DATA CENTER POWER MARKET

Data Center Power Market size reached USD 20.3 billion in 2023 and is estimated to reach USD 32.5 billion in 2031 and the market is estimated to grow at a CAGR of 6.1% from 2024-2031.

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Key Drivers and Emerging Trends

Expansion of information technology (IT) sector and the emerging need to store data on the cloud has augmented the demand for data centers, which are the major factors fueling the data center power market. The advent of portable & energy-efficient IT infrastructure facilities will offer enormous opportunities for the market. Moreover, increasing investments by major players to establish data center infrastructures and surging demand for Smart Uninterruptible Power Supply (UPS) systems and brownfield facilities have proliferated the market size. For example, as per the report published by IEA, the overall energy consumption in the Middle East region has increased from 792 Mtoe in 2017 to 813 Mtoe in 2019, which will pave the way for Data Center Power Market size in Middle East region. With the ongoing innovations in technology, the dependence on IT infrastructure has surged, inclining individual servers to full-scale data centers to fulfil the growing demand for security and scalability, which is estimated to strengthen the market size.

Furthermore, the data centers offer a high-speed computing, online gaming and media streaming platforms which will further boost the market worldwide. Additionally, leading organizations across the developed and emerging economies have adopted energy solutions to improve efficiency, scalability and flexibility of their business operations, which is forecast to offer enormous opportunities to the market. The cost optimization and the substitution of traditionally used devices with technologically advanced variants has stimulated the market growth. Increasing inclination of industry toward colocation and hyper-scale data centers is driving the market growth. However, the high initial investment needed for data center power solutions and the inadequate availability of compatible devices may hinder the growth in the near future.

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Product – Segment Analysis

UPS is estimated to dominate the data center power market over the forecast period, due to the growing demand of UPS in data centers to offer a continuous voltage supply with the help of a power source to help data centers effectively function without any interruption.

The PDU segment is forecast to hold a larger share over the forecast period, because of the growing demand for smart PDUs over simple multi-socket racks with server and network equipment. A significant surge in the demand for intelligent power distribution units, owing to their ability to provide a complete view of the conditions inside a data center rack and offer information to the data center operators and administrators, to help them identify faults and undertake appropriate measures for energy efficiency has bolstered the market growth.

End Use – Segment Analysis

IT and telecommunications sector is estimated to grow at a faster CAGR over the forecast period, due to the increasing adoption of the units by leading players in the industry such as Accenture, TCS, and IBM. Data centers offer a reliable source for the storage of the essential and non-essential data and minimize the glitches of technology, which supports the IT industry, thus, bolstering the market growth.

With the rapid digitalization, the demand for BFSI services has surged moving the focus of businesses on cloud computing and cloud networking. Thus, increasing the demand for data centers, which is expected to boost the segment’s growth.

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Regional – Segment Analysis

North American region is predicted to emerge as the fastest growing nation owing to the existence of leading companies in the region like Schneider Electric, ABB, Huawei Technologies Co., Ltd. Etc. Various strategic norms enforced by the government and regulatory bodies to minimize carbon footprints and energy consumption has stimulated the adoption of energy-effective management solutions, driving the regional demand. For instance, organizations spend a huge portion of their budgets on cooling and maintenance systems, making it important to incorporate efficient power management devices such as busway, PDU, and UPS among others to control the unnecessary spending at data centers.

Asia Pacific is projected to grow at a faster CAGR during the forecast period, primarily because of the increasing number of colocation data centers in developing nations which include India and China. Furthermore, increasing penetration of telecom subscribers using smartphones and tablet worldwide have elevated the market growth.

Top Market Players

Various notable players operating in the market include Schneider Electric, Vertiv Group Corp., ABB, Eaton, Delta Electronics, Inc., Huawei Technologies Co., Ltd., legrand, Tripp Lite., Toshiba India Pvt. Ltd., and Siemens, among others. 

Key Developments:

• • In 2022, Tripp Lite by Eaton business launched different options to connect and control network equipment in industrial environments, such as factories and warehouses. The new and lite managed industrial Gigabit Ethernet switches possess an IP30-rated ruggedized metal case that can handle vibration, shock, and the low and high temperatures often found on the factory floor.
  • In 2021 – Eaton Corporation Plc collaborated with Microsoft Corporation to identify ways for monetization of existing assest of data centers and integrated energy sources for generating a sustainable and stable grid.
  • In 2021 – ABB Limited announced a partnership between Keppel Data Centers and Salim Group. This partnership intends to provide a continuous power supply to seven-hectare IndoKeppel Data Center 1 campus in Indonesia to support the data center’s operations. Moreover, the company and its partner PT Vektordaya Mekatrik, will deliver the PowerWave 33 energy-efficient UPS to the data center (IKDC1).
  • In 2020, Schneider Electric officially announced the launch of its first smart-UPS lithum ion, for low voltage switchgears. This product launch helped in expanding the product portfolio of the company, which in turn, may help in generating more revenue from the product pipeline.
  • In 2020, ABB announced the launch of a new switch gear, named NeoGear. This product offers more safety, more reliability which meets the consumer demand, which helped in expanding the customer base of the company.
  • In 2020, Amazon Web Services (AWS) made an investment of USD 2.8 billion to develop a new AWS cloud in Telangana, India. This investment will help AWS to allow businesses and enterprises operate their servers and applications efficiently.
  • In 2020, Microsoft Corporation made investments to speed up Sweden’s digital transformation and launch its effective data center in the country by 2021.
  • In August 2020, Equinix, Inc., one of the leading colocation service providers headquartered in California, announced a $161 million acquisition of two data centers by GPX Global Systems in Mumbai, India. With this acquisition, the company will be able to strengthen its footprints in the Asia Pacific data center industry.

Segments Covered in the Report:

The global data center power market has been segmented based on product, end use, and regions. Based on product, the market is segmented into PDU, UPS, busway and others. Based on End Use, the market is segmented into IT and telecommunications, banking, financial services, and insurance (BFSI), government and defence, healthcare, research and academic and others. 

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Market Segmentation

Global Data Center Power Market by Product

• • PDU
  • UPS
  • Buswway
  • Others

Global Data Center Power Market by End Use

• • IT & Telecommunications
  • Banking, Financial Services and Insurance (BFSI)
  • Government and Defense
  • Healthcare
  • Research and Academic
  • Others

Global Data Center Power Market by Region

• • North America Data Center Power Market (Option 1: As a part of the free 25% customization)

    • By Product
    • By End Use
    • US Market All-Up
    • Canada Market All-Up

  • Europe Data Center Power Market (Option 2: As a part of the free 25% customization)

    • By Product
    • By End Use
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Data Center Power Market (Option 3: As a part of the free 25% customization)

    • By Product
    • By End Use
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Data Center Power Market (Option 4: As a part of the free 25% customization)

    • By Product
    • By End Use
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Data Center Power (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Schneider Electric
  • Vertiv Group Corp.
  • ABB
  • Eaton
  • Delta Electronics
  • Huawei Technologies Co., Ltd.
  • legrand
  • Tripp Lite.
  • Toshiba India Pvt. Ltd.
  • Siemens