Telecom Power System Market Size, Share, Growth Analysis, By Component(Rectifiers, Inverters), By Grid Type(On-grid, Off-grid), By Power Rating(Below 10 kW, 10-20 kW), By Power Source(Diesel-Battery Power Source, Diesel-Solar Power Source), By Technology(AC power systems, DC power systems), By Region(North America, Europe) - Industry Forecast 2024-2031

Telecom Power System Market Competitive Landscape

To understand the competitive landscape, we are analyzing key Telecom Power System Market vendors in the market. To understand the competitive rivalry, we are comparing the revenue, expenses, resources, product portfolio, region coverage, market share, key initiatives, product launches, and any news related to the Telecom Power System Market.

To validate our hypothesis and validate our findings on the market ecosystem, we are also conducting a detailed porter's five forces analysis. Competitive Rivalry, Supplier Power, Buyer Power, Threat of Substitution, and Threat of New Entry each force is analyzed by various parameters governing those forces.

Key Players Covered in the Report:

• telecom power system market is projected to grow from USD 4.2 billion in 2023 to USD 6.6 billion by 2028; it is expected to grow at a CAGR of 9.4% from 2023 to 2028. The telecom power systems market is witnessing significant growth due to several key factors. Firstly, the increasing deployment of 5G networks, which require more efficient and reliable power systems, is driving the demand for telecom power systems. Secondly, there is a rising awareness of the carbon footprint associated with the telecom industry, leading to a shift towards more sustainable power systems. Additionally, the expanding telecom infrastructure, driven by the growing demand for connectivity and the rise of remote working, is fueling the need for reliable and efficient power solutions. Government initiatives and investments in telecom infrastructure are also contributing to the market growth. Furthermore, the adoption of smart devices, the growth of cloud computing, and the increasing demand for secure telecom networks are additional driving factors. These factors combined are expected to propel the telecom power systems market in the coming years.
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• Driver: Increasing number of telecom infrastructures in remote areas
• The demand for mobile, telephony, and data services has increased in rural areas from developing economies such as India, Africa, and Brazil. The telecom service providers and mobile network operators are expanding their network from the urban and semi-urban regions to rural areas to tap the existing market potential of the rural market in the developing economies. The need for power-efficient networks also rises with the increase in technological advancements in the telecommunications sector. The number of users connected to a network increases due to various services provided by service providers. To provide users with high-speed, large-scale broadband services, and computational activities, service providers install numerous devices/equipment, such as routers, servers, switches, and radio base stations, in locations such as data centers, companies, homes, streets, and public spaces. Also, there is an increased requirement for efficient power management solutions to increase the energy efficiency of these devices, along with power systems, cooling systems, and batteries. With the increase in the number of users and telecom infrastructure in rural areas, the networks’ requirements for telecom power systems will also witness significant growth.
• Restraint: Environmental concerns due to usage of diesel
• Diesel generators are the preferred source of electrical power for off-grid and standby power applications, such as cellular base stations, because of their durability and reliability. Diesel generators emit harmful pollutants like particulate matter (PM), volatile organic compounds (VOCs), and nitrous oxide (NOx), contributing to the formation of smog and worsening respiratory conditions. These emissions are directly released into the atmosphere, and they deteriorate the environment as well as inhabitants. The emission limits for nitrogen oxides and hydrocarbons have also been reduced for generators between 8 kW and 19 kW power. Thus, environmental concerns coupled with regulations by various regulatory bodies globally regarding the use of diesel generators are expected to hamper the telecom power system market growth during the forecast period.
• Opportunity: Increasing technological advancements in cellular networks (5G, LTE services, etc.)
• Long-term evolution (LTE), marketed as 4G LTE, is the standard for high-speed data for data terminals and mobile phones. It is one of the fastest wireless technologies in the market, and the rapid global adoption of the technology drives the telecom power system market. The penetration of 4G technology is rapidly increasing in developing countries worldwide. According to the ITU, the 4G penetration in APAC was ~96% in 2022. Also, the countries in Africa witnessed a 4G penetration of ~50% in 2022.
• Moreover, the rising penetration of 4G technology has increased demand for high-efficiency telecom power systems, particularly from developing countries such as India. This is expected to drive the market for telecom power systems in developing countries across the world. Also, technological advancements such as the rolling out of 5G services are trending in developed countries such as the US and Japan. According to the GSM Association, global 5G connections are expected to reach 27.14% by 2025. This is further expected to propel the demand for telecom power systems.
• Challenge: Design challenges for telecom power systems
• The telecom operators face infrastructure-related challenges in expanding network coverage to rural and remote areas due to higher operational costs and low return on investment. To deploy telecom networks in emerging markets is a technical and major economic challenge due to the absence of power grids, remote locations, harsh climatic conditions, and often the absence of qualified personnel on the ground. The energy required for electricity production should mostly be through renewable energy sources such as diesel-wind, diesel-solar, etc. The challenge is that awareness for the same is difficult to create and the installation costs for renewable energy sources are high, posing it as a challenge for adopting telecom power systems.
• Diesel–Battery power source likely to dominate overall telecom power systems market from 2023 to 2028
