Data Center Power Market worth over $15bn by 2026
Published Date: December 16, 2020 Authors: Preeti Wadhwani, Saloni Gankar
Data Center Power Market size is set to exceed USD 15 billion by 2026, according to a new research report by Global Market Insights, Inc.
The rapid adoption of smart technologies, such as connected vehicles, smart homes, and smartphones, is driving the construction of new data centers. Data centers are required to be powerful, energy & cost-efficient, scalable, and responsive to serve the increasing demand for data center power systems. Fluctuations in power results in long-term impact on a data center provider, resulting in increased operational and maintenance cost. This creates a market expansion for reliable data center power systems to seamlessly deliver power in data centers during loss of supply.
Surge in the construction of data centers due to the proliferating IT sector will propel the data center power market growth
The growing demand for IT infrastructure facilities for managing, accessing, and storing business data is impelling the acceptance of data center power devices. The IT & telecom companies are increasingly adopting modern power solutions led by the rapid expansion of their infrastructure facilities. These solutions eliminate power failure in communications and data, resulting in an increased uptime in data center facilities. Intelligent data center power systems allow the companies to have an efficient power source in their IT facilities, reducing the chances of data losses during power cuts. The benefits, such as increased efficiency and productivity in the IT service management process, are encouraging the companies to incorporate these solutions into the infrastructure facilities.
Growing requirement for ubiquitous and sensitive data coupled with increasing applications of cloud computing is augmenting the market demand for Power Distribution Unit (PDUs)
The data center power market for PDUs segment is expected to register significant gains during the forecast timeframe owing to the capability of these systems for identifying environmental factors, such as humidity & temperature, and measuring distributed electrical parameters. PDUs provide a detailed view of the conditions inside a data center rack to data center operators and administrators. These units enable early fault identification, helping data center operators to take appropriate measures for energy efficiency. Data center market players are replacing simple multi socket racks with intelligent PDUs, boosting the market revenue of data center power systems.
Rapid adoption of digitization and modernization in the energy sector
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The energy application in the data center power market is estimated to witness around 7% growth rate till 2026. The proliferation of data centers in the energy sector is anticipated to slowly pick up pace in the coming years. The rising adoption of big data and IoT to collect consumer information, such as personal data, past payment information, and consumption information, is projected to fuel the demand for data center construction and modernization in the energy sector. The market leaders have unique requirements of energy production and data management. Data centers provide reliable support to software applications, which generate multi-terabyte volumes of data. Several energy industry players are partnering with data center market participants to enhance efficiencies in high computing, data processing, transfer, and back-up.
Browse key industry insights spread across 300 pages with 312 market data tables and 29 figures & charts from the report, “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), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Tax incentives by South America government are influencing construction of new data centers in South America
The availability of tax incentives by governments in several countries is propelling the construction of new data centers in South America. The leading cloud providers are establishing new data centers in the region to reduce their operational expenses.
The region has abundant resources and provide a suitable environment for the establishment of data center facilities. The moderate and favorable climatic conditions in the region help the companies to enhance the efficiency of their IT devices. These factors coupled with rise in energy cost and growing awareness among industry players to optimize energy use and reduce their energy cost are proliferating the data center power market expansion in the region.
Industry players are collaborating with companies to remain competitive in the market
The data center power market is highly competitive in nature on account of the presence of various industry participants, who are actively investing in R&D and developing technologically advanced products to sustain in the market. Major market leaders operating in the industry include ABB Ltd., Active POWER, Belkin International, Inc., Black Box Corporation, Caterpillar Inc., Cummins, Inc., Cyber Power Systems, Inc., Delta Electronic Inc., Eaton Corporation, Toshiba Corporation, Hewlett-Packard Company, Huawei Technologies Co., Ltd., Legrand, Mitsubishi Electric Corporation, Schneider Electric SE, Rittal Gmbh & Co. Kg, Siemens AG, Tripp Lite, Vertiv Group Co.