While the market revenue for 4G and 5G networks for data center power systems is expected to drop in 2020 due to the COVID-19 pandemic, the market will rebound to pre-pandemic levels by 2021 and rise to $5.5 billion by 2025, according to a new report from Frost & Sullivan.
Unit shipments are expected to grow at a compound annual growth rate (CAGR) of 2.7% between 2019 and 2025, increasing from 895,000 units to 1.04 million, Frost & Sullivan said.
"The increased power and processing requirements of 5G infrastructure creates the need for highly efficient and reliable power systems that can tolerate heavy loads. This can be fulfilled by DC power systems, which are modular and extremely efficient," said Manoj Shankar, senior research analyst for Energy and Power Systems Practice at Frost & Sullivan. "Telecom base stations in off-grid areas or in areas that lack proper power supply also present a large market opportunity for DC power systems, which can be coupled with renewable energy sources."
The expansion of 5G networks globally is expected to slow due to the coronavirus, but in a post-COVID-19 world, expansion will pick up in the U.S., China and Europe in 2021 as the market recovers.
The market research firm said revenue opportunities in this market include:
- Developed and developing countries where 5G, 4G and LTE networks are being deployed.
- More modular and efficient products to drive wider acceptance.
- Manufacturing houses for better lead times and regional servicing hubs.
- Relationships with engineering, procurement and construction participants for new solutions for networks.
Learn more about Frost & Sullivan’s findings with its Global DC Power Systems Market, Forecast 2025.