• The high adoption of diesel-battery based combination power sources in telecom power systems can be attributed to several key factors. Firstly, these power systems are highly reliable, making them suitable for remote areas without access to the grid. The diesel generator ensures a constant power supply, while the batteries serve as backup during generator failures, ensuring uninterrupted operations. Secondly, these power systems offer great flexibility, as they can be utilized in both on-grid and off-grid environments and can be scaled to meet the specific requirements of any telecom site. Moreover, despite higher initial investments, diesel-battery power systems are cost-effective in the long run.
• Bad grid connected telecom power systems likely to hold the largest market size during the forecast period.
• The primary reasons for the widespread adoption of bad grids (battery-assisted direct current grids) in telecom power systems are the location of telecom power sites in remote areas with unreliable or limited grid power, the cost efficiency of bad grids compared to alternative power systems, their flexibility to meet diverse power requirements, and their lower environmental impact, appealing to telecom companies aiming to reduce their carbon footprint. These factors collectively drive the high deployment of bad grids, especially in developing economies and remote locations.
• Generators to hold the largest market share for telecom power systems from 2023 to 2028
• Based on components, generators are likely to dominate among all components as it provide reliability and long hours of use in remote locations without compromising performance. The use of generators has been a mainstay in the telecommunications industry. Generators that run on diesel are the most common sources of portable power since diesel fuel is widely available and requires a low initial setup cost. Backup diesel generators are built to last, providing reliability and long hours of use in remote locations without compromising performance.
• China to hold the largest share of the telecom power system market in APAC from 2023 to 2028
• China is expected to hold a significant share in the telecom power system market in APAC owing to high investments in network infrastructures, along with the presence of telecommunication companies, such as China Telecom and China Mobile, and low-cost communication technology providers, such as ZTE Corporation and Huawei Technologies. It is also a densely populated country worldwide, leading to a rise in demand for mobile and data connectivity infrastructures. The country's dense population is expected to lead to issues regarding the reliability of connectivity, resulting in call drops and network failures. Therefore, the key telecommunication players in China are collaborating to deploy advanced wireless infrastructures to offer enhanced wireless connectivity.
• The key telecommunication equipment providers in China, including ZTE Corporation and Huawei Technologies, have signed more than 95 5G commercial deals with the leading global operators. Huawei launched 35 5G commercial networks in December 2020. Huawei Technologies and ZTE Corporation have a complete industrial chain in 5G technology with broader coverage than Nokia and Ericsson. They offer chips, terminals, power systems, and specialized end-to-end 5G solutions.
• Recent Developments
• In June 2023, ZTE Corporation has signed a Memorandum of Understanding (MOU) with TM, Malaysia's prominent converged telco and technology company.
• In April 2023, ABB is driving forward its expansion strategy in the US through an investment of around USD 170 million, aimed at establishing advanced manufacturing, innovation, and distribution facilities.
• In May 2023, ZTE Corporation and the International Project Management Association (IPMA) have officially entered a memorandum of understanding (MOU) to establish a collaborative partnership. This collaboration will encompass various aspects, including research on project management standards, sharing best practices in project management, and conducting professional talent training.
• In March 2023, General Electric revealed its intention to allocate over USD 450 million towards enhancing its current manufacturing facilities in the United States this year.
• In March 2023, ABB entered into a strategic partnership with Direct Energy Partners (DEP), a digital technology start-up focused on expediting the adoption of Direct Current (DC) microgrids.
• In March 2022, Huawei launched and added a brand-new addition to its network solution by launching a 50 Gbps E band solution for ultra-high bandwidth requirements in urban areas, which can provide up to a 50% transmission range when compared to other available solutions in the industry. This helps to save network energy on all bands and to scale up the deployment of 5G networks.
• In February 2022, General Electric revealed a multiyear strategic collaboration agreement with Amazon Web Services, Inc. (AWS) to expedite grid modernization for utilities.
• In January 2022, Eaton introduced the latest addition to Eaton's 5 series UPS line, the Eaton 5PX G2 rackmount, and tower UPS provide the maximum power possible at each power rating. The 5PX G2 UPS has power ratings ranging from 1 to 3 kVA, with low and high voltage options, and offers up to four optional external battery modules for extra runtime. The UPS is primarily used in servers (including VoIP (Voice over Internet Protocol)), storage, networking equipment, switches (including PoE (Power of Ethernet)), and other IT equipment. It provides enhanced connectivity and cybersecurity protection, suitable for universities, medical facilities, IT, etc.
• In December 2021, ZTE added a product to its router product series, which focuses on internet core nodes, backbone aggregation nodes, large-scale MAN core egress nodes, and DC-GW (Data Centre Gateway). It is a high-capacity router, which is safe, reliable, and can be expanded to transport integrated services as it is a standalone system and it focuses on building flat networks, facilitating unified transport, and future-oriented network evolution.
• In November 2021, ZTE launched its first-ever pilot network to facilitate and support 5G-SA (5G- Standalone Access) capabilities. It further included the use of advanced 5G network capabilities in medical applications.
• KEY MARKET SEGMENTS
• By Component
• Rectifiers
• Inverters
• Convertors
• Controllers
• Heat management systems
• Generators
• Others:
• Power Distribution Units
• Batteries
• Solar or PV cells
• Wind turbines
• Surge protection devices
• Circuit breakers
• By Grid Type
• On-grid
• Off-grid
• Bad grid
• By Power Rating
• Below 10 kW
• 10-20 kW
• Above 20 kW
• By Power Source
• Diesel-Battery Power Source
• Diesel-Solar Power Source
• Diesel-Wind Power Source
• Multiple Power Sources
• By Technology
• AC power systems
• DC power systems
• By Region
• North America
• Europe
• Asia Pacific
• RoW
• KEY MARKET PLAYERS
• Eaton
• Huawei Technologies
• Cummins
• ZTE Corporation
• General Electric
• Delta Electronics, Inc.
• Schneider Electric