Data Center Power Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Solution (Power Distribution Units (PDUs), Uninterruptible Power Supply (UPS) Systems, Generators, TRANSFER SWITCHES AND SWITCHGEARS, Power Cables and Connectors), By Component (Hardware, Software and Services), By End-User Industry (IT and Telecom, BFSI (Banking, Financial Services, and Insurance, Healthcare, Government, Manufacturing, Others), By Region, and By Competition

Market Overview

The Global Data Center Power Market is currently experiencing robust growth and is anticipated to maintain its strong momentum in the forecast period. It is projected to achieve a Compound Annual Growth Rate (CAGR) of 7.9% by 2028, surpassing USD 11.33 billion in 2022.

Data Center Power solutions play a pivotal role across diverse industries, leveraging satellites, aircraft, and other sensing devices to provide invaluable insights and data. These solutions enable businesses to gather critical information about the Earth's surface and atmosphere without the need for physical contact, facilitating efficient monitoring and analysis of various parameters.

The increasing demand for Data Center Power can be attributed to several key drivers. Firstly, there is a growing necessity for precise, real-time data across sectors such as agriculture, forestry, environmental monitoring, and healthcare. Data Center Power empowers businesses to access accurate information concerning crop health, land utilization, weather patterns, and natural resource management, thereby enhancing their decision-making processes.

Furthermore, the rising adoption of Data Center Power stems from an increased awareness of its benefits and the imperative for efficient data collection and analysis. Businesses are increasingly recognizing the value of remote sensing in optimizing operations, reducing costs, and gaining a competitive edge in their respective markets.

The global market's growth is further propelled by significant advancements in Data Center Power technology, including the development of high-resolution imaging systems, enhanced data processing techniques, and the integration of Artificial Intelligence (AI) and Machine Learning (ML) algorithms. These innovations elevate the precision, efficiency, and reliability of remote sensing data, further fueling the market's expansion.

Moreover, the growing emphasis on sustainable development and environmental conservation is expected to bolster the demand for Data Center Power. Governments, organizations, and businesses are progressively harnessing remote sensing data to monitor and mitigate the environmental impact of human activities. This trend is driving an increased demand for remote sensing solutions.

In conclusion, the Global Data Center Power Market is currently witnessing substantial growth, driven by factors such as the imperative for accurate data, technological advancements, and a heightened focus on sustainability. As businesses across various industries recognize the immense value of Data Center Power, the market is poised for significant expansion in the foreseeable future. This presents a compelling opportunity for businesses to leverage Data Center Power solutions to enhance their operations, decision-making processes, and overall competitiveness in the global marketplace.

Key Market Drivers

Increasing Demand for Data Storage and Processing Capacity

The rapid growth of digitalization, cloud computing, and the Internet of Things (IoT) has led to an exponential increase in data generation. As businesses and individuals continue to rely heavily on data-driven technologies, the demand for data storage and processing capacity in data centers has surged. This surge is a significant driver for the global data center power market. Data centers require a substantial amount of power to operate and cool their equipment, making power infrastructure a critical component of their operations. As the demand for data storage and processing capacity continues to rise, data center operators are investing in power infrastructure to ensure uninterrupted operations and meet the growing needs of their customers.

Rising Energy Efficiency and Sustainability Concerns

With the increasing awareness of environmental sustainability, data center operators are under pressure to reduce their carbon footprint and improve energy efficiency. The power consumption of data centers is substantial, and inefficient power usage not only leads to higher operational costs but also contributes to greenhouse gas emissions. As a result, there is a growing emphasis on adopting energy-efficient technologies and renewable energy sources in data centers. This driver is pushing the global data center power market towards innovative solutions such as advanced power management systems, energy-efficient cooling techniques, and the integration of renewable energy sources like solar and wind power. The focus on sustainability and energy efficiency is not only driven by environmental concerns but also by the potential cost savings associated with reduced energy consumption.

