Data Center Power Market Size By Component (Solution [Power Distribution Units (PDUs), UPS, Generators, Cabling Infrastructure], Service [Managed, Professional]), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), COVID19 Impact Analysis, Application Potential, Competitive Market Share & Forecast, 2023 – 2032

Industry Analysis

Data Center Power Market size surpassed USD 10 billion in 2022 and is anticipated to expand at around 6% CAGR from 2023 to 2032, owing to rapid digitalization and innovations in manufacturing sector.
 

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The integration of AI, robotics, IoT, and other technologies is also anticipated to surge in the manufacturing industry. This factor will bolster the installation of data centers in remote locations, to address the growing data traffic. Critical components such as PDUs and UPS can aid data center operators in reducing data loss during power outages and help ensure systematic management of the power requirement. The expansion of data center networks will therefore escalate the use of backup power solutions.
 

The installation of PDUs, UPS, and other data center power systems is associated with high initial costs. Furthermore, the rising price of quality raw materials leads to an increase in the production cost of batteries and other electrical components. These factors may create challenges for small-scale data center operators to upgrade their existing infrastructure, limiting the data center power market development. Despite this challenging environment, the high emphasis of operators on lowering energy consumption may generate growth opportunities for the industry by 2032.
 

Increased need for online data storage to fuel demand for these solutions

The solutions segment accounted for over 65% of the data center power industry share in 2022. The increase in data center construction is one of the prominent factors spurring the adoption of required power solutions. These solutions are being utilized to supply power to the facilities, to enable smooth and efficient operations. With the requirement for storing, transferring, and assisting digital information increasing, it will become critical to streamline power supply in data centers with physical or virtual servers connected through networking equipment.
 

Rapid espousal of data center power solutions in BFSI applications

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The BFSI application is poised to attain 3% gains from 2022 to 2032. The deployment of digital technologies in this industry to improve consumer experience is among the key growth drivers. Due to the mounting demand for data center solutions in banking industry, energy consumption and computational load have also risen. Factors such as these are expected to stimulate the development of advanced cabling and UPS infrastructure for uninterrupted power supply.
 

The  data center power market revenue from the colocation segment will be worth USD 3 billion by 2032, due to an increasing use of OTT & social media platforms and the growing data volume. Business operators in the OTT sector are relying on data center colocation services to provide high-end services. The rise in need of uninterrupted power supply to accommodate these demands is thus driving the acceptance of generators, PDUs and other power solutions across data centers.
 

Integration of advanced tech for data monitoring in Europe

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The Europe data center power market share is slated to exhibit nearly 6% growth rate between 2022-2032, given the strong presence of edge data center service providers. The regional manufacturing sector is also emerging as a key integrator of AI, IoT, and other advanced technologies. The implementation of these innovative technologies for improved data monitoring and management will therefore proliferate the installation of data center power equipment. Major industry players are also emphasizing product innovations for improved customer experiences, further strengthening the business outlook.
 

Product range expansion to remain a prominent growth strategy among market leaders

ABB Ltd., Eaton Corporation, Active Power, Cummins Inc., Caterpillar Inc., Hewlett Packard Company, Vertiv Group Co., Huawei Technologies Co. Ltd., Legrand, Mitsubishi Electric Corporation, Emerson Network Power Inc., Schneider Electric SE, Siemens AG, and Toshiba Corporation are some of the key participants in the market for data center power. These participants are focusing on new product launches and business expansions, among other strategies, to strengthen their presence in the industry.
 

For instance, in August 2022, Vertiv Co. unveiled the Liebert GXT5 Lithium-Ion UPS series. The product featured an external battery connector and controllable receptacle with a power rating ranging between 1000-W to 2700-W. The intention behind this product launch was to cater to the evolving data center requirements, enabling the company to establish a strong presence in the competitive landscape.
 

Impact of COVID-19 pandemic on data center power market trends

The COVID-19 outbreak served as a catalyst for and accelerated the acceptance of AI and cloud computing technologies throughout industries. Data centers also gained considerable momentum during the pandemic due to increased digitalization. Businesses have been making a shift from on-site to cloud servers to focus on core businesses with fewer IT issues. Additionally, the pandemic has boosted the reliance on remote working, video conferencing, and file sharing via cloud services. These trends are leading to the generation of huge amounts of data, thereby augmenting the utilization of data center power systems.
 

This market research report on data center power includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032 for the following segments:

North America

• U.S.
• Canada
• Mexico

Europe

• UK
• Germany
• France
• Spain
• Poland
• Benelux

Asia Pacific

• China
• India
• Japan
• Singapore
• Australia

South America

• Brazil
• Argentina
• Chile
• Peru

MEA

• GCC
• South Africa