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, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global telecom power systems market size was valued at USD 3.28 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.8% from 2021 to 2028. These power systems are designed for fixed-line applications and wireless broadband access. The factors such as the growing penetration of telecom towers in remote locations as well as the increasing deployment of cell power systems used for LTE networks are expected to fuel the market growth over the forecast period. Telecom power systems are designed to support telecommunication services by controlling and monitoring the flow of power in case there are any disruptions or grid power fluctuations in the network. The market has evolved in recent years due to the largescale adoption of digital disruptive technologies and their integration in telecom infrastructure.

The significant rise in cellular data traffic has encouraged the expansion of mobile networks even in remote and rural vicinities. Moreover, the rapid increase in the adoption of a range of connected devices has stimulated the deployment of picocells and femtocells, which require power systems. This continuous expansion of cellular networks for improving connectivity infrastructure is creating opportunities for the market globally. To cater to the rising demand for faster connections, telecom operators are integrating their products with next-generation Wi-Fi-6, 5G networks, and other advanced wireless technologies. Telecom operators are also offering products equipped with increased data capacities, lower latency, precise location sensing, and greater device density. For instance, Robert Bosch GmbH, an industrial technology conglomerate, collaborated with Nokia and launched a new private 5G network at its Industry 4.0 central plant in Stuttgart-Feuerbach, Germany.

The rising focus of businesses on reducing the environmental impact and carbon footprint of their operations could create growth avenues for renewable energy-powered telecom power systems in the future. The global telecom power system market can benefit from renewable power by allowing businesses to significantly reduce operational costs while also meeting carbon emission targets. Several regulatory bodies worldwide are favoring the establishment of hybrid power plants to ensure the viability of power systems in locations with more consumption requirements. For instance, the directives issued by the Department of Telecommunication (DoT), India, recommended that 33% of the telecom towers in India’s urban areas and 75% of telecom towers in its rural areas be hybrid powered by 2020.

The COVID-19 pandemic and subsequent restrictions imposed by the government of various countries have compelled a large share of the global population to spend more time in their homes and work remotely. This has resulted in a sudden increase in data consumption and a significant rise in demand for faster internet, overloading the existing telecom infrastructure and boosting the demand for advanced telecom power systems worldwide. Furthermore, leading telecom service providers are leveraging advanced telecom power systems to maintain the continuous power supply without any outages and fluctuation issues in the IT sector.

Product Insights

The DC power systems segment accounted for the highest revenue share of over 60.0% in 2020 and is expected to retain its dominance over the forecast period. In Direct Current (DC) power systems, a rectifier converts the Alternating Current (AC) to DC and provides the power to charge the batteries. DC power systems also control and monitor the power being sourced to the equipment, retain accurate voltage, and activate alarms when required. DC power systems have a wide range of applications in telecommunication systems, data centers, electric vehicles, aircraft, commercial buildings, and residential homes. DC distribution systems in data centers and telecommunication systems utilize low-voltage 48 Vdc systems, thereby enhancing the efficiency, flexibility, reliability, and reducing the cost of the systems.

The evolution of digital electricity in recent years has offered performance improvements that were earlier not achievable. Digital electricity, also known as switching power supply, comprises smart meters that manage and record electricity and the performance of electronic equipment. It also provides accurate and detailed digital algorithms on power usage in real-time or at scheduled intervals. According to the U.S. Department of Energy, nearly 94.8 million American households have already incorporated smart meters. With the rising deployment of smart meters, the digital electricity segment is anticipated to expand at the fastest CAGR over the forecast timeframe.

Grid Type Insights

The on-grid segment held the largest revenue share of over 40.0% of the overall telecom power systems market in 2020 and is expected to witness steady growth during the forecast period. An on-grid system is a power generation system connected to the utility grid. The electricity generated by the system is transmitted to the grid from where it is utilized to run multiple appliances. These grid systems are the simplest, most cost-effective to install and, most likely pay for themselves by compensating utility bills in the span of 3 to 8 years.

The bad grid segment is estimated to expand at the highest CAGR over the forecast period. This can be attributed to the expansion of telecom networks in rural areas in several countries owing to the rise in the mobile subscriber base and investment by tower companies to achieve universal coverage. Most of the population in developing countries resides in rural areas that lack telecommunication networks and electricity. According to ‘Our World In Data’, a Global Change Data Lab project, around 13.0% of the world’s population does not have access to grid-based electricity. To cater to the prevailing and growing requirements, there is an immense opportunity for power systems in the bad-grid sector.

