Telecom Power System Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Telecom Power System Market Size

Telecom Power System Market Trends and Growth Drivers

5G Deployment and Expansion Is Key Market Trend

• 5G networks are fundamentally changing the face of telecom by offering significantly faster data speeds, lower latency, and increased network capacity.
• According to a latest report from GSMA, more than 1 billion 5G subscriptions have been reached in 2023 and are forecast to reach 4.4 billion by 2027, indicating fast uptake of the technology.
• Telecom operators are making massive investments in infrastructure both in coverage and performance because they realize that 5G is non-negotiable for the fulfillment of demands from modern applications.
• There are further opportunities of 5G for the IoT as the network speed and low latency are to support millions of connections and enables real-time collection and analysis of data across industries, such as healthcare, agriculture, and manufacturing.
• In the case of autonomous vehicles, 5G is an innovator with both bandwidth and speed needed by vehicle-to-everything communication that increases safety and navigation.

Increasing Adoption of Telecom Services Propels the Market Growth

• In this new era of digitization, companies are focusing on adopting new technologies, such as AI, IoT, and ML, for the enhancement of their businesses, which has resulted in the development of cloud transformation telecom consulting.
• In 2023, leading telecom companies such as Verizon and Deutsche Telekom adopted the new-generation technologies to quicken up network expansion and reduce operational costs.
• Further, the open radio access network (OpenRAN) allows network operators to deploy 4G and 5G networks by combining vendor-neutral hardware and software.
• In 2023, a number of operators, Vodafone and AT&T among them, have begun deploying OpenRAN to enhance their 5G services.
• The vendor-neutral approach allows providers to extend their network significantly faster than ever but lowers the P/L with better flexibility to select the best available elements from a variety of suppliers.
• Moreover, the telecom sector continued to make progress in augmenting its network capacity with additional fiber and wireless deployments to meet the constant demand for higher-speed networks.
• The telecom power system market is being driven by a more competitive broadband landscape, growing interest in multi-access edge computing and private cellular networks, and an increasing focus on cybersecurity and risk management in the 5G era.

Infrastructure Cost Is Major Challenge for Market Growth

• Upgrading and maintaining power systems for the telecom infrastructure is capital-intensive and presents huge financial challenges to the operators.
• In maintaining interruption-free services, mainly with increasing telecom networks to support technologies such as 5G and IoT, a reliable and efficient power source is important.
• The additional need for such backup systems in the form of generators and batteries escalates the investment requirements, which often strains the budget since this is beyond the financial flexibility of most small-scale operators.
• Further, the increased and burgeoning demand for installing more renewable energy makes the system all the more complicated and expensive.

Telecom Power System Market Analysis

Component Analysis

• Generators category holds the largest market share, of 40%, in 2024 as they are substantially used as a standby power source to offer secure operations against power outages and inadequate power supply.
• Moreover, diesel is less flammable than natural gas, making it a safer fuel for generators for telecom tower backups.
• Furthermore, diesel-fueled generators have longer lifespans as compared to others, since they run at lower temperatures.
• Inverters will grow at a CAGR of 10% in the forecast period driven by the increasing integration of renewable energy sources into telecom power systems.
• As operators seek increasingly sustainable sources of energy to help contain costs and carbon footprints, this, in turn, accelerates demand for inverters even more.

The components analyzed in this report are:

• Rectifiers
• Inverters (Fastest-Growing Category)
• Converters
• Controllers
• Heat Management Systems
• Generators (Largest Category)
• Others

Grid Type Analysis

• Bad-grid category accounts for the largest market share, of 55%, in 2024.
• This is primarily ascribed to its wide application in rural areas in mainly developing countries, such as India, Pakistan, Brazil, and African economies.
• Additionally, the surging development of telecom infrastructure due to the increased investments by tower companies bolsters the use of the bad-grid category.
• Off-grid category is the highest-growing because of the increasing need for reliable power sources in remote and underserved areas where traditional grid access is limited.
• As the telecom operators expand their reach into the rural and isolated regions, the adoption of off-grid systems, often fueled by renewable energy sources, is gaining acceleration.

