The market for DC distribution network is expected to grow at a CAGR of 8. 15% approximately during the forecast period of 2022 – 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 release 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 COVID-19 pandemic, the market took a huge hit as several commercial and industrial buildings remained closed due to lockdown and overall economies of the countries and companies took a blowing hit. The appearance of direct current (DC) distribution network in several low-to-high voltage applications is one of the catalysts driving the transformation of the electricity distribution market. Factors such as growth in renewable energy sector and its compatibility with battery storage devices, and advantages over AC distribution, like power sharing between systems with different frequencies are expected to drive the market over the forecast period. High initial cost and a lot complexity compared to generic distribution networks are the factors expected to hinder the growth of the market studied.
Electric Vehicle (EV) fast charging systems is expected to witness significant demand, owing to the growing environmental concerns and increasing demand for DC infrastructure.
The DC distribution network is considered as an important factor with regards to the future aspects of smart grids. Also, solar power is estimated to supply one-third of world’s energy demand by 2060 thereby, proliferating DC distribution in future, as solar energy generates direct current.
Asia-Pacific is expected to dominate the market with majority of the demand coming from the countries such as India and China.
Key Market Trends
EV Fast Charging Systems to Witness Significant Growth
Along with the ever-growing number of electric vehicles around the world and pressure from governments across nations 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 points and the duration of the charging process. For electric vehicles, it is important to cater to these market requirements.
High-powered DC charging stations is the solution to reduce the charging time. It can be noted that a typical EV can charge about 80% of its battery capacity in less than 10 minutes with a high-powered DC charging system. DC fast charging dodges all limitations of the onboard charger and required conversion by providing DC power directly to the battery. This way, the charging speed can be increased significantly.
Electric vehicles only accept DC power. Thus, governments in the United States, China, and the European Union have been focusing on utilizing DC distribution networks in the EV charging infrastructure.The DC distribution network helps in bypassing the AC conversion process to DC altogether, allowing the charge to go directly into the battery. The 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.
Therefore, based on the aforementioned factors, electric vehicles fast charging systems is likely to witness significant demand for DC distribution network market over the forecast period.
Asia-Pacific to Dominate the Market
The Asia-Pacific region is expected to witness substantial demand for DC distribution networks, primarily due to the growth in electricity demand across the region and the associated requirement for electrical infrastructure.
Environmental pollution is among the significant world concerns, and countries in Asia-Pacific, such as China and India, are among some of the largest producers of greenhouse gases across the world.
Government bodies across countries in the Asia-Pacific region have initiated numerous strategies to gradually reduce carbon emissions by increasing investments in the R&D of renewable energy sources. For instance, the installed solar capacity in Asia-Pacific grew from 96.2 GW in 2015 to 501.6 GW in 2021.
The rapid rise in the adoption of solar energy is attributed to the declining cost of solar energy equipment, which has been fueled by continuous R&D initiatives and the scaling of production activities in the region.
India’s renewable energy potential is vast and untapped. The country’s solar potential is more than 750 GW, and wind potential is around 302 GW. The country’s energy security scenario 2047 shows the possibility of achieving around 410 GW of wind and 479 GW of solar PV installed capacity by 2047. ?
Further, the Government of India has also initiated numerous strategies to increase the adoption of renewable energy sources in the country.
For instance, in September 2021, the Government of India announced that it has planned to increase the renewable energy capacity in India by over 175 GW in 2022, which will include 100 GW of solar and 60 GW of wind energy. In 2021, approximately 10.4 GW of additional solar energy capacity was added to the country’s national grid.
In December 2020, a 30 GW solar project was inaugurated by the Government of India. The project is expected to be partially operational by 2024.
The Make in India initiative in India is further expected to boost the installations of solar energy equipment in the country. According to the Make in India initiative, it has planned to increase solar equipment manufacturing capacity from 3 GW in 2021 to 25 GW in 2023.
Further, in March 2022, the Government of India announced that it would be providing financial incentives of USD 2.42 billion to four Indian companies for manufacturing 50 GWh of energy storage batteries.
Therefore, based on end-user segment, the Asia-Pacific region is witnessing huge demand for DC distribution network market over the forecast period.
The global DC distribution network market is consolidated. The key companies include ABB Ltd, Siemens AG, Vertiv Group Corp., Eaton Corporation PLC, and Secheron Sa.
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