Telecom Power Solutions Market Segmentation By Deployment (Access And Core Network), By Product (Power systems and Power Supplies); By Services (Site Monitoring and Control Systems Services, Site-design Services and Heat Management Solutions) And By Type (Products And Software & Services) – Global Demand Analysis And Opportunity Outlook 2027
Buy Now Report ID: 2232 | Published Date: Feb 15, 2023
Rapid Increase In Prices Of Diesel and Gas
The outdoor telecom power solutions often use generators as the primary source of power supply to the network devices in case of a power outbreak. The operational cost is dramatically impacted whenever there is a change in the purchase price of diesel and gas, required to run the generators. Such a factor is anticipated to act as a barrier to the growth of the telecom power solutions market during the forecast period.
According to The GSM Association (GSMA), telecom operator revenues and investment around the world was valued at USD 1.03 trillion in the year 2018 and is anticipated to reach USD 1.14 trillion by 2025. Moreover, operator capex is anticipated to reach USD 321 billion for the period 2019-2020.
The telecom power solutions market is observing vibrant growth on account of rising investments by telecom operators in the telecom industry. Furthermore, increasing losses borne by telecom operators for power outages around the globe are some of the notable factors that are expected to contribute towards the growth of the telecom power solutions market. According to the World Bank, power outages in firms in a typical month in South Asia peaked to 25.46 numbers for the year 2018. CLICK TO DOWNLOAD SAMPLE REPORT
The telecom power solutions market is anticipated to record a robust CAGR throughout the forecast period, i.e. 2019-2027. The market is segmented by product type into power systems and power supplies. The power systems segment is further segmented into indoor and outdoor power systems, out of which, outdoor power systems sub-segment is anticipated to have the largest market share on account of rising grid power fluctuations and interruptions, coupled with rising installation of several number of temporary movable BTS sites in public places demanding for power supply, such as, stadiums, market & event spaces, office spaces and buildings among others, combined with lack of grid power connectivity in rural areas for seamless running of cell sites.
Growth Drivers
Investments for Technological Advances in Telecommunications Industry
Technological advances in telecommunications is a dynamic process. Upsurge in voice and data IP traffic, on the back of increasing mobile telephony subscribers around the globe is inducing mobile operators to invest heavily for the deployment of modern network access technologies, such as LTE and 5G network, and further deploy greater number of base stations and small cell sites. The rising number of BTS is anticipated to raise the demand for reliable power sources for the seamless integration of services that are provided by the telecom service providers. Such factors are anticipated to drive the growth of the global telecom power solutions market. According to the Department of Telecommunications, Government of India, the total number of base transceiver stations in India increased from 1,275,634 numbers in 2017 to 1,833,842 numbers in 2018.
Increasing Power Outages
Workload of devices supporting the telecommunication network have increased over the time owing to the rise in voice and data traffic packets. As such, the network devices have grown multifold in the utility running time, thereby raising the demand for reliable and continuous supply of power sources to back up these devices. Rising power outages observed in various economies affects the services offered by these network devices and leads to severe runtime operational loss. Such a factor is anticipated to drive the growth of the global telecom power solutions market.
Growing Network Coverage in Rural Areas
According to the statistics provided by The World Bank, rural population around the world increased from 2295 million in 1969 to 3396 million in 2018 at an annual average growth rate of 0.80%.
With time, telecom operators have expanded their services to rural areas so as to expand their customer base and generate more revenue by enriching customers with their services. As such, there is a significant growth in the telephone and internet subscribers amongst the rural population. According to the Department of Telecommunication, Government of India, rural telephone subscribers in India grew from 377.78 million in 2014 to 525.87 million in 2018 and the internet subscribers in India grew from 107.56 million in 2015 to 145.83 million in 2018.
The expansion of the telecom services to rural areas is also anticipated to raise the demand for the deployment of a greater number of telecom sites so as to meet the basic technological infrastructure. Additionally, rising concern amongst organizations for the unavailability of grid power in rural areas is further expected to drive the demand for reliable power sources. Such factors are anticipated to promote significantly towards the growth of the global telecom power solutions market.
Our in-depth analysis of the telecom power solutions market includes the following segments:
By Deployment
By Product
By Services
By Type
By Region
On the basis of regional analysis, the telecom power solutions market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia-Pacific is expected to have largest market share, especially in South Asia, on account of demand for reliable power sources, conjoining with losses borne by enterprises, for high rate of power outages in the region. Furthermore, rise in deployment of cell sites and base transceiver stations are expected to support the growth of the market in the region.
The telecom power solutions market is further classified on the basis of region as follows:
Delta Electronics, Inc. announced the partnership with Alibaba for the development of advanced power supply technology for internet data center applications.
Huawei announced the launch of 5G power solutions for the telecom industry. The new technology ensures that energy evolution is simpler, more reliable and more efficient in the 5G network process.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
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