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The data center power market size is forecast to increase by USD 22.9 billion at a CAGR of 11.25% between 2023 and 2028. The market is experiencing significant growth due to several key trends. Firstly, the increasing investments in data centers to support digital transformation and cloud computing are driving market growth. Secondly, the rising demand for high-performance computing in industries such as finance, healthcare, and research is leading to increased power consumption in data centers. Additionally, the issue of UPS battery failure and the subsequent need for backup power solutions is creating opportunities for market participants. These trends are expected to continue, with the market projected to grow steadily in the coming years. However, challenges such as the increasing complexity of power management systems and the need for energy efficiency solutions remain key concerns for market players. Overall, the market is poised for growth, driven by the increasing demand for digital services and the need for reliable and efficient power solutions.
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The market is experiencing significant growth due to the increasing adoption of advanced systems such as modular data centers and the shift towards work-from-home models. These advanced systems require efficient power distribution and management, leading to the increased demand for power distribution units (PDUs) and uninterruptible power supply (UPS) systems. Technologies like energy conservation, PUE monitoring devices, intelligent power strips, and battery monitoring equipment are becoming essential for data centers to reduce energy consumption and ensure reliable power supply. The market for data center power solutions caters to various end-uses, including IT & telecommunications, government, healthcare, retail, banking, financial services, and insurance.
Furthermore, medium-sized enterprises, web hosting cloud, colocation data centers, mega data centers, and hyper-scale data centers are the major consumers of power distribution and management products. Cloud computing and computational power are driving the demand for data center power solutions. Compatible devices like busways and advanced UPS systems are gaining popularity to ensure the efficient and reliable delivery of power to data center IT infrastructure. Initial investment in advanced power management systems may be high, but the long-term benefits in terms of energy savings and improved reliability make it a worthwhile investment.
The data center power market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The generators segment is estimated to witness significant growth during the forecast period. Data centers are essential infrastructure for cloud computing, web hosting, and IT infrastructure of various industries, including government, healthcare, retail, banking, financial services, insurance, and telecommunications. Advanced power systems, such as power distribution units (PDUs) and uninterruptible power supply (UPS) batteries, play a crucial role in ensuring the reliability of data centers. With the increasing adoption of work-from-home models, medium-sized enterprises and colocation data centers are witnessing an upincrease in computational power demand. Energy conservation and PUE monitoring devices are becoming essential for data centers to minimize energy wastage and optimize energy usage. Modular data centers offer a cost-effective solution for energy management and scalability.
Furthermore, intelligent power strips and battery monitoring equipment enable real-time monitoring and management of energy consumption. Cloud data centers, mega data centers, and colocation facilities require advanced power technologies and compatible devices, such as PDUs, UPSs, busways, and end-uses, to ensure uninterrupted power supply. The initial investment in power infrastructure can be substantial, but the long-term benefits in terms of reliability and energy efficiency make it a worthwhile investment. Technologies like energy storage systems, fuel cells, and renewable energy integration are gaining popularity in data centers to reduce operating costs and carbon footprint. In conclusion, understanding the power requirements and implementing energy-efficient solutions are essential for data centers to maintain reliability, minimize energy wastage, and reduce operating costs.
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The generators segment accounted for USD 6.36 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 29% to the growth of the global data center power market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The data center power market is experiencing significant transformation due to digitization, cloud networking, and the integration of 5G technology. This shift brings new demands for high bandwidth and low-latency data transmission, driving the need for advanced DC power solutions. Hyper-scale providers are increasingly adopting modularity and automation to enhance storage capacity and optimize CAPEX budgets. The World Economic Forum predicts that AI, robotics, and edge use cases will further revolutionize data centers, requiring even more reliable and efficient power systems. Online double conversion UPS systems remain a cornerstone of IT equipment protection, ensuring uninterrupted power supply and maintaining the integrity of critical data.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing investments in data centers is the key driver of data center power market growth. The increase in data generation from businesses and individuals worldwide is fueling the expansion of data centers to meet the growing demand for IT & telecommunications services. Cloud computing, including cloud computing for medium-sized enterprises, web hosting, and colocation in data centers, is a significant driver of this trend. Advanced systems, such as modular data centers, intelligent power strips, and battery monitoring devices, are essential components to ensure energy conservation and reliability in these facilities. Energy management is a critical concern for data centers, with PDUs and UPS being key technologies to maintain a continuous power supply.
