A recent report published by Infinium Global Research on power electronics for datacenter market provides in-depth analysis of segments and sub-segments in the global as well as regional power electronics for datacenter market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional power electronics for datacenter market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast and dollar values of global power electronics for datacenter market.
The power electronics for the data center market are experiencing significant growth driven by trends including the increasing adoption of renewable energy sources such as solar and wind to power data centers, driven by sustainability goals and regulatory pressures. Advanced uninterruptible power supply (UPS) systems, particularly lithium-ion and nickel-zinc batteries, are gaining traction for their efficiency and reduced environmental impact. Additionally, integrating artificial intelligence (AI) and machine learning into power management systems is enhancing energy optimization and predictive maintenance capabilities. These developments are propelled by the rapid expansion of hyperscale data centers and the growing demand for edge computing solutions. The power electronics for the data center market face several critical challenges amid growing demand. High initial capital investment and complex integration of advanced power systems, such as silicon carbide (SiC) and gallium nitride (GaN) technologies, hinder rapid adoption. Thermal management remains a concern, especially in high-density computing environments. Additionally, ensuring consistent power quality and grid stability is difficult as data centers increasingly integrate renewable energy sources. Supply chain disruptions and the shortage of skilled professionals further complicate the deployment and maintenance of sophisticated power electronics systems.
The increasing adoption of renewable energy sources is driving the power electronics for the data center market. As data centers strive to reduce carbon footprints and meet sustainability targets, integrating solar, wind, and other renewables has become essential. This shift requires advanced power electronics to manage variable energy inputs, ensure grid stability, and optimize power conversion and storage. Technologies such as inverters, converters, and smart energy management systems are in higher demand, enabling efficient, reliable, and eco-friendly data center operations powered by clean energy. Additionally, regulatory pressures and sustainability goals are driving the power electronics for data centre market by pushing data centers to adopt more energy-efficient and environmentally friendly technologies. Stricter government regulations on carbon emissions and energy consumption are compelling data center operators to invest in power electronics that reduce energy waste and lower carbon footprints. To meet corporate sustainability targets, many companies are integrating renewable energy sources and adopting advanced power management systems. This shift toward greener operations ensures compliance with regulations and enhances corporate reputation and operational efficiency, boosting market demand.
On the other hand, the high initial capital investment required for deploying advanced power electronics in data centers may hinder market growth. Technologies such as silicon carbide (SiC) and gallium nitride (GaN), along with smart UPS systems and energy storage solutions, offer efficiency but come at a premium cost. Smaller or emerging data centers may struggle to justify these upfront expenses despite long-term savings. This financial barrier may delay modernization efforts, especially in cost-sensitive markets, slowing the overall adoption of next-generation power infrastructure. Furthermore, the integration of AI and IoT into power management systems is unlocking new growth avenues for the power electronics market in data centers. AI enables real-time energy optimization, predictive maintenance, and adaptive load balancing, reducing downtime. IoT devices enhance data collection and remote monitoring, allowing for granular control over power usage and equipment health. Together, these technologies improve energy efficiency, extend equipment lifespan, and support smarter, more responsive infrastructure. This digital transformation aligns with sustainability goals and boosts competitiveness in an increasingly data-driven, power-intensive environment.
North America is anticipated to dominate the power electronics for the data center market during the forecast period due to the rapid expansion of hyperscale data centers, driven by the increasing demand for cloud computing, big data analytics, and AI workloads. The region is home to major technology giants and data center operators who are investing heavily in energy-efficient and sustainable power electronics solutions. Additionally, the U.S. and Canada have stringent regulatory frameworks encouraging renewable energy adoption and carbon reduction, further boosting market growth. North America's advanced infrastructure, high-tech innovation, and supportive policies are key factors that make it the dominant market. Asia Pacific is expected to be the fastest-growing region during the forecast period owing to the rapid expansion of hyperscale data centers, especially in countries such as China and India, which are increasing their demand for advanced power electronics to manage higher energy loads. Government incentives and policies, such as those in India, which offer substantial funding for data center infrastructure, are further fueling this expansion.
| Report Coverage | Details |
|---|---|
| Market Size in 2023 | USD 2437.23 Million |
| Market Size by 2032 | USD 15426.40 Million |
| Growth Rate from 2024 to 2032 | CAGR of 24.31% |
| Largest Market | North America |
| No. of Pages | 255 |
| Market Drivers |
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| Market Segmentation | By Component, By Data Center Size, and By End User |
| Regional Scope | North America, Europe, Asia Pacific, and RoW |
The report on global power electronics for datacenter market provides a detailed analysis of segments in the market based on Component, Data Center Size, and End User.
· Power Supply Units (PSUs)
· Uninterruptible Power Supply (UPS) Systems
· Power Distribution Units (PDUs)
· Energy Storage Systems
· Others
· Small and Medium-sized Data Centers
· Large Data Centers
· Mega/Hyperscale Data Centers
· IT & Telecom
· BFSI
· Healthcare
· Government
· Energy
· Manufacturing
· Others
· Eaton Corporation plc
· ABB
· Delta Electronics, Inc.
· Mitsubishi Electric Corporation
· Vertiv Group Corp.
· Schneider Electric
· Legrand
· Huawei Digital Power Technologies Co., Ltd.
· Cyber Power Systems (USA), Inc.
· Cisco Systems, Inc.
The report provides deep insights into demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the power electronics for datacenter market. Moreover, the study highlights current market trends and provides forecasts from 2024-2032. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.