Frost & Sullivan predicts the Direct Current (DC) Power distribution market in Europe will expand by 31.2% between 2017 and 2025.
Revenue generation is expected to reach $40.1 million in 2025.
Factors such as increasing integration of solar photovoltaic systems and energy storage in residential and commercial buildings are expected to drive the market.
The research firm says DC-powered LED lighting and energy efficiency regulations and targets will provide opportunities for consumers to increase savings.
However, existing AC infrastructures and lack of DC-ready end-user products will challenge market growth.
"To overcome this hurdle, stakeholders will need to come together to frame a pathway for the adoption of DC products and demonstration of benefits of DC power in commercial buildings," says Anirudh Bhaskaran, Energy & Environment Industry Analyst at Frost & Sullivan.
The research firm recommends:
- Partnerships between end-use product manufacturers and DC infrastructure suppliers for the adoption of DC power distribution; and
- Collaboration between governments, industry associations, and manufacturers to promote and accelerate DC power distribution in buildings.
- Focusing on buildings installed with solar photovoltaic and battery energy storage to convert full AC into hybrid AC-DC infrastructures;
- DC-powered LED lighting and USB-C complied electronic products are critical for successful implementation of DC power distribution in homes and commercial buildings;
- Distributed energy sources and LED lighting are key growth opportunities for participants to create additional revenue in this highly emerging market;
- Using LED lighting as a test bed for implementing DC power distribution in buildings due to its scalability and economic feasibility
"The United Kingdom, Ireland, Germany, France, Switzerland, Netherlands, and Nordic countries will witness faster growth than other countries due to energy efficiency renovations to infrastructure and successful pilot project implementations.
“Office, retail, and industrial warehouses will be immediate targets with LED lighting serving as the gateway for participants to enter the DC power distribution market," reiterated Bhaskaran.