Enjoy complimentary customisation on priority with our Enterprise License!
The data center power market size is forecast to increase by USD 22.85 billion at a CAGR of 11.25% between 2023 and 2028. The market is experiencing significant growth, driven by rising investments, the emergence of mini data centers, and increased adoption of intelligent PDUs. These trends underscore the industry's evolution toward more efficient and scalable power solutions to meet growing data demands. With the expansion of digital infrastructure and the proliferation of cloud computing, the demand for reliable and energy-efficient power solutions in data centers is poised to surge, driving market growth. This market growth and trends report also includes key drivers, trends, and challenges during the forecasted period. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
To learn more about this report, View Report Sample
In the market, Power is a crucial element for the smooth operation of Modern Systems and Models. Power consumption\ has been a significant concern due to the increasing demand for digital services and the associated energy requirements. The Power Distribution Unit (PDU) and Uninterruptible Power Supply (UPS) are essential components, ensuring consistent power delivery and backup during power outages. The market is growing, driven by the increasing adoption of cloud services, the proliferation of IoT devices, and the need for high-performance computing. The use of renewable energy sources, such as wind and solar, is also gaining popularity in markets to reduce carbon footprints and promote sustainability. Moreover, the demand for energy-efficient data centers is increasing, with consortiums like the Green Grid promoting best practices for Data Center energy efficiency. The use of advanced technologies like containerization, virtualization, and modular Data Centers is also contributing to the reduction of power consumption. In conclusion, the market is witnessing significant growth due to the increasing demand for digital services, the need for energy efficiency, and the adoption of renewable energy sources. The market is expected to continue growing, driven by technological advancements and the increasing focus on sustainability.
The emergence of mini data centers is a key factor driving the market growth. Mini data centers are self-contained systems designed to accommodate up to 40 rack enclosures, along with small cooling units, and can handle an IT load of up to 250 kW. These compact centers are commonly used as disaster recovery solutions for branch offices. The growing popularity can be attributed to the need for cost-effective infrastructure, the rise of small and medium enterprises (SMEs), and the efficient management of edge data resources.
The market, valued at USD 1.87 billion in 2016, is projected to reach USD 4.13 billion by 2021, with a CAGR of 17.17%. Companies like Amazon Web Services have introduced mini centers in various cities worldwide to improve cloud service accessibility. As the adoption of mini centers increases, the demand for IT infrastructure, including storage, servers, and networking solutions, will also rise, leading to a greater need for reliable power supply solutions such as UPS and rack PDUs during the forecast period. These advancements are expected to fuel the market growth and trends in the foreseeable future. Hence, such factors are driving the market during the forecast period.
An increase in strategic investments and partnerships is a key trend boosting the market. Companies are opting for strategic partnerships and collaborations with market companies, including other component providers, for product development and geographical expansion. It also enables companies to explore new opportunity areas for products and services and generate revenue through sales of their products to operators.
Below are some examples of strategic partnerships and collaborations by companies in the market in focus:
Thus, increasing strategic partnerships and alliances between companies are expected to lead to numerous product-level innovations. They will also accelerate the demand during the forecast period.
Focus on the consolidation of data centers is a major challenge hindering the market. Data center consolidation refers to the process of reducing the size of a single facility or merging multiple facilities to cut down operating expenses. Enterprises undertake consolidation for various reasons, including expanding market shares through acquisitions in different regions.
According to the US National Resources Defense Council, data center operators in the US were projected to spend up to USD 13 billion annually on electricity by 2020. However, through consolidation, electricity costs can be reduced by 30%-50%. Consequently, many government agencies worldwide are closing data centers to achieve cost savings. For instance, the US government closed 12,062 data centers in May 2018 and plans to close 1,200 more by 2023, resulting in USD 3.6 billion in savings from cloud consolidation. Enterprises are also embracing virtualization and Infrastructure as a Service (IaaS) to further consolidate their centers and minimize operational expenses. As a result, some software companies are adopting a common cloud platform to avoid the need for individual centers. These trends are expected to impede the global market in the forecast period.
