Europe Data Center Power Market size crossed USD 3 billion in 2019 and is anticipated to record a CAGR of around 9% between 2020 and 2026.
The increasing number of internet users coupled with the emergence of advanced technologies, such as AI and machine learning, is driving the market expansion. According to Cisco Systems, Inc., IP traffic in Central and Eastern Europe reached around 17.0 Exabytes per month in 2020, up from 5.2 Exabytes per month in 2015. This has driven the adoption of robust storage and network devices, increasing energy consumption in data centers. The servers and cooling systems consume around 43% of electricity in data centers. To reduce Power Usage Efficiency (PUE) ratio and optimize energy consumption, the operators are implementing intelligent power systems in data centers. The adoption of an intelligent PDU enables data center managers to monitor and analyze the power consumption by servers and take active measures to eliminate energy losses.
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Technological advancements and advent of innovative power monitoring systems are propelling the market growth. The manufacturers are developing modular UPS and intelligent rack PDU to cater to the growing power requirements of data center operators. For instance, in March 2020, ABB Ltd. launched MegaFlex UPS solution with a reduced footprint of up to 45% and greater reliability. The device offers high efficiency conversion of up to 97.4% and delivers sustainable power technology with reduced energy losses. The introduction of real-time environmental sensors, remote power monitoring, and data center infrastructure management solutions is boosting the market revenue.
The Europe data center power industry experienced a slight decline in revenue in FY2020 due to COVID-19 pandemic. The manufacturers operating in Europe witnessed a decline in their first and second quarter revenues due to closure their manufacturing facilities. The leading component manufacturers also witnessed supply chain disruptions due to imposed lockdown across the region. However, the demand for new data centers increased considerably owing to the adoption of remote working, online shopping, and e-learning. This has driven the demand for advanced power devices to maintain uninterrupted supply for high data processing needs.
Europe Market, By Component
The UPS segment held a remarkable market share in 2019 on account of its increased adoption in hyperscale data centers. The cloud service providers are increasingly constructing mega data centers in Europe to expand their presence across the region. For instance, in September 2020, Google LLC., announced to invest USD 3.3 billion to expand its data center footprint across Europe over the next two years. The hyperscale data centers integrate a large number of servers and storage devices that require uninterrupted supply for continuous data transmission and processing. The UPS systems provide reliable backup to the servers and storage devices during any incident of power failure in hyperscale data centers.
Europe Market, By Application
The BFSI application segment is expected to register a considerable market demand through 2026, attributed to increasing digitization and online banking activity in the BFSI sector. Financial institutions require efficient and reliable power solutions to effectively manage business continuity in processes such as online trading and banking. The implementation of advanced power systems in data centers helps in increasing scalability and reducing system downtime as well as overall operation cost.
Competitive Industry Landscape
The Europe data center power market is witnessing high competition with the presence of a large customer base. Industry players operating in the region are developing advanced products in order to distinguish themselves in the highly competitive environment. For instance, in March 2021, Vertiv Group Co., launched Liebert EXM2, a mid-size three-phase UPS System for critical applications in India. The product provides double conversion efficiency up to 97% and up to 98.8% with the dynamic online mode.