NEW YORK, July 24, 2024 /PRNewswire/ -- The
global data center power market size is estimated to
grow by USD 22.85 billion from
2024-2028, according to Technavio. The market is estimated to grow
at a CAGR of over 11.25% during the forecast period. Increasing
investments in data centers is driving market growth, with a trend
towards increasing investments in hpc systems.
However, ups battery failure poses a challenge. Key
market players include ABB Ltd., Active Power Solutions Ltd., AEG
Power Solutions BV, Black Box Ltd., Caterpillar Inc., Control
Technology Co., Cummins Inc., Cyber Power Systems Inc., Danfoss AS,
Delta Electronics Inc., Eaton Corp. Plc, Exide Technologies,
Generac Holdings Inc., Legrand SA, Panduit Corp., Rolls Royce
Holdings Plc, Schneider Electric SE, Siemens AG, Toshiba Corp., and
Vertiv Holdings Co..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Product (Generators,
Transformers, UPS, Transfer switches and switchgears, and Others),
End-user (IT and telecom, BFSI, Energy, Healthcare, and Retail),
and Geography (North America, Europe, APAC, South America, and
Middle East and Africa)
|
Region
Covered
|
North America, Europe,
APAC, South America, and Middle East and Africa
|
Key companies
profiled
|
ABB Ltd., Active Power
Solutions Ltd., AEG Power Solutions BV, Black Box Ltd., Caterpillar
Inc., Control Technology Co., Cummins Inc., Cyber Power Systems
Inc., Danfoss AS, Delta Electronics Inc., Eaton Corp. Plc, Exide
Technologies, Generac Holdings Inc., Legrand SA, Panduit Corp.,
Rolls Royce Holdings Plc, Schneider Electric SE, Siemens AG,
Toshiba Corp., and Vertiv Holdings Co.
|
Key Market Trends Fueling Growth
High-Performance Computing (HPC) systems deliver superior
computing performance for scientific and engineering applications.
These systems consist of clusters of processors with 16-64 nodes,
utilizing algorithms, networks, and simulated environments. HPC
systems are essential for complex operations, such as physical
simulations, weather forecasting, quantum mechanics, and molecular
modeling. The global HPC market is growing due to the need for
product innovation and economic competitiveness. Cloud-based HPC
systems are increasingly popular among Small and Medium Enterprises
(SMEs) due to their low initial investment requirements. HPC
systems require highly configured servers and data centers to
handle compute-intensive workloads efficiently. With the increasing
adoption of HPC, there is a growing demand for data centers. Data
center operators must ensure uninterrupted power supply to these
centers to meet the demands of HPC vendors. Consequently, the
demand for data center power components is expected to rise during
the forecast period.
Data centers are essential for businesses in various sectors,
including IT & telecommunications, government, healthcare,
retail, banking, financial services, and insurance, to store and
process their digital data. With the rise of cloud computing and
work-from-home models, the demand for data centers is increasing.
Advanced systems like modular data centers and energy-efficient
technologies are trending, focusing on energy conservation and
reducing Power Usage Effectiveness (PUE). Cloud computing and web
hosting require massive computational power, leading to the growth
of mega data centers. Medium-sized enterprises and colocation data
centers also benefit from energy-efficient Power Distribution Units
(PDUs) and Uninterruptible Power Supply (UPS) systems. Compatible
devices like intelligent power strips, battery monitoring
equipment, and PDU and UPS technologies ensure reliability and
maintenance. Energy conservation is crucial, with PUE monitoring
devices and battery monitoring devices helping to optimize energy
usage. The integration of 5G and cloud networking in edge use cases
further expands the data center market. Initial investment in
compatible products can save costs in the long run and ensure
business continuity.
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Market Challenges
- Data centers rely on Uninterruptible Power Supply (UPS) systems
for power backup, but their batteries, which have an average
lifespan of ten years, can sometimes fail due to aging or other
factors. These failures can lead to significant losses for data
center operators, costing USD1-USD5 million
per hour during downtime. Factors such as inconsistent temperatures
and overcharging can reduce battery life and lead to quick capacity
rundowns. UPS battery failures account for over half of data center
outages. As these components age, their use is expected to decline,
potentially hindering the growth of the global data center power
market during the forecast period.
- Data Center Power Market: Medium-sized enterprises face unique
challenges in powering their IT infrastructure, especially when it
comes to web hosting cloud and colocation data centers. Mega data
centers and hyper-scale providers, with their vast power
requirements, dominate the market. PDUs (Power Distribution Units)
and UPSs (Uninterruptible Power Supply) are essential products for
ensuring reliability. Colocation and IT & telecommunications
sectors, along with government, healthcare, retail, banking,
financial services, and insurance, rely on compatible DC power
solutions. Initial investment in power infrastructure can be high,
but the benefits of reliability and maintenance outweigh the costs.
