Power facilities play a crucial role in full functionality of a datacenter. The efficiency and reliability of data storage add backup depends on the strength of the power system and security. However, increasing expenses on power has become a crucial cause of concern for the enterprise looking to manage their operational costs. As a result, adoption of efficient power solutions has become a key trend in the datacenter market. Technological advancements in the power sector and growing adoption trends are some of the major driving forces behind the global data center power market. Key players in the industry are aiming at steady rise during the next few years. This rise is backed up by efficient solutions, innovative applications and growing demand from different industrial verticals keen on investing in the datacenters.
Drivers & Restraints for Power Sector in Datacenter Market
According to the experts, datacenter power market drivers have many facades. The strongest driving factors for the market include increasing requirement for data centers and modular solutions for warehousing and data sharing. Apart from that, rising prices of electricity, power density across the information centers, critical applications and their dependency on electricity, uptime assurance provided by the power solution providers, and technological advancements are some of the major driving factors for the market. rising demand from the emerging markets like Asia Pacific, Latin America, Middle East and Africa are also creating better investment and expansion opportunities for the established players in the market.
Growing demand and awareness towards reducing carbon footprints and adoption of eco-friendly and efficient power systems are also creating better opportunities in the data center power market. Aging and outdated technology of the traditional centers are also driving their replacement with the efficient solutions. Researchers suggest that, major hindrances for the market include high investments at the initial stage, growing competition, compatible power solutions and lack of awareness towards the advantages of efficient power and datacenter solutions. However, high-tech power solutions like DC current, modular power and intelligent or rack power distribution units are expected to contribute to the rising demand and adoption in this market on global scale.
What to Expect – Forecasts
According to the latest market research reports, the global data center power market is expected to grow at a steady CHGR of over 9% from 2014 to 2019. At the projected growth rate, the industry is poised to become worth more than $23.67 billion by the end of the year 2019. As of the year 2014, the industry is estimated to be worth $15.19 billion. During the forecasting period, North America is expected to capture the largest market share. However, Asia Pacific and other emerging regions are also projected to witness strong rise in terms of demand, revenue and business opportunities on global scale. Increased prospects of investments, mergers and acquisitions are also driving the global business towards emerging parts of the world.