by A telecom power system consists of backup batteries, rectifiers, converters, and other equipment required to supply uninterrupted power to telecommunication networks and systems. It ensures continuity of telecom services by providing power during outages or fluctuations in the main electrical grid. Telecom networks today handle terabytes of data traffic daily, making a reliable power infrastructure mission-critical. Any disruption caused by power issues can result in loss of connectivity and dissatisfied customers. With 5G rollouts and increasing digitization across industries, the dependence on telecom networks is rising exponentially. This is driving telecom operators to invest in robust and high-capacity power solutions to support their network expansions as well as deliver seamless connectivity experiences.
Telecom power systems include various equipment like converters, inverters, rectifiers, controllers, distribution boards, and batteries that work in tandem to regulate voltage levels, convert AC to DC power, store power, and distribute it efficiently across the network infrastructure. They deliver both online and offline power wherever needed through centralized or distributed architectures. Their modular designs enable scalability and flexibility to adapt to evolving network technologies and traffic patterns.
The global Telecom Power Systems Market is estimated to be valued at US$ 4187.04 Mn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the telecom power systems market size is the increasing deployment of micro-grids. Micro-grids incorporate low-power systems like solar panels, batteries, and generators to electrify remote sites or provide backup power during grid outages. They help telcos electrify base transceiver stations (BTS) in rural and off-grid areas more economically than drawing expensive transmission lines. The use of renewable energy sources in micro-grids also improves sustainability. Major telecom operators are actively adopting the micro-grid model to strengthen network resilience as well as reduce operational costs over the long-term.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low as the telecom power systems market requires significant R&D investments and expertise to develop complex and reliable power systems.
Bargaining power of buyers: The bargaining power of buyers is moderate as telecom companies can negotiate pricing and demand additional services from power system vendors.
Bargaining power of suppliers: The bargaining power of suppliers is also moderate as buyers can use alternative components to source raw materials and develop in-house engineering capabilities.
Threat of new substitutes: The threat of new substitutes is low as telecom power needs reliable backends to function and there are limited substitutes available.
Competitive rivalry: The competitive rivalry is high among existing players to gain market share through product innovations, partnerships, and competitive pricing.
Key Takeaways
The global telecom power systems market is expected to witness high growth. The global Telecom Power Systems Market is estimated to be valued at US$ 4187.04 Mn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates the market owing to rapid investments in telecom infrastructure development across China, India, and Southeast Asia. The Asia Pacific region is the fastest growing market for telecom power systems driven by the increasing adoption of 5G networks and growing mobile subscriber base. China and India are among the top markets in the region.
Key players: Key players operating in the telecom power systems market are Archer Daniels Midland Company, Vertiv Group Corp., Cummins Inc., Eaton, Schneider Electric, Huawei Technologies Co., Delta Electronics Inc., and GE Industrial Solutions. Vertiv and Schneider Electric have a significant presence across regionswhile Huawei has a strong foothold in China.
