Telecom Power Systems Market Size, Share & Trends Analysis Report By Product Type (DC Power Systems, AC Power Systems, Digital Electricity), By Grid Type, By Power Source, And Segment Forecasts, 2020 - 2027

Report Overview

The global telecom power systems market size was valued at USD 3.3 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 9.7% from 2020 to 2027. Telecom power systems are the power systems that are used for securing telecommunication services if there are any interruptions or grid power fluctuations in the network. These power systems are designed specifically to provide power supply to the telecom towers 24/7. These systems enable telecom service providers to offer continuous communication and data transmission services to their end-users. Furthermore, rising inclination of service providers towards introducing telecom towers in the off-grid and rural areas is expected to drive the market over the forecast period.

Rapid increase in digitalization has stimulated the demand for telecom power facilities as there has been substantial use of mobile and other handheld devices in urban as well as rural areas. The broadband, mobile, and IP-based direction of the telecom network ensures rapid development of telecom power systems due to the changes in technology and customer requirements to have seamless communication services. As a result, growing penetration of smartphone devices and data communication has fueled the demand for advanced network services, such as 4G, VoLTE, and 5G. This, in turn, is expected to be the focal point of the market growth.

In addition, with the ever-increasing growth in the telecom sector and rising number of subscribers, the telecom towers are being installed at a greater scale to meet the demand in the rural areas. Moreover, the broadband capacity demand is increasing owing to an increase in the number of mobile devices and applications users and internet handlers. This, in turn, has resulted in increased demand for power systems. Therefore, continuous expansion of cellular infrastructure in rural as well as urban areas for improving the connectivity infrastructure is providing avenues for the market.                                                             

Rising demand for tower installations is steering the market growth as technologies such as 4G and 5G are being deployed. However, the coverage for these technologies is relatively low in various regions, therefore the telecom companies need to set up more towers to handle the rising data and voice traffic. With the improvement in technologies, the consumers’ demand for speed also increases. Furthermore, the use of high frequencies in the telecom network reduces the network coverage, which results in the deployment of mobile towers to cover the maximum number of consumer base. This, in turn, is expected to drive the market over the forecast period.

Emergence of green telecom power systems is also expected to create avenues for the market during the forecast period. According to GSMA, the transformation to more energy-efficient and greener alternative tower power systems, which include renewable energy hybrid systems and diesel generator-advanced batteries, is expected to save the telecom industry’s USD 13.0 to 14.0 billion annually. Adoption of green technologies has the potential of generating approximately USD 100-500 million tons and 40 million tons annually in carbon savings. Therefore, as the constant need to decrease telecom energy costs gains momentum over time, the green telecom power systems are expected to witness greater acceptance in the years to come.

Product Type Insights

Based on the product type, the market has been segmented into AC power systems, DC power systems, and digital electricity. The DC segment held the largest market share of 59.8% in 2019 and is expected to maintain its lead during the forecast period. DC power systems are used for providing continuous DC power to telecom equipment that requires DC power. The main function of this system is to convert AC power to DC power as well as to charge and maintain the back-up battery system.

Moreover, these systems monitor and control power output to the equipment, while maintaining the precise voltage and trigger alarms as required. By offering filtering and protection, these systems produce an extra layer of protection for the equipment being powered. Moreover, the DC power systems are not influenced by unexpected voltage drops or spikes and are more resistant to the varying energy requirements. They also provide improved battery backup with advanced battery solutions that offer more than 10 hours of standby time during the failure of conventional power sources.        

Power Source Insights

Based on the power source, the market for telecom power systems is bifurcated into diesel batteries, diesel-solar, diesel-wind, and other sources. In 2019, the diesel battery segment held the largest market share of more than 40.0%. The diesel-battery power source involves less capital investment and helps in reducing carbon emissions. As a result, these power sources are preferred more in developing countries, including India, Brazil, and Mexico. The telecom operators in these countries find this power source economically feasible for deploying diesel battery solutions to power the telecom towers.

