Data Center Power Management Market Size, Share, and Trends 2024 to 2033

Data Center Power Management Market Size to Reach USD 14.20 Bn by 2033

The global data center power management market size was valued at USD 7.12 billion in 2023 and is anticipated to reach around USD 14.20 billion by 2033, growing at a CAGR of 7.15% from 2024 to 2033.

Key Takeaways

• North America contributed 36% of market share in 2023.
• Asia-Pacific is estimated to expand the fastest CAGR between 2024 and 2033.
• By component, the solution segment held the largest market share in 2023.
• By component, the service segment is anticipated to grow at a remarkable CAGR between 2024 and 2033.
• By data center size, the small data center segment generated the largest market share in 2023.
• By data center size, the large data center segment is expected to expand at the fastest CAGR over the projected period.
• By application, the IT & telecom segment has contributed the major market share in 2023.
• By application, the healthcare segment is expected to expand at the fastest CAGR over the projected period.

Data Center Power Management Market Size in U.S. 2024 to 2033

The U.S. data center power management market size reached USD 1.92 billion in 2023 and is projected to surpass around USD 3.83 billion by 2033 at a CAGR of 7.20% from 2024 to 2033.

North America has contributed more than 36% of market share in 2023. Firstly, the region boasts a robust infrastructure for data centers, driven by the presence of numerous technology companies and cloud service providers. Secondly, North America has high levels of digitalization across various sectors, leading to increased demand for data center services. Additionally, the region prioritizes technological advancements and investments in energy-efficient solutions, contributing to the dominance of North America in the market for data center power management.

Asia-Pacific is witnessing rapid growth in the data center power management market due to several factors. Firstly, the region is experiencing significant digital transformation, leading to an increased demand for data center infrastructure. Additionally, rising internet penetration and expanding cloud services drive the need for efficient power management solutions. Moreover, governments are promoting sustainable energy practices, further fueling the adoption of energy-efficient power management technologies. With these combined forces, the Asia-Pacific region emerges as a key player in the global data center power management market, experiencing substantial growth and opportunities.

Meanwhile, Europe is experiencing notable growth in the data center power management market due to several factors. Firstly, increasing digitization across various industries drives the demand for data center services, necessitating efficient power management solutions. Additionally, stringent regulations regarding energy efficiency and environmental sustainability push data center operators to invest in advanced power management technologies. Moreover, the rise of edge computing and cloud services fuels the expansion of data center infrastructure, further driving the demand for power management solutions to ensure reliability, efficiency, and compliance.

Data Center Power Management Market Overview

The data center power management market offers strategies and technologies used to efficiently control and distribute electricity within data center facilities. It involves ensuring that the power supply meets the demands of the various equipment and systems housed in the data center while also prioritizing energy efficiency and reliability. This includes tasks such as monitoring power usage, regulating voltage levels, implementing backup power systems like uninterruptible power supplies (UPS), and optimizing cooling systems to maintain ideal operating conditions. Effective power management helps prevent downtime, protects sensitive equipment from power fluctuations, and reduces energy consumption and associated costs. It plays a crucial role in ensuring the continuous operation of data centers, which are essential for storing, processing, and accessing vast amounts of digital information in today's interconnected world.

Data Center Power Management Market Data and Statistics

• According to the U.S. Department of Energy, data centers account for about 2% of the country's total electricity consumption, highlighting the need for energy-efficient power management solutions.
• The World Economic Forum predicts that data volume will surge in the upcoming years, projected to hit 463 exabytes by 2025.
• GSMA anticipates a continuous rise in Internet of Things (IoT) connections from 2020 to 2030, with an estimated total of 24 billion enterprise IoT connections by 2030. This growth, coupled with the expansion of social media, is exponentially increasing the global data generation and storage.
• In July 2023, ABB India's Electrification business introduced groundbreaking UPS solutions tailored for data centers. This innovative UPS, a pioneer in sustainability, forms part of the ABB EcoSolutions portfolio and aligns with ABB's circularity framework.

Growth Factors

• The proliferation of data-intensive applications, cloud computing, and digital services has led to a significant increase in the number and size of data centers globally. This expansion drives the demand for effective power management solutions to ensure reliable and efficient operations.
• Energy expenses represent a significant portion of the operational costs for data centers. As energy prices continue to rise, data center operators are increasingly focused on optimizing power consumption and improving energy efficiency to reduce operational expenses. This drives the adoption of advanced power management technologies.
• With growing concerns about climate change and sustainability, there's a heightened awareness of the environmental impact of data centers. Greenhouse gas emissions from energy consumption in data centers have drawn attention, prompting the adoption of energy-efficient power management solutions to minimize carbon footprints and meet sustainability goals.
• Ongoing advancements in power management technologies, such as intelligent power distribution units (PDUs), energy-efficient UPS systems, and advanced cooling solutions, enable data center operators to optimize power usage, improve reliability, and enhance overall operational efficiency. These innovations drive market growth by offering more effective solutions to address evolving requirements.
• Governments and regulatory bodies are imposing stricter regulations and standards related to energy efficiency and environmental sustainability. Compliance with these regulations, such as ENERGY STAR certification and LEED certification, necessitates the implementation of robust power management strategies and technologies in data centers, stimulating market growth.
• The proliferation of edge computing, driven by the need for low-latency processing and real-time data analytics, is leading to the deployment of distributed IT infrastructure closer to the point of data generation. Edge data centers require specialized power management solutions to ensure reliability, efficiency, and scalability, contributing to the expansion of the data center power management market.

Data Center Power Management Market Scope

Data Center Power Management Market Dynamics

Driver: Escalating energy costs driving the need for optimization

Escalating energy costs are a significant driver in boosting the demand for data center power management solutions. As energy expenses continue to rise, data center operators face mounting pressure to optimize their power consumption to reduce operational costs. By implementing efficient power management strategies and technologies, such as intelligent cooling systems and energy-efficient UPS systems, data centers can minimize their energy usage without compromising on performance or reliability.

This heightened focus on optimization not only helps data centers cut down on their electricity bills but also aligns with broader sustainability goals. Many businesses are increasingly concerned about their environmental impact and are actively seeking ways to reduce their carbon footprint. As a result, the demand for energy-efficient power management solutions in data centers is surging, with operators looking to invest in technologies that can help them achieve both cost savings and environmental sustainability. In essence, the need to mitigate escalating energy costs is driving a strong demand for data center power management solutions that offer efficiency, reliability, and sustainability.

Restraint: Security concerns related to IoT devices

Security concerns related to IoT devices serve as a significant restraint in the data center power management market. With the proliferation of IoT devices in data centers, there is an increased risk of cyberattacks and breaches, posing threats to the integrity and reliability of power management systems. Many IoT devices lack robust security features, making them vulnerable to hacking and unauthorized access, which can potentially disrupt critical power management functions. These security concerns deter data center operators from fully embracing IoT-based power management solutions, as they prioritize safeguarding their infrastructure against potential cyber threats. Without adequate security measures in place, the adoption of IoT devices for power management purposes remains limited, hindering the market demand for data center power management solutions.

As a result, industry stakeholders must address these security challenges by implementing robust cybersecurity protocols and enhancing the resilience of IoT devices to mitigate risks and foster greater trust and confidence in adopting IoT-enabled power management technologies.

Opportunity: Increasing demand for colocation and hyperscale data centers

The increasing demand for colocation and hyperscale data centers presents significant opportunities in the market for data center power management. Colocation facilities, where multiple tenants share data center space and resources, require efficient power management solutions to meet the diverse needs of different clients while optimizing energy usage and costs. As more businesses opt for colocation services to outsource their IT infrastructure, there is a growing need for power management systems that can accommodate varying workloads and scalability requirements.

Similarly, hyperscale data centers, which are massive facilities operated by technology giants to support cloud computing and digital services, demand advanced power management technologies to handle substantial power loads efficiently. These facilities require robust solutions for power distribution, backup power, and energy efficiency to ensure uninterrupted operations and support the rapid growth of digital services. As the demand for colocation and hyperscale data centers continues to rise, the market for data center power management is poised for growth, offering opportunities for innovation and expansion in delivering tailored solutions to meet the evolving needs of these facilities.

Component Insights

The solution segment held the highest market share of 65% in 2023. In the data center power management market, the solution segment comprises various components aimed at optimizing power distribution, monitoring, and backup within data center facilities. This includes uninterruptible power supply (UPS) systems, power distribution units (PDUs), energy storage solutions, and intelligent power management software. Trends in this segment focus on the integration of advanced technologies such as artificial intelligence and predictive analytics to enhance energy efficiency, reliability, and resilience of data center power infrastructures, meeting the evolving demands of modern data centers.

The service segment is anticipated to witness rapid growth at a significant CAGR of 8.2% during the projected period. In the data center power management market, the service segment encompasses various offerings provided by vendors to support the deployment, maintenance, and optimization of power management solutions within data centers. This includes services such as consulting, installation, integration, training, and ongoing support. A key trend in this segment involves the increasing demand for managed services, where vendors offer outsourced management of power infrastructure to help data center operators reduce operational complexity and focus on their core business activities.

