Data Center Power Market Report

Market Overview:

The global data center power market size reached US$ 23.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 37.5 Billion by 2032, exhibiting a growth rate (CAGR) of 5.3% during 2024-2032. The proliferation of data centers worldwide, the emergence of edge computing, the surging need for energy efficiency and cost optimization, and the growing adoption of renewable energy are some of the major factors propelling the market.

The market is experiencing significant growth and is driven by several key drivers and trends. The increasing demand for data storage and processing capabilities, driven by the proliferation of digital technologies and the exponential growth of data, is a major factor fueling the market growth. As businesses across industries continue to rely heavily on data centers for their operations, there is a growing need for reliable and efficient power solutions to support these facilities. Furthermore, the rising awareness about energy efficiency and sustainability is driving the adoption of energy-efficient power solutions in data centers. Another significant driver is the increasing trend of colocation and cloud computing services. Many organizations are opting to outsource their data storage and computing needs to colocation facilities and cloud service providers. This trend is driven by factors such as cost savings, scalability, and access to advanced infrastructure. As the demand for colocation and cloud services grows, there is a corresponding increase in the demand for power solutions to support these facilities.

Data Center Power Market Trends/Drivers:

The proliferation of data centers worldwide

The expansion of data centers in various regions and countries is contributing to the growth of market. In addition, the growing number of businesses and organizations relying on data centers for their operations is fueling the need for robust and scalable power infrastructure. Moreover, the increased adoption of cloud computing and colocation services is driving the construction of data centers, further boosting the demand for data center power solutions. As a result, the continuous growth of data centers worldwide is creating opportunities for power solution providers to innovate and develop advanced technologies to meet the evolving needs of the market.

The emergence of edge computing

The deployment of edge computing requires the establishment of smaller-scale data centers located closer to the end-users or data sources. This creates a surge in the construction and operation of edge data centers, leading to an increased demand for power infrastructure tailored to these specific requirements. Moreover, edge computing aims to minimize data transfer latency by processing and storing data closer to the point of generation. This reduced latency is critical for applications that require real-time or near-real-time processing, such as autonomous vehicles, industrial automation, and smart cities. Besides, with the distributed nature of edge computing, power management becomes more complex. Edge data centers need to efficiently manage power distribution, backup power systems, and energy storage to ensure continuous operation and resilience, further contributing to market growth.

The surging need for energy efficiency and cost optimization

The demand for energy-efficient power solutions in data centers is on the rise. Data center operators are actively seeking power infrastructure that can deliver high-efficiency performance while minimizing power losses and maximizing energy savings. Energy-efficient power distribution units (PDUs), uninterruptible power supplies (UPS), and cooling systems are crucial components in achieving optimal energy efficiency. Moreover, data center operators are adopting advanced power management and monitoring systems to gain better visibility and control over their power consumption. These systems provide real-time data on power usage, efficiency metrics, and energy trends, allowing operators to identify areas of improvement and implement energy-saving strategies. Intelligent power management solutions enable load balancing, power capping, and dynamic power allocation to optimize energy utilization, thus influencing the market growth.

Data Center Power Industry Segmentation:

IMARC Group provides an analysis of the key trends in each egment of the global data center power market report, along with forecasts at the global and regional levels from 2024-2032. Our report has categorized the market based on solution type, service type, size and vertical.

Breakup by Solution Type:

• Power Distribution and Measurement
  • Intelligent PDUs
  • Non-Intelligent PDUs
  • Monitoring Software
• Power Backup
  • UPS Devices
  • Generators
• Cabling Infrastructure
  • Transfer Switches
  • Switchgear
     

Power backup solutions represents the leading segment

The report has provided a detailed breakup and analysis of the market based on the solution type. This includes power distribution and measurement (intelligent PDUs, non-intelligent PDUs, and monitoring software), power backup (UPS devices and generators), and cabling infrastructure (transfer switches and switchgear). According to the report, power backup solutions represented the largest segment.

Data power centers require uninterrupted power supply to ensure continuous operations and prevent data loss. Power backup solutions, such as uninterruptible power supply (UPS) systems and generators, provide a reliable backup power source during unexpected outages or fluctuations in the main power supply. This helps maintain the uptime of critical applications and services, reducing the risk of downtime and associated financial losses. Moreover, Power backup solutions can be easily scaled up or down based on the power requirements of data centers. As data centers grow in size and capacity, the power backup infrastructure can be expanded accordingly. This scalability allows data centers to meet increasing power demands and accommodate future growth without disruptions.

Breakup by Service Type:

• System Integration
• Training and Consulting
• Support and Maintenance
   

A detailed breakup and analysis of the market based on the service type has also been provided in the report. This includes system integration, training and consulting, and support and maintenance.

System integration services involve the integration and implementation of various components and technologies within data power centers. This includes designing and configuring power backup solutions, UPS systems, generators, electrical distribution systems, and other infrastructure components. It ensures seamless operation and compatibility among different power-related systems in the data center.

Training and consulting services in the data power center market focus on providing expertise, guidance, and knowledge transfer to data center operators and staff. This includes training programs on power management, maintenance, troubleshooting, and best practices for maximizing the efficiency and reliability of power backup solutions. Consulting services also offer strategic advice and customized solutions tailored to the specific needs and requirements of data centers.

