The market for DC distribution network in Asia-Pacific is expected to grow at a CAGR of more than 10.3% approximately during the forecast period of 2020 - 2025. The use 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 the 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 of complexity compared to conventional AC distribution networks are the factors expected to hinder the growth of the market studied.
- Electric Vehicle (EV) fast charging systems are expected to witness significant demand, owing to the growing number of electric vehicles and demand for its charging 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 is expected to create an ample opportunity for the DC distribution sector.
- In countries, like Japan, the 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%).
Key Market Trends
EV Charging Systems to Witness Significant Growth
- The electric vehicle (EV) charging system segment is booming due to many factors such as increasing adoption of electric vehicles, and supportive government policies across the world. 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.
- The development in power electronics technology, such as microgrids, 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 losses, and higher reliability.
- 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 charging systems is likely to witness significant demand for DC distribution network market over the forecast period.
China 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 increase in distribution efficiency, increasing demand for DC dependent infrastructure, the mismatch between renewable source and demand location.
- Moreover, the 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 the 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.
- State Grid Corp. of China has started up the world’s longest and most-powerful ultra-high voltage power line from its far northwest to the heavily populated east. The 1,100-kV direct-current Changji-to-Guquan project stretches 3,293 km (2,046 miles), the nation’s biggest electricity distributor. The CNY 40.7 billion project, which the company referred to as the “Power Silk Road,” was approved in December 2015 and construction started the next month.
- Therefore, based on end-user segment, the China is witnessing huge demand for DC distribution network market over the forecast period.
Asia-Pacific DC distribution networks market is partially consolidated. Some of the key players in this market include ABB Ltd, Siemens AG, Vertiv Group Corp., Eaton Corporation PLC, and Secheron Sa.
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1.2 Market Definition
1.3 Study Assumptions
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
4.6 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
5.1.1 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 User Applications
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 ABB Ltd
6.3.2 Siemens AG
6.3.3 Vertiv Group Corp
6.3.4 Eaton Corporation PLC
6.3.5 Secheron Sa
6.3.6 Johnson Controls, Inc
6.3.7 Pareto Energy
6.3.8 Nextek Power Systems, Inc