TELECOM POWER SYSTEMS MARKET ANALYSIS

The global telecom power systems market size was valued at USD 3,900.0 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.36% from 2023 to 2030. The market is expected to exhibit high growth due to a number of factors such as increasing adoption of telecom services, rising demand for advanced telecom infrastructure, and growing reliance on telecommunication networks in remote areas. The market is also expected to witness a high growth rate in the upcoming years due to the rise in demand for hybrid power system.

Global Telecom Power Systems Market: Regional Insights

Among regions, North America is expected to dominate the global telecom power systems market over the forecast period. This is due to early adoption of novel innovative technologies in the telecom sector of the region, as penetration of mobile and adoption of 5G is high in the region. The growing consumption of one 5G frequency balanced between 3.5kW and 4.5kW, which is greater than that of 4G network. Due to higher frequencies, mobile network coverage gets reduced, which results in deployment of more mobile towers for covering the whole consumer base. These factors thus, drive the telecom power systems in the region.

Asia Pacific is projected to witness robust growth in the global telecom power systems market over the forecast period due to increasing development of telecom sector and presence of large customer base in the region. Moreover, the investment in 5G services are increasing across the region by countries such as India, China, Australia, Japan, South Korea, and Singapore to develop the domestic 5G market. This in turn is expected to drive growth of the market across the region in the near future.

Figure 1. Global Telecom Power Systems Market Share (%), By Region, 2022

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Global Telecom Power Systems Market Drivers:

Increasing expansion of telecom infrastructure to fuel the market growth

Due to the epidemic of COVID-19, large part of the population had to stay indoors, which further increased demand for remote work. Due to increasing number of remote workers, the strain on communication infrastructure began to grow. Thus, providers of telecom services started to build enhanced telecom power systems in several regions. Thus, expansion of industry demand for advanced communication infrastructure led to increase in telecom power market expansion. Moreover, investments in telecom sector are increasing in various regions with increasing user base. For instance, as per the Department for Promotion of Industry and Internal Trade, during April 2000 to March 2021, the FDI inflow into the telecom sector was total US$ 37.66 billion. Thus, growing expansion of telecom infrastructure is expected to drive growth of the global telecom power systems market over the forecast period.

Growing deployment of hybrid power systems in telecom sector to augment the market pace

The telecom industry is increasingly witnessing adoption of hybrid power for reducing cost of power system life-cycle and carbon emissions. The components of power conversion consist highest efficiency and are capable of gathering the most energy from renewable sources. For instance, in August 2021, Stealth Power, partnered with Tower Solutions, a leading provider of mobile tower for expanding future work and collaboration. The mobile power solutions of Stealth Power will power the mobile towers of Tower Solutions. Such deployment of hybrid power systems in telecom sector is expected to fuel growth of the global telecom power systems market during the forecast period.

Global Telecom Power Systems Market Opportunities:

Growing awareness regarding carbon footprint of telecom industry, and growing expansion of telecom infrastructure in rural areas is expected to create multiple opportunities in the global telecom power systems market during the forecast period. Telecom sector involves businesses that increase feasibility of information transfer all over the world, through phone, internet, airways, cables, or wirelessly. The infrastructure of these companies allows to send the data anywhere across the globe through words, speech, video, or audio. The expansion of these companies is increasing all over the world, which in turn is expanding the telecom industry. This in turn is expected to drive the adoption of telecom power systems creating ample opportunities in the market.

Growing adoption of advanced technology such as Internet of Things (IoT), cloud computing, and AI among others is expected to create lucrative environment for growth opportunities in the global telecom power systems market during the forecast period. These technology will enable objects to connect with one another. The presence of Big Data and analytics are creating need for establishing proper rules for addressing privacy and security concerns. IoT and other technologies are likely to intensify these issues. This can be concluded as, the telecom sector playing major role in development of future industries which backup support. This in turns is likely to bring multiple opportunities in the market during the forecast period.

Global Telecom Power Systems Market Trends:

Growing penetration of 5G is a major trend in the market

5G is marketed as the fifth generation of radio technology, and is known to be the new wireless broadband technology. The firms are targeting for the bit rate in order to achieve peak data rates of 100 mbps to 20 gbps in the downlink. However, 300 mbps rates are not yet achieved in practical implementations. The use of 5G uses of sub-6 GHz spectrum that ranges from 450 MHz to 6 GHz and mmWAve frequencies that range from 24GHz to 54GHz. The rapid penetration of 5G is driving growth of this this market, as it is likely to drive the use of more cell sites. Thus, trend of growing 5G penetration is likely to continue in the global telecom power systems market during the forecast period.

