The global data center rack power distribution unit market size was valued at USD 1.40 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 7.2% from 2020 to 2027. Owing to the ongoing COVID-19 pandemic, people are advised to stay at home as a preventive measure. Several companies are following work from home policy not only to protect their employees but also to serve their customers. This has led to an increase in the digital traffic and usage of online communication services. Data centers are playing a crucial role in safeguarding and maintaining secure digital infrastructure during this uncertain time. This crisis is expected to shift the focus towards the importance of improved digital infrastructure, coupled with data centers, thereby paving way for the market growth.
Furthermore, the power distribution unit (PDU) regulates the voltage in data centers and provides real-time information related to the power supply. They manage power efficiently in case of equipment failures. These factors are expected to positively impact market growth. Additionally, the market is driven by the growing adoption of cloud-based services. Cloud service providers are engaged in investing in constructing new facilities as well as renovating their existing data centers for managing power efficiently. However, owing to the ongoing coronavirus pandemic, the expansion of several manufacturing facilities is shut down in order to ensure the safety of employees and citizens.
Nevertheless, companies are focused on providing remote access to their employees in order to maintain business continuity. PDU providers are focusing on offering solutions that are equipped with monitoring capabilities. These solutions ensure optimum utilization of available resources and have capabilities of controlled power consumption. They assist organizations in reducing their power usage, carbon footprint, and increase the efficiency of data centers. Thus, the demand for intelligent rack PDUs is estimated to rise from 2020 to 2027.
Modern data center requires technologically advanced products and systems that meet the market needs and requirements related to capability, reliability, and quality. Numerous organizations are developing products that can manage power consumption effectively and increase energy efficiency, considering the rise in power usage. Furthermore, increasing applications of containerized data centers are expected to drive the market from 2020 to 2027. A portable data center that is installed in a shipping container is known as a containerized data center. It is a part of a modular data center in which every module can host IT, cooling, and other power equipment.
Rising temperature in data centers leads to the demand for cooling systems, thereby reducing additional expenses associated with cooling the equipment. However, along with the rising temperature in data center facilities, the exhaust temperature is also increasing. Thus, PDUs with high ambient temperature ratings are vital for avoiding equipment failures due to overheating. These aforementioned factors have led to the demand for power distribution units with a high rating, which is estimated to fuel the data center rack power distribution unit market growth over the forecast period.
Data centers that have witnessed power shortages have increased over the past few years. This has led to an unavoidable interruption in business processes and has prompted operators to equip their data centers with power units to avoid disruptions and ensure frequent power supply. However, complexity in data center designs is a major factor restricting market growth. The introduction of smart and high-density power distribution units is expected to open new avenues for the market over the forecast period.
The non-intelligent segment held the largest market share of 54.59% in 2019. The non-intelligent rack power distribution units, which have only input load monitoring and power distribution functionalities, held the largest share of over 50.0% in 2019. Factors such as increased demand for power and load monitoring capabilities in data centers and cost-effectiveness are anticipated to boost the segment growth over the forecast period. Additionally, these power distribution units fulfill the requirements of various data centers as they accurately distribute current and voltage within the IT infrastructure.
The intelligent rack PDU segment is expected to expand at the fastest CAGR of 8.2% over the forecast period. The intelligent rack PDU is further bifurcated into Metered PDU and Switched PDU. This is attributed to the shift of various organizations towards hyper-converged infrastructure. Additionally, features such as input metering, network connectivity, and output metering are expected to boost their demand.
North America dominated the market with a share of over 35.0% in 2019. This is attributed to the presence of key players such as APC Corp; Hewlett Packard Enterprise Development LP; and Cyber Power Systems (USA), Inc. U.S. is considered to be a major contributor in terms of revenue owing to the increasing adoption of online shopping, which has led to retailers having data centers in their own premises or lease storage space from third-party service providers. Furthermore, colocation providers in this region are significantly investing in constructing additional data centers to enhance their global footprint, which is subsequently fueling the regional market growth.
Asia Pacific is anticipated to expand at the fastest CAGR of 9.2% during the forecast period. Growing preference for digitalization is anticipated to encourage the adoption of cloud-based services and in turn, necessitate the utilization of data centers during the forecast period. Companies such as Amazon Web Services, Inc.; Google LLC; and IBM Corporation are expanding their cloud-based services in this region. Furthermore, rising expenditure on IT infrastructure in countries, such as Japan, China, and India, is fueling the demand for power distribution units in the region.
The market is consolidated and has been characterized by intense competition due to the presence of major companies. Market players are focusing on introducing new products to leverage their offerings and gain a competitive advantage over other players. For instance, in January 2019, Eaton announced the launch of its new high-density rack power distribution unit platform in North America. The newly launched PDU platform has several features that facilitate the needs of multi-cloud environments.
Similarly, several market players are engaged in mergers, strategic partnerships, regional expansion, and acquisitions to expand their market presence. For instance, in May 2019, Hewlett Packard Enterprise Development LP announced the opening of its new office in Manchester, U.K. to expand its business in the region. Furthermore, in January 2020, Enlogic announced the opening of its new power distribution unit manufacturing facility in India. The new facility has a capacity of manufacturing 50,000 PDUs annually. Some of the prominent players in the data center rack power distribution unit market include:
APC Corp (Schneider Electric)
Cyber Power Systems (USA), Inc.
Eaton
Enlogic
Hewlett Packard Enterprise Development LP
Leviton Manufacturing Co., Inc.
Raritan, Inc.
Server Technology, Inc.
Tripp Lite
Vertiv Group Corp.
Report Attribute |
Details |
Market size value in 2020 |
USD 1.48 billion |
Revenue forecast in 2027 |
USD 2.40 billion |
Growth Rate |
CAGR of 7.2% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil; Mexico |
Key companies profiled |
APC Corp (Schneider Electric); Cyber Power Systems (USA), Inc.; Eaton; Enlogic; Hewlett Packard Enterprise Development LP; Leviton Manufacturing Co., Inc.; Raritan, Inc.; Server Technology, Inc.; Tripp Lite; Vertiv Group Corp |
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 the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities from 2016 to 2027 in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the global data center rack power distribution unit market report based on product and region:
Product Outlook (Revenue, USD Million, 2016 - 2027)
Non-intelligent
Intelligent
Metered
Switched
Regional Outlook (Revenue, USD Million, 2016 - 2027)
North America
U.S.
Canada
Europe
U.K.
Germany
France
Asia Pacific
China
India
Japan
Latin America
Brazil
Mexico
Middle East & Africa
b. The global data center rack power distribution unit market size was estimated at USD 1.40 billion in 2019 and is expected to reach USD 1.48 billion in 2020.
b. The global data center rack power distribution unit market is expected to grow at a compound annual growth rate of 7.2% from 2019 to 2027 to reach USD 2.40 billion by 2027.
b. North America dominated the data center rack power distribution unit market with a share of 38.0% in 2019. This is attributable to presence of colocation service providers coupled with increasing investments in building additional data center facilities.
b. Some key players operating in the data center rack power distribution unit market include APC Corp (Schneider Electric), Cyber Power Systems, Inc., Eaton Corporation, Vertiv (Emerson Electric Co.), Enlogic (CIS Global), Geist, Hewlett Packard Enterprise Development LP, Leviton Manufacturing Co., Inc., Raritan, Inc. (Legrand), Server Technology, Inc., and Tripp Lite.
b. Key factors that are driving the market growth include rising adoption of cloud-based services, increasing construction of new data centers, and high demand for energy efficient products.
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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.
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