Data Center Power Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Solution (Power Distribution Unit, UPS, Busway), By End-User (Colocation Providers, Cloud Providers, Enterprises), And By Geography - Forecasts From 2022 To 2027

Published:  Nov 2022 Report Code: KSI061610012 Pages: 135

The Global Data Center Power market is expected to grow at a CAGR of 9.82%, to reach a market size of US$31.69 billion in 2027 from US$16.452 billion in 2020.

The increasing demand for data centers and colocation centers is growing the market for data center power. The data center power market is expected to see a rise in the forecast period due to the increasing need for efficiency at a low cost. Traditional infrastructure usually has low efficiency due to the use of outdated energy conversion technologies, which causes overloading, downtime, and system failures more frequently, leading to an increase in operational costs and hindrances in the growth of the business. The need for data center power is being fueled by the surge in data generation and the growing need for improved data storage infrastructure to effectively store massive volumes of data.

However, the data center power market’s growth is being affected due to the requirement of high investments and the inadequate availability of compatible devices in some countries. Lack of awareness among some enterprises about the benefits of power management solutions, coupled with low coverage and weak enforcement of laws associated with energy conservation, is also a restraining factor for this market. Growing investments into data center expansion by major industry players are increasing the number of data centers as the demand from end-users for more storage space continues to increase, is expected to continue driving the growth of the market over the projected period.

As the prices of electricity are rising along with the growing demand for data center power across the globe, the cost incurred on power consumption in data centers accounts for half of the total cost. This is increasing the demand for more efficient data center power solutions. The installation of efficient data center power solutions will reduce the company’s total expenses, thus bringing down the total cost of ownership of data centers. Increasing awareness about the reduction in carbon footprints is also increasing the market for data center power. The data center power market has been segmented on the basis of solutions, end-users, and geography. By solution, the market has been segmented into the Power Distribution Unit, UPS, and Busway. By end-user, the market has been segmented into colocation providers, cloud providers, and enterprises.

Power distribution systems hold a significant share of the market

Power distribution demand is increasing due to an increase in demand for intelligent power distribution units. Companies are moving on to intelligent power distribution units from traditional multi-socket racks with servers and network equipment. These units have the capability to measure distributed power parameters and identify environmental factors like temperature and humidity, which are contributing to their growing demand. UPS also holds a significant share in this market on account of the increasing focus of end-user enterprises on ensuring business continuity. Datacenter UPS helps companies in regulating and provide an uninterrupted power supply to equipment like servers and routers in order to run all the devices smoothly. Since the cost of downtime is showing a continuous increase, data center owners are showing a continuous increase in demand for data center UPS. An increase in the usage of portable UPS systems in services like Software as a Service (SaaS), high-performance computing, online gaming, and online media streaming is also fueling the market for data center power.

Colocation Service providers is expected to add momentum to the growth of data center power

By end-user, the data center power market has been segmented into colocation providers, cloud providers, and enterprises. Colocation providers are expected to add momentum to the data center power market due to an increase in the number of colocation centers around the world. The increase in colocation centers around the world is due to increasing requirements for data storage, big data management, and cloud computing, and an increase in the implication of artificial intelligence coupled with the increasing focus of end-users toward cost reduction. The market for data center power in cloud data centers and enterprises is expected to witness decent growth over the forecast period. The rapid growth of cloud computing worldwide on account of increasing demand for more agile infrastructure among enterprises of all sizes is adding to the growth of the market in this segment. As traditional setups in enterprise-owned data centers are being upgraded, in order to comply with industry standards and to integrate advanced technologies with improved power management capabilities, the market for data center power is expected to show decent growth in this segment.

By geography, North America has a notable share of the market

Regionally, the data center power market has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America is holding a significant share of the data center power market, and the growth of the market in this region is majorly attributed to the presence of a large number of data centers here. The availability of state-of-the-art infrastructure in countries like the United States and Canada is attracting investments by many major industry players into data center expansion projects. Europe also holds a fairly large share of this market and the market growth in this region is being driven by stringent regulations regarding data protection, which continue to have enterprises’ trust. As a result, many enterprises are pumping investments into data centers in this region owing to the high reliability offered by the vendors here. The market in the Asia Pacific is expected to show decent growth over the forecast period. The rapid growth of industries and immense growth potential in many markets across this region is one of the major factors responsible for the heavy flow of investments in this region. The presence of a large number of enterprises of various sizes in this region and strong enforcement of data protection laws in countries like China is bringing in huge investments by companies into data centers, thus driving the market growth of data center power solutions.

