The global data center power market is expected to reach USD 10.77 billion by 2025, according to a new report by Grand View Research.
One of the main drivers is Uninterrupted Power Supply. UPS is the backbone of data centers and are significantly deployed for the smooth working of servers and other networking devices. As a result, the UPS product segment dominated the global data center power market in 2016.
Additionally, most data centers use the smart UPS system, battery monitoring devices, and intelligent power distribution systems in a bid to reduce the PUE ratio. The increasing penetration of these new devices is further expected to boost the demand for UPS over the forecast period.
Further key findings from the report:
- The global data center power market is expected to witness a CAGR exceeding 6% from 2017 to 2025, owing to the increasing trend towards reducing the PUE ratio for better energy management in data centers.
- The UPS segment accounted for the largest share in 2016, which is accredited to the increasing demand for energy in data centers along with increasing penetration of co-location data centers globally.
- The increasing penetration of IoT connectivity and the integration of artificial intelligence are expected to favorably impact the data centers market, thereby driving the demand for data center power systems over the coming years.
- North America accounted for over 35% of the overall revenue share in 2016 and is also expected to dominate the market over the forecast period, owing to the increasing number of data centers in the U.S.