Data Center Power Market size reached USD 18.2 billion in 2021, and expected to reach USD 29.3 billion in 2029, expanding at a CAGR of 6.1% over the period 2022-2029.

Key Data Center Power Market Drivers

Primary factors driving data center power market are establishment of new data centers, growing demand for data storage solutions by companies, rising focus on reducing data consumption and increasing digitalization.  Increasing adoption of high-end cloud computing solutions by organizations has boosted the demand for the development of new data centers worldwide. Data centers consumes huge amounts of energy, which results into increased operational cost for many businesses. As per recent estimates, on an average, operational expenditure of data center can account for more than 8% of company’s capital expenditure annually. Businesses are preferring to construct modern data centers, which are equipped with energy efficient power systems to reduce their operational costs. Various vendors are offering data center power solutions which posses less installation cost and infrastructure costs and can help in reducing power consumption.

With increasing adoption of work from home (WFH) and Software as Service (SaaS) models by enterprises, energy consumption at data centers have increased significantly. Companies are increasingly deploying power management solutions power management solutions like Power Distribution Units (PDU) and Uninterruptible Power Supply (UPS), which is positively impacting the market growth. Additionally, development of portable and energy efficient IT infrastructure facilities, growing need to replace traditional data centers with advanced systems and technologies and increase in the construction of hyper-scale data centers, are some of the factors accelerating the growth of data center power market. However, initial investments required for infrastructure renovations and installation of new hardware and software coupled with power regulations imposed by governments, are hampering the growth of global data center power market.

Based on Product, UPS segment is projected to dominate the market.

Installation of uninterruptible power supply systems has increased worldwide due to growing adoption of cloud computing solutions by companies. UPS systems find its application majorly in services like online media streaming and online gaming. In addition, PDU segment is primarily driven by growing demand for intelligent power distribution systems.

Based on End Use, IT & Telecommunication segment is forecast to grow at fastest CAGR.

Establishment of new IT infrastructure in IT and Telecommunication industry, is one of the major factors boosting the demand for data center power solutions. Furthermore, banking industry is focussing on adopting cloud computing solutions to increase banking capabilities, which is accelerating the demand for data centers.

As per data center power market analysis, North American region is expected to capture the largest market share.

North America data center power market is propelled by government initiatives to reduce carbon emissions and surge in the demand for high-power rating solutions. APAC data center power market is driven by increasing investments for constructing new data centers, growing number of telecom subscribers and rise in the adoption of advanced technologies such as Artificial Intelligence (AI) and Internet of Things (IoT).

Top Market Players

Some of the leading players operating in the global data center power market are legrand, Tripp Lite., Toshiba India Pvt. Ltd., Schneider Electric, Vertiv Group Corp., ABB, Eaton, Siemens, Delta Electronics, Inc., and Huawei Technologies Co., Ltd., among others.

Key Developments:
• In January 2022, Eaton, a major manufacturing company based out of Ireland introduced its Tripp Lite brand, which offers practical solutions for connecting network equipment in factories and warehouses.
• In August 2021, ABB limited entered into partnership with Keppel Data Centers and Salim Group, to provide continuous power supply to IndoKeppel Data Center 1 campus.
• In 2020, Schnieder Electric, a leading engineering services company based in France, introduced smart UPS lithium-ion for low voltage switchgears.

Market Segmentation

Segmentation by Product
• Buswway
• Others

Segmentation by End Use
• IT & Telecommunications
• Banking, Financial Services and Insurance (BFSI)
• Government and Defense
• Healthcare
• Research and Academic
• Others

Segmentation by Region
Asia Pacific
o China
o Japan
o India
o Rest of APAC
North America
o United States of America
o Canada
o United Kingdom
o Germany
o France
o Spain
o Rest of Europe
o Brazil
o South Africa
o Saudi Arabia

About GMI Research

GMI Research is a market research and consulting firm which provides market insights and intelligence across 12 major sectors helping our clients in making effective investment and businesss decisions.

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