5G deployment to drive global expansion for data centre power systems by 2025: Frost & Sullivan

frostThe recent analysis by Frost & Sullivan, Global DC Power Systems Market, Forecast for 2025, predicts that increasing global implementation of 4G and 5G networks will lead to steady growth in demand for data centre (DC) power systems

While market revenue is expected to fall due to the COVID-19 pandemic in 2020, it will likely bounce back to pre-pandemic levels as early as 2021 and rise to US$5.5bn by 2025 at a CAGR of 4.6 per cent.

Unit shipments are expected to grow from 895,000 units to 1,04 million at a CAGR of 2.7 per cent between 2019 and 2025.

Manoj Shankar, senior research analyst, energy and power systems practice at Frost & Sullivan, “The increased power and processing requirements of 5G infrastructure creates the need for highly efficient and reliable power systems that can tolerate heavy loads. This can be fulfilled by DC power systems, which are modular and extremely efficient.

“Telecom base stations in off-grid areas or in areas that lack proper power supply also present a large market opportunity for DC power systems, which can be coupled with renewable energy sources.

“The deployment of 5G networks across the globe is expected to be slow initially as most telecom companies have invested heavily in 4G technologies. The expansion is most likely to gather pace in the US, China, and Europe from 2021.”

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