Download Free Sample Report

Increasing Data Center Consolidation and Virtualization

Data center consolidation and virtualization have become popular strategies for optimizing resource utilization and reducing operational costs. Consolidation involves merging multiple data centers into a single facility, while virtualization enables the creation of virtual servers and storage devices within a physical infrastructure. These strategies help businesses streamline their IT operations, improve scalability, and reduce the physical footprint of their data centers. However, data center consolidation and virtualization also require robust power infrastructure to support the increased workload and ensure uninterrupted operations. This driver is fueling the demand for power solutions that can handle the higher power density and increased power requirements associated with consolidated and virtualized data centers. As a result, the global data center power market is witnessing a surge in demand for high-capacity power systems, backup power solutions, and efficient cooling technologies.

In conclusion, the global data center power market is being driven by the increasing demand for data storage and processing capacity, rising energy efficiency and sustainability concerns, and the growing trend of data center consolidation and virtualization. These drivers are shaping the market landscape and pushing data center operators to invest in advanced power infrastructure solutions to meet the evolving needs of the digital era. 

Key Market Challenges

Rising Energy Costs and Sustainability Concerns

The global data center power market is confronted with the challenge of rising energy costs and increasing sustainability concerns. As data centers continue to expand in size and capacity to meet the growing demand for digital services, their power consumption has skyrocketed. This surge in energy usage has led to significant increases in operational costs for data center operators.

One of the main contributors to rising energy costs is the inefficient utilization of power within data centers. Many facilities operate at low levels of energy efficiency, resulting in excessive power consumption and wastage. This not only impacts the financial bottom line but also raises environmental concerns, as data centers are responsible for a significant portion of global carbon emissions.

To address this challenge, data center operators need to adopt energy-efficient technologies and practices. This includes implementing advanced cooling systems, optimizing server utilization, and adopting renewable energy sources. However, the upfront costs associated with these upgrades and the complexity of integrating them into existing infrastructure pose significant barriers.

Capacity Constraints and Scalability Issues

Another major challenge facing the global data center power market is capacity constraints and scalability issues. The exponential growth of data-driven technologies, such as cloud computing, artificial intelligence, and the Internet of Things, has led to an unprecedented demand for data center capacity.

Data centers require substantial power infrastructure to support their operations, including uninterruptible power supply (UPS) systems, backup generators, and cooling systems. However, expanding the power capacity of existing data centers or building new facilities to meet the increasing demand is a complex and costly process.

The challenge lies in striking a balance between meeting the immediate power requirements and ensuring scalability for future growth. Data center operators must carefully plan and design their power infrastructure to accommodate future capacity needs while minimizing downtime and disruptions during expansion.

Additionally, the availability and reliability of power supply pose challenges in certain regions. In areas with unstable power grids or limited access to electricity, data center operators face additional hurdles in ensuring uninterrupted power supply.

To overcome these challenges, data center operators can explore innovative solutions such as modular data centers, which allow for flexible and scalable power infrastructure. They can also consider partnering with local utilities or investing in on-site power generation to ensure a reliable and sustainable power supply.

In conclusion, the global data center power market faces challenges related to rising energy costs, sustainability concerns, capacity constraints, and scalability issues. Addressing these challenges requires a combination of energy-efficient technologies, renewable energy adoption, careful planning, and innovative solutions to ensure the long-term sustainability and growth of the data center industry.

Key Market Trends

Increasing Demand for Green Data Centers

The global data center power market is witnessing a significant trend towards the adoption of green data centers. With growing concerns about environmental sustainability and the need to reduce carbon emissions, businesses are increasingly focusing on energy-efficient solutions for their data centers. Green data centers utilize renewable energy sources, such as solar and wind power, to minimize their carbon footprint. These data centers also employ advanced cooling technologies and energy management systems to optimize power consumption. The demand for green data centers is expected to surge in the coming years as organizations strive to meet their sustainability goals and comply with stringent environmental regulations.

Rising Adoption of Modular Data Centers

Another prominent trend in the global data center power market is the increasing adoption of modular data centers. Modular data centers offer several advantages over traditional brick-and-mortar data centers, including faster deployment, scalability, and cost-effectiveness. These data centers are pre-fabricated and can be easily transported and installed at any location. They also provide flexibility in terms of capacity expansion, allowing businesses to scale their data center infrastructure as per their requirements. The modular design of these data centers enables efficient power distribution and management, resulting in improved energy efficiency and reduced operational costs. As organizations seek agile and scalable data center solutions, the demand for modular data centers is expected to witness substantial growth.

Growing Focus on Edge Computing

Edge computing is emerging as a significant trend in the global data center power market. With the proliferation of Internet of Things (IoT) devices and the increasing need for real-time data processing, edge computing offers a decentralized approach to data processing and storage. Edge data centers are located closer to the end-users, reducing latency and improving the overall performance of applications and services. These data centers require efficient power management solutions to ensure uninterrupted operations in remote locations. As the demand for low-latency applications and services continues to rise, the adoption of edge computing is expected to increase, driving the growth of the data center power market.

In conclusion, the global data center power market is witnessing three prominent trends: the increasing demand for green data centers, the rising adoption of modular data centers, and the growing focus on edge computing. These trends reflect the industry's shift towards energy efficiency, scalability, and decentralized data processing. As businesses strive to meet their sustainability goals, scale their infrastructure, and deliver low-latency services, the demand for innovative data center power solutions is expected to grow significantly in the coming years.

Segmental Insights

Solution Insights

In 2022, the Power Distribution Units (PDUs) segment emerged as the dominant type in the Global Data Center Power Market, and it is expected to maintain its dominance during the forecast period. PDUs play a crucial role in distributing electrical power to various equipment and devices within a data center. They provide a centralized and efficient means of managing power distribution, ensuring that power is delivered reliably and safely to the servers, networking equipment, and other critical components. PDUs offer features such as remote monitoring, metering, and control capabilities, allowing data center operators to optimize power usage, identify potential issues, and ensure efficient energy management. The increasing demand for data centers, driven by the rapid growth of cloud computing, big data analytics, and the Internet of Things (IoT), has fueled the adoption of PDUs. Additionally, the rising focus on energy efficiency and sustainability has further boosted the demand for advanced PDUs that offer higher efficiency ratings and intelligent power management features. With data centers striving to minimize energy consumption and reduce carbon footprints, PDUs have become an integral part of their power infrastructure. Moreover, the increasing complexity and density of data center environments require robust power distribution solutions, and PDUs have proven to be reliable and scalable options. As data centers continue to expand and evolve, the demand for PDUs is expected to grow steadily, ensuring their dominance in the Global Data Center Power Market throughout the forecast period.

Component Insights

n 2022, the Global Data Center Power Market witnessed significant growth, with various segments contributing to its expansion. Among these segments, the hardware component emerged as the dominant force, and it is expected to maintain its dominance during the forecast period. The hardware segment includes power distribution units (PDUs), uninterruptible power supply (UPS) systems, generators, transfer switches, and other related equipment. This dominance can be attributed to the increasing demand for efficient power management solutions in data centers worldwide. As data centers continue to expand in size and complexity, the need for reliable and scalable power infrastructure becomes paramount. Hardware components play a crucial role in ensuring uninterrupted power supply, mitigating the risk of downtime, and optimizing energy efficiency. Additionally, advancements in hardware technologies, such as modular UPS systems and intelligent PDUs, have further fueled the dominance of the hardware segment. These innovations offer enhanced monitoring, control, and management capabilities, enabling data center operators to optimize power consumption and improve overall operational efficiency. Furthermore, the growing adoption of cloud computing, big data analytics, and artificial intelligence (AI) has led to an exponential increase in data center power requirements. As a result, data center operators are investing heavily in robust hardware solutions to meet the escalating power demands of modern IT infrastructure. With the continuous expansion of data centers and the increasing emphasis on energy-efficient operations, the hardware segment is expected to maintain its dominance in the Global Data Center Power Market throughout the forecast period.

