Data Center Power Market - By Component (Solution, Service), By End-Use (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Forecast 2023 – 2032

Data Center Power Market Size

Data Center Power Market size was valued at USD 11.6 billion in 2022 and expected to grow at over 7% CAGR during forecasted period. Driven by the growing adoption of emerging technologies such as artificial intelligence, machine learning, computer vision, and big data analytics, the industry is poised to exhibit a notable CAGR between 2023 and 2032.

The ongoing technological integration and digitalization across organizations worldwide have propelled the demand for robust and scalable power systems to support their computational requirements, driving market growth. Besides, the increasing reliance on data-driven operations across industries and the need for reliable power supply in critical applications will strengthen the data center power industry outlook over the next ten years.

The exponential rise in data consumption and storage requirements, fueled by the proliferation of digital content, IoT devices, and cloud computing, has propelled the need for data center infrastructure. This has consequently pushed the demand for robust power solutions, thus, favoring market expansion. On the contrary, the limited availability of skilled professionals for managing and operating complex power systems and potential limitations in power supply availability and grid infrastructure in certain regions may lead to sluggish growth.

COVID-19 Impact

The COVID-19 pandemic had a significant impact on the data center power market. The pandemic also disrupted global value chains, led to delays in construction projects, and uncertainties in investment decisions, which posed challenges to the market. Overall, the pandemic accelerated the digital transformation and increased the importance of data centers, emphasizing the need for resilient power infrastructure, which will positively influence the industry landscape in the post-pandemic scenario.

Data Center Power Market Trends

Focus on energy efficiency and sustainability in data center operations could augment the data center power industry revenue. Governments and policymakers globally are undertaking measures and initiatives to promote the adoption of energy-efficient technologies. For instance, the Biden-Harris administration has set a goal of achieving net zero carbon emissions by 2050. As part of this effort, the administration has launched several initiatives to promote energy efficiency. This, alongside the increasing demand for colocation edge data center and hyperscale data centers, will stimulate the industry growth trajectory through 2032.

Data Center Power Market Analysis

Based on application, the data center power market is segment into colocation, BFSI, energy, government, healthcare, manufacturing, IT & telecom. The colocation segment held around 20% market share in 2022. Colocation providers offer data center infrastructure and services to multiple clients, requiring robust power solutions to meet the diverse needs of their customers. As businesses increasingly rely on colocation services for their IT infrastructure, the demand for scalable power distribution, data center UPS, backup systems, and reliable power supply grows. This helps ensure uninterrupted operations and support the growing power requirements of colocation facilities, thus, propelling segment gains.
 

With respect to the component, the data center power market is divided into solution and services segments. The solution segment held around 60% business share in 2022. The data center power industry will garner a sizeable valuation by 2032 from the solution segment due to the flourishing automation and digitization trends across industries and the escalating need for robust and scalable data center infrastructure. Additionally, the rising adoption of emerging technologies such as cloud computing, IoT, and artificial intelligence requires efficient power distribution, backup, and monitoring systems. Moreover, the focus on energy efficiency, sustainability, and reliable power supply in data centers further fuels the demand for advanced power solution components.
 

North America dominates the regional landscape with around 35% market share in 2022. The region is home to a large number of technology companies, cloud service providers, and enterprises that require robust data center infrastructure. Additionally, the increasing adoption of digital transformation initiatives and evolving technological landscape across the region will drive the need for scalable power solutions to suffice the rising data processing and storage requirements in North America, thus, benefiting the regional market growth.

Data Center Power Market Share

Major companies operating in the data center power market are

• ABB Ltd.
• Active Power
• Cummins Inc.
• Hewlett Packard Company
• Eaton Corporation
• Caterpillar Inc.
• Vertiv Group Co.
• Legrand
• Mitsubishi Electric Corporation
• Toshiba Corporation
• Huawei Technologies Co. Ltd.
• Schneider Electric SE
• Siemens AG
• Emerson Network Power Inc.
   

Data Center Power Industry News

• In May 2022, Schneider Electric acquired Vertiv, a global provider of critical infrastructure solutions, in a deal worth $1.9 billion.

   

   
• In June 2022, Huawei Technologies launched its new FusionModule 3.0 data center power system, which is designed to be more efficient and scalable than previous models.
   

The Data Center Power market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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By Component

• Solution
  • Power Distribution Units (PDU)
  • UPS
  • Generators
  • Cabling infrastructure
  • Others
• Service
  • Managed
  • Professional

By Application

• BFSI
• Colocation
• Energy
• Government
• Healthcare
• Manufacturing
• IT & Telecom
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • Singapore
  • Australia
• South America
  • Brazil
  • Chile
  • Peru
  • Argentina
• MEA
  • GCC
  • South Africa