Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Data Center Energy Storage market.
Trusted Business Insights presents an updated and Latest Study on Data Center Energy Storage Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Data Center Energy Storage market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Data Center Energy Storage Market
The global data center energy storage market size was valued at USD 1.1 billion in 2020 and is expected to register a compound annual growth rate (CAGR) of 5.2% from 2021 to 2027. Energy storage in a data center is primarily used to fail-over diesel generators during power outages. Growing demand from OTT platforms, big data, and mobile applications along with the ever-increasing internet traffic have resulted in a rise in the number of datacenters. This growth in the data centers is leading to an increase in electricity demand, which supplements the need for efficient power backup solutions, thereby driving the market growth. Additionally, the rising demand for energy efficiency is expected to be a major factor in driving market growth over the forecast period 2021-2027.
Data center applications require reliable power sources and are amongst the fastest-growing users of electricity. All the datacenters are equipped with an Uninterruptible Power Supply (UPS) to make sure the servers and the computing equipment are never susceptible to power quality issues and power line disturbances. Every UPS uses an energy storage device or system in case of power failure. This energy can be stored in the form of batteries, super capacitors, flywheels, or Compressed Air Energy Storage (CAES), which allows a UPS to supply uninterrupted power. Rising demand for UPS in small, midsized, hyperscale/enterprise/mega IT infrastructure is anticipated to witness high growth owing to a rise in demand for cloud-based services, and high-speed broadband connections, which, in turn, is expected to drive the market in the near future.
Data centers are becoming a critical part of the infrastructure for the digitalized society. High-speed wireless networks, digitalization, new data-intensive technologies have led to the growth of datacenters in organizations of all capacities right from a limited enterprise computing central to the major electricity-intensive industries. Energy storage in data centers supplements the overall datacenter availability by providing a stored source of energy in the event of power disturbance or interruption to the normal electrical flow. It tackles the challenge of a quick switchover to an alternate power source when a power failure occurs and provides a stable delivery of power to the load until the failure is resolved. The ability to provide uninterrupted power supply in course of power failures is expected to upkeep the demand for energy storage in data centers.
The advent of Internet of Things (IoT) and big data coupled with the rising smartphone penetration is anticipated to drive the market growth in the near future. A rise in the streaming of video content and growth in the social media platforms has resulted in increased data traffic, which is thereby encouraging companies to adopt dedicated and reliable data center systems to minimize the loss of information and ensure business continuity and security. Data center energy storage help in providing optimal reliability, high power performance, and scalability to datacenter facilities, helping them to match the increasing power requirements. It also offers advanced power monitoring and metering for maximum efficiency and control.
Additionally, technological advancements such as the introduction of green data centers or sustainable data centers are likely to provide opportunities for market growth over the forecast period. These datacenters will focus on establishing server facilities that utilize energy-efficient technologies. It will help in the management, storage, and dissemination of information in which the electrical, mechanical, lighting, and computing systems are designed for minimal environmental impact and maximum energy efficiency. As a result, the green data centers will focus on reclaiming unused power and distribute it elsewhere in the facility.
Data Center Type Insights: Data Center Energy Storage Market
The Tier 1 segment held the largest market share in 2019 and looks set to grow at a CAGR of 5.0% over the forecast period. Tier 1 data center function without any backup facility and a single distribution path. It also has no default power backup system in place when systems go offline. As a result of this, the demand for energy storage in Tier 1 data centers is more than its other counterparts. The explosion of content is fueling the market and has made data centers of all sizes, one of the fastest-growing consumers of electricity. Other segments include Tier 2, Tier 3, and Tier 4.
Furthermore, the Tier 4 segment is expected to exhibit the highest CAGR in the data center energy storage market over the forecast period. The emerging Tier 4 data centers are comparatively few and presently represent a relatively small fraction of all data center energy storage consumption. However, they are expected to replace the small datacenters in the years to come. With the increasing focus on building reliable and highly efficient data centers suitable for energy storage, the investment in Tier 4 facilities is expected to grow worldwide in the next seven years.
Regional Insights: Data Center Energy Storage Market
North America represented the largest market in 2019, accounting for more than 35.0% of the global market. The regional growth is led by the U.S., as the country has exhibited continuous growth in the datacenter infrastructure solutions. Moreover, North America poses the largest market of cloud computing, hence creates a huge opportunity for the data center energy storage products. The datacenter colocation providers in the region are poised in making investments for constructing additional data center facilities for energy storage, which is expected to fuel market growth in the region.
Owing to the rising construction of datacenters across countries like Japan, India, and China, the market is expected to exhibit a CAGR of more than 8.0% in Asia Pacific over the forecast period. The market in the region is driven by the increased demand for cloud-based services. As a result, increased storage demand from cloud-based applications is thereby projected to upkeep market growth over the forecast period.
Key Companies & Market Share Insights: Data Center Energy Storage Market
The market features the presence of both large-scale and medium-scale data center energy storage providers. The market demonstrates an intense competition amongst the key players and calls for constant innovations and development of advanced data center energy storage solutions
Furthermore, the key players are aggressively investing in R&D activities and focusing on introducing new products to develop innovative solutions in order to withstand the competitive market environment. For instance, in April 2019, Vertiv Group Corp. launched HPL lithium-ion battery cabinet for a larger capacity of UPS. The cabinet establishes a connection of eight cabinets into a particular UPS while tailoring runtime capacity and redundancy. Product innovation and differentiation are expected to be the key strategies required to sustain in the market. Some of the prominent players in the data center energy storage market include:
Key companies Profiled: Data Center Energy Storage Market Report
- ABB Ltd.
- Delta Electronics, Inc.
- Eaton Corporation
- General Electric
- Huawei Technologies Co., Ltd.
- Mitsubishi Electric Corporation
- Saft; Schneider Electric
- Vertiv Group Corp.
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub-segments. For the purpose of this study, Trusted Business Insights has segmented the global data center energy storage market report based on data center type and region:
Data Center Type Outlook (Revenue, USD Million, 2016 – 2027)
- Tier 1
- Tier 2
- Tier 3
- Tier 4
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