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market 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 - 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 research report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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 market share growth by the generators segment will be significant during the forecast period. A generator is a machine that converts mechanical energy into electrical energy to serve as a power source for other machines. In centers, generators are used as backup power supplies when the primary power supply is lost.
Get a glance at the market contribution of various segments View the PDF Sample
The generators segment showed a gradual increase in market share from USD 6.36 billion in 2018 and continued to grow by 2022. A generator can be selected based on the backup time and power required for a data center during an outage. Enterprises should have an in-depth understanding of the power system architecture of their centers before installing a generator at the facility. Based on the fuel source, generators are majorly classified into gas, diesel, and bi-fuel power generators. Enterprises can choose generators based on the fuel option (diesel or gas), which will help them reduce the operating costs associated with generators. A UPS system can act as an alternative option for generators; however, it can supply power for only a few minutes. Hence, such factors are fuelling the growth of this segment during the forecast period.
Therefore, generators are the ideal deployment option for long backup periods. However, companies are launching UPS systems with more backup time, which is spurring the adoption of UPS over generators, as the former is more cost-effective. Such developments are expected to propel the growth of the market in focus during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2018 to 2028. The growth of this segment is primarily attributed to the increasing adoption of Power components, which is driven by an increase in the global demand for the industry. Hence, such factors are fuelling the growth of this segment during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, the surge in cloud computing and related technologies necessitates advanced energy solutions for servers. The demand is escalating due to investments from hyper-scale cloud providers, colocation service providers, and enterprises. These entities are upgrading IT infrastructure to accommodate edge computing, 5G, multi-cloud services, big data analytics, and IoT. Cloud services' popularity leads to a concurrent increase in the requirement. Energy-efficient Power Distribution Units (PDUs), Uninterruptible Power Supplies (UPSs), battery monitoring equipment, PUE monitoring devices, intelligent power strips, and battery monitoring devices are essential technologies for this market. Medium-sized enterprises, web hosting cloud, colocation data centers, mega data centers, and various end-uses in IT & telecommunications, government, healthcare, retail, banking, financial services, and insurance sectors rely on these power devices for their data storage facilities and computational power. Initial investment in compatible PDUs, UPSs, busways, and other products ensures reliability and energy conservation. Hence, such factors are driving the market in North America during the forecast period.
Segment Overview
The 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.
You may also interested in below market reports:
In the Data Center industry, Power is a critical component of operations. The demand is increasing due to the digital transformation and the shift towards cloud computing. Power usage in Data Centers is significant, with an estimated 3% of global electricity being consumed by them. This has led to a growing market. Power Distribution Units (PDUs) and Uninterruptible Power Supply (UPS) systems are essential components of the infrastructure. PDUs are used to distribute power from the main power source to the servers and other equipment in the Data Center. UPS systems provide backup power in case of outages or power fluctuations.
Batteries are used to store energy during off-peak hours and provide power during peak hours, helping to reduce energy costs and improve grid stability. The market landscape depends on the low-latency data transmission, Hyper-scale providers, modularity, storage capacity, World Economic Forum, AI (Artificial Intelligence), robotics, IoT (Internet of Things), UPS (Uninterruptible Power Supply), DC power solutions, CAPEX budget, IT equipment, online double conversion, Internet of Things (IoT) connections. Centers are also exploring renewable energy sources such as solar, wind, and hydro power to reduce their carbon footprint and lower energy costs. The use of renewable energy in Data Centers is expected to increase in the coming years. In summary, the market is driven by the increasing demand, the need for reliable power infrastructure, and the trend towards renewable energy. PDUs, UPS systems, and battery technology are key areas of focus.
The market is experiencing a significant transformation driven by the adoption of advanced systems and the widespread use of Software as a Service (SaaS) models. With the proliferation of work-from-home models, there is a growing demand for reliable power solutions to support remote operations. Additionally, the rise of hyper-scale data centers necessitates robust power infrastructure to meet escalating computational demands. As they evolve, the focus is on ensuring compatibility with a diverse range of compatible devices and optimizing energy distribution through innovative solutions like busway systems.
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 22.85 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 forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.