Power Source Insights

The diesel-battery segment accounted for the largest revenue share of close to 45.0% of the overall telecom power system market in 2020. A diesel-battery power system helps reduce carbon emissions and requires lower capital investment. Consequently, these power sources are majorly preferred in developing countries, including Mexico, Brazil, and India. Telecom operators in these countries are increasingly employing diesel-battery solutions to charge telecom towers as an economically feasible option. The diesel-wind segment is expected to foresee significant growth over the forecast period owing to the installation of new plants, long-term contracts, and priority access to the grids.

The diesel-solar segment is expected to register the highest CAGR during the forecast period. This growth can be attributed to the rising demand for hybrid energy sources with a low cost of operation. Diesel-solar systems are a combination of solar power from a photovoltaic system with a diesel energy source. These systems are reliable and help reduce maintenance, operational, and logistics costs by minimizing fuel consumption and diesel runtime. Hybrid power sources are gaining popularity owing to the rising need for reducing carbon footprint and boosting the adoption of green telecom infrastructure over the forecast period.

Regional Insights

Asia Pacific dominated in 2020 with a revenue share of more than 30.0% of the overall market and is expected to retain its dominance over the forecast period. This growth can be attributed to the rapid digital transformation of several industries in developing countries, offering a promising growth opportunity for telecom operators to create a sustainable ecosystem. Moreover, telecom service providers are focusing on expanding telecommunication networks to meet the growing cellular subscriber base in the region. Asia Pacific accounts for the highest number of smartphone users for the past few years. This development has led to an increased deployment of telecom towers in rural and remote locations in this region.

North America holds a prominent position in the global market for telecom power systems owing to the robust and constant network connectivity. This region has been one of the early adopters of several innovative developments and telecommunication technologies owing to the high penetration rate of mobile devices and 4G-LTE networks. Besides, the rising demand to commercialize 5G networks in the U.S. is encouraging telecom companies to develop advanced telecom infrastructure and related equipment. For instance, according to 5G Americas, a wireless industry trade association that facilitates the transformation of LTE networks, the LTE penetration rate was 130.0% for the U.S. in the third quarter of 2019. The rapid adoption of digital electricity solutions and smart devices is supporting the growth prospects of the regional market.

Key Companies and Market Share Insights

The market features the presence of both large-scale and medium-scale telecom power system companies. Several providers are emphasizing the development of advanced telecom power systems, improved energy efficiency, product reliability, scalability, optimal system design, product management, control, security, and cost-effective deployment to gain a competitive advantage in the global market. For instance, in October 2020, Cummins Inc. introduced two new digital master controls, DMC2000 and DMC6000, in its portfolio of power systems. These control equipment provide faster delivery time at an economical cost.

Moreover, prominent industry players are collaborating with other market participants to upgrade their telecom power systems portfolio in accordance with the dynamic customer requirements. For instance, in March 2020, Corning Incorporated partnered with US Conec Ltd., a manufacturer of a range of industry connectors, to deploy MDC connector solutions that would significantly enhance carrier distribution networks, hyper-scale data centers, and other high-density patching solutions. The MDC connector was developed to challenge the status quo in patch panel density by allowing a breakout in QSFPDD, SFP-DD, and OSFP optical transceivers. Some of the prominent players operating in the global telecom power systems market are:

• Alpha Technologies, Services, Inc.

• Ascot

• Eaton

• General Electric

• Huawei Technologies Co., Ltd.

• Schneider Electric

• ZTE Corporation

Telecom Power Systems 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 2028. For this study, Grand View Research has segmented the global telecom power systems market report based on product, grid type, power source, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2028)

  • AC Power Systems

  • DC Power Systems

  • Digital Electricity

• Grid Type Outlook (Revenue, USD Billion, 2018 - 2028)

  • On-Grid

  • Off-Grid

  • Bad Grid

• Power Source Outlook (Revenue, USD Billion, 2018 - 2028)

  • Diesel-Battery

  • Diesel-Solar

  • Diesel-Wind

  • Other Sources

• Regional Outlook (Revenue, USD Billion; 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa