Telecom Power Systems Market

Telecom Power Systems Market Overview:

The global telecom power systems market size reached US$ 5.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 10.5 Billion by 2032, exhibiting a growth rate (CAGR) of 7.7% during 2024-2032. The market is driven by the growing number of smart cities, as they leverage telecom power systems for data management, energy efficiency, and overall sustainability, increasing reliance on 5G technology, and rising adoption of green power.

Telecom Power Systems Market Analysis:

• Major Market Drivers: The rising global telecommunication network, along with the growing number of mobile devices, is offering a favorable market outlook.
• Key Market Trends: The shift towards 5G networks and increasing focus on green power are strengthening the growth of the market.
• Geographical Trends: North America holds the largest segment because of its developed telecommunications infrastructure and ongoing innovations in technology.
• Competitive Landscape: Some of the major market players in the telecom power systems industry include Delta Electronics Inc., Eaton Corporation plc, ABB Ltd., Huawei Technologies Co. Ltd., Schneider Electric SE, Vertiv Group Corporation, Cummins Inc., Myers Power Products Inc., Ascot Industrial S.r.l., Unipower, among many others.
• Challenges and Opportunities: While the market faces challenges like technology complexity, it also encounters opportunities on account of the rural connectivity initiatives.
   

Telecom Power Systems Market Trends:

Rising trend of smart cities

According to the IMARC Group’s report, the global smart cities market reached US$ 1,233.7 Billion in 2023. Smart cities incorporate the use of connected devices, sensors and data platforms in their functional models. This necessitates robust telecom infrastructure, including reliable power systems, to support seamless connectivity and data transmission. In addition, smart cities deploy extensive networks of IoT devices and sensors for various applications, such as smart lighting, traffic management, waste management, and environmental monitoring. These devices require constant connectivity, which, in turn, requires dependable telecom power systems. In addition, telecom power systems are a critical component that provides power to these networks to ensure their availability to serve the traffic demands.

Growing 5G connections

5G networks require the deployment of more small cells and base stations to support high-speed and low latency connections. Such expansion requires the installation of more telecom power systems to cater to the increasing number of network nodes. Moreover, 5G technology dissipates more power per data unit than previous generations owing to high frequency and increased processing demands. Telecom power systems are designed to address these higher energy requirements efficiently. Apart from this, various telecom operators are investing to transform the legacy infrastructure and build new infrastructure for 5G, which encompasses investing in better power systems for fulfilling new demands and reliability standards of 5G networks, thereby boosting the telecom power systems market revenue. As per an article published on the website of the National Telecommunications and Information Administration U.S. Department of Commerce in 2023, the global 5G connections are forecasted to reach 5.9 billion by the end of 2027.

Increasing adoption of green power

Rising regulatory pressure to reduce carbon emissions and promote sustainability is encouraging telecom operators to adopt green power solutions, which, in turn, is driving the demand for telecom power systems that incorporate renewable energy sources, supporting compliance with environmental rules. Furthermore, renewable green power solutions like solar and wind power, offer long-term cost savings compared to traditional fossil fuel-based power generation. Telecom operators are motivated to invest in green power systems to lower operational costs and improve overall energy efficiency. Besides this, most telecom operators are focused on implementing CSR strategies aimed at making their impact on the environment as minimal as possible. Some of these initiatives include embracing green power systems for telecom infrastructure, which, in turn, fosters corporate image and stakeholder management. The IMARC Group’s report shows that the global green power market is expected to reach US$ 160.7 Billion by 2032.

Telecom Power Systems Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels for 2024-2032. Our telecom power systems market report has categorized the market based on product type, component, power source, and grid type.

Breakup by Product Type:

• DC
• AC
   

DC accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the product type. This includes DC and AC. According to the report, DC represents the largest segment.

DC systems are easily adaptable to renewable energy supplies, such as solar panels and windmills, to minimize operating expenses and adverse effects on the environment. Additionally, DC systems have lower energy losses than AC systems, thus making them more suitable to be installed in remote or off-grid locations, where telecom towers are often situated. In line with this, DC power systems are less complex in structure with fewer components prone to failure, thereby reducing maintenance requirements and downtime.

Breakup by Component:

• Rectifiers
• Converters
• Controllers
• Heat Management Systems
• Generators
• Others
   

Generators holds the largest share of the industry

A detailed breakup and analysis of the market based on the component have also been provided in the report. This includes rectifiers, converters, controllers, heat management systems, generators and others. According to the report, generators account for the largest market share.

