Global Data Center Power Market Size, Share & Industry Trends Analysis Report By Component (Solution and Services), By Operating Environment, By End User, By Regional Outlook and Forecast, 2022 - 2028
Report Id: KBV-9107Publication Date: May-2022Number of Pages: 212
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The Global Data Center Power Market size is expected to reach $13 billion by 2028, rising at a market growth of 7.7% CAGR during the forecast period.
A data center is a self-contained unit within a building that stores computing equipment like servers as well as other components, including network, telecommunications, and storage systems. Every entity that makes or uses data, including government agencies, educational institutions, financial organizations, retailers of all sizes, social networking sites, providers of online information, and many more, requires data centers to a certain extent. Because AC is frequently converted to DC or vice versa, any data center would certainly require alternating current and direct current electricity.
The administration, measuring, and surveillance of power generation, consumption, and optimization inside a data center facility is known as data center power. It is a stage of the data center infrastructure management process that aims to offer administrators administrative control over a data center's electrical energy tools and operations. It entails defining, executing, and monitoring strategies to increase data center power efficiency at both the hardware and software levels. This can include replacing outdated equipment with newer, lower-power equipment and installing power management software to measure, monitor, and reduce power consumption throughout the data center.
When assessing data centers, one of the most critical and sometimes underestimated criteria is electricity. Power is the vital component that brings the data center to operation. It is also one of the most essential considerations when determining colocation costs. Servers, switches, routers, and other IT infrastructure are powered by two separate types of power circuits viz. alternating Current and Direct Current. Access to on-demand power or currents, like 240V, 220V, 208V, 120V, or 110V is provided via an AC power supply through plugging in devices. At regular periods of time, alternating current (AC) allows current or voltage to change direction or polarity. Customers who require services for a facility, storage devices, or rack-mounted servers should consider AC power circuits.
COVID-19 Impact Analysis
The COVID-19 pandemic severely impacted various economies all over the world. The outbreak of the pandemic caused a substantial slowdown in various major businesses while demolishing several small and medium businesses. In addition, governments across the world were compelled to enforce lockdown in their nations in order to regulate the diffusion of the COVID-19 infection. Due to the lockdown situation, various industries had to suffer complete or partial shutdown. Further, owing to the travel restrictions all over the world, the worldwide supply chain was majorly disrupted.
Market Growth Factors
Rising demand for reduced operational expenses across enterprises
Datacenter owners strive to reduce operational costs via optimizing the overall costs. Power tariffs, racks, data center servers, and HVAC systems all grow as operational costs rise. The annual operation expenditure of an average large data center accounts for a significant proportion of capital expense. Power costs can also majorly increase the total cost of running data centers, depending on energy sources, data center tiers, and geographies. With increasing reliability, data center infrastructure expenses and operational complexities rise. The majority of the money spent on data centers goes toward power. It is utilized in data centers to run IT equipment, such as computers and servers, as well as cooling and power infrastructure.
Increasing number of data centers renovations
The increasing data generation along with the demand to improve data center performance has increased the need for data center remodeling. The data center, server rooms, and surroundings should be renovated for a variety of reasons. When equipment is used in high ambient temperatures or exposed to extreme environmental conditions, it depreciates. Data center renovations are carried out to upgrade facilities, such as infrastructure, to sustain the load of IT requirements, expand available power and space, and improve data center facilities' overall reliability.
Market Restraining Factors
High initial investment
Due to the requirement for a substantial initial investment, businesses face significant challenges in the data center power sector. Modern data center power systems necessitate a shift away from traditional data center components toward more modern and updated data center components. It necessitates infrastructure upgrades, new gear and software installs, as well as manpower. This shift requires a significant initial expenditure. Due to this requirement, most businesses, even SMEs with limited money, are unable to modernize their data centers. The initial investment required to deploy energy-efficient power solutions is much higher than that required to establish standard power solutions.
Product Outlook
Based on Product, the market is segmented into UPS, PDU, Busway, and Others. In 2021, the PDU segment recorded a significant revenue share of the data power center market. The rising growth of this segment is attributed to the increased automation in power management due to this technology. In data centers, a PDU, or power distribution unit, is a device that controls electrical power. Large power panels without surge protection are the most basic PDUs. They have no remote or monitoring access capabilities and are meant to offer normal electrical plugs for data center equipment.
End User Outlook
Based on End User, the market is segmented into BFSI, Energy, Government, Healthcare, IT & Telecommunications, Retail, and Others. In 2021, the BFSI segment procured the highest revenue share of the data center power market. The rising growth of this segment is owing to the increasing growth of the BFSI sector all over the world. With the rapidly rising workloads in this sector, the demand for automation is constantly surging. The adoption of data power center is increasing owing to this factor. Hence, the growth of this segment is increasing.
