Data Center Power Market Size to grow by USD 22852.5 million between 2024-2028
According to a research report “ Data Center Power Market” by Product (Generators, Transformers, UPS, Transfer switches and switchgears, Others) End-user (IT and telecom, BFSI, Energy, Healthcare, Retail) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 22852.5 million, at a CAGR of over 11.25% during the forecast period. The surge in data traffic from businesses and individual consumers has led to an increasing demand for data centers worldwide. In response, numerous companies are investing in building their own data centers or collocating in data centers to enhance their customer service offerings. Furthermore, the escalating adoption of cloud computing is fueling this trend. Consequently, the establishment of new data centers, coupled with investments in upcoming facilities, necessitates the demand for effective data center power components. These components ensure uninterrupted power supply, thereby enabling data center operations to run efficiently.
Browse market data tables, figures, and in-depth TOC on “Data Center Power Market” by Product (Generators, Transformers, UPS, Transfer switches and switchgears, Others) End-user (IT and telecom, BFSI, Energy, Healthcare, Retail) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Product, the Generators segment is projected to dominate the market size in 2024
In the IT and telecommunications sector, the adoption of cloud computing by IT firms and Small and Medium Enterprises (SMEs) has led to a significant increase in data center power utilization. The proliferation of Internet of Things (IoT) devices and advancements in wired and wireless technologies have resulted in escalating data traffic in this industry. Furthermore, the implementation of 5G technology by cellular service providers is fueling the expansion of the global data center power market. However, enterprises in this segment confront challenges in managing the increased network capacity within their existing data centers.
By End-user, IT and telecom segment is expected to hold the largest market size for the year 2024
In the data center sector, generators play a crucial role as auxiliary power sources during power outages. These machines convert mechanical energy into electricity, ensuring business continuity for mission-critical applications. When selecting a generator for a data center, enterprises must consider the backup time and power demand during power failures. The generator market offers various options, primarily classified as gas, diesel, and bi-fuel generators. Enterprises can make an informed decision based on their preferred fuel source to optimize operational costs associated with generator usage. A comprehensive understanding of a data center's power system architecture is essential before installing a generator to ensure seamless integration and uninterrupted power supply.
North America is forecasted to hold the largest market size by region in 2024
The data center power market is experiencing significant growth due to the increasing demand for digital transformation and cloud services. Companies are investing heavily in advanced technologies and infrastructure to support their business operations, leading to a surge in power consumption. This trend is driving the need for more efficient and sustainable power solutions, with renewable energy and energy storage becoming key areas of focus. The market is expected to continue expanding, offering lucrative opportunities for providers of power infrastructure and management services.
The Data Center Power Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Data Center Power Market is witnessing significant growth due to the increasing demand for digital transformation and cloud services from various sectors such as insurance, financial services, banking, retail, healthcare, government, IT & telecommunications, and others. End-uses in data centers include hyper-scale data centers, colocation, web hosting cloud, and mega data centers, among others. Key power products and compatible devices in the market include busways, Uninterruptible Power Supply (UPS) systems, Power Distribution Units (PDUs), and advanced systems like intelligent power strips, battery monitoring devices, and PUE monitoring devices. Initial investment in data centers is a critical factor, and energy conservation through the use of efficient technologies like UPSs and PDUs is essential. The market caters to various sectors, with hyper-scale data centers and colocation data centers being major consumers of power. Medium-sized enterprises and work-from-home models are also driving the demand for computational power and cloud computing. Advanced systems like modular data centers and battery monitoring equipment are gaining popularity for their energy efficiency and cost savings. In conclusion, the Data Center Power Market is a dynamic and growing industry, driven by the increasing demand for digital services and the need for energy-efficient solutions. The market offers various products and compatible devices to cater to the diverse needs of different sectors and end-uses.
Market Research Overview
The Data Center Power Market is experiencing significant growth due to the increasing demand for online double conversion DC power solutions for IT equipment. CAPEX budgets are being allocated towards advanced DC power solutions, including robotics, Al (Artificial Intelligence), and modularity, to support the high power requirements of IT infrastructure. The World Economic Forum estimates that by 2025, hyper-scale providers will account for 80% of the total data center capacity. Low-latency data transmission, high bandwidth, and edge use cases are driving the adoption of 5G and cloud networking in data centers. Digitization in industries such as financial services, banking, retail, healthcare, government, IT & telecommunications, and end-uses like web hosting and cloud are also fueling the market growth. Reliability and maintenance are critical concerns, leading to the adoption of advanced systems like busway, UPSs, PDUs, and compatible devices. Energy conservation is a priority, with the use of battery monitoring devices, intelligent power strips, and PUE monitoring devices. The initial investment in hyper-scale data centers, mega data centers, and colocation data centers is substantial, but the long-term benefits outweigh the costs. Technologies like cloud computing and computational power are essential for data centers, and energy management is a crucial aspect of their operation. The work-from-home models and modular data centers are gaining popularity due to their flexibility and cost-effectiveness. Overall, the Data Center Power Market is poised for continued growth, driven by the increasing demand for digital transformation and the need for reliable and efficient power solutions.
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