Europe 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 | 8.27 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe DC Distribution Network Market Analysis
The Europe DC distribution network market size is estimated to be at USD 17.12 billion by the end of this year and is projected to reach USD 24.05 billion in the next five years, registering a CAGR of over 5.50 % during the forecast period.
- 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 Europe during the forecast period.
- On the flip side, high initial cost and a lot of complexity compared to generic distribution networks are the factors expected to hinder the growth of the market studied.
- The DC distribution network is considered an important element with regard to the future aspects of smart grids. Also, solar power is estimated to supply one-third of the world's energy demand by 2060, thereby proliferating the DC distribution market in the future, as solar energy generates a direct current.
- Germany is expected to witness significant demand in the European DC distribution network market during the forecast period.
Europe DC Distribution Network Market Trends
Low and Medium Voltage Segment to Dominate the Market
- Low and Medium Voltage DC distribution network (up to 750 Volt DC) operates on voltage levels that can be used directly utilized without any further voltage reduction. It is also known as low tension (LT) or secondary distribution networks. 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 protect 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, and the low and medium DC distribution network helps in bypassing the AC conversion process to DC altogether, the charge can go directly into the battery.
- The data center end user is expected to be one of the most rapidly expanding segments during the forecast period. Data centers are the primary component used in cloud storage applications, which are a critical component of the digitalized operations of every task, including smart grid and smart transportation. Compared to AC distribution networks, low and medium-voltage DC distribution networks are utilized in modern data centers to convert the AC power obtained from utilities into DC power. Compared to AC distribution networks, low and medium-voltage DC distribution networks are utilized in modern data centers to convert the AC power obtained from utilities into DC power and require less space and equipment installation.
- As of January 2022, Germany and the United Kingdom were the second and third largest market in terms of data centers (with 487 and 456 units), behind the United States. Furthermore, the United Kingdom is home to around 288 Colocation data centers, which is expected to witness significant growth in the future, creating substantial opportunities for DC distribution networks. France, the third largest data center country behind the United Kingdom and Germany, is also expected to offer significant market opportunities in the coming years. Therefore, the increasing adoption of big data and IoT technology across various industries has led to high regional data generation. Thus, the growing data centers will likely increase the low and medium DC distribution network during the forecast period.
- Therefore, based on the factors mentioned above, low and medium voltage segment is expected to dominate the North America DC distribution network market during the forecast period.
Germany to Witness Significant Growth
- Germany is one of the most prominent countries in terms of solar energy installed capacity in 2022. As of 2022, the country's solar energy installed capacity totaled 66.55 GW, i.e., an increase of about 12.28% compared to the previous year's value (59.27 GW).
- Germany, with a target of 98 GW of solar installed capacity and 85% of the electricity through renewable by 2050, is likely to see a significant development for the distributed power generation.
- In Germany, the public grid is available throughout the country, and access to the grid is regulated and generally not prohibitively expensive, so electricity microgrids without a connection to the main grid traditionally are not common in Germany. However, 'connected microgrids' are becoming more important owing to the ever-growing number of distributed generation plants.
- Furthermore, in Germany, there have been grid design tests where parts of the electricity grid can be isolated from the general grid and operated stand-alone, such as in blackouts. Increasing shift towards decentralized electricity generation in the country is expected to provide significant opportunity for the DC distribution network market.
- Therefore, based on the above-mentioned factors, Germany is expected to witness significant demand in the Europe DC distribution network market during the forecast period.
Europe DC Distribution Network Industry Overview
The Europe 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.
Europe DC Distribution Network Market Leaders
ABB Ltd
Siemens AG
Vertiv Group Corporation
Eaton Corporation PLC
Secheron SA
*Disclaimer: Major Players sorted in no particular order
Europe DC Distribution Network Market News
- In April 2023, Siemens Energy and Dragados Offshore have signed a framework agreement with TenneT, the German-Dutch transmission system operator, to provide high-voltage direct current (HVDC) transmitting technology for three grid connections in the German Northern Sea. The projects made available by the agreement will allow a total of 6 gigatonnes (GW) of offshore wind power to be transferred onshore. The contract is worth close to USD 8.4 billion to the consortium of Siemens Energy and Dragados Offshore.
- In April 2022, Asda (one of Unted Kingdom's leading supermarket chains) renewed its site-based, life-cycle services contract with Vanderlande for the next five years, further cementing their partnership. The extension of the existing agreement continued to collaborate at the retailer's Warrington distribution centre (DC) in the United Kingdom until 2026. The Warrington DC is Asda's automated ambient warehouse in their distribution network - with the highest picking accuracy, consistently leading in terms of the Overall Warehouse Rate (OWR).
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 Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Voltage
5.1.1 High Voltage
5.1.2 Low and Medium Voltage
5.2 End-User
5.2.1 Residential
5.2.2 Commercial and Industrial
5.3 Geography
5.3.1 Germany
5.3.2 United Kingdom
5.3.3 Italy
5.3.4 Rest of Europe
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.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe DC Distribution Network Industry Segmentation
DC distribution networks are used for installations that operate at a nominal capacity of less than or equal to 1500 Vdc. The DC power distribution network was first proposed for small-scale applications like lighting purposes 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 were capable of improving the performance, efficiency, size, and cost of a DC distribution network compared to an AC distribution Network. The Europe DC distribution network market is segmented by voltage, end-user, and geography. The market is segmented by voltage into high voltage and low and medium voltage. By end-user, the market is segmented into residential, and commercial, and industrial. The report also covers the market size and forecasts for the DC distribution network market across major countries in the European region. For each segment, the market sizing and forecasts have been done based on revenue (USD Billion).
| Voltage | |
| High Voltage | |
| Low and Medium Voltage |
| End-User | |
| Residential | |
| Commercial and Industrial |
| Geography | |
| Germany | |
| United Kingdom | |
| Italy | |
| Rest of Europe |
Frequently Asked Questions
What is the current Europe DC Distribution Network Market size?
The Europe DC Distribution Network Market is projected to register a CAGR of 8.27% during the forecast period (2024-2029)
Who are the key players in Europe DC Distribution Network Market?
ABB Ltd, Siemens AG, Vertiv Group Corporation, Eaton Corporation PLC and Secheron SA are the major companies operating in the Europe DC Distribution Network Market.
What years does this Europe DC Distribution Network Market cover?
The report covers the Europe DC Distribution Network Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe DC Distribution Network Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe DC Distribution Network Industry Report
Statistics for the 2024 Europe DC Distribution Network market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe DC Distribution Network analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
