The telecom power systems consist of components such as rectifiers, converters, batteries, and controllers that help in supplying reliable power to telecommunication infrastructure and networks. These systems find wide applications in cell sites, datacenters, and central office sites that support the stability and growth of voice and data services. The increasing adoption of 5G networks, internet of things (IoT), and smart city projects in emerging nations have increased the need for robust telecommunication infrastructure and networks, further driving the demand for telecom power systems for reliable power backup.
The global telecom power systems market is estimated to be valued at US$ 4187.04 Mn in 2024 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.
Market Dynamics:
Nations are heavily investing in building a robust telecom infrastructure backbone to support the growth of data services and connectivity. For instance, China aims to deploy over 600,000 5G base stations by 2023. Similarly, India’s National Digital Communications Policy aims to deploy towers in rural areas to improve connectivity.
The increasing reliance on telecom networks for services like online education, work from home, and e-commerce has also highlighted the need for redundancy in the infrastructure. Telecom power systems help maintain network uptime during power outages. However, factors such as high initial costs of deploying telecom batteries and conversion equipment may hinder market growth.
Segment Analysis
The telecom power systems market is dominated by the outdoor segment which holds more than 60% market share. With increasing deployment of small cells and macro towers globally due to rise in mobile data usage, outdoor power systems demand is increasing significantly. These systems are more vulnerable to environmental factors like temperature changes, humidity etc. Thus outdoor power systems require robust components and redundant power supplies to ensure uninterrupted operation of telecom infrastructure.
PEST Analysis
Political: Regulations around carbon emissions and use of green energy is prompting telecom companies to use more efficient power systems. Many countries provide subsidies for deployment of renewable energy systems.
Economic: Growing mobile subscriber base is driving greater investments by telecom operators in network infrastructures which require reliable powering. Mobile operators are facing profit pressures to reduce opex which is increasing focus on integrated intelligent power solutions.
Social: Rising adoption of smartphones and other mobile devices is propelling mobile data usage. This is enhancing the need to build robust telecom networks with strengthened power supply infrastructure to ensure connectivity.
Technological: Advancements in areas like lithium-ion batteries, hybrid power solutions, intelligent power management systems and remote monitoring & control are helping drive down costs and improve power backup times for telecom networks. Use of artificial intelligence and IoT is also enabling predictive maintenance of power assets.
Key Takeaways
The Global Telecom Power Systems Market Size is expected to witness high growth over the forecast period supported by ongoing 5G deployments and expansion of mobile broadband networks globally. The Asia Pacific region currently dominates the market accounting for over 35% share due to fast infrastructure deployments by China and India to catch up with technological advancements. China has emerged as a key manufacturing base for telecom power systems while India is a high growth market powered by government initiatives like Digital India.
Key players operating in the telecom power systems market are Huawei, Eaton, Delta Electronics, ZTE, Vertiv, Cummins, Schneider Electric, GE Industrial Solutions, Hitachi Hi-Rel Power Electronics, VoltServer and Aggreko. Huawei and ZTE have established strong presence by leveraging opportunities in 5G rollout. Eaton is focusing on integrated power quality and reliability solutions. Vertiv offers comprehensive solutions including monitoring software.
The increasing complexities of multi-technology network infrastructure is driving demand for intelligent solutions for optimal management of power assets. Telecom operators are also deploying hybrid power systems and energy storage to reduce operating costs and dependence on grid supply in remote locations. Advancements in grid connectivity, electric vehicles and smart city initiatives are also creating new avenues for telecom power providers.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
