The global data center power market size was valued at USD 6.80 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 6.9% from 2019 to 2025. Increasing the need to store data on the cloud has resulted in an upsurge in a number of data centers across the globe. These data centers consume a huge amount of energy. The rise in the introduction of advanced systems to reduce power consumption coupled with the emergence of modular data centers is expected to drive market growth.
To reduce the Power Usage Efficiency (PUE) ratio and to increase efficiency, companies deploy advanced power management solutions such as intelligent rack Power Distribution Unit (PDU), smart Uninterruptible Power Supply (UPS), and battery monitoring equipment. This factor is anticipated to bode well for market growth over the forecast period.
The market has witnessed an unprecedented growth in technologies and services driven by data centers. Technologies such as cloud computing, require a high computational power; however, it offers benefits such as enhanced scalability, efficiency, and flexibility of business operations, which has resulted in a number of medium-sized enterprises to incorporate effective data centers, such as web hosting cloud and colocation data centers. Additionally, increasing usage of data centers has resulted in the rising adoption of mega and cloud data centers. These datacenters require power in large quantities for peak data-intensive operations, which subsequently drives demand for UPS and PDUs.
Traditional data centers are continuously being replaced by newer systems featuring advanced technologies and power management capabilities. The shift of the industry toward colocation and hyper-scale data centers is expected to fuel the market growth over the forecast period. However, the high initial investment required for these solutions and inadequate availability of compatible devices may hinder the growth in the near future.
Rising cost of energy and awareness regarding energy conservation has ensued designers to opt for intelligent power management solutions. Intelligent power strips, PUE monitoring devices, and battery monitoring devices are some of the newest technologies used to optimize energy consumption in data centers and reduce the PUE ratio.
On the basis of product, the market has been segregated into UPS, PDU, busway, and others. UPS led the market in 2018. Growing implementation of cloud computing coupled with the need for sensitive and ubiquitous data has encouraged the installation of this product. Additionally, the use of portable UPS systems in services, such as Software as a Service (SaaS), high-performance computing, online gaming, and online media streaming has also fueled the segment growth.
The PDU segment is expected to register a CAGR of around 7.0% from 2019 to 2025. The growth is mainly driven by the snowballing demand for intelligent power distribution units. Over the last few years, companies are shifting towards the adoption of intelligent PDUs against simple multi socket racks with server and network equipment. Intelligent power distribution units exhibit the capability of measuring distributed electrical parameters and identifying environmental factors such temperature and humidity. Further, these units allow a detailed view of the conditions inside a data center rack and provide information to the data center operators and administrators, thereby enabling fault identification to undertake appropriate measures for energy efficiency.
Based on end-use, the data center power market is segregated into IT and telecommunications, banking, financial services, and insurance (BFSI), government, energy, healthcare, retail, and others. The IT and telecommunications sector emerged as the fastest growing segment and is expected to exceed USD 1.0 billion by 2025.
Rapid upsurge in the growth and construction of IT infrastructure is expected to drive the demand over the forecast period. Furthermore, the developing telecommunication infrastructure requires data storage facilities to manage an enormous amount of data. In addition, reliability, energy consumption, and maintenance are critical in IT and telecommunication facilities. This factor is anticipated to propel growth in the forthcoming years.
High demand from BFSI, majorly driven by an increasing focus on digitization. Moreover, the industry has shifted its focus on cloud computing and cloud networking to increase banking capacities; resulting in huge demand for data centers. This factor is projected to fuel market growth over the forecast period.
North America held the largest market share in terms of revenue in 2018 as the region has the highest number of data centers in the world. Various norms and regulations have been introduced and implemented by governments and regulatory bodies to reduce carbon footprints and energy consumption. This has resulted in high adoption of efficient power management solutions, driving the regional demand.
For instance, organizations are spending a large portion of their budgets on cooling and maintenance systems. Thus, it becomes essential to incorporate efficient power management devices such as PDU, busway, and UPS among others to control the unnecessary spending at data centers.
