DC Microgrid Market Regional Analysis:
Asia Pacific Market Forecast
Asia Pacific in DC microgrid market is likely to dominate around 56.3% revenue share by the end of 2035. 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.
