5G Deployment to Drive Global Expansion for Data Center Power Systems by 2025

Frost & Sullivan’s recent analysis, Global DC Power Systems Market, Forecast to 2025, predicts the increasing implementation of 4G and 5G networks across the world will lead to steady growth in demand for data center (DC) power systems. While market revenue is expected to drop in 2020 due to the COVID-19 pandemic, it will likely rebound to pre-pandemic levels as early as 2021 and rise at a CAGR of 4.6% to $5.5 billion by 2025. Unit shipments are also expected to grow at a CAGR of 2.7% between 2019 and 2025, increasing from 895,000 units to 1.04 million.

“The increased power and processing requirements of 5G infrastructure creates the need for highly efficient and reliable power systems that can tolerate heavy loads. This can be fulfilled by DC power systems, which are modular and extremely efficient,” said Manoj Shankar, Senior Research Analyst, Energy and Power Systems Practice at Frost & Sullivan. “Telecom base stations in off-grid areas or in areas that lack proper power supply also present a large market opportunity for DC power systems, which can be coupled with renewable energy sources.”

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Shankar added: “The deployment of 5G networks across the globe is expected to be slow initially as most telecom companies have invested heavily in 4G technologies. The expansion is most likely to gather pace in the US, China, and Europe from 2021. The Asia-Pacific and North American markets will see strong growth as companies in these regions lead investments in the telecom sector. China and the US will vie for global leadership in the 5G space, which will lead to the increased demand for DC power systems from these two countries in the future.”

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For further revenue opportunities, power system manufacturers should:

• Focus on markets in both developed and developing countries where 5G, 4G, and LTE networks are being deployed.
• Make their products more modular and efficient at a lower cost, which will drive wider acceptance once the 5G networks rollout.
• Set up manufacturing houses for better lead times and complement them with regional servicing hubs that can easily reach out to customers.
• Forge relationships with engineering, procurement, and construction (EPC) participants to design new and innovative solutions to implement the network.

Global DC Power Systems Market, Forecast to 2025 is part of Frost & Sullivan’s global Energy and Power Systems Growth Partnership Service program.

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