The rising adoption of hybrid telecom power systems by operators to develop wireless broadband networks in rural areas is expected to drive industry growth. High-quality wireless network technologies can obviate the need for expensive copper and fiber-optic cables to deliver broadband connectivity. For instance, Polar Power Inc., a leading company in DC generators, delivered $1.3 million in backup generators for a rural telecom operator in the U.S. to create a high-speed wireless broadband network across 14 states.
Additionally, the expansion of the telecom power systems market is anticipated to be aided by the rising number of data centers that need constant power supply to deliver a better customer experience. For instance, in 2021, the U.S. recorded about 2,700 centers. Since power outages in data centers can result in significant financial losses as they disrupt the operations of numerous businesses that depend on them, they use telecom power systems to ensure continuous operation.
Favorable characteristics of outdoor telecom power system
The outdoor telecom power system segment accounted for $4 billion in 2022. The equipment is designed to withstand extreme climate conditions and external environmental hazards, including water and dust. Such characteristics of the these systems that make them ideal for outdoor sites with low electrical grid reach to provide diverse power inputs, including AC and DC power supply, are expected to promote industry expansion by end of 2032.
By 2032, the telecom power systems market is expected to be dominated by the DC power technology type, with a 64.5% share. Important electronic loads are frequently supported by DC-powered systems in businesses and telecommunications infrastructure. They can withstand fluctuating energy demands better as well. Modern batteries can provide more than 10 hours of standby time, which is longer than the battery backup times for DC-powered systems. Over the forecast period, these features ought to raise the acceptance rate of the product.
The data centers application is projected to observe 10% growth through 2032, attributed to the increasing need for highly dependable power systems with minimal downtimes by data centers in business communications. Furthermore, due to the variety of operating conditions, data center power systems are very complicated and require effective failure-prevention technologies to prevent major hardware damage. These benefits are projected to supplement the overall industry growth.
Digitalization across the Middle East and Africa (MEA)
The MEA telecom power systems market is poised to witness 8.3% growth rate between 2023 and 2032. The main driver of regional industry development is the extensive digitalization of industries, like manufacturing, BFSI, and telecom. The Middle East region has the highest smartphone and internet penetration rates worldwide. Power shortages in a number of industries, including telecom, are being brought on by the lack of energy and other resources in Africa. As a result, this is affecting the demand for these systems in African nations.
Strategic product launches
The telecom power systems market includes some of the prominent companies such as Alpha Technologies (EnerSys), Corning Inc., Cummins Inc., Eaton Corp., Eltek (Delta Electronics, Inc.), Huawei Technologies Co. Ltd., Myers Power Products, Schneider Electric, and ZTE Corp. To strengthen their offerings and maintain their market position, these organizations are focused on strategic acquisitions, collaborations, and product launches.
*These insights are based on Telecom Power Systems Market research analysis.