Digitization, cloud networking, 5G, edge use cases, high bandwidth,
and low-latency data transmission require advanced DC power
solutions. Hyper-scale providers prioritize modularity and storage
capacity. The World Economic Forum highlights the importance of DC
power solutions in the age of Al (Artificial Intelligence),
robotics, and CAPEX budget optimization. IT equipment and data
storage facilities demand online double conversion for
uninterrupted power supply. PDUs, UPSs, busways, and compatible
devices are essential for end-uses. Compatibility, reliability, and
maintenance are key concerns. The market for DC power solutions
continues to evolve, driven by the growing demand for
high-performance, low-latency power infrastructure.
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challenges - Download a Sample Report
Segment Overview
This data center power market report extensively covers market
segmentation by
- Product
- 1.1 Generators
- 1.2 Transformers
- 1.3 UPS
- 1.4 Transfer switches and switchgears
- 1.5 Others
- End-user
- 2.1 IT and telecom
- 2.2 BFSI
- 2.3 Energy
- 2.4 Healthcare
- 2.5 Retail
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Generators- Data centers require a reliable
power source to ensure uninterrupted operation of IT equipment.
Generators serve as backup power supplies when the primary power
fails. Enterprises must understand their data center's power system
architecture before installing a generator. Generators are
classified into gas, diesel, and bi-fuel based on fuel source.
Enterprises can choose based on fuel preference to minimize
generator operating costs. A UPS system can provide power during
short power outages, but generators are ideal for extended backup
periods. Market growth is driven by advancements in UPS technology
offering longer backup times, making them cost-effective
alternatives to generators.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Learn and explore more about Technavio's in-depth research
reports
The global data center market is booming, driven by increased
demand for data storage and processing. In parallel, the global
data center mechanical construction sector is evolving, with
innovative cooling and HVAC systems becoming crucial for efficiency
and reliability. With rising data consumption and technological
advancements, investments in mechanical construction and power
solutions are key to supporting the growth and sustainability of
data centers worldwide.
Research Analysis
The Data Center Power Market is witnessing significant growth
due to the increasing adoption of advanced systems such as modular
data centers and technologies like cloud computing, computational
power, and colocation. The shift towards work-from-home models and
the need for energy conservation have further fueled the demand for
efficient power distribution solutions. Power Distribution Units
(PDUs) and Uninterruptible Power Supply (UPS) systems are essential
components of data centers, ensuring uninterrupted power supply and
protecting equipment from power surges and outages. Battery
monitoring equipment and PUE monitoring devices are crucial for
optimizing energy usage and reducing costs. Intelligent power
strips and busways provide advanced power management capabilities,
enabling medium-sized enterprises and large organizations to manage
their power needs effectively. End-users in IT &
telecommunications, government, healthcare, retail, banking,
financial services, and insurance sectors are increasingly
investing in compatible products to support their growing
computational power requirements. Mega data centers and hyper-scale
facilities, in particular, demand large-scale power solutions,
including PDUs and UPSs, to ensure reliable and efficient power
distribution.
Market Research Overview
The Data Center Power Market is experiencing significant growth
due to the increasing demand for cloud computing, data storage, and
advanced systems. Energy efficiency is a top priority, with
technologies such as Power Distribution Units (PDUs),
Uninterruptible Power Supply (UPS) systems, and battery monitoring
equipment playing crucial roles. Modular data centers and
work-from-home models are also driving market expansion. Energy
conservation and PUE monitoring devices are essential for reducing
energy consumption and improving reliability. Intelligent power
strips and battery monitoring devices are key products for
optimizing power usage. End-users in IT & telecommunications,
government, healthcare, retail, banking, financial services,
insurance, and other sectors are investing in data centers for
their IT infrastructure and digital transformation. Technologies
like cloud computing, computational power, and DC power solutions
are transforming the industry. Hyper-scale providers and mega data
centers are leading the way, while medium-sized enterprises and
colocation data centers are also adopting advanced systems. The
market is expected to continue growing, with a focus on modularity,
storage capacity, and compatibility with various devices and
end-uses. The World Economic Forum highlights the importance of
energy management and digitization in the data center sector. CAPEX
budgets for IT equipment and online double conversion are
significant factors influencing market trends. The integration of
AI, robotics, 5G, cloud networking, and edge use cases is also
shaping the future of the Data Center Power Market.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Product
-
- Generators
- Transformers
- UPS
- Transfer Switches And Switchgears
- Others
- End-user
-
- IT And Telecom
- BFSI
- Energy
- Healthcare
- Retail
- Geography
-
- North America
- Europe
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
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Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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