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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Segment Overview
This data center power market report extensively covers market segmentation by
Product 1.1 Generators1.2 Transformers1.3 UPS1.4 Transfer switches and switchgears1.5 OthersEnd-user 2.1 IT and telecom2.2 BFSI2.3 Energy2.4 Healthcare2.5 RetailGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 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.
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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
ProductGeneratorsTransformersUPSTransfer Switches And SwitchgearsOthersEnd-userIT And TelecomBFSIEnergyHealthcareRetailGeographyNorth AmericaEuropeAPACSouth AmericaMiddle 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 their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 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.
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SOURCE Technavio
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