NEW YORK, Nov. 7, 2023 /PRNewswire/ -- The data center power market size is set to grow by USD 20,569.77 million from 2022 to 2027. Also, the growth momentum will progress at a CAGR of 11.1% during the forecast period, according to Technavio. The data center power market is fragmented, and the vendors are seeking strong partnerships with automotive, industrial, and commercial companies to compete in the market. 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. are some of the major market participants -. To know about the vendor offerings - Request a sample report
Data Center Power Market 2023-2027: Drivers & Challenges
DRIVER
The emergence of mini data centers is notably driving the market growth. Mini data centers are self-contained systems engineered to accommodate up to 40 rack enclosures and feature compact cooling units, capable of managing an IT load of up to 250 kW. These condensed data centers are commonly deployed as solutions for disaster recovery in branch offices. The mounting favour for mini data centers can be attributed to the demand for economical infrastructure, the proliferation of small and medium enterprises (SMEs), and the efficient management of edge data resources. Industry players such as Amazon Web Services have introduced mini data centers across various global locations, enhancing accessibility to cloud services. With the escalating adoption of mini data centers, the need for IT infrastructure, encompassing storage, servers, and networking solutions, is poised to increase, consequently driving a heightened requirement for dependable power supply solutions like UPS and rack PDUs during the projected timeframe. These advancements collectively contribute to fostering the market's expansion in the foreseeable future.
Focus on consolidation of data centers is a major challenge impeding the data center power market growth. Data center consolidation involves the process of reducing the size of a single facility or combining multiple facilities to achieve operational cost reductions. Enterprises opt for data center consolidation for various reasons, including market expansion through acquisitions in diverse regions. Notably, the US National Resources Defense Council highlighted that US data center operators were estimated to spend up to USD 13 billion annually on electricity by 2020. However, consolidation efforts can yield electricity cost reductions ranging from 30% to 50%. This has prompted many government agencies across the globe to shutter data centers as a means to achieve cost savings. Enterprises are also embracing data center virtualization and Infrastructure as a Service (IaaS) to further streamline their data center landscape and curtail operational expenditures. Concurrently, certain software companies are adopting unified cloud platforms to eliminate the necessity for individual data centers. These ongoing trends are anticipated to exert a restraining influence on the global data center power market during the forecast period.
Market Trends
An increase in strategic investments and partnerships is an emerging trend propelling the growth of the market. Enterprises are increasingly pursuing strategic partnerships and collaborations with fellow market entities, including other providers of data center power components. These endeavors aim to foster product development and expand their geographic reach. Such collaborations not only facilitate the exploration of novel opportunity domains for products and services but also create revenue streams through the sale of their offerings to data center operators. For instance, the collaboration between Eaton Corporation and The Lubrizol Corporation in October 2022 to jointly develop sustainable solutions tailored for data centers and digital infrastructure. This emphasis on strategic partnerships and alliances is poised to drive substantial innovations at the product level, ultimately catalyzing heightened demand for data center power solutions during the forecast period.
To learn more about the global trends impacting the future of market research, download a PDF sample
Data Center Power Market 2023-2027: Segment Analysis
- 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
Data Center Power Market 2023-2027: Segmentation Highlights
This data center power market research report extensively covers market segmentation 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).
- The market share growth by the generators segment will be significant during the forecast period. A generator is a device that transforms mechanical energy into electrical energy, functioning as a power source for various machinery. Within data centers, generators serve as backup power supplies in cases where the primary power source fails. The selection of a generator is contingent upon factors such as the required backup duration and power capacity during instances of power outages. Enterprises should possess a comprehensive grasp of their data center's power system architecture before integrating a generator into the facility. The expansion of this segment is chiefly attributed to the growing uptake of Data Center Power components, driven by the escalating worldwide demand within the data center power industry.
The competitive scenario categorizes companies based on various performance indicators. Some of the factors considered include the financial performance of companies, growth strategies, product innovations, new product launches, investments, and growth in market share, among others Buy the Report
Data Center Power Market 2023-2027: Key Highlights
- CAGR of the market during the forecast period 2023-2027
- Detailed information on factors that will assist data center power market growth during the next five years
- Estimation of the data center power market size and its contribution to the parent market
- Predictions on upcoming trends and changes in consumer behaviour
- The growth of the data center power market across North America, Europe, APAC, South America, and Middle East and Africa
- Analysis of the market's competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of data center power market vendors
Get Instant access to 17000+ market research report
Technavio's Subscription Platform
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.
Table of contents
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-User
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Company Landscape
12 Company Analysis
13 Appendix
About US
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.
Contact
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com
SOURCE Technavio
![](https://rt.prnewswire.com/rt.gif?NewsItemId=CG59628&Transmission_Id=202311070035PR_NEWS_USPR_____CG59628&DateId=20231107)
Share this article