North America Data Center Power Market size exceeded USD 4 billion in 2019 and is predicted to expand at a CAGR of 6% from 2020 to 2026.
The rising adoption of IoT and cloud computing technologies in North America will drive the market demand. According to the study done by Cisco System, Inc., in February 2018, the number of Internet users will reach 345 million in North America by 2023. This will encourage major cloud service providers including Microsoft Corporation, Google LLC, and Amazon.com, Inc., to build hyperscale facilities across the region. As hyperscale data centers integrate several high processing servers that require continuous power supply for uninterrupted operations, the data center power industry will witness significant growth.
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The increasing usage of OTT streaming services across North America will create more growth opportunities for the market. Due to COVID-19 pandemic, imposed lockdown, and social distancing norms, video-on-demand platforms, such as Netflix, Disney Hotstar, and Amazon Prime Video, have seen a surge in their viewership. According to the Nice People at Work (NPAW) data, the streaming of live content in the U.S. increased to 73% in March 2020. This has resulted in increasing data traffic and need for construction of new data centers to store and process data. The data centers will continue investment in UPS and PDU systems to maintain a reliable and secure power supply on a consistent basis.
The availability of fast broadband and internet services in the U.S. has attracted several cloud providers to expand their presence across the country. For instance, in April 2021, NTT Communications established an earthquake-resistant data center in the U.S to accelerate its North American data center expansion plans. The rise in the establishment of data centers has driven the demand for UPS systems that provide emergency power to a facility when the primary power source fails. Without UPS, data center facilities will be vulnerable to costly downtime incidents that can negatively impact business operations.
Many global and regional market players are focusing on using advanced semiconductor components and electronic systems in data centers. The complexity of network components is driving the need for installation and maintenance services for ensuring security and monitoring power systems. These services enable data center operators to track equipment failure, boost efficiency, reduce security risks, and maintain reliability. Managed services ensure improved, effective, and efficient data center operations including production support and lifecycle build/maintenance activities.
The players in the data center industry provide data centers for various end-use industries such as BFSI, healthcare, government, and IT & telecom. The demand for data center power solutions is expected to increase in the BFSI sector due to the increasing adoption of digital services. Banks and financial institutions are adopting advanced technologies, such as AI and data analytics, that generate a massive amount of data. To process and store data, the sector is investing in data center facilities. This will fuel the demand for sophisticated data center power solutions that ensure operational continuity.
The key players operating in the North America market include Cisco Systems, Inc., Vertiv Group Co., Black Box Corporation, Eaton Corporation, ABB Group, Schneider Electric SE, Legrand, Cyber Power Systems, Inc., Hewlett-Packard Company, Caterpillar Inc., Cummins, Inc. Tripp Lite, Siemens AG, and Delta Electronics Inc., among others.