Telecom Power Systems Market Will Grow At Highest Pace Owing To Growth In 5G Deployment

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The telecom power systems market comprises various types of power solutions that are used to power telecommunication infrastructure like macrocell sites, metro access/regional networks, and metro core networks. These power solutions include AC to DC converters, rectifiers, cabinets, racks, enclosure systems, DC plants, and DC generators among others. Telecom power systems are used to provide uninterrupted power supply for telecom infrastructure, as downtime of telecommunication networks could result in huge losses for telecom operators. The increasing rollout of next-generation 5G technologies, which require denser networks and more towers, is driving the demand for telecom power systems.

The Global telecom power systems market is estimated to be valued at US$ 4823.48 Bn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the telecom power systems are Archer Daniels Midland Company, Seagarden AS, Phermpep Co. Ltd., Arlak Biotech Pvt. Ltd., Naturade, Royal DSM, MYOS RENS Technology Inc., Natural Factors Inc., Valio Oy, GenScript, HELIX BIOMEDIX, Oryn Therapeutics, Selecta Biosciences, NIBEC, vivitide, PEPTIDE INSTITUTE, INC, BCN Peptides, Setlance srl., APEPTICO Forschung und Entwicklung GmbH, and BIONANOPLUS. The demand for telecom power systems is growing due to the increase in mobile subscriber base around the world and rising deployment of 4G/5G infrastructure. Technological advancements like AI integrated and software controlled power systems are increasing efficiencies and reducing downtime of telecommunication networks.

Market Trends
There is an increasing shift towards the installation of modular and scalable micro-grid and hybrid power systems to provide power to telecom towers located in remote areas. These hybrid systems use solar and wind energy along with diesel generators or battery storage for uninterrupted power supply. This reduces fuel consumption and maintenance costs of telecom operators. Telecom power system manufacturers are also developing lithium-ion battery integrated systems to increase battery backup times for telecom sites.

Market Opportunities
Growing deployment of 5G networks in developing regions provide huge opportunities for telecom power system manufacturers. Increased investments by telecom operators in rural and remote connectivity through projects like BharatNet will drive the demand for off-grid and hybrid power solutions. Adoption of AI and IoT in telecom power management and preventive maintenance can help optimize electricity usage and reduce downtimes.

Impact of COVID-19 on Telecom Power Systems Market Growth
The COVID-19 pandemic has significantly impacted the growth of the Telecom Power Systems Market Demand During the initial lockdown phases imposed globally, the demand for telecom services increased manifold as people relied heavily on digital connectivity for work, education and entertainment. This surge in data usage led to an increase in the deployment of telecom infrastructure including towers, base stations and data centers. As a result, the requirement for reliable power systems to support this infrastructure also rose sharply. However, due to disruptions in supply chains and restrictions on workforce movement, the production and installation of new telecom power systems were delayed. This created a short term demand-supply gap in the market.

With lockdowns now being eased and vaccination drives underway, the telecom power systems market is recovering fast. Telecom operators are aggressively adding network capacity to meet the continued rise in data usage especially for 5G services. This is driving extensive rollout of 5G infrastructure worldwide which will mandate improved quality of power to support advanced technologies. At the same time, governments across regions are implementing various relief programs and incentives to boost investments in digital connectivity. This is encouraging telecom companies to accelerate their capital expenditures on network build outs including power infrastructure modernization and expansion. Overall, despite facing initial setbacks due to the pandemic, the long term growth outlook for the telecom power systems market remains positive with opportunities expected across on-grid, off-grid and backup power solution segments.

Geographical Regions with Highest Concentration in Telecom Power Systems Market

Asia Pacific represents the largest regional market for telecom power systems in terms of value. Countries such as China, India and Indonesia have a vast mobile subscriber base and are leading telecom infrastructure deployment globally to support their burgeoning economies. Being the worldwide manufacturing hub with affordable labor, the region also accounts for a major share of global telecom equipment production. As mobile networks in Asia Pacific continue to evolve from 3G/4G to 5G, substantial investments are flowing into network upgrades and expanding coverage which drives demand for associated power infrastructure upgrade. North America is another key geographical market favored by the presence of leading telecom operators and a strong enterprise demand for connectivity services.

Fastest Growing Regional Market for Telecom Power Systems

The Middle East and Africa region is expected to record the fastest market growth over the next decade. Unlike developed markets where infrastructure is well-established, countries in MEA offer huge untapped opportunities for telecom network expansion to narrow the digital divide. Initiatives such as license awards, rural connectivity programs and smart city projects are helping strengthen digital infrastructure across the region. Additionally, factors like rising urbanization, young demographics favoring mobile services and discovery of oil and gas reserves are fueling overall economic growth of nations in MEA. Backed by support from governments as well as high spending capability of oil rich nations, telecom companies are aggressively investing in networking capabilities across MEA to tap the growing subscriber base which will require steady power supply enhancements to be in place.

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