Product Code: 51494
The market for DC distribution network is expected to grow at a CAGR of 7.2% approximately during the forecast period of 2020 - 2025. 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, 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
- The global electric vehicle (EV) charging system segment is booming due to many factors such as increasing adoption of electric vehicles, supportive government policies across the world etc. Moreover, oil is considered as a limited resource, and an alternate source of transportation fuel like electricity is not only a smart investment but also an inevitable one.
- The number of plug-in electric vehicles (PEVs), including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), have been rising, which, in turn, expected to drive the DC distribution network market, during the forecast period. Global plug-in vehicle deliveries reached 2.1 million units for 2018, which is 64% higher than for 2017, which included all BEV and PHEV passenger car sales, light trucks in the United States/Canada, and light commercial vehicle in Europe and China.
- The development in power electronics technology, such as micro grids, is mostly connected to distribution networks. In the power industry, the flexible DC distribution network has got attention for its lower integration and construction costs, reduction in energy loses, and higher reliability.
- The demand for adequate charging equipment is expected to increase, during the forecast period. As EVs are limited by driving range and can usually travel up to 330 miles before recharging, the need for charging infrastructure is imperative for the success of these kinds of vehicles.
- However, in the current market scenario, charging stations are yet to become a viable economic investment, due to their lower utilization and relatively high upfront cost, particularly for DC.
- 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
- With a growing need for power in this region, DC distribution systems have the capability of making power available to a larger extent. The major trends driving this market are increase in distribution efficiency, increasing demand for DC dependent infrastructure, the mismatch between renewable source and demand location.
- Moreover, DC system can work on variable frequencies, and DC architecture is simpler than AC, requiring less space, equipment, installation, and maintenance.
- The DC distribution network market in China is expected to grow significantly in the coming years, in the wake of ever-growing population and increasing energy demand. The government started implementing new policies and regulations to meet the market demand.
- The China southern power grid, in association with universities, undertook research work on the benefits of DC distribution network, and is planning to implement it since 2016.
- In countries, like Japan, transmission is at two different frequencies: Eastern Japan uses 50Hz, while Western Japan uses 60Hz. DC power distribution systems are compatible with unsynchronized AC transmission systems.
- India has the fifth largest power generation capacity in the world. The electricity sector in India is growing at a rapid pace. The present peak demand is about 154 GW and the installed capacity is 356.1 GW, as was recorded in March 2019, with the generation mix of thermal (80.7%), hydro (8.9%), nuclear (2.5%), and renewables (7.8%).
- 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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Table of Contents
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2025
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
- 4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
- 4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 End User
- 5.1.1 Remote Cell Towers
- 5.1.2 Commercial Buildings
- 5.1.3 Data Centers
- 5.1.4 Military Applications
- 5.1.5 EV Fast Charging Systems
- 5.1.6 Other End Users
- 5.2 Geography
- 5.2.1 North America
- 5.2.2 Asia-Pacific
- 5.2.3 Europe
- 5.2.4 South America
- 5.2.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Market Share Analysis
- 6.4 Company Profiles
- 6.4.1 ABB Ltd.
- 6.4.2 Siemens AG
- 6.4.3 Vertiv Group Corp.
- 6.4.4 Eaton Corporation PLC
- 6.4.5 Bosch Ltd
- 6.4.6 Mobisol GmbH
- 6.4.7 Johnson Controls Inc.
- 6.4.8 Allis Electric Co., Ltd.
- 6.4.9 Secheron Sa
7 MARKET OPPORTUNITIES AND FUTURE TRENDS