North America DC Distribution Network Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 7.83 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America DC Distribution Network Market Analysis
The North American DC distribution network market size is estimated to be USD 4.5 billion by the end of this year. It is projected to register a CAGR of about 7.83% during the forecast period.
The market was negatively impacted by the COVID-19 pandemic in 2020. Presently, the market has reached pre-pandemic levels.
- Over the long term, factors such as growth in the 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 in North America during the forecast period.
- Conversely, high initial costs and complexity compared to generic distribution networks are expected to hinder the market's growth.
- The DC distribution network is considered an essential factor concerning the future aspects of smart grids, thereby increasing DC distribution, as solar energy generates a direct current.
- The United States is expected to dominate North America's DC distribution network market during the forecast period.
North America DC Distribution Network Market Trends
This section covers the major market trends shaping the North America DC Distribution Network Market according to our research experts:
Low and Medium Voltage Segment to Dominate the Market
- Low and medium-voltage DC distribution networks (up to 750 Volt DC ) operate on voltage levels that can be utilized without further voltage reduction. It is also known as low tension (LT) or secondary distribution network. The low and medium-voltage distribution network carries electrical power from the distribution transformer to the consumer's energy meter.
- A typical low and medium-voltage distribution network requires several devices that distribute, convert voltages, and protects electrical circuits within the electrical system. The voltage level of low-voltage and medium-voltage distribution networks is typically equal to the primary voltage of electrical appliances. The LV distribution network is a 3-phase 4-wire distribution network.
- One of the primary end-user industries utilizing a low and medium DC distribution network is the electric vehicle (EV) charging infrastructure, as EVs only accept DC power. The low and medium DC distribution network helps it bypass the AC-to-DC conversion process altogether, and the charge can go directly into the battery.
- The data center end user is estimated to be one of the largest and fastest-growing segments during the forecast period, as it is the main component utilized in cloud storage applications, which are an essential part of the digitalized operations of every task, including smart grid and smart transport. Low and medium-voltage DC distribution networks are used in modern data centers to convert the AC power obtained from the utilities into DC power and require less space and equipment installation than an AC distribution network.
- As of January 2022, the United States was the largest market in terms of data centers (with 2,701 units), followed by Germany (487) and the United Kingdom (456). For instance, Google, as of April 2022, is building a new data center in Nebraska as part of its strategy to invest USD 9.5 billion in data centers and offices. Also, companies such as Amazon, Microsoft, and Cisco have announced plans to increase their data center infrastructure in the United States. Such a situation is likely to result in significant development in data centers, creating a high demand for UPS during the study period. Therefore, the increasing adoption of big data and IoT technology across various industries has led to high regional data generation. Thus, the expanding data centers will likely increase low and medium DC distribution networks during the forecast period.
- Therefore, based on the above-mentioned factors, the low and medium voltage segment is expected to dominate the North American DC distribution network market during the forecast period.
United States to Dominate the Market
- The United States has one of the largest installed capacities of renewable energy globally, especially solar energy. Distributed solar photovoltaic (PV) is expected to account for the most extensive annual capacity additions for renewables, above wind and hydro, for the next five years. As of 2021, the country's solar energy installed capacity totaled 95.20 GW, i.e., an increase of about 25% when compared to the previous year's value (75.56 GW).
- The cost of solar PV dropped by more than 80% between 2010 and 2021 on a global scale, and similar trends were observed in North America, particularly in the United States, during the same period. The continuous technology cost reductions and the increasing growth in the United States, owing to favorable policies and a growing focus on achieving various capacity targets, are expected to contribute to the increasing adoption of solar PV among residential and commercial consumers.
- Factors such as declining prices of solar PV panels and associated systems are leading to the increasing adoption of solar PV systems in the region. Since solar PV generates electricity in DC, this is expected to provide a significant opportunity for the DC distribution network market in the country as there would be no need to convert solar-generated DC to AC.
- Another major end-user segment utilizing DC distribution networks is the energy storage segment. The deployment of energy storage systems is anticipated to increase in the coming years on account of the changes associated with the power sector. The increasing development of renewable power infrastructure, coupled with the surging need for ancillary services in the power sector, is expected to drive the demand for DC distribution networks from the energy storage industry during the forecast period.
