Global DC Distribution Network Market- Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

Since the War of the Currents of the late 1800s, alternating current (AC) has dominated power distribution. However, direct current (DC) has made a resurgence to challenge AC in recent years.

Low-voltage direct-current distribution is being considered globally as a replacement for alternating-current distribution to provide a stable power supply for digital consumer electronic devices and improve network efficiency following the interconnection of renewable energy sources. The application of direct-current (dc) distribution increases rapidly when loads and other energy sources are pure dc. 

What is DC Distribution Network?

DC power distribution is an onboard electrical system, where electrical power sources, loads, and other energy storage systems are connected to the DC bus directly or via power electronic converter.

Drivers

Rising deployment of renewable energy systems

Governments around the world have declared their emission reduction and carbon neutrality targets, owing to which the transition to clean energy is occurring at a rapid pace globally. The declining prices of DERs (distributed energy resources) are also one of the major factors driving the global energy transition.

According to IRENA’s World Energy Transition Outlook 2022, the global energy transition is far from being on track. In order to reach the global targets, renewable would have to scale up massively across all the sectors, from 14% of total energy today to around 40% in 2030. Global annual additions of renewable power would triple by 2030, as recommended by the Intergovernmental Panel on Climate Change (IPCC).

Due to the ambitious climate targets announced in the COP 26, renewable capacity growth is expected to accelerate in the next five years, accounting for almost 95% of the increase in global power capacity through 2026.

By the end of 2021, the stock of renewable power increased by 9.1% compared to the 2020 levels, with the solar and wind dominating the global renewable capacity additions.

The solar new capacity installations registered an increase in all the major regions of the world, outgrowing the total wind energy capacity globally. The wind installations continued to expand but at a slower pace in 2021 relative to 2020 (+93 GW compared to +111 GW last year).

Globally, renewable electricity capacity is forecast to increase by over 60% between 2020 and 2026, reaching more than 4800 GW. This is equivalent to the current global power capacity of fossil fuels and nuclear combined.

Renewable-based power is now the cheapest power option in most regions. The global weighted-average Levelized cost of electricity from newly commissioned utility-scale solar photovoltaic (PV) projects fell by 85% between 2010 and 2020. The cost reductions for concentrated solar power (CSP) were 68%; onshore wind, 56%; and offshore wind, 48%.

As a result, renewables are already the default option available for capacity additions in the power industry in almost all countries, and they dominate current investments. Wind and solar technologies have consolidated their dominance over time, and, with the recent increase in fossil fuel prices, the economic outlook for renewable power is undeniably good.

According to the International Energy Agency (IEA), despite surging costs for raw materials used in solar panels and wind turbine manufacturing, new renewable energy capacity additions in 2022 is forecast to rise, outpacing the previous all-time high set last year.

Some of the other factors driving the dc distribution network market are the increasing adoption of battery energy storage systems due to high compatibility with renewable energy and rising EV infrastructure due to the high rate of EV adoption across the globe.

Restraints

Despite these important benefits, several market and technological barriers inhibit the development of DC distribution network, and the market for DC in buildings is still largely in the demonstration phase. Therefore, to jumpstart this technology, a clear path forward must emerge at this early deployment stage.

What we cover in the report?

DC Distribution Network Market Drivers & Restraints

The study covers all the major underlying forces that help the market develop and grow and the factors that constrain the growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium and long term will be covered using Harvey balls for visual communication of qualitative information and functions as a guide for you to analyze the degree of impact.

DC Distribution Network Market Analysis

This report discusses the overview of the market, latest updates, important commercial developments and structural trends, and government policies and regulations in the region.

This section provides an assessment of COVID-19 impact on DC Power Distribution Network Market demand.

DC Distribution Network Market Size and Demand Forecast

The report provides the DC Power Distribution Network Market size and demand forecast until 2027, including year-on-year (YoY) growth rates and CAGR.

DC Distribution Network Market Industry Analysis

The report examines the critical elements of the DC Power Distribution Network industry supply chain, its structure, and the participants

Using Porter's five forces framework, the report covers the assessment of the DC Power Distribution Network industry's state of competition and profitability.

DC Distribution Network Market Segmentation & Forecast

The report dissects the DC Power Distribution Network Market into various segments. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.

Regional Market Analysis

Over the 2021-26 period, the expansion of renewable capacity in the United States is expected to be 65% greater than in the previous five years. This is the combined result of the economic attractiveness of wind and solar PV, increased ambition at the federal level, the extension of federal tax credits in December 2020, a growing market for corporate power purchase agreements, and growing support for offshore wind.

The Asia-Pacific region is also deploying renewables on a large scale, with China and India leading in renewable additions. China already has the lion's share in global renewable capacity additions. 

Improving competitiveness, policy support, and ambitious targets are driving the renewable power additions in the region. Relative to existing capacity, renewable power is growing faster in India than any other key market in the world. Solar PV is expected to lead the way, driven by competitive auctions aimed at achieving the government’s ambitious renewable power target of 500 GW by 2030. 

Asia-Pacific is expected to dominate the market in the following years. The growing power demand in the region and subsequent increase in microgrids has created a need for efficient distribution networks such as the DC distribution network system.

However, in August 2019, Korea has already implemented a low-voltage direct current (LVDC) distribution system at Seogeocha Island. LSIS Co. and the Korea Electric Power Corporation (KEPCO) successfully established an LVDC distribution network on Seogeocha Island, 24 kilometers from South Korea. 

This market research report provides an overview of the competitive landscape for DC Distribution Network. The study also comprehensively analyses the DC Distribution Network market by segmenting it based on end-users (commercial, telecom sites, data centres, and others) and geography (North America, Europe, Asia-Pacific, South America, and the Middle East & Africa).

The report covers detailed profiles of major countries across the world. Each country's DC distribution network market analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.

In addition, market size, demand forecast, and market growth rates will be provided for all regions. Following are the notable countries covered under each region.

North America - United States, Canada, Mexico, and Rest of North America

Europe - Germany, France, United Kingdom (UK), Russia, and Rest of Europe

Asia-Pacific - China, India, Japan, South Korea, Australia, Rest of APAC

Rest of the world - Saudi Arabia, Brazil, Nigeria, South Africa, and other countries

Key Company Profiles

This report presents detailed profiles of Key companies in the DC distribution network industry. In general, each company profile includes - overview of the company, relevant products and services, a financial overview, and recent developments. Some of the leading players in the report include, Eaton Corporation PLC, Siemens Energy, Engie SA, etc.

Competitive Landscape

The report provides a comprehensive list of notable companies in the regional market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

Executive Summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an Executive Summary chapter and ends with Conclusions and Recommendations.

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The report also addresses present, and future market opportunities, market trends, developments, new product launches, region, and segments poised for the fastest growth, competitive landscape, and impact of Covid-19 and oil & gas prices crash on the DC Distribution Network market. Further, DC Distribution Network market size, demand forecast, and growth rates will also be provided in the report.