This research report on the global data center power market cover market sizing and forecast, share, industry trends, growth drivers, and vendor analysis. The market study includes insights on the segmentation by infrastructure (UPS systems, generators, transfer switches & switchgear, rack PDU, and others), UPS systems (<=500 kVA, 500 kVA - 1000 kVA, and >1000 kVA), generators (<=1 MW, 1 MW-2MW, and >2 MW), tier standards (Tier I & II, Tier III, and Tier IV), and geography (North America, Europe, Middle East & Africa, Latin America, and APAC).
The adoption of DC UPS systems is significantly contributing to the growth of the data center power market
The increasing procurement of renewable energy sources to power data center operations is a major driver of the global data center power market. The growing consumption in facilities, which increases carbon emission in the atmosphere, is driving hyperscale service providers to purchase clean, renewable energy sources to power their facilities worldwide. Hence, hyperscale data center has emerged as major adopters of renewable energy infrastructure. The adoption of fuel cells by several service operators is growing due to their efficiency to decrease the environmental impact of power generation, thereby leading to a sustainable operating environment.
The concept of Software-Defined Data Centers (SDDC) is gaining acceptance in the data center market as software-defined practices help to improve the efficiency of infrastructure operations in several facilities. Further, the increased partnership between pure-play software vendors and power infrastructure providers is improving the efficiency of computing facilities.
Besides, the adoption of DC UPS systems, which help to reduce power loss during the AC to DC conversion, is significantly contributing to the growth of the market. The adoption of 48V DC systems can prevent 5−10% energy conversion loss in UPS systems in computing facilities. Further, vendors are also increasingly involved in developing systems that are based on the Open Compute Project (OCP) designs. The global data center power market is estimated to reach $16 billion by 2024.
This market research report includes detailed segmentation by infrastructure, UPS systems, generators, tier standards, and geography.
Market by Power Infrastructure
The development of large and mega data center facilities is likely to fuel the demand for generators
Reducing prices of lithium-ion batteries will contribute toward adoption of UPS systems among facility operators. Although the application of VRLA-based systems is widespread, the exponential adoption of lithium-ion UPS systems is likely to increase during the forecast period. Further, colocation and modular facility operators are expected to increase their investment, including UPS systems with 2N redundant capacities.
The development of large and mega facilities will fuel the demand for generators, which will contribute to the growth of market. Further, the adoption of Diesel Rotary Uninterruptible Power Supply (DRUPS) systems is growing. These systems have both battery and flywheel UPS topology and a diesel generator to provide backup during outages. Asian countries are among the major revenue generators for DRUPS systems. However, with the growing concerns over carbon emissions, the use of diesel generators is expected to decline, thereby providing growth opportunities for other generators such as natural gas generators.
In addition, the construction of facilities with more than 10 MW capacity in developed countries is expected to install more medium- and low-voltage switchgears than high-voltage switchgears. Further, the use of basic PDUs will continue to decline during the forecast period, thereby aiding the growth of intelligent PDUs.
Market by UPS Systems
Colocation service providers are the major contributors to the 500–1,000 kVA UPS systems segment
As vendors are continually innovating their UPS systems to improve efficiency, these systems are helping service providers to reduce OPEX and overcome the space constraint in the rack space. Also, the increased adoption of <= 500 kVA UPS systems in small- and medium-sized facilities is a key factor for the growth of the segment. The installation of <= 500 kVA UPS is further expected to be high among prefabricated service operators. Colocation service providers are the major contributors to the 500–1,000 kVA UPS systems segment. In addition, these systems help in reducing the space constraint and decreasing OPEX. Besides, prefabricated facilities and hyperscale service operators that deploy OCP-based infrastructure design are expected to drive the data center market size of <=500 kVA UPS over the next few years.
Market by Generators
The adoption of DRUPS is gaining traction in several countries due to their cost-effectiveness
The >2 MW generator systems segment dominated the global generator market. The increased deployment of >2 MW generator systems in mega and large facilities by hyperscale service operators is a major factor for their high revenue share. Data center regions, which subject to frequent outages, are likely to adopt multiple redundant generator systems during the forecast period. The adoption of DRUPS is gaining traction in several countries due to their cost-effectiveness.