Moreover, support and maintenance services are essential for ensuring the ongoing functionality and optimal performance of power backup solutions in data centers. This includes preventive maintenance, regular inspections, equipment testing, firmware updates, and 24/7 technical support. These services aim to minimize downtime, address any issues promptly, and maximize the lifespan of power backup systems, ultimately contributing to the overall reliability and efficiency of data power centers.

Breakup by Size:

• Mid-Size Data Center
• Enterprise Data Center
• Large Data Center
   

Large data centers exhibit a clear dominance in the market

A detailed breakup and analysis of the market based on the size has also been provided in the report. This includes mid-size, enterprise and large data centers. According to the report, large data centers accounted for the largest market share.

Large data centers have significantly higher power requirements compared to small or medium-sized data centers. They house a massive amount of IT infrastructure, including servers, storage systems, networking equipment, and power-intensive hardware for high-performance computing. As a result, large data centers require robust power solutions and infrastructure to meet their substantial power demands, making them a dominant segment in the data center power market. Moreover, these centers prioritize redundancy and high levels of reliability to ensure uninterrupted operations. They often employ redundant power systems, including multiple UPS systems, backup generators, and redundant electrical distribution systems. This redundancy ensures that even in the event of a power outage or equipment failure, the data center can continue to function without disruptions.

Breakup by Vertical:

• BFSI
• Telecommunication and IT
• Energy
• Manufacturing
• Others
   

A detailed breakup and analysis of the market based on the vertical has also been provided in the report. This includes BFSI, telecommunication and IT, energy, manufacturing, and others.

The BFSI sector includes banks, financial institutions, insurance companies, and other financial service providers. These organizations handle sensitive financial data and require highly reliable and secure data centers. The BFSI vertical is a significant consumer of data center power solutions due to the criticality of uninterrupted operations, data security, and compliance with regulatory requirements.

The telecommunication and IT sector encompasses telecommunications companies, internet service providers (ISPs), cloud service providers (CSPs), and other IT service providers. This sector heavily relies on data centers to host and process vast amounts of data and deliver services to customers. Data center power solutions are essential for ensuring uninterrupted connectivity, network reliability, and efficient data processing in this vertical.

The energy sector includes power generation, transmission, and distribution companies, as well as renewable energy providers. These organizations often operate mission-critical control systems, monitor energy infrastructure, and analyze large datasets. Data centers in the energy vertical require robust power solutions to support real-time monitoring, analytics, and ensure the smooth functioning of energy-related operations.

The manufacturing sector encompasses various industries such as automotive, aerospace, electronics, and consumer goods. Data centers play a crucial role in managing production data, supply chain operations, and optimizing manufacturing processes. The manufacturing vertical requires reliable and scalable data center power solutions to ensure continuous production and effective data management for quality control, inventory management, and process optimization.

The others category includes other verticals such as healthcare, government, education, retail, media, and entertainment, among others. These industries have diverse data center requirements based on their specific operations. They may use data centers for storing and processing large volumes of data, running applications, hosting websites, or managing critical systems. The power needs of these verticals vary, and data center power solutions cater to their unique requirements.

Breakup by Region:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America
   

North America accounts for the majority of market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. According to the report, North America holds the largest market share for data center power products.

North America, particularly the United States, has been at the forefront of technological advancements, including the development and adoption of data centers. The region has a highly developed IT infrastructure and a robust ecosystem of technology companies, making it a hotbed for data center growth. The continuous demand for advanced technologies and digital transformation initiatives drives the need for data centers and, subsequently, data center power solutions in North America. Moreover, the market in North America is relatively mature compared to other regions. The presence of established data center operators, cloud service providers, and large enterprises with significant data center footprints contributes to the dominant market share. These organizations have invested heavily in data center infrastructure and power solutions over the years, solidifying North America's position as a leader in the data center power market.

Competitive Landscape:

The competitive landscape of the market is dynamic and involves several key players offering a wide range of power solutions and services. Presently, companies are investing in research and development to introduce innovative power solutions that address the evolving needs of data centers. This includes developing more efficient UPS systems, power distribution units, energy storage solutions, and power management software. They are also forming strategic partnerships and acquiring complementary businesses to enhance their capabilities and expand their market reach. Partnerships with technology providers, power infrastructure companies, and data center operators allow key players to offer comprehensive solutions and tap into new customer segments.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• ABB Ltd.
• Black Box (Essar Group)
• Cisco Systems Inc.
• CyberPower Systems
• Delta Electronics Inc.
• Eaton Corporation plc
• Fujitsu
• Generac Power Systems Inc.
• General Electric
• Huawei Technologies Co. Ltd. 
• Legrand
• Schneider Electric
• Vertiv Co.

Recent Developments:

• Schneider Electric has introduced EcoStruxure IT Advisor, a cloud-based monitoring and management platform for data centers. It has also collaborated with industry partners to develop innovative power solutions, such as liquid-cooled rack enclosures for efficient heat dissipation.
• Eaton Corporation developed lithium-ion-based UPS systems, which offer higher energy density, longer backup times, and improved efficiency compared to traditional battery technologies. Eaton has also expanded its power distribution offerings with new products like intelligent power distribution units and advanced power management software.
• Vertiv Co. has introduced modular data center solutions that enable rapid deployment of power and cooling infrastructure at the edge. Vertiv has also launched the Vertiv™ Environet™ Alert, an IoT-based monitoring system that provides real-time visibility and alerts for power and environmental conditions in data centers.

Data Center Power Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the data center power market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global data center power market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the data center power industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.