The grid types analyzed in this report are:

• On-Grid
• Off-Grid (Fastest-Growing Category)
• Bad-Grid (Largest Category)

Power Source Analysis

• Diesel-battery category is largest with the market share of 60% in 2024.
• With high reliability and flexibility of providing backup power to telecom operations, it provides a hygiene source of electricity 24/7.
• Areas with unstable connections to the grid can benefit from hybrid solutions coupled with diesel generators and battery storage systems to provide continuous power supply.
• Diesel-solar category is expected to witness the fastest growth during the forecast period, advancing at a CAGR of over 11%.
• This can be attributed to the increasing use of hybrid energy sources in telecom towers and they tamp down the maintenance and operational costs by curtailing fuel consumption and diesel runtime.
• Moreover, the proliferation of hybrid project development fortifies the use of diesel-solar power sources across the globe.

The power sources analyzed in this report are:

• Diesel-Battery (Largest Category)
• Diesel-Solar (Fastest-Growing Category)
• Diesel-Wind
• Multiple

Technology Analysis

• DC category accounts for larger market share, of 70%, in 2024 and is expected to grow at a CAGR of 12% in the forecast period.
• This is due to the wide applications of DC power systems in the telecom sector. DC power is not limited to frequency variation or leading power factor.
• Moreover, DC power can be stored, and hence, backup for telecommunication buses can be simply provided by batteries directly without any power conversion loss.
• There are various companies, which are specialized in manufacturing and distributing DC power solutions across the globe, such as Eaton Corporation plc, La Marche Manufacturing Company, Alpine Power Systems, and Power Solutions LLC.

The technologies analyzed in this report are:

• AC
• DC (Larger and Faster-Growing Category)

Regional Analysis

• The APAC telecom power system market share is more than 40% of the global revenue, and the region is also projected to continue its industry dominance in the long run.
• The number of mobile subscribers has been witnessing an upward trend during the past years, which encourages telecom service providers to lay emphasis on making investments and expanding the telecommunications network. This augments the production of power systems in the region.
• For instance, India has around 1.2 billion mobile connections, about 600 million smartphones, and around 700 million internet users.
• The country is adding around 25 million new mobile users per quarter, making it a flourishing ground to introduce digital initiatives.
• Further, the country has the highest mobile data consumption of around 12 GB per person per month, worldwide.
• North America is projected to be the fastest-growing market for telecom power equipment in the coming years, owing to the strong network connectivity, 4G-LTE networks, and mobile penetration.
• The growing information communication technology (ICT) industry, which comprises telecommunications as well as high-tech sectors, is predictably at the core of the regional market growth.
• Furthermore, the U.S. is expected to register a more pronounced 5G cycle with peak smartphone growth in the coming years, which would further entice service providers to establish and ameliorate telecom infrastructure. Therefore, this factor is projected to create a positive influence on the market in the long run.

The regions and countries analyzed in this report are:

• North America (Fastest-Growing Regional Market)
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany (Largest Country Market)
  • Italy
  • Spain (Fastest-Growing Country Market)
  • U.K.
  • France
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • China (Largest Country Market)
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Fastest-Growing Country Market)
  • South Africa (Largest Country Market)
  • Rest of MEA

Telecom Power System Market Share

The telecom power systems market is fragmented in nature. The industry spans a wide range of applications from traditional voice services to advanced data services, such as 5G and IoT applications, thus having varied power requirements, which encourages specialized providers. Regional differences in the structure of infrastructure needs, regulatory environments, and even sources of energy create many customized solutions, further adding fragmentation in the market. For instance, the speed of development of many of these technologies, such as renewable energy integration and hybrid systems, tends to promote innovation and attract many companies that want to create some niche products.

Telecom Power System Market News

• In September 2024, American-Irish power management company Eaton Corporation planned to establish a new global application engineering centre in Chennai, Tamil Nadu, India.
• In July 2023, ABB Ltd. announced the completion of the divestment of its Power Conversion division to AcBel Polytech Inc. for an enterprise value of USD 505 million. ABB anticipates recording a modest non-operational book gain in Income from operations from this sale in the third quarter of 2023.
• In June 2023, ZTE Corporation signed a Memorandum of Understanding (MOU) with TM, Malaysia's converged telecommunications and technology provider.
• In May 2023, Schneider Electric SE won the Data Centre Consolidation/Upgrade Project of the Year award at the DCS Awards 2023. The recognition was for their project at University College Dublin (UCD), where they designed and delivered a high-efficiency Uniflair InRow Direct Expansion (DX) cooling system and implemented an EcoStruxure RowData Center solution at the Daedalus data center.