The Global Data Center Power market is projected to grow at a CAGR of 8.94% during the forecast period, reaching a total market size of US$30.053 billion in 2025 from US$17.981 billion in 2019. 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. The traditional infrastructure usually has low efficiency due to the use of outdated energy conversion technologies which causes overloading, downtime, and system failures more frequently, leading to an increase in operational costs and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 upsurge of data generation and the increasing need for better data storage facilities to efficiently store huge volumes of data are also fueling the demand for data center power. However, the data center power market 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 growing 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 solution, end-users, and geography. By solution, the market has been segmented into the Power Distribution Unit, UPS, and Busway. By the end-user, the market has been segmented into colocation providers, cloud providers, and enterprises.
Power distribution systems hold a significant share in the market
The 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 identifying 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 providing 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 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 are expected to add momentum to the growth of data center power
By the 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 due to increasing requirements for data storage, big data management, cloud computing, and an increase in the implication of artificial intelligence coupled with increasing focus of end-users towards 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 in 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 in 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 in 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.
Market Players and Competitive Intelligence
The competitive intelligence section deals with major players in the market, their market shares, growth strategies, products, financials, and recent investments among others. Key industry participants profiled as part of this section are Hewlett Packard Enterprise, ABB, Schneider Electric SE, Eaton Corporation Inc., Tripp Lite., Rittal GmbH & Co. KG, Raritan Inc., Delta Electronics, Inc., General Electric Company among others.
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