- Energy storage is a high-priority segment for governments across North America and a vital component of their push toward a net-zero carbon emission economy. In 2021, 1,359 energy storage projects were operational globally, with 13 projects under construction, of which 40% of active projects are located in the United States. California leads the United States in energy storage with 215 operational projects (4.2 GW), followed by Hawaii, New York, and Texas.
- Therefore, based on the above-mentioned factors, the United States is expected to dominate the North American DC distribution network market during the forecast period.
North America DC Distribution Network Industry Overview
The North American DC distribution network market is moderately consolidated in nature. Some of the major players in the market (in no particular order) include ABB Ltd., Siemens AG, Vertiv Group Corp., Eaton Corporation PLC, and Secheron SA.
North America DC Distribution Network Market Leaders
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ABB Ltd.
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Siemens AG
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Vertiv Group Corp.
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Eaton Corporation PLC
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Secheron SA
*Disclaimer: Major Players sorted in no particular order
North America DC Distribution Network Market News
- January 2022: Eaton announced a USD 4.9 million award from the US Department of Energy to reduce the cost and complexity of deploying a direct-current (DC) distribution network for fast electric vehicle charging in the country. Eaton is likely to develop and demonstrate a novel, compact, and turnkey solution for DC fast-charging infrastructure that is likely to reduce costs by 65% through improvements in power conversion and grid interconnection technology, charger integration and modularity, and installation time.
- March 2022: In line with shared commitments to decarbonize, National Grid and Siemens Energy teamed up to undertake an upgrade of a National Grid substation using Siemens Energy-designed fluorinated gas-free Blue DC circuit breakers, which are made of clean air insulation and vacuum switching technology. Scheduled for commissioning in the year 2023, Siemens Energy's Blue DC circuit breakers will be installed in Massachusetts, United States, in substations that serve several Massachusetts communities. The first Siemens Energy Blue circuit breaker installation will be in the National Grid's US electricity network.
North America DC Distribution Network Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
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 Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Voltage
5.1.1 High Voltage
5.1.2 Low and Medium Voltage
5.2 By End User
5.2.1 Residential
5.2.2 Commercial and Industrial
5.3 By Geography
5.3.1 United States
5.3.2 Canada
5.3.3 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
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 Corporation
6.3.4 Eaton Corporation Plc
6.3.5 Secheron SA
6.3.6 Schneider Electric SE
6.3.7 Robert Bosch GmbH
6.3.8 Alpha Technologies Inc.
6.3.9 Nextek Power Systems Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America DC Distribution Network Industry Segmentation
DC distribution networks are used for installations that operate at a nominal capacity of less than or equal to 1,500 Vdc. The DC power distribution network was first proposed for small-scale applications like lighting and was patented by Thomas Edison in 1883. Due to limited advancements in DC technology, DC distribution networks were seen as inefficient and unsuitable for power transmission over long distances, and AC distribution networks were used. However, the advent of the semiconductor industry in the 1960s led to the introduction of power electronic converters (PECs), which could improve the performance, efficiency, size, and cost of a DC distribution network compared to an AC distribution network. The North American DC distribution network market is segmented by voltage, end user, and geography. By voltage, the market is segmented into high voltage and low and medium voltage. By end user, the market is segmented into residential and commercial and industrial. By geography, it is segmented into the United States, Canada, and the Rest of North America. For each segment, the market sizing and forecasts have been done based on value (USD billion).
| By Voltage | |
| High Voltage | |
| Low and Medium Voltage |
| By End User | |
| Residential | |
| Commercial and Industrial |
| By Geography | |
| United States | |
| Canada | |
| Rest of North America |
North America DC Distribution Network Market Research FAQs
What is the current North America DC Distribution Network Market size?
The North America DC Distribution Network Market is projected to register a CAGR of 7.83% during the forecast period (2024-2029)
Who are the key players in North America DC Distribution Network Market?
ABB Ltd., Siemens AG, Vertiv Group Corp., Eaton Corporation PLC and Secheron SA are the major companies operating in the North America DC Distribution Network Market.
What years does this North America DC Distribution Network Market cover?
The report covers the North America DC Distribution Network Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the North America DC Distribution Network Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America DC Distribution Network Industry Report
Statistics for the 2024 North America DC Distribution Network market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America DC Distribution Network analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
