Data Center Switching Power Supply Market - Forecast(2024 - 2030)

The Data Center Switching Power Supply Market is forecast to reach $8.6 billion by 2026, after growing at a CAGR of 6.4% during the period 2021-2026. Advancements in the semiconductor industry is attributed to increasing adoption of compact and efficient power distribution equipment which offers higher efficiency and superior product life. Various R&D initiatives in the Data Center Switching Power Supply Market has resulted in replacement of the traditional silicon metal-oxide-semiconductor with the GaN FET which ensures faster switching speeds, higher efficiency and performance, thus escalating growth of the Data Center Switching Power Supply Market. The rising demand for improved power monitoring, power distribution and power backup will be a primary driver for switching power supply market.

The report: “Data Center Switching Power Supply Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Data Center Switching Power Supply Market. 

By Form Factor: ATX, FLEX ATX, CIS, CRPS, Others.

By Voltage Rating: Up to DC 12V, DC 12V to DC 24V, DC 24V to DC60V, DC 60V to DC 125V, Above DC 125V.

By Power Output: Up to 2KW, 2KW to 16KW, 16KW to 60KW, Above 60KW.

By Conversion: AC, DC.

By Configuration: Open-Type Power Supplies, Closed-Type Power Supplies.

By End User Industry: Small Scale Data Center, Large Scale Data Center

By Geography: North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa)

ATX form factor accounted for a segment share of 32.7% in the Data Center Switching Power Supply Market globally in 2020. ATX motherboard enables advanced control facilities in which the BIOS program continually checks the CPU temperature and voltages. ATX motherboards are thus being deployed in data centers for use in server boards which require improved thermal design to eliminate CPU preheating. 

Large Scale data center segment is the largest end-user segment in the Data Center Switching Power Supply Market, and it held a share of 70% in 2020. The switching power supply for this market is poised to grow at a CAGR of 3.6% in the forecast period. The growing demand for money-saving and eco-friendly solutions for the reduction of energy consumed in IT and telecom industry are enhancing the demand for data center SMPS. The development of data center with ultra-low-carbon footprint by key player such as Schneider Electric is further embracing the growth of the market. Therefore, the demand for reducing carbon footprint of data centers are further escalating the need for environmental friendly solutions which will thereby drive the SMPS market.

APAC holds the largest share of 33.54% in the global Data Center Switching Power Supply Market and is expected to grow at a CAGR of 5.98% during 2021-2026. The APAC region is witnessing significant growth in the automotive industry as it hosts major automotive OEMs in countries such as Japan and China. Japan is a leader in the automotive industry with the presence of top automobile OEMs including Toyota Motor Corporation, Suzuki Motor Corporation, Honda Motor Co., Ltd., and Nissan Co., Ltd. and others, which are incorporating switching power supply for regulating power within automobile components. Thus, growth of the automobile industry is set to drive the Data Center Switching Power Supply Market. APAC region comprises of various leaders in the telecom industry, especially in China and India. The Indian telecommunications industry is growing, especially in the rural areas. Telecom services are being accessed by 36.5% of the rural population in India as of 2019. Thus, the Indian rural market will be a key driver for the telecommunications industry. As switching power supply is used in the telecommunication and automotive industries, growth in these industries will lead to significant growth in the Data Center Switching Power Supply Market as well.

Increasing digitalization in data centers is driving demand for industrial PCs which are being used for process control and monitoring applications. The adoption of edge and fog computing for faster data processing is opening up new opportunities for digitalization. Since these data servers and industrial computers incorporate switching power supplies, their increasing adoption of these systems will also help drive the Data Center Switching Power Supply Market.

Data centers requires huge amount of power to run effectively, and the presence of inefficient power performance becomes a critical issue for data center to run smoothly. The lack of effective power performance leads to slow or shut down of the cooling systems that further results in the closing of data center in order to avoid any damage to the equipment. This shut down of the data center also results in affecting the business operation causing financial risk to the business. Therefore, these key factor lead to improved deployment of switching power supply in the market.

Constructing a private data center is clearly a major capital investment, but after the building is finished the expenses will not end. The day-to-day operation of a data center incurs a substantial amount of recurring maintenance costs. Colocation hosting needs higher start-up costs than if the hosting firms hire servers. They have to buy hardware and upgrades on their own. Instead of bandwidth, budgeting gets frustrating with fluctuating monthly leases. Maintenance limitations on time or money.

Partnerships and acquisitions along with product development and up-gradation are key strategies adopted by players in the Data Center Switching Power Supply Market. In 2020, the market for switching power supplies was analyzed to be moderately fragmented with top 10 players accounting for 67.15% of the market share. Major players in the Data Center Switching Power Supply Market include Delta Electronics Inc., Artesyn Embedded Technologies, Lite-ON, Inc., Bel fuse Inc., TDK Lamda Corporation, Murata Manufacturing Co., Ltd., Cosel Co., LTD, Meanwell Enterprises Co. Ltd., FSP Group, and Salcom Plc.