Data Center Power Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the data center power market was valued at USD 19.8 billion in 2022, and a CAGR of 6.7% is expected during the forecast period. Construction of new data centers due to rising demand for data storage by organizations across the globe. The rise in power consumption by data centers has increased operational and power costs and brought a new challenge in front of the end-users. Data center managers and IT professionals focus on the implementation of highly efficient data center power solutions for business continuity. The increasing use of cloud services, streaming, and AI-driven applications creates more demand for data centers. The need to reduce operational costs and environmental impact pushes data centers to adopt energy-efficient technologies.

Growth Drivers

The rise in edge computing is driving demand for smaller localized data centers, which in turn creates opportunities for power infrastructure specifically tailored to support these deployments. Construction of hyperscale data centers by tech giants like Amazon, Google, and Microsoft increases demand for large-scale, reliable power systems. Innovation in UPS, advanced cooling technologies, and battery solutions are enabling more efficient and resilient power management for data centers. The expansion of 5G and the proliferation of IoT devices are accelerating data usage, increasing the need for more data centers with reliable power infrastructures.

Increased demand for backup power systems and government policies encouraging energy efficiency and renewable energy use are driving investments in greener power solutions and significantly driving the growth in the market. Increasing dependency of data centers on hardware solutions is driving growth in the market significantly.

Segmentation

Solution

·         Power Monitoring

·         Power Distribution

·         Power Backup

·         Cabling Infrastructure

By Component

·         Hardware

·         Software

By Data Center Type

·         Small and Medium Sized Data Centers

·         Large Data Centers

By Power Rating

·         Below 1 MW

·         1-10 MW

·         Above 10 MW

By End-User

·         Colocation Data Centers

·         Enterprise Data Centers

·         Cloud Data Centers

·         Edge Data Centers

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

Data Center Power Market by component segmentation

On the basis of the components, the data center power market is segmented into hardware and software. Hardware is the leading segment and is expected to dominate the market during the forecast period. Data centers rely heavily on physical infrastructure, PDUs, UPS, generators, and other critical hardware to ensure reliable and continuous power supply. Software solutions are important for managing and monitoring power consumption and efficiency. The hardware segment remains the dominant contributor to the overall market.

Data Center Power Market by Data Center Type

On the basis of the type, data centers are categorized into small and medium-sized data centers. Large data centers, or hyperscale data centers, are the leading segment in the market and are expected to dominate the market during the forecast period due to the increase in demand for hyperscale data centers as the need for processing data grows. Major software companies like Amazon, Microsoft, IBM, and Google prefer large-scale data centers. Located closer to end-users, the edge data centers are gaining increasing popularity. UPS systems are an example of power backup solutions that ensure continuous operations and prevent data loss.

Regional Outlook

On the basis of the regions, the data center power market is segmented into 5 regions: Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe. North America is the leading segment and is expected to dominate the market during the forecast period because the U.S. is the hub of tech giant data centers such as Amazon, Microsoft, Google Cloud, and Facebook. North America is at the forefront of adopting cutting-edge technology, such as cloud computing, AI, IoT, and big data analytics.

These technologies increase the complexities and power required for data centers, necessitating robust power, monitoring, and management systems to ensure efficiency and reliability. The region has stringent regulations and standards aimed at reducing energy consumption and carbon emissions. Significant investment in expanding data center infrastructure, including both traditional and edge data centers. These expansions drive the need for efficient power management solutions, increasing demand for monitoring systems. Many leading data center power monitoring and management solution providers are headquartered in North America.

Asia Pacific is another leading segment in the data center power market because the region’s population is growing, which is driving up demand for digital services and data consumption. Many Asia-Pacific countries are experiencing strong economic growth, which is leading to more corporate activity and technical investments. The region is witnessing significant expansion by global tech giants. The region is witnessing increasing adoption of advanced technologies like IoT and cloud computing. Emerging markets like India, China, South Korea, and Japan are seeing urbanization trends, which offers strong long-term growth prospects. Social networking apps are popular in Asian countries, like Facebook, which has the biggest market in India. Europe is seeing a surge in cloud computing, IoT, and big data, leading to increased demand for data center services. Countries like the U.K., Germany, and the Netherlands are key hubs for data center investments.

The rollout of 5G networks is pushing for localized data centers to support real-time data processing and applications such as autonomous vehicles and smart cities. The explosion of internet traffic, combined with the growing adoption of artificial intelligence and machine learning applications, is leading to a massive increase in the number of collection data centers. The European Union has stringent regulations concerning energy efficiency and carbon emissions, driving the growth of energy-efficient and sustainable data centers. Increasing use of digital banking and payment systems, as well as advancements in fintech, required enhanced data processing. The European region is witnessing significant growth in colocation data centers, like tech giants Amazon, Microsoft, and IBM are expanding their reach in the region. Increasing demand for hyperscale data centers in the region is the key factor behind the significant growth in the market. Increasing demand for processing the data in an efficient manner is driving the demand for data center power operation.

Key Players

·         Siemens

·         Mitsubishi Electric

·         Cisco

·         Kehua Tech

·         Tripp Lite

·         Legrand

·         Huawei

·         ABB

·         Vertiv

·         Eaton

·         Delta Electronics

·         Other Players