Telecom Power System Market in North America 2016-2020

Overview of the telecom power systems market in North America

Technavio’s market research analyst predicts the telecom power systems market in North America to grow at a CAGR of more than 8% between 2016 and 2020. The broadband capacity demand is increasing very rapidly in North America in tandem with the rising number of Internet users, mobile device users, and mobile applications.  The network operators in this region focus on the expanding and upgrading the LTE and LTE-Advanced networks that include deployment of VoLTE, carrier aggregation, and other developments. Telecom tower companies are deploying a greater number of picocells and femtocells, which have built-in and compact power systems. For instance, Eltek offers Chameleon small cells power solutions that minimize the installation, logistics, and the procuring cost for 4G/LTE operators. With the rise in the deployment of small cell sites, the demand for power systems is increasing providing a cost-effective solution, easy installation, and operational efficiency. Moreover, to reduce their OPEX and enhance their profit margins, many telecom operators are shifting towards highly efficient hybrid energy solutions, which optimizes the usage of renewable energy resources like wind turbines, solar panels, or reusable battery products.

There is an urgent requirement to transform the telecom power system from diesel usage to renewable energy sources that will not only help in cost reduction but will help save energy. The sector is increasingly deploying small cells which need small size power backup. Several towers have been installed in remote regions to meet the subscribers’ demand. There is complete dependence on diesel generator in North America since grid connectivity is poor. This involves transport of diesel to the tower location and maintenance of generators involving enormous operational expenses. To enhance efficiency and reliability of services, several telecom tower companies are depending on power systems that minimize the overall costs drastically.

Competitive landscape and key vendors

North America is growing enormously in the telecommunications sector where the infrastructure needs a high reliable and cost-effective supply of power. The telecom power systems market in North America is extremely fragmented and comprises well-diversified international, regional, and local vendors. Key vendors have a high competitive edge in the market, which is posing a threat to the new entrants owing to the innovative products, quality, features, functionalities, and services they offer. The increasing adoption of small cell base stations will intensify the competition among the leading vendors in the market. 

Leading vendors in the market are -

• Delta Electronics
• Eaton
• Emerson Network Power
• GE Industrial Solutions

Other prominent vendors in the telecom power systems market in North America include AEG Power Solutions, Alpha, Alstom, Bel Fuse, Benning Power Solutions, C&D Technologies, Cummins Power, Myers Power Products, Pioneer Magnetics, SAFT, Schneider Electric, Shindengen, and ZTE.

Segmentation by product type and analysis of the telecom power systems market in North America

• DC systems
• AC systems

The DC systems segment led the market in 2015 and will continue its domination throughout the forecast period. Most of the telecom operators use DC power supply in the cell sites due to its safety, reliability, and easy integration with battery backup systems. They use rectifiers that change the AC electric power from a public utility network to a regulated DC voltage to operate the feeder, cooling solution, backhaul equipment, monitoring solutions, and recharge the power backup. In the DC systems segment, vendors sell products at a low price and compensate the low-profit margin from service offerings.

Segmentation by network type and analysis of the telecom power systems market in North America

• Access network
• Core network

The access network segment dominated the market during 2015 and will witness a significant growth during the predicted period. Much of the segment’s growth can be attributed to the large-scale deployment of small cell nodes for LTE and the upgradation of legacy power systems to high-efficiency power systems. Owing to the tremendous regulatory pressure to bring down OPEX, several telecom operators are elevating their power systems to reduce their internal expenses.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the telecom power systems market in North America?
• What are the key market trends impacting the growth of the telecom power systems market in North America?
• What are the challenges to market growth?
• Who are the key vendors in the telecom power systems market in North America?
• What are the market opportunities and threats faced by the vendors in the telecom power systems market in North America?
• Trending factors influencing the market shares of North America.
• What are the key outcomes of the five forces analysis of the telecom power systems market in North America?

Technavio also offers customization on reports based on specific client requirement.

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• Global Telecom Power Systems Market 2016-2020
• Global Generator Market for Telecom Sector 2016-2020
• Telecom Power Systems Market in APAC: Research Analysis 2015-2019