Data Center LV/MV Power Distribution Market Analysis

Data Center LV/MV Power Distribution Market Analysis

Based on application the data center LV/MV power distribution market is segment into colocation, BFSI, energy, government, healthcare, manufacturing, IT & telecom. The BFSI segment held over 15% of the market share in 2022. The BFSI industry heavily relies on data-intensive operations, including transaction processing, real-time analytics, and secure storage of sensitive customer information. To support these critical functions, data centers with robust power distribution infrastructure are required to ensure uninterrupted operations, data security, and compliance with regulatory requirements. The increasing digitalization and adoption of advanced technologies in the BFSI sector further drives the demand for efficient and reliable power distribution solutions in data centers.
 

With respect to the component, the data center LV/MV power distribution market is divided into hardware and services segments. The hardware segment held over USD 800 million market revenue in 2022. Hardware provides essential functions such as electrical isolation, protection, and control, ensuring safe and efficient power distribution within data centers. Increasing scale and complexity of data center infrastructure have propelled the need for reliable and robust hardware solutions to maintain uptime, enhance system performance, and safeguard critical equipment from electrical faults and disruptions. This, in consequence, will drive down the demand for hardware in the long run.
 

North America could dominate the regional landscape with over 35% market share in 2022. The region has a strong presence of major technology companies, cloud service providers, and enterprises that require reliable and scalable data center infrastructure. Additionally, the increasing adoption of emerging technologies such as IoT, artificial intelligence, natural language processing (NLP) and big data analytics drives the need for robust power distribution systems to support growing data processing and storage requirements in North America, further contributing to market growth.