The Global Telecom Power System Market (通信電力システム市場), valued at US$ 4.9 Bn in 2023, is poised for significant growth over the next decade. According to the latest market analysis, the sector is expected to expand at a CAGR of 4.5% from 2024 to 2034, reaching an estimated US$ 8.0 Bn by the end of the forecast period. This growth is fueled by an increase in mobile subscribers and the expansion of telecom infrastructure in rural and remote areas.
The telecom power system market is experiencing robust growth due to several key factors. The proliferation of mobile and connected devices, driven by the rising need for connectivity, is a major revenue driver. As the number of mobile subscribers continues to rise, so does the demand for reliable telecom power systems to support these devices. Moreover, the deployment of 5G technology is expected to create lucrative opportunities for vendors in the market. The emerging 5G technologies require high-power density and reliable power supplies, prompting vendors to develop energy-efficient and eco-friendly power solutions.
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Market Introduction
Telecom power systems are essential for powering various infrastructure components within the telecommunications sector, including base transceiver stations and data centers. These systems ensure a reliable and uninterrupted power supply, even in the event of grid power interruptions and fluctuations. Telecom power infrastructure supports services such as wireless broadband access, fixed-line applications, Internet backbone, and data centers. The industry is witnessing a growing preference for highly energy-efficient solutions that deliver the required high power levels while maintaining reasonable power consumption.
Market Drivers
- Increase in Number of Mobile Subscribers: The global number of mobile subscribers is rising rapidly due to factors such as population growth, increased internet adoption, and the need for connectivity. Countries like India, Indonesia, the U.S., and Brazil are among the top nations with the highest number of cell phone users. This trend is expected to continue, driving the demand for telecom power systems.
- Expansion of Telecom Infrastructure in Rural and Remote Areas: Significant investments are being made to expand telecom connectivity in rural and remote regions. Public and private stakeholders are extending mobile network coverage to rural communities worldwide, often utilizing renewable energy to create self-sustaining stations that bring 4G and 5G connectivity to these areas.
Key Insights
- Energy-Efficient Solutions: There is a growing preference for high-efficiency telecom power system solutions powered by renewable energy sources. This shift is driven by concerns about carbon emissions and global warming. According to the International Energy Agency (IEA), data centers and data transmission networks account for 1-1.5% of global electricity use, highlighting the importance of energy-efficient solutions.
- Rural Connectivity Initiatives: In April 2024, a major UK telecommunications company collaborated with Starlink, SpaceX’s internet satellite constellation, to accelerate the deployment of the Shared Rural Network (SRN) initiative. This initiative aims to bring reliable mobile connectivity to remote locations faster than traditional methods.
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Regional Outlook
The Asia Pacific region accounted for the largest share of the telecom power system market (Marché des systèmes d'alimentation électrique pour les télécommunications) in 2023 and is expected to maintain its dominance throughout the forecast period. The region's growth is driven by the increasing number of mobile phone users and significant investments in digital services. For instance, in March 2024, the Universal Service Obligation Fund (USOF) under India’s Department of Telecommunications (DoT) collaborated with Prasar Bharati and the Open Network for Digital Commerce (ONDC) to provide affordable and accessible digital services in rural parts of India.
Market Segmentation
By Component
- Rectifiers
- Inverters
- Convertors
- Controllers
- Generators
- Others (Batteries, Solar or PV Cells, etc.)
By Grid Type
- On-grid
- Off-grid
By Power Rating
- Up to 10 kW
- 10-20 kW
- Above 20 kW
By Technology
- AC Power Systems
- DC Power Systems
By Power Source
- Diesel-Battery
- Diesel-Solar
- Diesel-Wind
- Multiple Power Sources
Key Players
Leading players in the global telecom power system market include ABB, Alpha Technologies, ASCOT INDUSTRIAL S.R.L., Cummins Inc., Delta Electronics, Inc., Dynamic Power Group, Eaton, GE Vernova, Huawei Technologies Co., Ltd., Myers Power Products, Inc., Schneider Electric, Staticon, UNIPOWER, Vertiv Group Corp., and ZTE Corporation. These companies are deploying advanced technologies to ensure reliable and uninterrupted power supply for telecommunications infrastructure.
Recent Developments
- In February 2024, Hitachi Energy secured a contract from ISOLUX CORSAN to provide substation automation and telecommunications systems for six new substations in Brazil.
- Companies are increasingly focusing on substation automation and telecommunications systems to enhance the reliability and efficiency of telecom power systems.
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