Telecom power solutions assist telecommunication services when there are interruptions or fluctuations in the grid power. Telecommunications, in the information and communications technology industry, is the transmission of signs, signals, etc. by radio, optical or electromagnetic systems in-between communicating participants. Being the backbone for providing power supply to telecom service providers, telecom power solutions utilize various sources of energy, such as power from the grid, solar, wind or even generators to power the telecom provider.
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.
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.
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.
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.
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.
Our in-depth analysis of the telecom power solutions market includes the following segments:
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:
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