The increasing need for data storage in various industry verticals is increasing the number of data centers worldwide, due to up gradation of power capacity; demand for efficient power solution by data centers is increasing. Power consumption by data centers contributes half of the total cost associated with data centers, and hence, companies are introducing innovative and efficient power solutions. The data center power solution market is anticipated to achieve substantial growth across all global regions.The market is expected to grow from $12.30 billion in 2016 to $22.44 billion by 2022 with the projected CAGR of 10.54% for year 2016-2022.
Exponential growth in the size of data consumed and generated by various organizations, businesses and individuals have increased the demand for data storage which in turn is leading to growth in the number of data centers. Globally, data centers are emerging as new computational hubs for various end-users and enterprises. This increase in the number of data centers is driving the growth of data center power and related services market. Thus, the increasing number of enterprise-wide digital content and growth of data centers is escalating the demand for data center and its services across the world. Power expenses costs are almost half of the total expenses associated with developing and maintaining the data center, and hence organizations are creating efficient and innovative data center power solutions. The efficient power solutions installed in companies help in reducing their total expenses, which in turn reduces total cost of ownership (TCO).
Electricity prices are continuously increasing leading to growing demand for cost efficient power solutions. The need for data centers in increasing along with the need to maintain the data centers uptime and its reliability, which is driving the data center power market. Global initiatives for reducing carbon footprints are also increasing, which in turn is driving the demand for energy efficient power solutions for global data centers. Previously used traditional data centers are being replaced by new data centers with advanced technology and better power management capabilities, thus, the aging and replacement of traditional data centers is another factor driving the growth of this market. However, high initial investment involved in better power management solutions and the availability of compatible solutions are hindering the global data center power market. Lack of awareness related to benefits of power management solutions amongst the organizations, which are investing in data center infrastructure is another major factor restraining the growth of the data center power market. A modular power solution is the new upcoming trend which is being observed in data center power market. Along with modular power solution, direct current power solutions and intelligent rack power distribution unit (IPDU) are the key opportunities available in the market of data center power management.
Global data center power market is segmented on the basis of service, solution type, verticals and end-user. On the basis of type of services, the market is segmented into system integration services, consulting services and professional services. Data center power market on the basis of solution is segmented into cabling infrastructure solutions, power measurement and monitoring solutions, power storage solutions, generator solutions and power distribution solution. Data center find their application across various industry verticals like IT and telecom, BFSI, healthcare and government etc. Further, on the basis of end-user the data center power market is segmented into enterprises, mid-size data centers and large data centers.
Geographically, the market is segmented into 4 major regions, North America, Asia Pacific, Europe and Rest of the world. Asia-Pacific (APAC) region and is expected to have the fastest growth in the next 5 years. The trend of adoption of data center power solutions in APAC is majorly driven by the development and growing numbers of data centers with rising demand for high energy-efficient power solutions in this region.
Some prominent players of data center power markets are; Schneider Electric SE, Server Technology, Inc., Intel Corporation, Rittal GmbH. More companies that are involved in this market are Raritan, Inc., Emerson Network Power, Hewlett-Packard Company, General Electric Company, Eaton Corporation Plc and ABB Ltd. These companies are actively working upon various R&D programs and activities, for having better power solutions. Like recently, in June 2016, Schneider Electric SE, a global specialist in energy management and automation company, introduced StruxureOn™, a digital solution that connects data center’s physical infrastructure assets to the Schneider Electric cloud, enabling the solution of simplified and faster services. With added real-time visibility into system performance, maintenance and service requirements via mobile app. StruxureOn's data-driven analytics can also proactively advise upcoming potential failures, fundamentally improvising the ability to serve critical equipment prior to the failure.