DC Grid Connected Microgrid Market Size - By Power Source (Diesel Generators, Natural Gas, Solar PV, CHP), By Storage Device, By Application, Regional Outlook & Global Forecast, 2024 – 2032

DC Grid Connected Microgrid Market Size

DC Grid Connected Microgrid Market was valued at USD 3.9 billion in 2023 and is anticipated to grow at a CAGR of 20.9% from 2024 to 2032. It is a localized energy system that integrates direct current (DC) power sources and loads within a defined area while connecting to the larger electrical grid. This microgrid operates primarily on DC power, generated from sources such as solar panels or batteries, and can be connected to the utility grid to exchange energy.
 

Rising demand for connectivity from renewable sources such as solar panels or batteries that can reduce conversion losses and improve overall system efficiency, maximizing the potential benefits of source leading to propel product demand. Increasing adoption of solutions with enhanced resilience and stability of the electrical grid especially required in areas prone to power outages or grid instability are set to influence business growth.
 

Expanding DC technology with continuous advancements including sophisticated energy management and control systems, is significantly boosting product adoption. Furthermore, rising innovations such as smart meters, advanced DC/DC converters, and IoT integration enable better monitoring and optimization of the microgrid, ensuring efficient operation and facilitating data-driven decision-making, additionally driving demand for grid connected microgrid.
 

DC Grid Connected Microgrid Market Trends

Growing demand for energy independence among businesses and communities is fostering a solution need that can enable users to generate, store, and utilize their own energy more effectively, leading to augment industry landscape. Rising new technologies such as electric vehicles (EVs) and smart buildings, which often rely on DC power, are spurring product adoption due to their compatibility with the system, facilitating easier integration and optimization within microgrids. Furthermore, DC solutions are less susceptible to issues such as voltage sags, harmonics, and frequency fluctuations, which can impact sensitive equipment and processes, act as a key driving factor for market growth.
 

DC Grid Connected Microgrid Market Analysis

Based on application, the remote application is anticipated to cross more than USD 8 billion by 2032. Rising adoption of renewable energy for power generation in remote areas due to limited access to conventional energy sources is spurring demand for solutions that can seamlessly integrate with these resources, avoiding energy losses associated with conversion, thereby strengthening product growth. Furthermore, building energy infrastructure in remote areas is often prohibitively expensive due to difficult terrain and long distances from centralized power grids thereby fostering DC microgrid adoption as a cost-effective solution.
 

Based on power source, the natural gas segment is set to grow at a CAGR of over 20.3% through 2032, owing to resource abundance, ensuring a steady and secure fuel supply, which is critical for long-term power planning. Increasing adoption of affordable power sources offering significant cost savings in the long term are set to boost natural gas demand. Furthermore, improving push to overcome challenges faced by decentralization energy systems such as continuous, stable and reliable power supply, especially in microgrids that may operate in isolated, or off-grid environments are additional factors driving power source demand.
 

Asia Pacific DC grid connected microgrid market is likely to exceed USD 12.8 billion by 2032. Rising government investments in renewable energy and decentralized power systems to reduce reliance on fossil fuels, for instance, China’s 14th Five-Year Plan emphasizes building new energy systems that include microgrids, and India’s National Smart Grid Mission aims to integrate microgrids into its power infrastructure, stimulating product adoption. Increasing natural disasters such as typhoons, tsunamis, and earthquakes in the region are boosting product demand due to their ability to operate independently from the main grid, providing critical power in post-disaster scenarios.
 

In the U.S., increasing challenges with grid reliability, including frequent blackouts caused by extreme weather events, wildfires, and aging infrastructure are driving market growth. For instance, States such as California and Texas, which have seen massive disruptions due to wildfires and winter storms, respectively, are at the forefront of microgrid adoption. Rising support from the U.S. government, through programs such as the Federal Energy Regulatory Commission (FERC) Order 2222 to support the inclusion of distributed energy resources (DERs) are creating growth opportunities for product demand.
 

DC Grid Connected Microgrid Market Share

Eminent players are focusing on technological innovations to enhance the performance and efficiency of DC microgrids. By developing cutting-edge DC components such as converters, inverters, and energy storage systems, these players are addressing the core challenge of integrating renewable energy sources into DC grids. Key players are entering into alliances with renewable energy companies, local grid operators, and technology providers to create holistic energy solutions. Furthermore, with the increasing demand for decentralized energy in off grid and remote locations, companies are targeting island communities and rural areas with DC microgrid solutions.
 

DC Grid Connected Microgrid Market Companies

Eminent players operating in the DC grid connected microgrid industry are:

• ABB
• AEG International
• ARDA Power
• Eaton
• Nextek Power Systems
• Schneider Electric SE
• SolarWorX
• Schaltbau Group
• Stellar Energy
• Sumitomo Electric Industries, Ltd
   

DC Grid Connected Microgrid Industry News

• In August 2023, after 2.5 years of construction, Schaltbau's NExT Factory in Velden near Landshut will begin operations on September 1. This facility, the world’s first direct grid current factory, integrates a direct current network that connects its rooftop photovoltaic system with internal DC consumers and storage units, minimizing conversion losses. This setup highlights the significant potential of direct current networks for Germany's energy transition.
   
• In January 2021, Schneider Electric bolstered its electrical distribution innovations with the acquisition of DC Systems B.V. This move not only enhances Schneider Electric's portfolio but also empowers the company to offer increased simplicity and resilience. Such advancements are pivotal for applications ranging from constructing microgrids in areas with unreliable public grids to long-distance utilities such as public lighting.
   

This DC grid connected microgrid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “MW & USD Billion” from 2021 to 2032, for the following segments:

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Market, By Power Source

• Diesel Generators
• Natural Gas
• Solar PV
• CHP
• Others

Market, By Storage Device

• Lithium-ion
• Lead Acid
• Flow Battery
• Flywheels
• Others

Market, By Application

• Healthcare
• Educational Institutes
• Military
• Utility
• Industrial/ Commercial
• Remote
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Russia
  • Spain
  • Italy
  • Denmark
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Malaysia
  • Indonesia
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Iran
  • Nigeria
• Latin America
  • Brazil
  • Argentina
  • Chile