Asia Pacific is expected to witness a high CAGR during the forecast period owing to the rapid increase in the volume of colocation data centers in emerging countries, such as India and China. Furthermore, a rising number of telecom subscribers using smartphones and tablet worldwide are anticipated to elevate the regional demand over the forecast period.
The market is highly competitive and is marked with the presence of several dominant players. These key players engage in introducing innovative solutions to gain a competitive edge. For instance, in March 2018, Cyber Power Systems (USA), Inc., a designer and manufacturer of PDU, UPS, and other power systems announced the launch of a software known as Power Panel for its UPS system. This software allows users to remotely monitor UPS with serial port number and control the unattended computer shutdowns. The software also features an additional functionality wherein, users are continuously notified about the UPS related power events. Some of the prominent players in the data center power market include:
ABB Group
Eaton
Schneider Electric
Cyber Power Systems
General Electric
Report Attribute |
Details |
Market size value in 2020 |
USD 7,691.8 million |
Revenue forecast in 2025 |
USD 10,774.9 million |
Growth Rate |
CAGR of 6.9% from 2019 to 2025 |
Base year for estimation |
2018 |
Historical data |
2014 - 2017 |
Forecast period |
2019 - 2025 |
Quantitative units |
Revenue in USD million and CAGR from 2019 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Netherlands; Denmark; Finland; Spain; Russia; China; India; Japan; South Korea; Singapore; Australia; Brazil; Mexico; Argentina; UAE; Saudi Arabia; South Africa |
Key companies profiled |
ABB Group; Eaton, Schneider Electric; Cyber Power Systems; General Electric |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the global data center power market report based on product, end-use, and region:
Product Outlook (Revenue, USD Million, 2014 - 2025)
PDU
UPS
Busway
Others
End-Use Outlook (Revenue, USD Million, 2014 - 2025)
IT & Telecommunications
BFSI
Government
Energy
Healthcare
Retail
Others
Regional Outlook (Revenue, USD Million, 2014 - 2025)
North America
The U.S.
Canada
Europe
The U.K.
Germany
France
Italy
Netherlands
Denmark
Finland
Spain
Russia
Asia Pacific
China
India
Japan
South Korea
Singapore
Australia
Latin America
Brazil
Mexico
Argentina
Middle East & Africa
UAE
Saudi Arabia
South Africa
b. The global data center power market size was estimated at USD 7,226.3 million in 2019 and is expected to reach USD 7,691.8 million in 2020.
b. The global data center power market is expected to grow at a compound annual growth rate of 6.9% from 2019 to 2025 to reach USD 10,774.9 million by 2025.
b. North America dominated the data center power market with a share of 38.0% in 2019. This is attributable to presence of various norms and regulations aimed at reducing carbon footprints and energy consumption in the region.
b. Some key players operating in the data center power market include ABB, Black Box Corporation, Eaton, General Electric, Generac Power Systems, Inc., Huawei Technologies Co., Ltd, Legrand, Rittal GmbH & Co. KG, Schneider Electric, and Vertiv Co.
b. Key factors that are driving the market growth include rise in introduction of state-of-the-art variants to reduce power consumption coupled with emergence of modular data centers.
This report has a service guarantee. We stand by our report quality.
We are in compliance with GDPR & CCPR norms. All interactions are confidential.
Design an exclusive study to serve your research needs.
Get your queries resolved from an industry expert.
"The quality of research they have done for us has been excellent..."
In contrast to its related industries like consumer electronics and semiconductors, the data center and communications infrastructure industry is expected to be more buoyant with continued strategic investments made to support the increased network traffic and data usage for remote working during the lockdown phase. From school closures necessitating students to use virtual offerings (Google Classroom ) to the governments using business analytics services (Power BI) for communicating virus updates, the demand for communication services and related infrastructure has witnessed an unprecedented rise amidst the global pandemic. Digital services including telemedicine are expected to remain popular even after the pandemic is contained, thereby ensuring strong growth in the communication infrastructure industry. The report will account for Covid19 as a key market contributor.