Market by Tier Standards
Increased rack power density and critical applications are driving demand for Tier IV facilities
The growing demand for redundant components to support mission-critical applications in Tier III facilities is likely to boost the power and cooling infrastructure during the forecast period. Many Tier III facilities are built with a flexible design, supporting the installation of tier IV redundant infrastructure. Although a majority of facilities across the globe fall under the Tier III category. The increase in the rack power density and critical applications is to drive many service operators to move to the Tier IV category during the forecast period. The incorporation of flexible designs is expected to configure up to 2N+1 redundancy.
Market by Geographies
The US is witnessing high adoption of lithium-ion UPS, DRUPS, and fuel cells, which is likely to continue during the forecast period
The US market is witnessing increased investments from colocation providers, hyperscale service operators, enterprises, and government organizations. The market in Canada is also witnessing steady growth. Montreal is attracting investment due to the accessibility of renewable energy sources and low power costs. The US and Canada have a large presence of Tier III and IV standards. Currently, the US is witnessing high adoption of lithium-ion UPS, DRUPS, and fuel cells, which is likely to continue during the forecast period.
The increased adoption of cloud-based service and the increased demand for colocation services from both local and global investors are driving the investment in Western Europe region. Further, the implementation of GDPR, the availability of renewable energy sources, and the increased demand for cloud, big data, and IoT services are expected to drive the market in Europe.
The Nordic region has significant advantages for multiple development projects. Factors such as the accessibility to renewable energy to power developments, the growing interest to strengthen connectivity, tax incentives, and low power cost and increased effort to develop digital economy in the Nordic region are driving the market
APAC is one of the fastest-growing markets for data center development. Major drivers in the APAC region include:
Initiatives such as the Vision 2030 and the Industrial Internet of Things (IIoT) are expected to drive the growth in the Middle East between 2019 and 2024. The cloud adoption to scale new heights in the Middle East, with IaaS and PaaS segments growing at 25% and 20% YOY, respectively, followed by the SaaS segment, which is currently dominating at 18%.
The market in Africa is small. The rise in high-speed broadband and wireless internet connectivity will help in growth during the forecast period. Further, Africa suffers from the power reliability challenge, with the supply requiring a robust backup infrastructure to offer high availability services. Hence the dependency on generators during outages is high. However, government agencies have taken several initiatives to strengthen the power reliability in African countries, leading to incremental growth in power deployments during the forecast period.
Key Countries Profiled:
Key Vendor Analysis
The data center power market has become competitive due to the increased interest shown by facility operators in procuring energy-efficient infrastructure. The adoption of lithium-ion batteries, fuel cell technology, and intelligent PDUs to improve the efficiency of the facility will increase the competition among vendors.
Further, the increased partnership between power infrastructure providers, service operators, and principal contractors will help to generate more revenues during the forecast period. ABB, Eaton, Schneider Electric, Caterpillar, Cummins, and Vertiv are the leading players in the segment. Cummins and Caterpillar have a strong presence in the generator market. The emergence of Nickle Zinc battery and continuous innovations toward improving the modularity of solutions will continue to grow the competition. In addition, the use of DC systems in the facilities is likely to witness significant growth among hyperscale facilities creating competition among vendors.
Other prominent vendors include AEG Power Solutions, Artesyn Embedded Technologies, Bachmann, Black Box Network Services, Bloom Energy, Chatsworth Product, Cisco Systems, Controlled Power Company, Crenlo, Cyber Power Systems, Delta Group,Kinolt(Euro-Diesel), Fuji Electric, Generac Power Systems, Hewlett Packard Enterprise (HPE), Hitachi Hi-Rel Power Electronics, Hitech Power Protection, Hitzinger, KOEL, KOHLER (SDMO), Legrand, Mitsubishi Electric Corporation, MTU On-Site Energy, Panduit , Piller Power Systems, Pramac, Riello UPS, Rittal, KSTAR, Socomec Group, Toshiba, Virtual Power Systems, and Yanmar Group (HIMOINSA), and ZincFive.
Key market insights include
The report provides the following insights into the market for the forecast period 2019–2024.
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