 Key Developments

  • February 2020: Globally, Huawei introduced its new Uninterruptible Power Supply (UPS) power module. The innovation, according to the business, enables a single module's power density to reach 100 kW/3 U. The 100 kW module serves as the foundation for Huawei's FusionPower 2.0 data center power distribution and supply solution. One typical rack can handle one MW of electricity, according to the business, and it does so with a footprint that has been more than halved. The integrated battery-management system (BMS) guarantees the dependability of lithium-ion batteries and collaborates seamlessly with the Huawei FusionPower and NetEco management systems to lower OPEX.
  • March 2021: Eaton, a power management business, announced that it has acquired Tripp Lite. Tripp Lite is a prominent provider of connectivity solutions, single-phase uninterruptible power supply solutions, and power quality products in the Americas. The goal of Eaton is to employ power management products and services to enhance environmental sustainability and human well-being. The expansion of Eaton's single-phase UPS business will be aided by the inclusion of Tripp Lite's complementary product offerings, which will broaden the company's edge computing and distributed IT product portfolio.

Product Offerings:

  • Tripp Lite Power Distribution Unit PDUMH20HV: An outlet-equipped device called a Power Distribution Unit (PDU) is used to supply power to computers, servers, network switches, and other IT equipment in a rack. PDUs are available in a range of designs that offer everything from straightforward power distribution to more sophisticated remote power management. The PDUMH20HV is a horizontal PDU, which means it is smaller in size and has fewer outlets. It is mounted in a rack and takes up one or two rack spaces (1U-2U).
  • Eaton ATS rack PDU: The Eaton automatic transfer switch (ATS) PDU provides redundant power and keeps important mission-critical applications running while enabling remote monitoring of alarms with Eaton Gigabit Network cards that are compatible. The Eaton ATS PDU is typically utilized to provide energy redundancy to devices with a single power supply. If the primary source breaks or needs maintenance, it immediately and without interruption switches to the backup source to prevent equipment downtime.

Data Center Power Market Scope:

 

Report Metric Details
 Market Size Value in 2020  US$16.452 billion
 Market Size Value in 2027  US$31.69 billion
 Growth Rate  CAGR of 9.82% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Solution, End-User, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered Hewlett Packard Enterprise Development LP, ABB, Vertiv Group Corp, Schneider Electric SE, Eaton, Rittal GmbH & Co. KG (Friedhelm Loh Group), Raritan Inc., Delta Electronics, Inc., General Electric, Huawei Technologies Co., Ltd.
 Customization Scope  Free report customization with purchase

 

Segmentation

  • By Solution
    • Power Distribution Unit
    • UPS
    • Busway
  • By End-User
    • Colocation Providers
    • Cloud Providers
    • Enterprises
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • UAE
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Taiwan
      • Thailand
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the data center power market size by 2027?
A1. The global data center power market is projected to reach a total market size of US$31.69 billion by 2027.


Q2. What are the growth prospects for the data center power market?
A2. The data center power market is projected to grow at a CAGR of 9.82% during the forecast period.


Q3. What is the size of the global data center power market?
A3. Data Center Power Market was valued at US$16.452 billion in 2020.


Q4. Which region holds the largest share of the data center power market?
A4. North America is holding a significant share of the data center power market owing to the presence of a large number of data centers here.


Q5. What factors are anticipated to drive the data center power market growth?
A5. The increasing demand for data centers and colocation centers are the major factors driving the data center power market growth.


1. Introduction

1.1. Market Overview

1.2. COVID-19 Scenario

1.3. Market Definition

1.4. Market Segmentation

 

2. Research Methodology

2.1. Research Data

2.2. Assumptions

 

3. Executive Summary

3.1. Research Highlights

 

4. Market Dynamics

4.1. Market Drivers

4.2. Market Restraints

4.3. Porters Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. Global Data Center Power Market Analysis, By Solution

5.1. Introduction

5.2. Power Distribution Unit

5.3. UPS

5.4. Busway

 

6. Global Data Center Power Market Analysis, By End User

6.1. Introduction

6.2. Colocation Providers

6.3. Cloud Providers

6.4. Enterprises

 

7. Global Data Center Power Market Analysis, By Geography

7.1. Introduction

7.2. North America

7.2.1. USA

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. Germany

7.4.2. France

7.4.3. United Kingdom

7.4.4. Spain

7.4.5. Others

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. Israel

7.5.3. UAE

7.5.4. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. Japan

7.6.3. South Korea

7.6.4. India

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Indonesia

7.6.8. Others

 

8. Competitive Environment and Analysis

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

 

9. Company Profiles

9.1. Hewlett Packard Enterprise Development LP

9.2. ABB

9.3. Vertiv Group Corp

9.4. Schneider Electric SE

9.5. Eaton

9.6. Rittal GmbH & Co. KG (Friedhelm Loh Group)

9.7. Raritan Inc.

9.8. Delta Electronics, Inc.

9.9. General Electric

9.10. Huawei Technologies Co., Ltd.

Hewlett Packard Enterprise Development LP

ABB

Vertiv Group Corp

Schneider Electric SE

Eaton

Rittal GmbH & Co. KG (Friedhelm Loh Group)

Raritan Inc.

Delta Electronics, Inc.

General Electric

Huawei Technologies Co., Ltd.

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