South-East Asia DC Distribution Network Market - Growth, Trends, and Forecasts (2023-2028)

The Southeast Asian DC distribution network market is expected to register a CAGR of over 3.5% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Currently, the market has reached pre-pandemic levels.

Key Highlights

• Over the short term, the Southeast Asian DC distribution network market is expected to grow due to the factors such as growth in renewable energy installations with battery storage devices and the advantages over AC distribution networks like power sharing between systems with different frequencies.
• On the other hand, the threat still subsides for the market growth due to the high initial cost and the complexity of these networks compared to generic distribution networks.
• Nevertheless, the growing inclination toward smart grids and the expansion of solar power (that generates direct current) at the global level creates tremendous opportunities for the DC distribution network market in the Southeast Asian region.
• Malaysia is expected to be the frontrunner in market growth due to the developments in the renewable energy and telecom sector.

South-East Asia DC Distribution Network Market Trends

Data Centers Expected to Witness Significant Growth

• The region witnessed strong growth in the IT and telecom sectors in recent years, with the setting up of new data centers by giant IT companies. The countries like Singapore, Thailand, and Malaysia were highlighted in the data-center market in the last decade. The high growth is attributed to the factors like the demand for reliable power supply for financial institutions and the advancing steps of IOT (Internet of things) in almost every economic sector.
• The growing electricity consumption in the commercial sector in many Southeast Asian countries has resulted in an expansion in DC power distribution networks. For instance, in Thailand, the electricity consumed by the business sector saw a continuous uptrend in recent years (except for the COVID-19 impact), reaching 41,529 GWh in the year 2021. The country has planned even more projects to see a high jump in the trend again.
• For instance, in June 2022, Coldwell Banker Richard Ellis reported that regional data-center operators are expected to increase their investments in data centers in the country due to the surge in data demand propelled by the growth in cloud computing and social media use.
• In addition, in September 2022, a leading IT infrastructure company, NTT Data, announced new plans to kickstart the construction of their sixth data center in Cyberjaya, Malaysia, soon after completing the fifth in 2021.
• Such developments are expected to expand the DC distribution networks market in the data-center sector during the forecast period.

Malaysia Expected to Witness Significant Growth

• The scarcity of land in Singapore has prompted investments in relatively larger countries like Malaysia and Indonesia. In Malaysia, private investments in the energy sector (particularly renewable energy) have led to higher demand for power distribution networks.
• Renewable energy generation reached around 3.1 TWh of value in 2021, which majorly consisted of solar energy, which generates DC power. The Malaysian government has more ambitious plans to have about 31% of electricity generated from renewables by 2025 and 40 % by 2030, which is expected to impact the power distribution networks directly.
• The other biggest driver for the market is the expansion of the telecom sector in the country with the proliferation of data centers. For instance, in March 2022, Yondr announced new plans to set up a hyper-scale data center campus with a power capacity of around 200 MW on approx. 72.8 acres of land in Sedenak Tech Park, Malaysia. The facility is expected to be operational in the year 2024.
• Furthermore, the market is also anticipated to have an overwhelming effect due to the growing installation of DC charging stations for electric vehicles. The EV charging specialist company, EV Connection Sdn Bhd, has announced plans to have more installations of DC chargers in the country in the next three-to-five years. Moreover, Shell has also tabled new plans to install 180 kW of DC chargers for EVs in six Shell stations across Malaysia and Singapore by 2022.
• Owing to such developments, the country is expected to overshadow the other parts of the region in the coming years.

South-East Asia DC Distribution Network Market Competitor Analysis

The Southeast Asian DC distribution network market is fragmented in nature. Some of the key players in the market (in no particular order) include ABB Ltd, Siemens AG, Eaton Corporation PLC, Schneider Electric SE, and Alpha Technologies Inc.

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• The market estimate (ME) sheet in Excel format
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