Global DC Power System Market, Forecast to 2021 is part of Frost & Sullivan’s Critical Power Growth Partnership Subscription. The global DC power systems market generated $3.92bn in 2016 and is projected to reach $4.41bn by 2021, at a compound annual growth rate of 2.4%.
“The next big wave in the telecom industry is 5G networks, with South Korea, the United States, Japan and China expected to be major markets. This translates to vast markets for DC power systems, particularly those with deep product penetration,” said Frost & Sullivan Energy & Environment Industry Analyst Adwaith Visveswaran. “Manufacturers are focusing on robust R&D to roll out smarter DC power systems due to persistent customer demand for higher efficiency power solutions.”
The regions with the highest potential for DC power suppliers are Asia-Pacific and Latin America:
- Asia-Pacific countries continue to see strong investments in the telecom sector, owing to 4G deployments and pilot testing of 5G networks.
- In Latin America, Brazil has long-term growth opportunities, while Mexico maintains steady growth in telecom investment. Coupled with the opening up of the overall Latin American market, there will be a spurt in partnerships between local vendors and global DC majors that want to break into the market.
Stringent privacy rules, which impact revenues of broadband service providers and, in turn, restrict the build out of data centres, are proving a challenge to the DC power systems market. For global companies to increase their sales of cabinets, partnerships with regional companies will be critical because they have robust relationships with telecom operators.
“To thrive in the complex DC power systems market, manufacturers need to provide high power-efficiency solutions and a sturdy global service platform that ensures quick response to customers,” noted Visveswaran. “While smart DC power systems with chargers for electric vehicles are poised to be a new application area, low-power ranges will bring in significant revenue over the next three to four years and propel market growth.”