Download Free Sample Report

Regional Insights

In 2022, the Global Data Center Power Market witnessed significant growth and various segments played a crucial role in shaping its landscape. Among these segments, the region-based analysis reveals that the Asia-Pacific region dominated the market and is expected to maintain its dominance during the forecast period. The Asia-Pacific region, comprising countries like China, Japan, India, and South Korea, experienced a surge in data center construction and expansion activities, driven by the rapid digital transformation and increasing demand for cloud services in the region. The region's dominance can be attributed to several factors. Firstly, the Asia-Pacific region has a large population base, which translates into a massive consumer market and a growing need for data storage and processing capabilities. Secondly, governments in the region have been actively promoting digital initiatives and investing in infrastructure development, including data centers, to support economic growth and technological advancements. Additionally, the region has witnessed a rise in internet penetration and smartphone adoption, leading to an exponential increase in data generation and consumption. To meet this escalating demand, data center operators in the Asia-Pacific region have been investing heavily in power infrastructure, including uninterruptible power supply (UPS) systems, generators, and power distribution units (PDUs), to ensure reliable and uninterrupted power supply to their facilities. Furthermore, the region's favorable business environment, availability of skilled workforce, and lower operational costs have attracted major global data center players to establish their presence in the Asia-Pacific market. These factors have collectively contributed to the dominance of the Asia-Pacific region in the Global Data Center Power Market in 2022, and the region is expected to continue its stronghold during the forecast period, driven by ongoing digitalization efforts, increasing data consumption, and continued investments in data center infrastructure.

Recent Developments

• Schneider Electric, a leading provider of energy management and automation solutions, recently announced the launch of its EcoStruxure Micro Data Center C-Series 6U Wall Mount. This compact and scalable solution is designed to meet the power and cooling needs of edge computing applications, enabling businesses to deploy IT infrastructure in non-traditional environments.
• Eaton, a power management company, introduced its new Intelligent Power Manager software version 2.0. This software provides enhanced monitoring and management capabilities for data center power infrastructure, allowing operators to optimize energy usage, improve uptime, and streamline operations.
• Vertiv, a global provider of critical digital infrastructure and continuity solutions, unveiled its new Liebert EXS UPS (Uninterruptible Power Supply) system. This compact and efficient UPS solution is designed to deliver reliable power protection for small and medium-sized data centers, offering high availability and energy efficiency.
• ABB, a multinational technology company, recently launched its new PowerWave 2 UPS (Uninterruptible Power Supply) system. This modular and scalable UPS solution is designed to provide reliable backup power for data centers, ensuring uninterrupted operations and protecting critical IT infrastructure.
• Delta Electronics, a leading provider of power and thermal management solutions, introduced its new Ultron DPS series UPS (Uninterruptible Power Supply). This high-efficiency UPS solution offers advanced power protection and energy-saving features, making it suitable for data centers and other mission-critical applications.

Key Market Players

• Schneider Electric SE
• Eaton Corporation PLC
• ABB Ltd
• Vertiv Co.
• General Electric Company
• Delta Electronics, Inc
• Legrand SA
• Mitsubishi Electric Corporation
• Huawei Technologies Co., Ltd
•  Siemens AG

Report Scope:

In this report, the Global Data Center Power Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Data Center Power Market, By Solution:

o   Power Distribution Units (PDUs)

o   Uninterruptible Power Supply (UPS) Systems

o   Generators

o   TRANSFER SWITCHES AND SWITCHGEARS

o   Power Cables and Connectors

• Data Center Power Market, By Component:

o   Hardware

o   Software

o   Services

• Data Center Power Market, By End-User Industry:

o   IT and Telecom

o   BFSI (Banking, Financial Services, and Insurance

o   Healthcare

o   Government

o   Manufacturing

o   Others

• Data Center Power Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

§  Netherlands

§  Belgium

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

§  Thailand

§  Malaysia

o   South America

§  Brazil

§  Argentina

§  Colombia

§  Chile

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Data Center Power Market.

Available Customizations:

Global Data Center Power market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).