Chicago, May 20, 2024 (GLOBE NEWSWIRE) -- The global telecom power system market share is projected to grow from USD 4.2 billion in 2023 to USD 6.6 billion by 2028; it is expected to grow at a CAGR of 9.4% from 2023 to 2028.
The Telecom Power System Market is poised for substantial growth, driven by the increasing demand for reliable power solutions in the telecommunications sector. As the telecommunications industry expands globally, there is a growing need for efficient power systems to support network infrastructure, ensure uninterrupted communication services, and meet the escalating power requirements of telecom equipment.
To know about the assumptions considered for the study
Major Telecom Power System companies include:
- Eaton (US),
- Huawei Technologies (China),
- Cummins (US),
- ZTE Corporation (China),
- General Electric (US),
- Delta Electronics, Inc. (Taiwan), and
- Schneider Electric (France).
Market Dynamics:
Driver: Increasing number of telecom infrastructures in remote areas
The demand for mobile, telephony, and data services has increased in rural areas from developing economies such as India, Africa, and Brazil. The telecom service providers and mobile network operators are expanding their network from the urban and semi-urban regions to rural areas to tap the existing market potential of the rural market in the developing economies. The need for power-efficient networks also rises with the increase in technological advancements in the telecommunications sector. The number of users connected to a network increases due to various services provided by service providers. To provide users with high-speed, large-scale broadband services, and computational activities, service providers install numerous devices/equipment, such as routers, servers, switches, and radio base stations, in locations such as data centers, companies, homes, streets, and public spaces.
Restraint: Environmental concerns due to usage of diesel
Diesel generators are the preferred source of electrical power for off-grid and standby power applications, such as cellular base stations, because of their durability and reliability. Diesel generators emit harmful pollutants like particulate matter (PM), volatile organic compounds (VOCs), and nitrous oxide (NOx), contributing to the formation of smog and worsening respiratory conditions. These emissions are directly released into the atmosphere, and they deteriorate the environment as well as inhabitants. The emission limits for nitrogen oxides and hydrocarbons have also been reduced for generators between 8 kW and 19 kW power.
Opportunity: Increasing technological advancements in cellular networks (5G, LTE services, etc.)
Long-term evolution (LTE), marketed as 4G LTE, is the standard for high-speed data for data terminals and mobile phones. It is one of the fastest wireless technologies in the market, and the rapid global adoption of the technology drives the telecom power system market. The penetration of 4G technology is rapidly increasing in developing countries worldwide.
Moreover, the rising penetration of 4G technology has increased demand for high-efficiency telecom power systems, particularly from developing countries such as India. This is expected to drive the market for telecom power systems in developing countries across the world. Also, technological advancements such as the rolling out of 5G services are trending in developed countries such as the US and Japan.
Challenge: Design challenges for telecom power systems
The telecom operators face infrastructure-related challenges in expanding network coverage to rural and remote areas due to higher operational costs and low return on investment. To deploy telecom networks in emerging markets is a technical and major economic challenge due to the absence of power grids, remote locations, harsh climatic conditions, and often the absence of qualified personnel on the ground. The energy required for electricity production should mostly be through renewable energy sources such as diesel-wind, diesel-solar, etc.
Key Drivers and Market Growth:
The telecom power systems market is witnessing significant growth due to several key factors. Firstly, the increasing deployment of 5G networks, which require more efficient and reliable power systems, is driving the demand for telecom power systems. Secondly, there is a rising awareness of the carbon footprint associated with the telecom industry, leading to a shift towards more sustainable power systems. Additionally, the expanding telecom infrastructure, driven by the growing demand for connectivity and the rise of remote working, is fueling the need for reliable and efficient power solutions. Government initiatives and investments in telecom infrastructure are also contributing to the market growth. Furthermore, the adoption of smart devices, the growth of cloud computing, and the increasing demand for secure telecom networks are additional driving factors. These factors combined are expected to propel the telecom power systems market in the coming years.
