Data Center Power Market Analysis By Product (PDU, UPS, Busway), By End-use (IT & Telecommunications, BFSI, Government, Energy, Healthcare, Retail), By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global data center power market size was valued at USD 6,046.0 million in 2016. The increasing need of cloud storage has resulted in a large volume of data centers around the world, which in turn, consume a huge amount of energy. It is estimated that every year around 3% of the generated electricity is consumed by such facilities. In order to reduce the Power Usage Efficiency (PUE) ratio and increase efficiency, data center designers deploy advanced power management solutions such as intelligent rack PDU, smart UPS, and battery monitoring equipment. This trend is one of the key factors driving demand in the data center power industry, which is anticipated to continue further over the forecast period.

Power Usage Effectiveness (PUE) refers to the ratio of the amount of energy used to run a data center to the energy used to run a server in it. This ratio explains the efficiency of data centers. The rising cost of energy and increasing awareness to save electricity has resulted 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.

India data center power market by product, 2014 - 2025 (USD Million)

The market has witnessed an unprecedented growth in technologies and services driven by data centers. Due to this, various enterprises have started sourcing computing to cloud-based infrastructures. Cloud computing requires 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, the increasing usage of data centers has, in turn, resulted in the rising adoption of mega and cloud data centers. These facilities 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 ones featuring advanced technologies and power management capabilities. The shift of the industry toward colocation and hyper-scale data centers is expected to fuel the demand for data center power equipment over the forecast period. However, the high initial investment required for these solutions and inadequate availability of compatible devices are some factors that may hinder the market growth in future.

On the basis of products, the UPS segment dominated the market in 2016. The growing implementation of cloud computing coupled with the need for sensitive and ubiquitous data has encouraged the installation of data center UPS. 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 growth of the UPS segment.

End-use Insights

A high demand has been witnessed for data centers in Banking and Financial Services Institutions (BFSI) globally, which is majorly driven by an increasing focus of the industry on digitization. Moreover, in order to increase banking capacities, the industry has shifted toward cloud computing and cloud networking. This has resulted in a huge demand, thereby driving growth of the market over the forecast period.

The telecom sector emerged as the fastest growing segment in the global market. The developing telecommunication infrastructure requires similar facilities to manage an enormous amount of data, resulting in the increasing development of new data centers. This is anticipated to catapult the demand for power systems solutions.

Global data center power market by end-use, 2016 (%)

Regional Insights

North America held the largest market share in 2016 as the region has the highest number of data centers in the world. Additionally, the U.S. alone accounted for over 30% of the global market of data center power in 2016. Various norms and regulations have been introduced and implemented by governments and regulatory bodies in order to reduce carbon footprints and energy consumption. This has resulted in the huge adoption of efficient power management devices in data centers in North America. Additionally, the Asia Pacific region is expected to witness a higher growth rate owing to the rapid increase in the volume of colocation data centers in emerging countries, such as India and China.

Competitive Insights

The industry is highly competitive with the presence of several dominant players, such as Emerson Electric, ABB Group, Eaton, Schneider Electric, and General Electric, among others. The presence of these companies has intensified competition in the market. Furthermore, companies are continually introducing innovative solutions, such as PUE monitoring devices, which offer efficient power management solutions, thereby resulting in a high competitive rivalry in the industry.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global data center power market based on product, end-use and regions:

• Product Outlook (Revenue, USD Million; 2014 - 2025)

  • Power Distribution Units (PDU)

  • Uninterrupted Power Supply (UPS)

  • Busway

  • Others

• End-use Outlook (Revenue, USD Million; 2014 - 2025)

  • IT & Telecom

  • BFSI

  • Government

  • Energy

  • Healthcare

  • Retail

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa