DC Microgrid Market size was USD 7.2 billion in 2024 and is estimated to reach USD 81.4 billion by the end of 2037, expanding at a CAGR of 20.6% during the forecast period, i.e., 2025-2037. In 2025, the industry size of DC microgrid is evaluated at USD 8.6 billion.
The rise in the adoption of renewable energy sources such as wind, hydropower, and solar are significantly boosting the DC microgrid market growth. The inherent nature of DC power manages current from renewable sources, effectively mitigating the conversion loss. The residential and commercial spaces are increasingly adopting DC microgrids powered by solar panels. In these technologies, the solar systems directly charge energy storage systems (batteries) or DC loads without the need for an AC-to-DC conversion, making them more efficient and cost-effective.
The increasing prices of fossil fuel energy sources are driving governments across the world to adopt renewable energy sources. For instance, according to the International Energy Agency report, the global renewable energy capacity is set to increase by over 60% from 2020 levels to over 4,800 GW by 2026. Solar photovoltaics (PV) are the powerhouses contributing to the increasing renewable energy capacity. Also, the strict environmental regulations and net-zero carbon emission goals are contributing to the DC microgrid sales growth.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
20.6% |
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Base Year Market Size (2024) |
USD 7.2 billion |
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Forecast Year Market Size (2037) |
USD 81.4 billion |
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Regional Scope |
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Connectivity (Grid Connected, Off Grid)
Grid connected segment is anticipated to dominate around 75.1% DC microgrid market share by the end of 2037. Grid connected means the renewable energy source such as the solar system is associated with the local utility’s grid. This connectivity is often employed by the residential sector where solar panels produce varying energy (over or low), where the utility system acts as an effective battery space. The grid-connected DC microgrids also reduce the need for conversion, which leads to low energy losses and high system efficiency. Furthermore, as the need for renewable energy generation increases, the demand for grid-connected systems that can seamlessly connect to and manage these sources rises.
Storage Device (Lithium-ion, Lead Acid, Flow Battery, Flywheels, Others)
Flow battery segment in the DC microgrid market is set to observe more than 23.5% growth through 2037. The growing deployment of high-efficiency power generation sources such as solar and wind drives a high need for energy storage systems to address intermittency. DC microgrid flow batteries are effective in storing and dispatching energy, which highlights them as a reliable and grid stable energy storage system for high-efficiency power generation sources. Ongoing technological advancements are enhancing the performance of DC microgrid flow batteries and leading to cost reduction due to scalability, modularity, and lower maintenance.
Vanadium redox flow batteries are one of the most employed flow batteries owing to their high performance. For instance, in October 2023, i-Battery Energy Technology Co., Ltd announced the launch of its first next-gen Vanadium Redox Flow battery production line in Suzhou, China. The growing popularity of vanadium redox flow batteries is expected to aid this company in earning more through the launch.
Our in-depth analysis of the global DC microgrid market includes the following segments:
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Connectivity |
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Power Source |
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Storage Device |
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Application |
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Asia Pacific Market Forecast
Asia Pacific in DC microgrid market is likely to dominate around 56.3% revenue share by the end of 2037. The swift urban and industrial activities are driving a high need for new or upgradation of infrastructures, which is directly influencing the sales of DC microgrids in the region. The increasing employment of renewable energy sources owing to high fossil fuel energy prices is supporting the sales of DC microgrids.
In India, the government is investing heavily in energy-efficient power generation sources such as solar systems, which is creating lucrative opportunities for DC microgrid manufacturers. For instance, according to the India Brand Equity Foundation report, the country invested around USD 1.02 billion for solar power grid infrastructure development in the FY 2024-2025 budget. Also, to align with the COP26 initiative, the Ministry of New and Renewable Energy focuses on the generation of 500 GW of non-fossil-based energy by 2030. All such initiatives are set to significantly increase the adoption of DC microgrids throughout the forecast period.
China is one of the rapidly expanding DC microgrid markets for electric vehicles and this aspect is contributing to the high demand for microgrids. For instance, according to the International Energy Agency report, 60% of new electric cars were registered in China in 2023. DC microgrid charging technology is effective in the efficient charging of electric vehicles. The penetration of electric vehicles and DC-based loads is anticipated to boost the sales of DC microgrids in the country in the coming years.
North America Market Statistics
The North America DC microgrid market is expected to expand at a fast pace during the projected period. The increasing adoption of electric vehicles and high investments in renewable energy sources are fueling the demand for advanced DC microgrids. The U.S. and Canada both are estimated to offer high-potential opportunities for DC microgrid producers in the coming years.
In the U.S. the supportive government solar installation policies in the form of tax credits are encouraging citizens to adopt solar PV for both residential and commercial spaces. For instance, the investment tax credit scheme offers a 30% tax credit to those who install solar PV systems between 2022 and 2032. Such schemes are driving positive investments in the clean energy and microgrid projects in the country contributing to the overall DC microgrid market growth.
Canada is focused on modernizing its electricity grid infrastructure with the installation of renewable energy sources such as solar panels, batteries, wind turbines, and other technologies. This transformation is driving high demand for smart, flexible, and reliable DC microgrids to make energy distribution more efficient. For instance, according to the report by Ressources Naturelles Canada, the government invested around USD 4.5 billion in the Smart Renewables and Electrification Pathways Program (SREPs) to modernize and strengthen the electricity grid through clean sources.
Key players in the DC microgrid are investing heavily in research and development activities to introduce innovative solutions. They are also forming strategic partnerships with other players and collaborating with tech firms to enhance their product offerings. Collaboration with tech firms is enabling DC microgrid market players to develop smart technology-based DC microgrids, which widely attract a tech-savvy customer base. Furthermore, industry giants are entering high-potential marketplaces to cater to a larger customer base to earn high profits.
Some of the key players include:
Author Credits: Dhruv Bhatia
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