Moreover, mega data centers, hyper-scale data centers, and colocation facilities all require compatible PDUs and UPSs to support the immense computational power required. Government, healthcare, retail, banking, financial services, insurance, and IT infrastructure sectors heavily rely on data storage facilities for their operations. Ensuring the reliability and energy efficiency of these data centers is crucial. PUE monitoring devices and battery monitoring equipment are essential tools to optimize energy usage and maintain the overall performance of the data center. As the data center market continues to grow, the demand for efficient power components will increase. Busways, end-uses, and various power technologies will play a significant role in powering the next generation of data centers, enabling businesses to serve their customers more effectively and meet the increasing demands of the digital age.
Increasing investments in HPC systems is the upcoming trend in the data center power market. Data centers are essential infrastructure for cloud computing, web hosting, colocation, and IT & telecommunications industries. Advanced systems, including PDUs and (UPS systems, play a crucial role in ensuring energy efficiency and reliability in these facilities. Modular data centers and work-from-home models have gained popularity, necessitating energy conservation technologies such as PUE monitoring devices, intelligent power strips, and battery monitoring equipment. Cloud computing, including high-performance computing (HPC) for medium-sized enterprises and mega data centers, requires significant computational power. HPC systems, which can range from small cluster computers to large supercomputers, use advanced algorithms, networks, and simulated environments.
Furthermore, these systems are primarily used for scientific and engineering applications, delivering higher and more efficient performance in terms of floating-point operations per second (FLOPS). Energy conservation is a significant concern for data centers, which consume a substantial amount of electricity. Technologies such as PDUs, UPSs, busways, and compatible devices contribute to energy efficiency and reliability. End-users in various sectors, including government, healthcare, retail, banking, financial services, insurance, IT infrastructure, and data storage facilities, rely on these advanced power systems for their critical IT operations. Ensuring the reliability and compatibility of these power systems is essential to maintain the continuity of these essential services.
UPS battery failure is a key challenge affecting data center power market growth. Data centers are essential infrastructure for cloud computing, web hosting, colocation, and IT & telecommunications industries, requiring advanced power systems for uninterrupted computational power. UPS systems, a common power backup solution, consist of power distribution units and uninterruptible power supply batteries. However, UPS batteries, which have an average lifespan of ten years, can fail due to aging components such as batteries, metal oxide varistors (MOVs), relays, or other parts. These failures account for over half of data center outages, leading to significant financial losses for operators and potential damages to servers. The consequences of power downtime can range from USD 1-5 million per hour for data center operators to more substantial costs for their clients.
In addition, to mitigate risks, it's crucial to invest in compatible and reliable technologies, including intelligent power strips, PUE monitoring devices, and battery monitoring equipment. Various industries, including government, healthcare, retail, banking, financial services, insurance, and data storage facilities, rely on data centers for their IT infrastructure. Modular data centers and mega data centers, in particular, demand strong and efficient power systems to ensure reliability and energy conservation.
The data center power market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the data center power market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Active Power Solutions Ltd: The company offers data center power through the Leansource flywheel. The company designs and manufactures battery-free flywheel uninterruptible power supply (UPS) systems and energy storage products.
The data center power market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The data center power market is witnessing significant growth due to the increasing adoption of cloud computing and advanced systems in various industries such as IT & telecommunications, government, healthcare, retail, banking, financial services, insurance, and IT infrastructure. Cloud, with its on-demand computational power, is driving the need for more data centers, leading to an increase in energy consumption. Modern data centers are adopting technologies like modular designs, work-from-home models, and energy conservation to reduce energy usage. Power distribution units (PDUs) and uninterruptible power supply systems (UPS) are essential components of data centers, ensuring reliable power supply and protection against power outages.
Furthermore, advanced power management systems, including battery monitoring equipment, PUE monitoring devices, intelligent power strips, and battery monitoring devices, are being integrated into data centers to optimize energy usage and reduce costs. Medium-sized enterprises, web hosting cloud, colocation data centers, mega data centers, and hyper-scale data centers are the primary end-users of power distribution and backup power systems. Initial investment in compatible PDUs, UPS, busways, and other power management products is high, but the long-term benefits in terms of reliability and energy efficiency make it a worthwhile investment. The market is expected to grow steadily as more industries adopt cloud solutions and the demand for data storage facilities continues to rise.
Market Scope |
|
Report Coverage |
Details |
Page number |
198 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.25% |
Market growth 2024-2028 |
USD 22.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.82 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 29% |
Key countries |
US, China, Australia, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our data center power market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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