7% CAGR forecast for DC power market til 2023
Technavio has published a new market research report forecasting the global data center power market from 2019-2023.
The global data center power market is expected to post a CAGR of over 7% during the period from 2019-2023, according to the latest market research report by Technavio. However, the market's growth momentum is expected to decelerate owing to a decrease in year-over-year growth, states the analyst.
According to the report's summary, "A key factor driving the growth of the global data center power market is the increasing adoption of intelligent PDUs. Intelligent PDUs help data centers to continue their operations without any issues including a blackout."
As pointed out by the report's summary, "The use of these PDUs has increased considerably in recent years due to their advanced features. For instance, intelligent PDUs offer power metering at the branch circuit level, power inlet, and power outlet levels. They also aid in the distribution of higher voltage for high-density deployments and provide circuit breakers through real-time metering. Data center service providers are investing heavily to integrate highly efficient PDUs. Thus, the growing shift toward highly intelligent and smart products will foster growth of the data center power market in the forthcoming years."
The new market research report segments the global data center power market by product (generators, transformers, UPS, transfer switches and switchgears, PDUs, and energy storage devices) and geographic regions (North America, Europe, APAC, South America, and MEA).
According to Technavio, "North America led the market in 2018, followed by Europe, APAC, South America, and MEA respectively. The market growth in North America can be attributed to the increasing need for data centers and servers arising from the rising investments by hyperscale cloud providers. In addition, the demand for data centers in North America is also rising due to the exponential growth of data traffic from enterprises and individual consumers."
Global data center power market to see increasing investments in HPC systems
Per the new study, increasing investments in HPC systems will also have a positive impact on the market and contribute to its growth significantly over the forecast period.
As stated by Technavio, "Investments in HPC systems are expected to increase considerably in the upcoming years. HPC systems use algorithms, networks, and simulated environments for computers ranging from small cluster computers to large supercomputers," the summary notes. "These systems are primarily being used for scientific and engineering applications."
Technavio adds that "HPC systems also aid in solving recurring problems and complex operations conveniently and efficiently for applications including physical simulations, quantum mechanics, weather forecasting, and molecular modeling. In addition, the global HPC market is also driven by the increasing need for establishing product innovation and economic competitiveness. Thus, increasing advantages of using HPC systems are expected to boost the investments in the data center power market during the forecast period."
“HPC systems are increasingly being deployed to handle compute-intensive workloads,” commented a senior research analyst at Technavio. "These systems require highly configured servers and high-performance data centers to perform these calculations efficiently. Thus, the increasing use of data centers with the rising deployment of HPC systems will further create enormous demand for data center power components during the forecast period."