
India’s renewable energy potential is vast and untapped. The country’s solar potential is over 750 GW and the wind potential is around 302 GW. The country’s 2047 energy security scenario shows the possibility of reaching around 410 GW of wind power and 479 GW of solar PV installed capacity by 2047. ?
Furthermore, the Indian government has also launched many strategies to increase the adoption of renewable energy sources in the country.
For example, in September 2021, the Indian government announced that it plans to increase renewable energy capacity in India by over 175 GW in 2022, which will include 100 GW of solar power and 60 GW of wind power. . In 2021, around 10.4 GW of additional solar power capacity was added to the country’s national grid.
In December 2020, a 30 GW solar project was inaugurated by the Indian government. The project is expected to be partially operational by 2024.
The Make in India initiative in India is further expected to boost the installation of solar power equipment in the country. According to the Make in India initiative, it has planned to increase the manufacturing capacity of solar equipment from 3 GW in 2021 to 25 GW in 2023.
Additionally, in March 2022, the Indian government announced that it would provide financial incentives of USD 2.42 billion to four Indian companies for the manufacture of 50 GWh of energy storage batteries.
Hence, on the basis of end-user segment, Asia-Pacific region is witnessing huge demand for DC distribution network market during the forecast period.

Competitive landscape

The global DC distribution network market is consolidated. The main companies are ABB Ltd, Siemens AG, Vertiv Group Corp., Eaton Corporation PLC and Secheron Sa.

Additional benefits:

The Market Estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06309349/?utm_source=GNW

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