Data Center Power Market Report Coverage
Report Attribute
Details
Market size value in 2021
USD 7.8 Billion
Market size forecast in 2028
USD 13 Billion
Base Year
2021
Historical Period
2018 to 2020
Forecast Period
2022 to 2028
Revenue Growth Rate
CAGR of 7.7% from 2022 to 2028
Number of Pages
212
Number of Tables
314
Report coverage
Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling
Segments covered
Product, End User, Region
Country scope
US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers
Rising demand for reduced operational expenses across enterprises
Increasing number of data centers renovations
Restraints
High initial investment
Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2021, North America accounted for the largest revenue share of the data center power market. The rising growth of the segment is attributed to the early adoption of various latest and advanced technologies. Moreover, another major reason that is propelling the growth of the regional market is the rapidly increasing population of the region. Furthermore, the regional IT and telecom infrastructure is significantly robust, which is contributing to the rising growth of the segment.
KBV Cardinal Matrix - Data Center Power Market Competition Analysis
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Huawei Technologies Co., Ltd. is the forerunner in the Data Centre Power Market. Companies such as Cisco Systems, Inc., Siemens AG and Schneider Electric SE are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Schneider Electric SE, Siemens AG, Legrand S.A., Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), ABB Group, Eaton Corporation PLC, Mitsubishi Electric Corporation, Vertiv Holdings Co., Delta Electronics, Inc., and Cisco Systems, Inc.
Recent Strategies Deployed in Data Center Power Market
» Partnerships, Collaborations and Agreements:
Apr-2022: Delta came into a partnership with ROHM, a global semiconductor supplier. Following this partnership, the companies would develop and produce advanced GaN power devices. In addition, the integrated capabilities of ROHM’s power development and manufacturing and Delta’s power supply device development technology would allow the companies to introduce 600V breakdown voltage GaN power devices optimized for a broad line of power supply systems.
Mar-2022: Vertiv entered into a partnership with Elea Digital, a data centre infrastructure platform. Following this partnership, Elea would provide edge data centre services across Brazil. In addition, Vertiv would offer maintenance and operation services for Elea Digital data centers in major metro areas including Curitiba, Brasilia, and Porto Alegre.
Jan-2022: Delta entered into a partnership with DATABOX, a leading vendor of IT channels. Through this partnership, DATABOX would supply energy-efficient Uninterruptible Power Supplies and Data Centre Infrastructure Solutions of Delta to IT resellers and system integrators across Portugal.
Nov-2021: Siemens came into an agreement with Google Cloud, a suite of cloud computing services. With this agreement, Google Cloud would help Siemens in digitally transforming Siemens Energy’s business infrastructure, systems, and data with Google Cloud. In addition, Google Cloud would help Siemens in shifting its global network of data centers into the cloud.
Aug-2021: ABB Group joined hands with ST Telemedia Global Data centers, the fastest growing global data centre operator. Under this collaboration, the companies aimed to conduct an Artificial Intelligence energy optimization pilot across Singapore in order to leverage Machine Learning and AI technology along with advanced analytics to optimize energy use within a data centre.
May-2021: Huawei came into an agreement with Moro Hub, a subsidiary of Digital DEWA. With this agreement, the companies aimed to construct the biggest solar-powered Uptime TIER III-Certified Data Centre across the Middle East and Africa at the Mohammed bin Rashid Al Maktoum Solar Park.
Oct-2020: Vertiv teamed up with Honeywell, an American multinational conglomerate. Following this collaboration, the companies aimed to jointly develop integrated solutions in order to optimize data centre resiliency, sustainability, and operational performance.
Oct-2020: Schneider partnered with EdgePresence and Accu-Tech. Following this partnership, EdgePresence would nationally deploy Schneider's fully integrated EcoStruxure Data Centre solution-based edge data centers.
Jul-2020: Schneider came into a partnership with Anord Mardix, a Flex company. Under this partnership, the companies would develop and install deploy crucial power solutions to the data centre market. In addition, this partnership would make the DATABARTM busway system, static transfer switch, and PDUs of Anord Mardix accessible for Schneider's North American data center customers.
Jun-2020: Mitsubishi Heavy Industries Asia-Pacific signed an MoU with Keppel Data Centres, one of the Most Interconnected Data Centers in India. Under this agreement, the companies aimed to jointly explore the deployment of the hydrogen-powered tri-generation plant concept for data centers across Singapore.
» Product Launches and Product Expansions:
Dec-2021: Schneider introduced enhancements in its data center and digital transformation capacity. With this product expansion, the company aimed to fulfill the increasing domestic demand of its customers for increased digitization and automation capabilities to enhance and futureproof the security of their operations.