The diesel-solar segment is expected to expand at the highest CAGR of 12.9% during the forecast period. This growth is attributed to the rising demand for renewable energy sources with a low cost of operation. Diesel-solar systems help in reducing the cost of maintenance as well as the cost of operations and logistics by reducing the diesel runtime and fuel consumption. Moreover, the use of renewable power sources will help in reducing the carbon footprint and will thereby boost the adoption of green telecom power systems across the telecom industry in the foreseeable future.

Grid Type Insights

Based on the grid type, the market for telecom power systems is segregated into on-grid, off-grid, and bad-grid. The on-grid segment garnered a majority share of over40.0% in 2019 and is expected to witness substantial growth during the forecast period. On-grid systems are those systems that generate power when the utility power is available. These grids are the simplest and most cost-effective to install. Around 85% of the telecom infrastructure is connected to the grid with a reliable (on-grid) and unreliable (bad-grid) access.

The bad-grid segment is projected to register the highest CAGR of 12.1% over the forecast period. This is attributed to growth in the mobile subscriber base, which is projected to be concentrated in the developing countries of Asia Pacific and Africa. The majority of the population in these countries are currently not connected to telecom networks. This population overpoweringly inhabits rural areas where gaining access to electricity is unreliable and patchy. About 40% of the rural areas in countries do not have access to grid-based electricity. Consequently, in order to meet the existing and rising needs of the increasing mobile subscribers, there is a vast opportunity for the power systems in bad-grid areas.                                                                                                                 

Regional Insights

North America emerged as the largest regional market in 2019 with more than 30.0% share of the global revenue. ​​​​​​The region has been one of the early adopters of most of the innovative technologies and telecom technologies are not an exception. The U.S. is expected to dominate the North America market during the forecast period. The ever-increasing demand for robust and continuous network connectivity is one of the major factors driving the market in this region.                                                                                                   

Asia Pacific is expected to exhibit the fastest CAGR of 14.0% over the forecast period. The market in the region is mainly driven by the growing penetration of telecom towers in rural areas in order to broaden the mobile connectivity and subscriber base in this region. Expansion of the 3G and LTE networks has also fueled the need for telecom power systems in Asia Pacific. Asian countries including China, Japan, and South Korea are driving the development of 5G network technologies. Moreover, the influence of Chinese telecom operators, such as China Telecom, is emphasizing on the importance of the growth of the global telecom industry. Furthermore, the region’s booming telecom sector is likely to boost the market growth over the forecast period.

Key Companies & Market Share Insights

The market has been characterized by the presence of both large-scale and medium-scale telecom power system providers. These companies are aggressively investing in R&D activities to develop new products in order to withstand their presence in an extremely competitive environment. For instance, in March 2020, ZTE Corporation announced its plan of passing the telecom industry’s first 5G SA (standalone) performance test of the network commercial equipment, which was organized by China Telecom. With this, ZTE Corporation became the first player whose equipment runs strictly with the needed performance for 48 hours. The test verifies the stability and processing performance of the 5G system. Some of the prominent players in the global telecom power systems market include:

• Alpha Technologies, Ltd.

• Ascot Industrial S.r.l.

• Corning Incorporated

• Cummins Inc.

• Dynamic Power Group

• Eaton Corporation Inc.

• Eltek

• General Electric Company

• Hangzhou ZhongHeng Power Energy Co. Ltd.

• Huawei Technologies Co., Ltd.

• Myers Power Products, Inc.

• Schneider Electric SE

• Staticon Ltd.

• UniPower, LLC

• Vertiv Group Corp.

• VoltServer Inc.

• ZTE Corporation

Telecom Power Systems Market Report Scope

Segments Covered in the Report

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 telecom power systems market report based on product type, grid type, power source, and region:

• Product Type Outlook (Revenue, USD Million, 2016 - 2027)

  • AC Power Systems

  • DC Power Systems

  • Digital Electricity

• Grid Type Outlook (Revenue, USD Million, 2016 - 2027)

  • On-grid

  • Off-grid 

  • Bad Grid

• Power Source Outlook (Revenue, USD Million, 2016 - 2027)

  • Diesel-Battery

  • Diesel-Solar

  • Diesel-Wind

  • Other Sources

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa