- Summary
- Table Of Content
- Methodology
Direct Current Power System Market Introduction :
Direct Current Power System Market is estimated to reach over USD 53,670.64 Million by 2030 from a value of USD 29,984.41 Million in 2022, growing at a CAGR of 7.8% from 2023 to 2030.
Direct Current Power System Market Definition & Overview:
A direct current power system is an electrical power transmission and distribution system that utilizes direct current to transmit and deliver electricity. In a direct current power system, the electric current flows continuously in a single direction from a power source to the load. A direct current power system comprises of different components including rectifiers, controller, batteries, enclosure, and others. The direct current power systems are widely used in applications requiring low amperage output or long duration discharge for long time duration including telecom, automotive, oil & gas, and others.
Direct Current Power System Market Insights :
Direct Current Power System Market Dynamics - (DRO) :
Key Drivers :
Surging adoption of Battery Energy Storage Systems (ESS) is driving the market growth
The direct current power systems are commonly used in the battery energy storage systems to store and deliver electricity. Additionally, direct current can be easily stored in batteries, hence the rise in adoption of battery energy storage systems is positively impacting the demand for direct current power systems. In addition, the rising government investments in the renewable energy sector is another factor driving the adoption of battery energy storage systems, which in turn is driving the demand for direct current power systems globally. For instance, according to IEA, the global investment in power sector rose by 5% from year 2020 to USD 820 billion. Out of the total, 70% was planned to be spent on new energy generation capacity and the remaining 30% on energy storage and grids. Furthermore, battery energy storage systems along with solar panels are also being widely installed across homes in both rural and urban areas to use limited amounts of electricity during power disruptions. For instance, European Association for Storage of Energy (EASE), the annual battery storage system installations in Europe increased from 1,300 megawatts in 2020 to 3,000 megawatts in 2021. Therefore, owing to aforementioned factors, increasing adoption of battery energy storage systems is fueling the growth of direct current power system market.
Increasing data centers and telecommunication infrastructure is fueling the adoption of direct current power systems
Direct current (DC) power systems are commonly used in the telecommunications industry to provide power to equipment. These systems typically operate at nominal voltages of 24 volts and 48 volts DC and use lead-acid batteries. One of the main benefits of the use of direct current power systems in telecommunication is high power efficiency conversion, which reduces power consumption and operating costs. Thus, surge in investments to increase the telecommunication infrastructure is driving the adoption of direct current power systems globally. For instance, in December 2022, Asian Development Bank (ADB) provided a loan of USD 40 million to Tiger Infrastructure Philippines, Inc. for constructing 380 telecommunications towers in Philippines.
Key Restraints :
High cost of infrastructure to shift from AC to DC power systems
The majority of electrical infrastructure is designed and built for alternative current (AC) power systems. Transitioning from AC to DC power systems requires significant investments in upgrading and modifying the existing infrastructure. Additionally, retrofitting the existing systems is a complex and expensive process, and also a time-consuming process. Therefore, owing to factors mentioned above, high cost of infrastructure is restraining the growth of direct current power system market.
Future Opportunities :
Rising adoption of electric vehicles provides growth opportunities
The DC power system of an electric vehicle converts the high-voltage of the battery to the lower-voltage direct current that is required to recharge the auxiliary battery and run the vehicle accessories. Additionally, DC fast charging tends to charge the battery directly with DC power resulting in reducing the time required to charge an EV. The DC fast chargers are widely used to convert alternating current to direct current in the charging stations in order to deliver DC power directly to the battery. Further, several governments worldwide are taking initiatives and framing policies to reduce pollution and increasing the adoption of electric vehicles. For instance, in 2020, the European Union implemented the corporate average CO2 standards, which stimulated the sales on EVs in the region. Thus, attributing to the factors mentioned above, surge in adoption of the electric vehicles is anticipated to positively impact the growth of direct current power system market during the forecast period.
Direct Current Power System Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 | USD 53,670.64 Million |
| CAGR (2023-2030) | 7.8% |
| By Type | 0-24V DC Power System, 48V DC Power System, and More than 48V DC Power System |
| By End-User | Telecom, Industrial, and Commercial |
| By Region | Asia-Pacific, Europe, North America, Latin America, Middle East & Africa |
| Key Players | ABB, Eaton, ENERSYS, Helios Power Solutions, Advanced Energy Industries, Inc., AEG Power Solutions, Heinzinger electronic GmbH, Huawei Technologies Co., Ltd., Vertic Group Corp., Schneider Electric, ZTE Corporation, GS Yuasa International Ltd. |
Direct Current Power System Market Segmental Analysis :
Based on the Type :
Based on the type, the market is segregated into 0-24V DC Power system, 48V DC power system, and more than 48V DC power system. The 48V DC power system segment accounted for the largest revenue share of 47.21% in the year 2022. The 48V DC power systems are most commonly used for applications in telecommunications, data centers, and distributed power systems. The ability of the 48V DC power systems to provide increased power to components without raising the current is considered to be one of the key factors driving the growth of direct current power system market. Additionally, 48V direct current power systems are also widely used to power wirelesses devices including security & surveillance systems, trunked radio systems, and others. For instance, Helios Power Solutions manufactures Dual Output DC Power System 48/24-12Vdc for applications in wireless two-way communications networks and security & surveillance, and others.
The more than 48V DC power system segment is anticipated to register fastest CAGR growth during the forecast period. Direct current (DC) power systems with an output voltage of more than 48V are majorly used in industrial applications, electric vehicles, and renewable energy systems among others. The surge in adoption and production of electric vehicles is considered to boost the adoption of more than 48V DC power systems during the forecast period. Moreover, increasing government initiatives to shift from hydrocarbons towards renewable energy are expected to fuel the growth of direct current power system market in the upcoming period.
Based on the End-User :
Based on the end-user, the market is classified into telecom, industrial, and commercial. The telecom segment accounted for the largest revenue share in the year 2022. Direct current power systems are crucial in telecommunication networks including cellular towers, base stations, and data centers in order to ensure reliable and uninterrupted power supply. One of the factors fueling the adoption of the systems in telecom is their high reliability which is critical for powering critical equipment such as cell towers and data centers. Additionally, the ability of the DC power systems to feed more loads to more equipment and reduce heat losses is another key factor driving the growth of the direct current power system market.
The commercial segment is anticipated to witness the fastest CAGR growth during the forecast period. The commercial applications of the direct current power systems include retail shops, hospitality sector, commercial buildings, and others. The DC power systems are increasingly being adopted in commercial spaces for lighting, and HVAC systems. Additionally, the increasing adoption of battery energy storage systems in commercial spaces is expected to propel the growth of direct current power system market during the forecast period. Furthermore, growing initiatives to reduce energy consumption is anticipated to drive the growth of direct current power system market in the upcoming period. For instance, in March 2021, ABB launched the #energyefficiencymovement, a multi-stakeholder initiative for raising awareness to reduce carbon emissions and energy consumption.
Based on the Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
North America accounted for the largest revenue share in 2022. The increasing adoption of electric vehicles is driving the growth of the direct current power system market in the region. For instance, the U.S. government aims to manufacture 50% of new light trucks and passenger cars as electric vehicles by 2030. Additionally, factors including increasing adoption of battery energy storage systems, and renewable energy systems among others are driving the market growth of the direct current power system market in the region.
The Asia-Pacific region holds USD 7,190.26 million in 2022 and is projected to reach USD 13,122.47 million by 2030 with growing CAGR of 8.1% during the forecast period (2023-2030). In addition, in the region, China accounted for the maximum revenue share of 27.3% in the same year. The surging number of electric cars registration in the region is anticipated to positively impact the growth of direct current power system market during the forecast period. For instance, according to the International Energy Agency (IEA), the electric vehicles registration in China increased from 834 thousand units in 2019 to 931 thousand units in 2021. Moreover, the growing income in emerging economies of Asia Pacific is resulting in the rise in telecom infrastructure in the region which in turn is expected to increase demand for the direct current power system.
Top Key Players & Market Share Insights:
The Direct Current Power System Market is highly competitive due to the presence of a large number of key players operating in the market. The report analyses detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the robotic process automation market. Key players in the robotic process automation market include -
Recent Industry Developments :
- In March 2018, GS Yuasa launched TRUSTAR-LIM, a direct current power system comprising of lithium-ion batteries. The new system is characterised with features including reduced weight and size, and high reliability.
- In January 2023, the U.S. Department of Energy's Oak Ridge National Laboratory developed a utility-scale design and control system for a hybrid solar power plant. The system can be operated with both alternating and direct currents.
Key Questions Answered in the Report
What is Direct Current Power System? +
A direct current power system is an electrical power transmission and distribution system that utilizes direct current to transmit and deliver electricity. In a direct current power system, the electric current flows continuously in a single direction from a power source to the load.
What specific segmentation details are covered in the Direct Current Power System Market report, and how is the dominating segment impacting the market growth? +
The report consists of segments including Type and End-User. Each segment has key dominating sub-segment being driven by the industry trends and market dynamics. For instance, by type segment has witnessed 48V DC Power System as the dominating segment in the year 2022 due to the increasing demand for reliable power supply in telecom.
What specific segmentation details are covered in the Direct Current Power System Market report, and how is the fastest segment anticipated to impact the market growth? +
The report consists of segments including Type and End-User. Each segment is projected to have the fastest-growing sub-segment being fuelled by industry trends and drivers. For instance, by end-user segment has witnessed commercial as the fastest-growing segment due to increasing adoption of battery storage systems in the commercial sector.
Which region/country is anticipated to witness the highest CAGR during the forecast period, 2023-2030? +
The Asia-Pacific region is anticipated to witness fastest CAGR growth during the forecast period due to the increasing demand for electrical vehicles in the region.