Growing need for reducing carbon footprint of telecom industry is another trend in the market

The desire among consumers to decrease the carbon footprint of telecom industry, and development of telecom infrastructure to off-grid locations such as Asia and Africa is creating new prospects for the market. To reduce the carbon footprint, adoption of green technology is growing all over the world in the telecom industry.as per the GSMA, the adoption of this technology can save approximately US$ 100-500 million and 40 million tonne of CO2 every year. The need for reducing energy cost of telecom industry continues to grow, the adoption of green telecom power systems is likely to increase in the coming years. This in turn is expected to drive growth of the market in the near future.

Global Telecom Power Systems Market Restraints:

High cost of deployment and operation to impede market growth

The quality and range of services that are provided by telecom companies and internet service providers are increasing, due to which the profit margins are decreasing. Furthermore, due to this, the distinction between technology suppliers and telecom businesses is becoming blur along with increasing availability of novel technologies. The telecom power systems are deployed to dodge the operational time and for maintaining the high level quality of power. The telecom power system equipment come with various features, due to which their cost increases. The high-end power quality equipment come with different features, like detection of disturbance, flicker detection, and high-power efficiency. Thus, cost of these equipment and their installation is high, which is a major facto expected to hinder growth of the global telecom power systems market over the forecast period.

Environmental issues of telecom power supply systems to hamper the market pace

Due to the dependability and sturdiness of diesel generators, they are favored electric energy suppliers for backup power and off-grid applications such as cellular base stations. However, these generators emit harmful environmental gases such as nitrogen oxide, carbon dioxide, and hydrocarbons, which are known to be ozone-depleting gases. Thus, the environmental issues regarding telecom power supply system’s resulting from heavy use of diesel for operating telecom infrastructure acts as a major restraining factor for the global telecom power systems market.

Figure 2. Global Telecom Power System Market, By Component

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Global Telecom Power Systems Market Segmentation:

The global telecom power systems market report is segmented into Component and Power Range.

Based on Component, the market is segmented into DC Power Systems, Rectifiers and Converters, UPS and Inverters, Power Protection and Distribution (AVR, ATS, etc.), Batteries, and Cabinets and Enclosures. Out of which, DC Power Systems is expected to dominate the global market over the forecast period and this is attributed to the increasing demand for telecom base station power, leading to growing advent of 4G and 5G networks. The growing deployment of 5G is a major drive for DC power systems, and it is likely to grow during 2020 to 2022 as the investment in 5G are increasing rapidly all over the world. Thus, the segment is likely to show strong growth in the coming future.

Rectifiers and Converters segment is also expected to witness significant growth in the near future and this is owing to the growing demand for rectifiers and converters. Rectifiers enable current flow in one direction. These devices turn alternating electricity into high-quality direct voltage need for telecom equipment. Thus, demand for rectifiers and converters is increasing in telecom sector, which in turn is driving growth of this segment.

Based on Power Range, the market is segmented into High, Medium, and Low. Out of which, High Power is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of high power telecom power systems. The segment includes telecom power systems that rate more than 36kW to 700kW. The basic applications in high-power telecom power system are long-distance transmission systems, providing standby power to wireless networks, central and local office switches, and installation of other large switches. Market players are increasingly adopting high power telecom power systems, which is further expected to support growth of the market.

Medium Power segment is also expected to witness significant growth in the near future and this is owing to the continuous demand for medium power telecom power systems. The segment includes telecom power system with rating of 9kW to 36kW. These systems are used in indoor site of access network, small and medium capacity central office, indoor site of convergence network, and enterprise communication network. The demand for medium power telecom power system remains constant in these applications, which in turn supports growth of this segment.

Global Telecom Power Systems Market: Key Developments

In December 2020, Eaton Corporation PLC, entered into an agreement of acquiring 50% stake of HuanYu High Tech, which is a subsidiary of HuanYu Group, a manufacturer of low-voltage circuit breakers in China.

In July 2020, Vertiv Co, launched the Vertiv Geist rack power distribution units (rPDUs) with the novel, patented option, which is compatible for C14 and C20 plug types, in India. This further simplifies the purchase and provision of novel rPDUs along with other rack tools.

In February 2021, Efore introduced two novel lithium-ion battery products, a 100Ah indoor battery and a 50Ah outdoor battery in the market.

In March 2021, Delta Electronics Inc. announced collaboration with Infineon for development of its solutions with lower consumption of energy and lower CO2 emissions in 5G and 4G telecommunications.

Global Telecom Power Systems Market: Key Companies Insights

The global telecom power systems market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global telecom power systems market are Schneider Electric SE, Eaton Corporation PLC, ABB Ltd., Huawei Technologies Co. Ltd., EnerSys, Cummins Inc., Delta Electronics Inc., Myers Power Products Inc., Efore, and Vertiv Co.

*Definition: The Telecom Power System is a key part of the telecommunication infrastructure, and it helps to manage and maintain electrical energy for the telecom network. Telecom Power Systems are an essential component of the telecommunication industry and play a key role in providing uninterrupted power to the telecom towers and base stations. This is done by utilizing rectifiers, batteries and power system controllers to secure telecommunication services in case of grid power interruptions and fluctuations.