Telecom Power System Market To Generate $7,360.2 Million Revenue by 2030

The global telecom power system market revenue is projected to reach $7,360.2 million in 2030, witnessing a compound annual growth rate of 7.1% during 2021–2030. This can be ascribed to the proliferating telecom infrastructural projects, elevating adoption of telecom services, and technological advancements in cellular networks.

Continued strong video consumption and smartphone adoption are increasing the mobile data traffic, with 5G services accounting for about 10% of the total in 2021. The growth in mobile data traffic per smartphone across the world can be ascribed to the rise in data-intensive content, improved device capabilities, and growth in data consumption due to the enhancements in deployed networks’ performance. Further, telecom service providers are highly integrating their offerings with 5G networks and other advanced technologies. These factors have expanded their infrastructure and cellular networks, which, in turn, enhanced the demand for power systems.

On-Grid Category To Witness Fastest Growth

The on-grid category is expected to record the fastest growth during the forecast period, owing to factors, such as it is simple, cost-effective, and easy to install. Whereas, the bad-grid category recorded the largest share, of more than 40%, in the telecom power system market in 2021. This is mainly due to the expansion of telecommunications infrastructure in the rural areas, high investments by tower service providers, and increased deployment of cell power systems.

Among the power source systems, the diesel-battery category registered the highest share, of more than 40%, in the market in 2021. This is because diesel-battery power source systems are common and conventional and are in the position to operate even in the absence of adequate wind speed and sunlight, unlike other power sources such as diesel-wind and diesel-solar. Moreover, they help in deterring carbon footprint and need low investment requirements. Hence, these factors inflate their application in the industry.

Geographically, the North American market recorded the second-largest revenue share in 2021 and is projected to witness the fastest growth during the forecast period. This is attributed to the surging need for network connectivity, cloud computing, 5G deployment, network infrastructure, and edge computing solutions. Moreover, telcos are using artificial intelligence (AI) and machine learning (ML) to thrive automation for their infrastructure operations, which, in turn, is projected to intensify the use of power systems in the coming years in the region.

In addition, the LATAM market is witnessing significant growth. Countries such as Chile, Peru, and Colombia are achieving impressive growth rates with respect to the penetration of fixed broadband. Moreover, there is a wide range of telecom pilot projects ongoing in Brazil, Mexico, Colombia, and Peru, which are expected to augment the network density and the use of power systems.

Product Launches Are Among Most-Effective Strategic Measures

Key players in the telecom power system market are laying emphasis on adopting strategies, including product launches for achieving higher sales and generating more revenue. For instance:

In June 2021, Hutchison Drei Austria GmbH introduced the first pilot 5G SA network with ZTE Corporation in Europe, allowing a new and open telecom ecosystem to ameliorate efficiency, flexibility, customer experience, and openness, along with the full 5G-SA capabilities.

Similarly, in May 2019, Clear Blue Technologies International Inc. announced the launch of its energy-as-a-service (EaaS) for wireless power. This new subscription-based service offers wireless power for critical systems, including telecommunications systems, off-grid street lights, and internet of things (IoT) devices.

Key players in the market include Eaton Corporation plc, Huawei Technologies Co. Ltd., Cummins Inc., ZTE Corporation, Schneider Electric SE, Alpha Technologies, Delta Group, ABB Ltd., and Eltek.