The global data center power management market size is predicted to exhibit phenomenal growth from 2023 to 2033. According to the research report published by Future Market Insights, the global market is poised to exceed a valuation of USD 20,260.5 million in 2023. It is estimated to attain a valuation of USD 39,978.8 million by 2033. The market is expected to clock a noteworthy CAGR of 7% from 2023 to 2033.
Data center power management aids in measuring, managing, and monitoring power consumption to enhance profitability while lowering operating expenses. Data center power is described as a power solution that helps data centers control their Power Usage Effectiveness (PUE) and boost their overall efficiency. Manufacturers are creating sophisticated power control systems, such as smart Uninterruptible Power Supplies (UPS), battery monitoring devices, and rack Power Distribution Units (PDUs) to reduce energy usage.
The surge in data-intensive businesses has increased the PUE ratio, emission of greenhouse gases, and global data center capacity. Hence, players are deploying various smart UPS, intelligent rack PDUs, and power generators to reduce the PUE ratio and improve power efficiency.
Manufacturers are also developing advanced solutions to cater to the power requirements of data center operators. This is expected to boost the market over the forecast period. The increasing usage of smart devices is generating an enormous amount of mobile data. This growth in data is further triggered by technologies such as 5G, the Internet of Things (IoT), and connected systems. Citing this trend, global mobile data traffic is expected to surpass 600 Exabytes annually in 2023. This is expected to drive the demand for data centers, that manage and process this data.
To maintain profitability while processing such high data traffic, data center managers are improving the power efficiency of their data centers which is, in turn, estimated to improve the demand.
| Attributes | Details |
|---|---|
| Data Center Power Management Market Share (2022) | USD 19,222.5 million |
| Data Center Power Management Market Share (2023) | USD 20,260.5 million |
| Data Center Power Management Market Share (2033) | USD 39,978.8 million |
| Data Center Power Management Market Share (2023 to 2033) | 7% |
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In 2018, the global data center power management market size stood at USD 15,844.6 million. In the following years from 2018 to 2022, the market expanded considerably, at a CAGR of 4.9%. In 2022, the market size accounted for USD 19,222.5 million.
The growing need for energy is impacting the environment significantly. To address this issue, industries are opting for sustainable sources of electricity. Huge investments have been made in renewable energy sources such as solar, wind, and hydro-generated electricity, which are also used to run data centers.
The adoption of sustainable energy sources for running data centers is growing rapidly in Europe and the United States. For instance, Facebook, now known as Meta, has built a hyperscale data center in Singapore, which completely runs on renewable energy. The company also uses a new SPLC (State Point Liquid Cooling) system to minimize power and water consumption. Likewise, Microsoft is using fuel cell energy that uses biogas from a wastewater treatment facility as a power source for data centers.
Data center providers are using automation and DCIM software to help customers with limited physical access to their premises and decrease their own personnel’s foot traffic in their facilities. Many data center operators have also turned to remote management of their data centers. This resulted in a high demand for data center infrastructure management software. Furthermore, to increase efficiency and minimize the power usage effectiveness (PUE) ratio, power management companies came up with advanced power distribution units that can run remotely.
In terms of components, the DCIM (Data Center Infrastructure Management) software segment is expected to showcase substantial growth in the coming years. As per Future Market Insights, the growth in the segment is predicted to increase at a CAGR of nearly 8% over the forecast period.
With the expansion of data centers in edge markets, the corporate IT infrastructure is becoming increasingly distributed and orchestrated via software. Enterprises are building fewer data centers and are increasingly choosing to outsource the operation to cloud, colocation, and other types of service providers.
Based on data center type, the modular data centers segment accounted for 24.9% market share in 2022. The growth is attributable to several reasons. A prominent growth factor for this segment is the high cost-effectiveness of modular data centers. They are less expensive to deploy. Additionally, they are also easy and quick to deploy. They were designed to keep costs and energy requirements down, which is why their popularity is rapidly increasing.
Based on the data center tier, the tier-4 data center segment will continue to dominate the market during the forecast period. The tier-4 segment captured a 24.9% market share in 2022. Demand for tier 4 data centers is increasing owing to their fault-tolerant functionality. This enables the site infrastructure to sustain unplanned failures that would otherwise adversely affect the critical load. Moreover, industries that deal in market transactions, e-Commerce, and financial settlements benefit from a tier 4 data center. Tier 4 data centers are reliable and represent the maximum level of security and availability, making them the ideal choice for corporations.
Based on end users, the hyperscale data centers segment is likely to dominate the market, exhibiting growth at 9.0% CAGR between 2023 and 2033. As per the study, the hyperscale data centers segment is anticipated to create an absolute dollar opportunity of ~USD 4.8 billion by the end of 2033. Rising investments by corporate giants such as Amazon, Microsoft, and Google will propel the demand for hyperscale data centers. Demand for these centers is expected to surge with the surging need for the consumption and process of data.
Based on industry, the BFSI segment is projected to dominate the market, accounting for nearly 23% of sales in 2033. Growth in the segment is attributable to rising fintech companies, especially in South Asia. For instance, the Fintech sector had ~1,860 startups in India in 2021. Also, with the growing shift towards digital banking, the expansion of data centers in the BFSI sector is surging. The availability of features such as personal finance management, insurance technology, and others are increasing the usage of computing power to trade at high speed, resulting in high-frequency needs and uninterruptible power. Various UPS systems are provided data centers to protect ‘credit card operations’ and ‘online transactions. A disturbance to the power delivery of a few seconds can disrupt thousands of basic operations of BFSI products and services.
According to FMI, China is predicted to remain one of the most attractive markets during the forecast period. The country accounted for nearly 5.2% of the East Asia market share in 2022. In July 2021, the government issued a Three-year Plan for new data centers, demanding that new facilities become more efficient, have a PUE of 1.3, and have a utilization of 60 percent by the end of 2023. The Three-year Action Plan for the Development of New Data Centers (2021-2023) also limits the growth of data centers to 20% and sets out a national architecture supporting national cloud hubs, provincial data centers, and edge data centers. Hence, the data center power industry is projected to witness significant growth over the forecast period in China.
Europe is a prominent growth region for the data center power management market. In 2022, Europe accounted for 25.6% market share. Within Europe, the United Kingdom data center power management market captured a 9.2% market share in 2022. Energy consumption in the United Kingdom has declined over the last 20 years, driven by surging awareness regarding energy and savings initiatives across public and private sectors. Since the past half-decade, the power-saving activities helped reduce overall power consumption in the United Kingdom by 18.6%. This is projected to further propel the demand for data center power management solutions during the forecast period.
The data center power management demand in GCC Countries is expected to register modest growth by 2033. Gulf countries are transforming their public and private sectors digitally, by providing reliable, rapid, and efficient public and private services. Several initiatives are undertaken by the government in these countries to reinforce the cloud landscape in the Middle East. Initiatives include New Kuwait 2035’s nationwide digital roadmap and the UAE Vision 2021 toward a fully digitalized society. This initiative includes Bahrain’s Cloud First utilizing cloud computing services and the USD 18 billion plan to build a network of large-scale data centers across Saudi Arabia. These factors are estimated to positively impact the market over the coming decade.
The market is characterized by the presence of both large-scale and medium-scale data center power management players. Leading players are adopting several strategies, such as mergers and acquisitions, collaborations, and partnerships, to expand their customer base. Various initiatives are undertaken by the government in several countries as well as private data center construction which is creating strong growth avenues for new entrants in the market.
Key Players in Data Center Power Management Market:
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| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2017 to 2022 |
| Market Analysis | Units for Volume, USD Million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East & Africa (MEA) |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, Nordic, Russia, BENELUX, Poland, France, Spain, Italy, Czech Republic, Hungary, Rest of Europe, Brazil, Mexico, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, ASEAN, Thailand, Malaysia, Indonesia, Australia, New Zealand, Others |
| Key Segments Covered | Component, Data Center Type, Data Center Tier, Installation Type, End-user, Industry, Region |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The data center power management market size is expected to reach USD 20,260.5 million in 2023, with a forecasted surge to surpass USD 39,978.8 million by 2033.
The data center power management market surged from USD 15,844.6 million in 2018 to USD 19,222.5 million in 2022, exhibiting a 4.9% CAGR.
Prominent demand for data center power management is seen in the United States, China, and Germany, reflecting their tech-driven economies.
The modular data centers segment leads in revenue generation in the data center power management market by data center type.
BFSI, healthcare, manufacturing, IT & telecom, and retail sectors lead in embracing innovative data center power management technologies.
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