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Flair: Hear it from an Expert about the Current trend of Data Center Power Market

Pune, Maharashtra,India, November 9 2020 (Wiredrelease) Origius Systems Private Limited –:The global data center power market is estimated to register a revenue of $56,626.5 million by 2027, growing from $32,349.0 million in 2019 at a healthy CAGR of 7.2%.

Impact Analysis of COVID-19 on the Data Center Power Market

The coronavirus (COVID-19) pandemic has brought an ideal market opportunity for the global data center power market. the emergence of new start-ups, throughout the global pandemic, is expected to increase the need for cloud services and digitization, which will eventually flourish the global market growth, in the upcoming years.

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Furthermore, the extensively increased demand for software as a service (SaaS), coupled with the shift of businesses towards the work from home culture in the outbreak period are also some of the important reasons boosting the demand for the data centers. Hence, the government bodies across the region are also coming forward with their supportive policies and action to cope up with this demand. For instance, in July 2020, the Indian government has inaugurated India’s largest data center, Yotta NM1, in the Navi Mumbai, Maharashtra. This data center is highly scalable and capable of hosting content, OTT operators, and the global cloud of governments and enterprises.

Owing to these key factors the global market for the data center market will have a lucrative market opportunity in the COVID-19 crisis.

Data Center Power Market Analysis:

The global data center power market has experienced unprecedented growth in the forecast years mainly owing to the increasing penetration of internet and IoT technologies worldwide. Furthermore, technologies like cloud computing, need a high computational power; contrary to this, it provides key advantages such as excellent efficiency, the flexibility of business operations, and enhanced scalability. Owing to these benefits a significant number of small & medium-sized enterprises (SMEs) are opting for the adoption of data centers, in the recent several years.

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In addition to this, the strong presence of innovation leaders such as Schneider Electric, Vertiv Group Corp., and Anord Mardix in the data center power market and their effective strategies may also create a positive impact on the global market, in the review period. For instance, in July 2020, Schneider Electric has teamed up with Anord Mardix to offer critical data center power distribution. Also, this strategic alliance delivers clients with an end-to-end infrastructure solution developed to decrease the complexity of cloud technologies. These company innovations many further bolster the market growth in the forecast period.

The expensive installation cost of data centers is projected to obstruct the global market growth, in the analysis timeframe. In addition to this, a lack of awareness about data centers in the emerging businesses may lead to creating a negative impact on the global market, in the forecast years.

Data centers play a significant role in maintaining business continuity. Moreover, rising digitization in the industries and IT operations are some of the major reasons responsible for the increased adoption of data center power in the SMEs as well as large enterprises. Furthermore, in the recent several industries a broad range of industries such as telecommunication, retail, and healthcare are preferring highly for the adoption of solar-powered data center power facilities to strengthen their position in the global as well as regional market. For example, in November 2019, Turkcell, Turkey-based significant mobile phone operators, has made an announcement that they have released a solar-powered data center in Ankara. With this product release, the company has covered the largest area under data centers in the region with an area of 33,500 square meters whitespace. Owing to these key elements, the solar-powered data center will have significant market opportunities in the future.

The UPS product type shall have a massive market share in 2020 and it is predicted to generate a revenue of $35,628.9 million by 2027, surging from $20,666.4 million in 2019. The rising implementation of cloud computing across the emerging nations and the extensively rising needs for ubiquitous data has considerably impacted the sub-segment growth, during the forecast period. In addition to this, key benefits provided by the UPS data center powers such as accessibility to SaaS (Software as a Service), high-performance computing, and consistent, clean, and uninterrupted power flow are predominantly expected to hike the adoption of sub-segment in the industries, throughout the projected timeframe. Contrary to this, the PDU sub-segment will have the fastest market growth in 2020, and is estimated to register a revenue of $9,298.9 million, at a noteworthy growth rate of 8.0%, in the review period; owing to the rising adoption of data centers in the businesses has resulted in the growing usage of cloud and mega data centers. Such data centers need power in extensive quantities for peak data-intensive operations, which may further expected to fuel the demand for sub-segment, in the forecast period.

The IT & telecommunications sub-segment will have the fastest market growth and it is estimated to register a revenue of $9,115.7 million by 2027, with a spur from $4,827.3 million in 2019, at an 8.2% growth rate. The emerging IT & telecom service enterprises are preferring to install data center facilities to manage an enormously growing amount of data, in recent years. In addition to this, the government’s support coupled with the strong presence of significant manufacturers such as Schneider Electric and CtrlS Datacenters in the emerging nations is anticipated to create a significant impact on the sub-segment, in the global marketplace. Contrary to this, the BFSI segment shall have a major market share, and it is anticipated to surpass $14,224.8 million by the end of 2027; this mainly due to the huge demand from the BFSI sector, mainly attributed to the growing emphasis on digitization. Furthermore, the industry significantly shifted towards cloud networking and other technologies to improve banking infrastructure. Such key elements are anticipated to bolster sub-segment market growth.

The Europe data center power market has generated revenue of $10,510.2 million in 2019 and it is predicted to surpass $17,435.3 million by 2027; due to the huge expansion of mobile broadband, across the U.K. Germany, and France. Furthermore, extensively rising adoption of cloud computing and big data analytics in the businesses across the regions, may also lead create lucrative opportunities for the Europe data center power region. However, the data center power market for the Asia-Pacific region is expected to generate a revenue of $16,863.4 million by 2027, at a noteworthy CAGR of 8.0%; this is mainly because governments of this region are positively supporting to the data center power projects, in the recent decade. For example, in May 2020 The Cabinet of Thailand has approved around $146.6 million for the data center and cloud services. Furthermore, the massively increasing adoption of advanced technologies, such as cloud computing and IoT in the SMEs is also expected to create a positive impact on the Asia-Pacific data center power market, in the forecast years.

Major Market Players

•    ABB
•    Vertiv Group Corp.
•    Schneider Electric
•    General Electric
•    ZincFive, Inc.
•    Cisco Systems, Inc.
•    Anord Mardix
•    Mitsubishi Electric Corporation
•    Siemens
•    Eaton

Data center power market players are focusing on Merger & acquisition and advanced technological developments in order to acquire a prominent position in the international market.

Porter’s Five Forces Analysis for Data Center Power Market:

•    Bargaining Power of Suppliers: The suppliers operating in the global data center power industry are large in number. Therefore, the negotiation power of global suppliers will be minimal. So, there will be a lesser threat from the supplier in the global market. Therefore, the bargaining power of the supplier is Moderate
•    Bargaining Power of Buyer: The majority of the leading organizations growing in the data center power market have initiated to provide integrated products/services in a cost-effective way. Thus, buyers shall have various options to choose the convenient service that best fits their preferences. Hence, the bargaining power of the buyer will be HIGH
•    The Threat of New Entrants: The emerging enterprises operating in the data center power market are opting for effective strategic steps such as novel product innovations and strategic alliances to strong-hold the presence worldwide. Hence, the threat of the new entrant will be High
•    The Threat of Substitutes: There is no alternative product for this data center power solutions. Thus, the threat of substitutes is Low
•    Competitive Rivalry in the Market: The competitive rivalry in the key manufacturers is highly intense, mainly between the innovation leader such as Schneider Electric, Eaton., and ABB. These manufacturers are successfully launching their value-added products & services worldwide for strengthening their footprint. Competitive rivalry in the market is High


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Last Updated: 09-Nov-2020