The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Telecom Power Systems Market Growth & Trends
The global telecom power systems market size is projected to reach USD 6.95 billion by 2027, expanding at a CAGR of 9.7% from 2020 to 2027, according to a study conducted by Grand View Research, Inc. Telecom power systems have to be highly energy-efficient in order to deliver the required level of power, while maintaining the reasonable power consumption. Proper functioning of these power systems is crucial to achieve savings of economic resources and sustainable development actions.
The convergence of information technology (IT) with telecom industry has resulted in the evolution of the telecom power systems. Globally, smart phone penetration rates have reached nearly 90% across the globe. As the number of smart phone users is increasing, the telecom operators are seen to be investing in broadband projects that lay solid foundations for achieving adequate bandwidth to drive the ICT convergence and meet their customer requirements. This, in turn, is expected to fuel the market growth over the forecast period.
Growing penetration of telecom towers in rural areas is one of the major factors fueling the overall market growth. Additionally, continuous expansion of digital networks has resulted in the development of telecom power supply for establishing an efficient energy transmission and distribution. Increasing number of telecom operators and rise in the internet data traffic have led to the development of telecom towers in the rural as well as metropolitan areas. These telecom towers require 24/7 access to the electricity to function efficiently as broadband capacity demand is increasing with the increase in the number of internet handlers and mobile device users. This, in turn, is expected to augment the growth of telecom towers, thereby driving the market over the forecast period.
In the coming years, the green telecom power systems are likely to replace conventional diesel generators and diesel- battery generators steadily in the market. Government bodies across the globe are taking up green initiatives with the aim of lowering their carbon footprint. For instance, in India, the Department of Telecom (DOT) has undertaken pilot projects in Universal Service Obligation Fund (USOF) Phase I sites with BSNL to take care of the environmental issues. This initiative is aimed at providing green solutions for the telecom sector in the country with a focus on power savings and cost reductions. As a result, growing demand for green telecom power systems is expected to provide lucrative opportunities for the market in the years to come.
Telecom Power Systems Market Report Highlights
- By product type, DC power systems is expected to expand at the fastest CAGR over the forecast period. These systems are used by majority of the telecom operators on their sites due to their reliability, safety, and effortless integration with battery backup systems
- The diesel-battery power source segment accounted for the largest share of over 40.0% in 2019 and is expected to witness steady growth over the coming years. The diesel-solar power source is anticipated to emerge as the fastest growing segment during the forecast period
- Asia Pacific is expected to expand at the fastest CAGR of 14.0% over the forecast period owing to growing penetration of telecom towers in rural areas
- Key players are incessantly focusing on innovating their product portfolio to attain significant competitive advantage over other players.