Data center power market size to grow by USD 20.56 billion from 2022 to 2027, North America accounts for 29% of market growth, Technavio

NEW YORK, March 5, 2024 /PRNewswire/ -- The data center power market size is expected to grow by USD 20.56 billion from 2022 to 2027. In addition, the growth momentum of the market will progress at a CAGR of 11.1% during the forecast period, according to Technavio. Increasing investments in data centers are notably driving the market. However, factors such as UPS battery failure may impede market growth. The market is segmented by product (generators, transformers, UPS, transfer switches and switchgear, and others), end-user (IT and telecom, BFSI, energy, healthcare, and retail), and geography (North America, Europe, APAC, South America, and Middle East and Africa). We provide a detailed analysis of 20 companies operating in the market including ABB Ltd., Active Power Solutions Ltd., AEG Power Solutions BV, Black Box Corp., Caterpillar Inc., Control Technology Co., Cummins Inc., Cyber Power Systems Inc., Danfoss AS, Delta Electronics Inc., Eaton Corp. Plc, Exide Technologies, Generac Holdings Inc., Legrand SA, Panduit Corp., Rolls Royce Holdings Plc, Schneider Electric SE, Siemens AG, Toshiba Corp., and Vertiv Holdings Co. Request Free Sample Report.

Company Analysis

• Active Power Solutions Ltd. - The company offers power through the Leansource flywheel. This report provides a full list of key companies, their strategies, and the latest developments. Buy Now for detailed company information

Market Segmentation

• Product

The market share growth by the generators segment will be significant during the forecast period. A generator is a machine that converts mechanical energy into electricity to act as a power source for different machines. In data centers, generators are employed as backup power supplies when the main power supply is lost. Nevertheless, companies are launching UPS systems with more backup time, which helps in increasing the adoption of UPS than generators, as they are cost-effective. 

• Geography 

North America accounts for 29% of the market growth. The growing demand for it and servers in North America is driven due to the raised investments by hyper-scale cloud providers, colocation service providers, and enterprises. These investments support edge computing, 5G, multi-cloud services, big data analytics, and IoT. In addition, the rising adoption of cloud services has also led to an increased need for it. Modular UPS is the most popular among all UPS variants due to its high demand. Learn about the contribution of each segment summarized in concise infographics and thorough descriptions. View PDF Sample Report

Analyst Review

In the age of digital transformation, Data Centers stand as the backbone of modern technology, supporting an array of IT equipment and Internet of Things (IoT) devices. As the demand for seamless connectivity and computing power surges, the role of it has become increasingly vital, leading to a burgeoning market for power protection solutions.

Schneider Electric, a key player in the industry, is at the forefront of this transformation with its innovative EcoSolutions portfolio. With a Mission to Zero emissions, Schneider Electric is not only addressing the electrification needs of the future but also emphasizing energy efficiency and cost reduction.

It's owners face challenges in managing operational expenses and power tariffs, particularly in large data centers where power systems must be optimized for peak performance. Renovation of aging data centers and server rooms is essential to meet evolving standards such as ISO/IEC TS 22237-3:2018 and ANSI/BICSI 002-2014.

Standards like ANSI/TIA-942-A ensure that it's infrastructure adheres to industry best practices, promoting energy efficiency and performance enhancement. However, high initial investment remains a concern for many owners, especially when upgrading power backup systems and HVAC systems.

To mitigate these challenges, companies are turning to innovative solutions like Intelligent rack smart Uninterruptible Power Supply (UPS) and Power Distribution Units (PDU) equipped with battery monitoring equipment and intelligent power strips. Monitoring devices for PUE help optimize power usage efficiency and drive down TCO.

The rise of cloud computing and Software as a Service (SaaS) further underscores the need for robust infrastructure. Colocation data centers and mega data centers are emerging as viable solutions, offering scalability and reliability.

In the era of work-from-home models, web hosting clouds play a crucial role in supporting remote operations. Standards like CENELEC EN 50600 ensure interoperability and reliability in cabling infrastructure.

In conclusion, the market is evolving rapidly, driven by the need for reliability, efficiency, and scalability. Companies like Schneider Electric are leading the charge towards a greener, more resilient future, where power systems are not just a necessity but a strategic asset in the digital economy. View PDF Sample Report

Related Reports:

The green data center market size is estimated to grow at a CAGR of 24.63% between 2022 and 2027. The market size is forecast to increase by USD 146.95 billion.

The Europe data center market size is estimated to grow at a CAGR of 21.05% between 2022 and 2027. The market size is forecast to increase by USD 171.29 billion.

1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio