Data Center Power Market Size, Share & Trends Analysis Report By Product (PDU, UPS, Busway), By End Use (IT & Telecom, BFSI, Energy, Healthcare, Retail), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global data center power market size was valued at USD 7.64 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.9% from 2022 to 2030. Increasing the need to store data on the cloud has resulted in an upsurge in the number of data centers across the globe. These data centers consume a huge amount of energy. The rise in introducing advanced systems to reduce power consumption coupled with the emergence of modular data centers is expected to drive market growth. The COVID-19 pandemic severely affected the data center power industry, especially organizations, owing to the complete ban on offline activities across most parts of the world. However, the demand for software as a service (SaaS), along with a chance to work from home lifestyle during the pandemic, are the factors driving the need for data centers.

To reduce the power usage efficiency (PUE) ratio and to increase efficiency, companies deploy advanced power management solutions such as intelligent rack power distribution units (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 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 many medium-sized enterprises incorporating 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 data centers 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 the inadequate availability of compatible devices may hinder the growth in the near future.

The 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.

Product Insights

Based on the product, the market has been segmented into UPS, PDU, busway, and others. UPS led the market in 2021. 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's growth.

The PDU segment is expected to register a CAGR of around 8.4% from 2022 to 2030. 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 as 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.

End-use Insights

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 2.5 billion by 2030.

The rapid upsurge in the growth and construction of IT infrastructure is expected to drive the demand during 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.

Increasing focus on digitization is one of the main reasons for the high demand for BFSI services. 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 the market growth during the forecast period.

Regional Insights

North America held the largest market share in terms of revenue in 2021 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 the 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 during the forecast period.

Key Companies & Market Share Insights

The competitive landscape of the projection mapping market is fragmented, featuring several global as well as regional players. The key participants are entering into strategic collaborations, partnerships, and mergers & acquisitions to expand their business footprint and survive the highly competitive environment. Moreover, service providers are investing considerably in research & development activities to incorporate new technologies in their offerings and develop advanced products to gain a competitive advantage over other market players.

The market is highly competitive and is marked by the presence of several dominant players. These key players are engaged in introducing innovative solutions to gain a competitive edge. For instance, in January 2022, Eaton business launched Tripp Lite practical option for controlling and connecting network equipment in industrial conditions such as warehouses and factories. The industrial Gigabit Ethernet switches are new lite managed and consist of a metal case of IP30-rated that can penetrate shock, vibration, and the high and low temperatures frequently found on the industrial floor. The switches also provide safety from electrostatic discharge (ESD) with a rail clip mount to fit DIN standard 35 mm rail and can be wall-mounted. Some of the prominent players in the global data center power market include:

• ABB

• Eaton

• Schneider Electric

• Cyber Power Systems

• General Electric

Data Center Power Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global projection mapping market report based on product, end-use, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • PDU

  • UPS

  • Busway

  • Others

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • IT & Telecommunications

  • BFSI

  • Government

  • Energy

  • Healthcare

  • Retail

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Netherlands

    • Denmark

    • Finland

    • Spain

    • Russia

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Singapore

    • Australia

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Rest of Latin America

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa