Sep 4, 2019   SOURCE: BusinessWire

Data Center Power Market Report: Global Outlook & Forecast 2019-2024 - ResearchAndMarkets.com

The "Data Center Power Market - Global Outlook and Forecast 2019-2024" report has been added to ResearchAndMarkets.com's offering.

The Global Data Center Power Market is estimated to reach $16 billion by 2024.

Key Market Insights

  • It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the data center power market.
  • The report provides the latest analysis of data center power market share, growth drivers, challenges, and investment opportunities.
  • It offers a complete overview of data center power market segments and the regional outlook of the global market.
  • The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

The increasing efficiency in power infrastructure is contributing to the growth of global data center power market. The high adoption of modular infrastructure will transform the global power generator 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 power 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 centers have 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 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 data center power market. Vendors are also increasingly involved in developing systems that are based on the Open Compute Project (OCP) designs.

Market Dynamics

Growth Enablers

  • Growing Investments in Data Centers by Colocation Operators
  • Increasing Construction of Hyperscale Data Centers
  • High Adoption of Modular Power Infrastructure & Data Centers
  • Increasing Demand for Edge Data Centers
  • Availability of Power Resources & Tax Incentives
  • Growing Power Consumption & Rack Power Density

Growth Restraints

  • Increase in Power Outages Caused by Equipment Failure
  • High Procurement Cost for Power-efficient Infrastructure
  • Location Constraints for Data center Construction

Opportunities & Trends

  • Increasing Procurement of Renewable Energy
  • Use of Lithium-ion Batteries in Data Centers
  • Use of Fuel Cells in Data Centers
  • Software-defined Power to Monitor & Automate Power Infrastructure
  • Emergence of Nickel-Zinc Battery Powered UPS Systems
  • Adoption of DC UPS Systems to Reduce Power Loss

Market Segmentation

This market research report includes detailed market segmentation by infrastructure, UPS systems, generators, tier standards, and geography.

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 in the market, 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 data center power 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 power 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.

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.

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 power 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.

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 data center 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.

Geographical Analysis

The US data center power market is witnessing increased investments from colocation providers, hyperscale service operators, enterprises, and government organizations. The data center 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 data center power market. 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 data center market in Europe.

The Nordic region has significant advantages for multiple development projects. APAC is one of the fastest-growing markets for data center development.

Initiatives such as the Vision 2030 and the Industrial Internet of Things (IIoT) are expected to drive data center 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 the data center power market at 18%.

Key Vendor Analysis

The data center power market has become competitive due to the increased interest shown by data center 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 power infrastructure players. Cummins and Caterpillar have a strong presence in the generator market. The emergence of Nickel Zinc battery and continuous innovations toward improving the modularity of solutions will continue to grow the competition. In addition, the use of DC power systems in the data center is likely to witness significant growth among hyperscale data centers creating competition among vendors in the market.

Major Vendors

  • ABB
  • Caterpillar
  • Cummins
  • Eaton
  • Schneider Electric
  • Vertiv

Other Prominent Vendors

  • 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
  • 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
  • Yanmar Group (HIMOINSA)
  • ZincFive

For more information about this report visit https://www.researchandmarkets.com/r/f5zs1m