Press release
Telecom Power System Market to Reach USD 8 Billion by 2034, Growing at 4.5% CAGR | TMR
The global telecom power system market, valued at USD 4.9 billion in 2023, is set to experience a significant growth trajectory, reaching USD 8.0 billion by 2034, with a CAGR of 4.5% from 2024 to 2034. This growth is propelled by the rising number of mobile subscribers, expanding telecom infrastructure in rural and remote areas, and the increasing deployment of 5G technology.Market Overview: Telecom power systems are crucial for powering telecommunication infrastructure, ensuring uninterrupted operations for base transceiver stations, data centers, and internet backbones. These systems are designed to handle power interruptions and fluctuations while supporting the demand for high-performance telecommunication networks. Advanced telecom power solutions, such as AC-DC and DC-DC power supply units (PSUs), uninterruptible power supplies (UPS), and industrial battery management systems, are gaining traction for their energy efficiency and reliability.
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Key Market Drivers
Increasing Number of Mobile Subscribers:
The growing global population and surge in internet adoption are driving the demand for mobile connectivity. Major markets like India, Indonesia, the U.S., and Brazil are leading in the number of mobile users.
The rise of IoT devices, powered by 4G and 5G, further boosts the need for robust telecom power systems.
Expansion of Telecom Infrastructure in Rural Areas:
Public and private stakeholders are investing heavily in expanding connectivity to underserved regions.
Renewable energy solutions, such as solar-powered telecom towers, are facilitating the deployment of telecom infrastructure in remote areas.
Transition to Renewable Energy:
High-efficiency telecom power systems utilizing renewable energy sources are increasingly preferred due to growing environmental concerns.
The shift to green energy solutions supports sustainability while reducing carbon emissions from telecom operations.
Key Market Trends
1. Shift to Hybrid Power Systems: Combining multiple power sources, such as diesel-solar and diesel-wind, to enhance reliability and sustainability.
2. Development of Compact Power Solutions: Introduction of space-efficient and high-performance telecom power systems for urban deployments.
3. Integration of Renewable Energy: Growing preference for solar and wind energy solutions to reduce dependency on fossil fuels.
Key Player Strategies
Major players in the telecom power system market are leveraging innovative strategies to maintain competitive edges:
• Hitachi Energy: Secured a contract for substation automation and telecommunications systems in Brazil.
• Delta Electronics: Launched the IPack65 compact outdoor rectifier system designed for 5G cell sites with dustproof and waterproof capabilities.
• AcBel Polytech Inc.: Rebranded its ABB Power Conversion division to OmniOn Power, focusing on advanced power solutions.
Other notable players include ABB, Alpha Technologies, Cummins Inc., Huawei Technologies Co., Ltd., Schneider Electric, and Vertiv Group Corp. These companies emphasize product innovation, partnerships, and sustainability to strengthen their market positions.
Regional Analysis
The Asia Pacific region dominated the telecom power system market in 2023 and is expected to maintain its leadership during the forecast period. Key growth factors include:
High Mobile Penetration: China's mobile penetration rate reached nearly 72% by the end of 2022, driving demand for telecom power solutions.
Government Initiatives: India's Universal Service Obligation Fund (USOF) is enhancing digital services in rural areas through collaborations with organizations like Prasar Bharati and ONDC.
Other regions, such as North America, Europe, and the Middle East & Africa, are also witnessing steady growth driven by advancements in telecom technologies and increasing investments in digital infrastructure.
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Market Segmentation
The telecom power system market is segmented based on:
• Component: Rectifiers, inverters, converters, controllers, generators, and others (e.g., batteries, solar cells).
• Grid Type: On-grid and off-grid systems.
• Power Rating: Up to 10 kW, 10-20 kW, and above 20 kW.
• Technology: AC and DC power systems.
• Power Source: Diesel-battery, diesel-solar, diesel-wind, and multiple power sources.
• Regions Covered: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
Future Outlook
The telecom power system market is poised for robust growth, driven by technological advancements and the increasing demand for sustainable energy solutions. Key trends expected to shape the market include:
• Adoption of Smart Energy Management Systems: Integration of AI and IoT for optimizing energy consumption and ensuring operational efficiency.
• Expansion of 5G Networks: Accelerating demand for high-power telecom solutions to support next-generation communication technologies.
• Focus on Sustainability: Rising adoption of green energy solutions to address environmental concerns and regulatory requirements.
Market Challenges and Opportunities
Challenges:
• High initial costs of deployment and complexity in integrating renewable energy sources remain significant hurdles.
Opportunities:
• The rapid rollout of 5G technology demands high-power-density solutions, creating opportunities for energy-efficient and eco-friendly telecom power systems.
• The increasing adoption of multiple power sources, including diesel-solar and diesel-wind systems, enhances market diversification.
Why You Should Buy This Report
• Gain insights into the latest market trends and opportunities.
• Understand the impact of 5G and renewable energy on telecom power systems.
• Access comprehensive regional analysis to identify growth markets.
• Evaluate strategies and innovations by key market players.
• Leverage data-driven insights for strategic decision-making.
The telecom power system market represents a critical enabler for global telecommunications infrastructure, especially as the industry transitions to 5G and renewable energy solutions. With key players driving innovation and governments investing in rural connectivity, the market is set to witness transformative growth in the coming decade.
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About Transparency Market Research
Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.
Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.
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