Data Center Power Market size to grow by USD 20.5698 billion from 2022 to 2027 | ABB Ltd., Active Power Solutions Ltd., AEG Power Solutions BV, and more among the key companies in the market - Technavio
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
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 centr power market during the forecast period.
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.
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Data Center Power Market 2023-2027: Segment Analysis
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 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
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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.
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1 Executive Summary
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.
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