The global telecom power systems market size was valued at USD 3.88 billion in 2022. It is estimated to reach USD 8.08 billion by 2031, growing at a CAGR of 8.5% during the forecast period (2023–2031).
Telecom power systems play a critical role in the telecommunications industry by providing a reliable and uninterrupted power supply to support the operation of telecommunication networks and related equipment. The demand for robust and efficient power systems has grown significantly with the increasing reliance on telecommunications for various applications, including voice communication, data transmission, internet connectivity, and cloud services. One of the key components of telecom power systems is power sources. These sources can be connected to the electrical grid as the primary power supply.
In regions with unreliable or limited grid connectivity, alternative power sources such as diesel generators, solar panels, wind turbines, or fuel cells are used as backup or primary power sources. These alternative sources help ensure continuous power supply, particularly during grid outages or remote areas where grid connectivity may be challenging. Telecom power systems are designed to provide a stable and clean power supply, protect against power fluctuations and outages, and ensure the efficient operation of telecommunication networks. They are crucial for maintaining reliable connectivity, supporting data transmission, and enabling uninterrupted communication services in the telecommunications industry.
The rising proliferation of smartphones in households and the advancements in technology incorporating many applications and software to simplify daily tasks drive the growth in telecom infrastructure development. The global telecom power system market is also fueled by the significant growth of telecom infrastructure in rural areas, especially in the Asia-Pacific and Africa. This growth is witnessed due to the increased demand for expanding the mobile network to the growing subscriber base for speedier data transmission, even during power outages.
Additionally, government officials are concentrating on improving broadband connectivity in rural areas to boost governance, healthcare, and agriculture, driving up demand for telecom power systems. Telecom service providers are using hybrid telecom power systems to power telecom infrastructure components in remote areas. Hybrid telecom power systems allow for multiple energy generation methods and storage, resulting in more efficient energy generation than diesel alone. Power outages and blackouts are also less likely with the capacity to store electricity. Telecom operators use alternative-fueled telecom power systems to develop wireless broadband networks in rural areas, driving demand for telecom power systems.
The exponential increase in mobile data traffic and telecom operators has expanded network coverage in rural and urban areas. The widespread use of mobile devices in cities has boosted the use of femtocells and picocells, which require DC power systems offering the required service and driving the growth of mobile data traffic. Video streaming services currently account for most of mobile data traffic, driving the demand for higher data rates. As mobile device screen capabilities grow to include popular television formats and beyond, large quantities of data are required to transmit encoded multimedia.
Furthermore, advanced mobile multimedia systems, such as those used in AR or VR applications, would necessitate even higher data rates and lower latency and computing power. The trending deployment of AR and VR technologies among many media provider and gaming companies are expected to drive the growth of advanced and smart devices. Compared to other criteria, such as latency, the engineers of next-generation wireless networks are well aware of the need for higher throughput. Such factors drive market growth.
The substantial operational cost associated with the implantation and maintenance of the towers is the major factor that impacts the telecom power system market growth. The increased demand and deployment of mobile services among individuals led to installing more telecom towers in rural and urban areas, requiring high-cost installation and maintenance services. Companies are also investing largely in increasing the telecom infrastructure to cater to the need and requirements of consumers.
Additionally, the huge infrastructure development and maintenance investments hamper the market by restricting the study of technological advancements in the field. Due to the high operational cost, the market for diesel-solar systems is expected to grow in the forecast period as diesel-solar hybrid systems lower operating and maintenance costs and logistics costs. Solar PVs are now subsidized by governments worldwide, and their cost has decreased. Governments worldwide are pushing for a reduction in the telecom sector's carbon footprint. Using green infrastructure in the telecom power system industry results in lower operating costs for network providers, hindering market growth.
The increasing demand for rural and remote connectivity presents a significant opportunity for telecom power system providers. In many places around the globe, particularly in rural and remote areas, there’s a shortage of adequate telecommunication infrastructure, resulting in limited or no access to reliable communication services. This digital divide hinders economic development, social progress, and access to vital information and services. Governments, telecommunication companies, and organizations are investing in expanding telecommunication networks in rural and remote areas to bridge this gap.
Telecom power systems are essential to these networks as they provide the necessary power supply to support the operation of telecommunication equipment and ensure reliable communication services. Telecom power systems are designed to meet the unique challenges of remote locations, where access to grid power may be limited or unreliable. They are equipped with high efficiency, robustness, and the capacity to function in difficult environmental conditions. These systems can be powered by various sources, including solar power, wind power, fuel cells, and batteries, allowing them to operate independently of the electrical grid.
The global telecom power systems market is bifurcated into product type, grid type, and power source.
Based on product type, the global telecom power systems market is bifurcated into AC power systems, DC power systems, and digital electricity.
The DC power systems segment dominates the global market and is predicted to exhibit a CAGR of 9.6% over the forecast period. The DC power systems segment's dominance in the global telecom power systems market can be attributed to several things that make it the best choice for powering telecom equipment. Firstly, DC power systems offer several advantages, such as high energy efficiency, compact size, and reliable power supply. These systems are designed to provide stable DC power directly to telecom equipment without converting, resulting in reduced energy losses and improved overall system efficiency. The compact size of DC power systems makes them suitable for installation in various telecom infrastructure environments, including remote sites, outdoor cabinets, and distributed networks.
Secondly, the increasing deployment of telecom networks in remote and off-grid areas has boosted the demand for DC power systems. These systems are well-suited for powering telecom equipment in areas with limited or unreliable grid connectivity. With the expansion of telecommunication networks to rural and underserved regions, the demand for DC power systems has witnessed significant growth.
Based on grid type, the global telecom power systems market is bifurcated into on-grid, off-grid, and bad-grid.
The bad-grid segment owns the highest market share and is projected to exhibit a CAGR of 9.8% over the forecast period. The dominance of the bad grid segment in the global telecom power systems market can be attributed to several factors. One of the important drivers is the rising demand for telecom services in developing countries. These countries are experiencing rapid growth in their telecom sectors, driven by factors such as rising disposable incomes, increasing urbanization, and growing penetration of smartphones. As more people gain access to smart gadgets and data services, the demand for reliable and uninterrupted telecom services continues to grow. However, developing countries often face challenges with their power grids.
Unreliable power grids are a common issue because of a lack of equipment, investment, and frequent power outages. These unreliable power grids pose significant hurdles for telecom operators who strive to provide uninterrupted service to their customers. Telecom infrastructure, such as base stations and data centers, heavily relies on a consistent and stable power supply to function optimally.
Based on the power source, the global telecom power systems market is bifurcated into diesel battery, diesel-solar, diesel-wind, and others.
The diesel battery segment is the largest contributor to the market and is projected to exhibit a CAGR of 7.2% over the forecast period. The dominance of the diesel battery segment in the global telecom power systems market can be attributed to several factors. Diesel battery systems are widely used in the telecom industry due to their reliability, availability, and ability to provide uninterrupted power supply. They are particularly suitable for areas with limited or unreliable access to the main power grid.
One of the key advantages of diesel battery systems is their capability to store energy in batteries, allowing for continuous power supply even during power outages or when the primary power source is unavailable. These systems combine diesel generators with battery banks to provide a reliable backup power solution. The diesel generator charges the batteries while simultaneously providing power to the telecom infrastructure. The batteries supply power during outages or when the load demand exceeds the generator's capacity.
Based on region, the global telecom power systems market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
North America is the most significant global telecom power systems market shareholder and is estimated to grow at a CAGR of 7.10% over the forecast period. North America has several technologically advanced countries, such as the U.S. and Canada, with well-established and mature telecom industries. Due to their large population and extensive telecommunications infrastructure, these countries highly demand reliable and uninterrupted telecom services. The need for efficient power systems to support this infrastructure drives the region's demand for telecom power systems. In addition, North America strongly emphasizes advanced technologies, including 5G networks, the Internet of Things (IoT), and cloud computing. These technologies require robust and efficient telecom power systems to ensure uninterrupted connectivity and data transmission. The growing use of advanced tools in various sectors, such as healthcare, manufacturing, and transportation, further drives the demand for regional telecom power systems.
Europe is predicted to exhibit a CAGR of 5.5% over the forecast period. Europe has a well-developed and mature telecom industry, with countries such as Germany, the United Kingdom, France, and Spain as major contributors. These countries have a high mobile and broadband penetration level and a strong demand for advanced telecom services. European telecom operators require efficient and resilient power systems to meet the rising demand for reliable and uninterrupted telecom services. Europe is at the forefront of technological advancements, including deploying 5G networks and the Internet of Things (IoT). These advanced technologies require robust and reliable power systems to support the increased data transmission, network capacity, and connectivity demands. The adoption of 5G and IoT technologies in various sectors, such as automotive, manufacturing, and healthcare, also drives the need for telecom power systems in Europe.
The Asia-Pacific region is home to some of the world's largest and fastest-growing economies, including China, India, Japan, South Korea, and Southeast Asian countries. These countries have large populations and a rapidly expanding telecom industry, driven by factors such as increasing urbanization, rising disposable incomes, and growing smartphone penetration. The demand for telecom services in the region is high, leading to a corresponding need for reliable and efficient power systems to support the telecom infrastructure.
The Middle East and Africa region presents significant telecom power systems market opportunities. With a rapidly growing telecom sector driven by causes like growing population, moving to cities, and increasing smartphone penetration, countries in the Middle East and Africa region are investing in developing advanced telecom infrastructure. This includes deploying 4G and 5G networks, expanding broadband connectivity, and improving telecommunications services.
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