Generators are regarded as invaluable component to telecom structure due to the need for constant power to maintain the connectivity and functionality of structures. They act as a standby power source when the mains electricity is unavailable, essential in areas with poor or unreliable power grid infrastructure. Their ability to work in the fluctuating environments also strengthens their position in the market as they address different geographical and operational requirements of the telecom networks across the globe, thereby supporting the telecom power systems market growth.

Breakup by Power Source:

• Diesel-Battery
• Diesel-Solar
• Diesel-Wind
• Multiple Sources 
   

Diesel-battery represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the power source. This includes diesel-battery, diesel-solar, diesel-wind, and multiple sources. According to the report, diesel-battery represents the largest segment.

Diesel-battery generators offer a strong solution, capable of generating vast amounts of power consistently. They serve as a primary source of energy, especially in regions with unreliable grid infrastructure or frequent power outages. Moreover, diesel generators can quickly respond to sudden increases in power demand, ensuring stability during peak usage periods. The integration of batteries complements this setup by providing backup power during generator startup times or as a temporary power source during fuel refueling intervals, thereby bolstering the telecom power systems demand.

Breakup by Grid Type:

• On Grid
• Off Grid
• Bad Grid
   

Bad grid exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the grid type have also been provided in the report. This includes on grid, off grid and bad grid. According to the report, bad grid accounts for the largest market share.

Many regions, especially in developing countries or remote areas, struggle with unreliable or unstable electricity grids. These grids may suffer from frequent power outages, voltage fluctuations, or inadequate infrastructure, making them unsuitable for powering critical telecom equipment consistently. As a result, telecom operators and infrastructure providers opt for alternative power solutions that can guarantee uninterrupted power supply, such as diesel generators, hybrid power systems, or fuel cells. These solutions are essential for maintaining the reliability and availability of telecom services, ensuring seamless communication even in areas with unreliable grid infrastructure.

Breakup by Region:

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

North America leads the market, accounting for the largest telecom power systems market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America, Asia Pacific, Europe, Middle East and Africa, and Latin America. According to the report, North America represents the largest regional market for telecom power systems.

North America emphasis on technological innovations and sustainability that accelerate the adoption of modern telecom power solutions, such as renewable energy-powered systems and energy-efficient technologies. Moreover, 5G networks in Mexico are designed to deliver significantly higher data speeds, lower latency, and enhanced connectivity, catering to an increasing demand for advanced telecommunications services. This technological advancement prompts telecom operators to invest in modern power solutions that can efficiently handle the increasing energy demands. An article published in 2023 on the website of the International Trade Administration (ITA) shows that 5G network is expected to account for around 43 percent in Mexico by 2032. 

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major telecom power systems companies have also been provided. Some of the major market players in the telecom power systems industry include Delta Electronics Inc., Eaton Corporation plc, ABB Ltd., Huawei Technologies Co. Ltd., Schneider Electric SE, Vertiv Group Corporation, Cummins Inc., Myers Power Products Inc., Ascot Industrial S.r.l., and Unipower.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Key players are integrating renewable energy sources, such as solar and wind power into their telecom power solutions to reduce dependency on fossil fuels and enhance sustainability. They are also focusing on improving the efficiency of power conversion and management systems to reduce energy consumption and operational costs. In addition, key manufacturers are implementing advanced monitoring and management systems to remotely monitor power systems, optimize performance, and predict maintenance needs. They are integrating telecom power systems with smart grid technologies to enhance grid stability, optimize energy distribution, and support demand response initiatives. Besides this, telecom power systems market recent developments, such as modular and scalable power system designs, that can be easily deployed and expanded to meet varying telecom network requirements are done by key players. They are collaborating with telecom operators, technology providers, and research institutions to drive innovations and address market challenges effectively. For instance, in 2023, ABB entered into a strategic partnership with Direct Energy Partners (DEP), a digital technology start-up focused on expediting the adoption of Direct Current (DC) microgrids. The partnership involves a minority investment in Direct Energy Partners through ABB’s venture capital unit, ABB Technology Ventures (ATV).

Telecom Power Systems Market News:

• May 6, 2024: Delta Electronics Inc., a global leader in power management and a provider of IoT-based smart green solutions, demonstrated its unique capabilities to enhance energy efficiency, cooling, and ICT infrastructure solutions for cloud to edge AI data centres at COMPUTEX TAIPEI 2024.
• June 7, 2024: Huawei and the International Union for Conservation of Nature (IUCN) jointly hosted the 2024 Tech4Nature summit to promote innovation in information and communication technology (ICT) and nature conservation sectors.

Telecom Power Systems Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, telecom power systems market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the telecom power systems industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.