Data Center Size Insights

The small data center segment has contributed the biggest market share in 2023. Small data centers typically refer to facilities with limited floor space and IT infrastructure, catering to the needs of small to medium-sized businesses or specific applications. In the data center power management market, trends include the adoption of modular and scalable power solutions tailored to the size and requirements of these facilities. Additionally, there is a focus on energy-efficient technologies and remote monitoring capabilities to optimize power usage and ensure reliable operations in small data center environments.

The large data center segment is anticipated to witness rapid growth over the projected period. Large data centers are facilities that typically house extensive computing infrastructure, serving major corporations, cloud service providers, and hyperscale operators. In the data center power management market, trends show a focus on efficiency and scalability. Large data centers demand robust power management solutions to handle high power loads efficiently, optimize energy consumption, and ensure reliability. Trends include the adoption of advanced cooling systems, renewable energy integration, and the implementation of intelligent power distribution and monitoring technologies to meet the demands of these sizable operations.

Application Insights

The IT & telecom segment has held the biggest market share in 2023. In the data center power management market, the IT & telecom segment primarily encompasses power management solutions tailored for information technology (IT) infrastructure and telecommunications networks. This includes uninterruptible power supply (UPS) systems, power distribution units (PDUs), and energy-efficient cooling solutions designed to support the critical operations of IT equipment and telecommunications hardware. Recent trends in this segment include the adoption of energy-efficient technologies, the integration of smart monitoring and control systems, and the deployment of modular power management solutions to enhance flexibility and scalability.

The healthcare segment is anticipated to witness rapid growth over the projected period. In the healthcare segment, data center power management involves ensuring reliable and efficient power supply to support critical medical applications, electronic health records (EHRs), and diagnostic imaging systems. Trends in this sector include the adoption of energy-efficient UPS systems and cooling solutions to minimize downtime and maintain data integrity. Additionally, there's a growing focus on implementing intelligent monitoring and analytics tools to optimize power usage, enhance system reliability, and ensure compliance with stringent regulatory requirements.

Recent Developments

• In October 2023, ABB Ltd disclosed its collaboration with ZincFive, welcoming them as an authorized supplier for its UPS systems. ZincFive's nickel-zinc battery option joins the existing lithium-ion and lead-acid offerings, now integrated and supported within ABB's uninterruptible power supply system.
• Also in October 2023, Vertiv initiated a partnership with American Electric Power (AEP) and inaugurated the Vertiv Customer Experience Center. This center showcases a microgrid power solution aimed at aiding data centers in tackling challenges related to electrical grid capacity. The Vertiv microgrid, with a capacity of 1.0 megawatt (MW), comprises an Uninterruptible Power Supply (UPS) system, lithium-ion battery, system controls, and other crucial components, catering to customers exploring the potential of microgrids and energy storage systems for their mission-critical power systems.
• In November 2023, Vertiv introduced the Vertiv SmartMod Max CW, a prefabricated modular data center tailored to meet escalating demands. This solution accommodates up to 200kW of total IT load in a single system, offering a variety of customization options including power capacities, rack quantities and sizes, and module dimensions. The Vertiv SmartMod Max CW integrates the Vertiv Liebert EXM uninterruptible power supply (UPS) system in power ratings of 100 kW, 150 kW, and 200 kW, along with thermal management units equipped with intelligent controls, empowering small-scale operations such as edge data centers to fulfill their specific needs.
• In October 2023, ABB unveiled the ABB TruFit power distribution unit, an all-in-one solution designed to address the mounting demands of rapidly approaching data center project timelines. With flexibility ranging from 50 to 800 kVA, TruFit offers outstanding configurability, reliability, and safety features at the system level.

Data Center Power Management Market Companies

• Schneider Electric SE
• ABB Ltd
• Eaton Corporation
• Vertiv Group Corp
• Delta Electronics, Inc.
• Huawei Technologies Co., Ltd.
• General Electric Company
• Legrand SA
• Raritan Inc.
• Cyber Power Systems (USA), Inc.
• Tripp Lite
• Socomec Group
• Vertiv Co.
• Emerson Electric Co.
• Mitsubishi Electric Corporation

Segments Covered in the Report

By Component

• Solution
• Service

By Data Center Size

• Small Data Center
• Medium Data Center
• Large Data Center

By Application

• BFSI
• Colocation
• Energy
• Government
• Healthcare
• Manufacturing
• IT & telecom
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa