by Telecom power systems are critical components that ensure uninterrupted power supply to telecommunication infrastructure including mobile towers, network equipment, and switching systems. They consist of batteries, rectifiers, converters, and other associated equipment that deliver backup power in case of power failures from the electricity grid. Telecom power systems allow network elements to function continuously and maintain connectivity for users. The proliferation of 5G networks and migration of workloads to cloud environments are driving exponential data traffic growth globally. Network operators are required to deploy greater numbers of 5G base stations and associated hardware to deliver higher bandwidth and lower latency connectivity. This extensive network build-out demands highly reliable power infrastructure to support always-on network availability.
The global Telecom Power Systems Market is estimated to be valued at US$ 4187.04 Mn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Increased reliance on wireless networks for digital services and adoption of disruptive technologies like artificial intelligence and Internet of Things will continue to raise power requirements of telecom towers and data centers. Mobile operators are investing in advanced power solutions to strengthen network robustness and satisfy growing electricity needs driven by data usage growth.
Market key trends:
Modular power systems allow adding power modules on-demand without service interruptions. They offer enhanced scalability with simplified configuration and installation processes. This helps network operators optimize power asset utilization and reduce capital expenditures over the long run. Innovation in power electronics is another notable trend, with industry participants developing newer converged and intelligent platforms integrated with advanced energy storage and digital monitoring capabilities. These cost-effective and future-proof offerings assist communication service providers in building power-efficient networks.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the telecom power systems market is moderate. Establishing operations requires high initial investments in infrastructure and technology.
Bargaining power of buyers: The bargaining power of buyers in the telecom power systems market is moderate to high due to the presence of a large number of buyers. Buyers can negotiate on price and demand additional services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are a sufficient number of component manufacturers. However, industry consolidation has increased supplier bargaining power.
Threat of new substitutes: The threat of new substitutes for telecom power systems is low as there are limited alternatives for reliable power backup.
Competitive rivalry: The competitive rivalry in the market is high due to the presence of numerous global and regional players offering similar products. Players compete based on product quality, reliability, brand, and pricing.
Key Takeaways
The Global Telecom Power Systems Market Size is expected to witness high growth. Regional analysis related content comprises Asia Pacific region is expected to dominate the market. China, India, and Japan are major markets in the region due to rapid deployment of 5G infrastructure and increasing mobile data traffic.
Key players operating in the telecom power systems market are Delta Electronics, Eaton, Vertiv, Huawei, Schneider Electric, GE Industrial Solutions, and Cummins.
Regional analysis related content comprises The United States is another key market due to increased investments to upgrade 4G networks and deploy 5G. Upgrades of tower and data center infrastructure will drive demand for telecom power systems in the country.
Key players related content comprises Europe is also expected to create growth opportunities with the rollout of 5G networks. Countries such as the UK, Germany, and France are witnessing investments to upgrade fixed and mobile networks.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
