A new report from Navigant Research examines the opportunity for direct current (DC) distribution networks in four key markets segments, including off and bad grid telecommunications, data centers, commercial building grids, and off-grid military applications, with global market forecasts for capacity and implementation revenue through 2024.
While large, centralized power plants are expected to continue to play a role in providing alternating current (AC) power to the wholesale macrogrid, there is growing momentum at the electric service distribution level to diversify power offerings and pursue solutions incorporating a growing proportion of DC. The industry’s current focus is on medium-voltage DC distribution networks—systems that are mostly concentrated on the data center market segment, but that can also apply to commercial buildings.
According to a new report from Navigant Research, global DC distribution network implementation revenue is expected to grow from $2.8 billion in 2015 to $5.1 billion in 2024.
“Presently, the majority of progress in developing DC technologies has occurred at either the high-voltage or low-voltage level of electricity service. Since microgrids and building-scale nanogrids typically operate at medium voltage, much work needs to be done to bridge this voltage innovation gap,” says Peter Asmus, principal research analyst with Navigant Research. “The core challenge facing these medium-voltage DC distribution networks lies with the need for standards and open-grid architectures that can help integrate the increasing diversity of resources being plugged into retail power grids.”
With a 47 percent market share, Asia Pacific currently leads in DC distribution network implementations, according to the report. With large amounts of capacity in India—a current hot spot for telecommunications and microgrid/nanogrid deployments—as well as China and Japan, Asia Pacific’s market share is expected to increase to 71 percent by 2024.
The report, Direct Current Distribution Networks, analyzes the global market for DC distribution networks in four key segments: off-grid/bad grid telecom, data centers, commercial building grids, and off-grid military applications. The study provides an analysis of the market issues, including opportunities, drivers, and implementation challenges, associated with DC distribution networks. Global market forecasts for capacity and implementation revenue, broken out by segment, region, and scenario, extend through 2024. The report also examines the key technologies related to DC distribution networks, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.