Oct-2021: Schneider launched Easy Micro Data Center Series, a Micro Data Center solutions range for standard IT and commercial environments. The new product range is developed to comprise and deliver all compute, storage, and necessary infrastructure in order to support edge computing applications, reliability, combining speed, and affordability.
Sep-2021: Vertiv rolled out the Liebert RXA remote power panel and Liebert MBX busway system. The new Liebert RXA is a safe and flexible solution for high-density power applications, while the new Liebert MBX enables reliable overhead power distribution across data centers of multiple sizes.
Aug-2021: Legrand unveiled Infinium Quantum, a Fiber System. Through this launch, the company aimed to provide increased flexibility, scalability, and efficiency to the increasing data center requirements without additional costs.
Jun-2021: Schneider introduced EcoStruxure Modular Data Center, a liquid-cooled all-in-one module. The new solution aimed to enable the most GPU and CPU-intensive high-performance computing edge applications to be installed with more reliability in a rough and remote environment.
Jun-2021: Eaton rolled out the iCube 2.0 and 9PX Li-ion UPS, new additions in its micro data centre, and the 9PX uninterruptible power supply series. The iCube 2.0 is an enhanced micro data centre solution intended to offer energy-efficient excellence across the edge, while the 9PX Li-ion UPS is equipped with Eatons Intelligent Power Manager and allows deep integration with HyperV and VMware virtual environments.
Mar-2021: Huawei introduced FusionModule500, FusionModule800, and FusionModule2000, advanced Data Centre and Power Supply Solutions. The new solutions are developed in order to meet the distinct industrial requirements. Moreover, these solutions would also enable enterprises to turn any room into a data centre.
Mar-2021: Vertiv unveiled Vertiv Liebert EXM2, an advanced UPS design. The new product aimed to provide industry-leading reliability, efficiency, and performance with power capacities spanning from 100 to 250 kVA and a flexible and compact footprint. In addition, the new product is developed for a broad range of applications and is currently available across Australia & New Zealand, and Southeast Asia.
Mar-2020: Huawei released its FusionPower2.0 data center power supply and distribution solution. The new product would allow the power density of a single module in order to reach 100 kW/3 U, double the industry standards. The new solution is based on the 100 kW module and also comprises 1MW, 1 Rack principle.
» Acquisitions and Mergers:
Feb-2022: Mitsubishi Electric Power Products signed an agreement to acquire Computer Protection Technology, a provider of backup power and distribution solutions. Through this agreement, the company would expand its UPS business across North America.
Nov-2021: Vertiv took over &I Engineering Ireland and its affiliate, Powerbar Gulf. With this acquisition, the company aimed to integrate the robust capabilities of the E&I team into its portfolio. Moreover, the companies would also amplify their integrated ability to bring value to employees, customers, and shareholders.
Mar-2021: Siemens completed its acquisition of C&S Electric, a leading manufacturer of electrical and electronic equipment. This acquisition would strengthen Siemens' position in the low-voltage power distribution and electrical installation technology sector.
Feb-2021: Eaton took over Tripp Lite, an American manufacturer of power protection and connecting electrical devices. With this acquisition, the company aimed to strengthen its footprint across the data center market in order to improve the width of its distributed and distributed IT product portfolio.
Feb-2020: Eaton acquired Power Distribution, a leader in providing power monitoring equipment and services. With this acquisition, the company aimed to integrate PDI’s highly complementary portfolio into Eaton's capabilities in order to better serve its data center customers.
» Geographical Expansions:
Mar-2021: Cisco expanded its geographical footprint in Germany with the introduction of a new data centre in Frankfurt. This geographical footprint aimed to allow the company to better serve its customers by leveraging its Collaboration platform Webex across the European Union, Europe, the Middle East, Africa, and Russia.
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Frequently Asked Questions About This Report
The data center power market size is projected to reach USD 13 billion by 2028.
Increasing number of data centers renovations are driving the market in coming years, however, high initial investment growth of the market.
Schneider Electric SE, Siemens AG, Legrand S.A., Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), ABB Group, Eaton Corporation PLC, Mitsubishi Electric Corporation, Vertiv Holdings Co., Delta Electronics, Inc., and Cisco Systems, Inc.
The expected CAGR of the data center power market is 7.7% from 2022 to 2028.
The UPS segment acquired maximum revenue share in the Global Data Center Power Market by Product in 2021, thereby, achieving a market value of $5 billion by 2028.
The North America market dominated the Global Data Center Power Market by Region in 2021, and would continue to be a dominant market till 2028.
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