PUBLISHER: Acute Market Reports | PRODUCT CODE: 1665897
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1665897
Telecom power systems are specialized systems that provide a reliable and stable source of power to telecommunications infrastructure, such as cell towers, data centers, and other networking equipment. These systems typically include a combination of battery backup systems, generators, and other power management equipment designed to ensure uninterrupted power supply to critical telecom infrastructure. The telecom power systems market includes a range of products and solutions, including AC and DC power systems, power management and monitoring systems, and related services. The global telecom power systems reached US $4417.0 million in 2024 and is expected to reach US $8929.3 million in 2033, growing at a CAGR of 8.1% during the forecast period of 2025 to 2033.
Increasing demand for reliable and uninterrupted telecom services
With the increasing demand for telecom services, there is a growing need for a reliable and uninterrupted power supply to ensure the smooth functioning of the telecom network. The global telecom power systems market is expected to grow at a CAGR of 10% from 2025 to 2033, driven by the increasing demand for reliable and continuous telecom services. Moreover, the rising adoption of smartphones, tablets, and other mobile devices has increased the demand for high-speed data services, which require a robust telecom network. According to a report by GSMA, unique mobile subscribers is expected to reach 5.8 billion by 2025. This increased demand for telecom services is expected to drive the demand for telecom power systems. The COVID-19 pandemic has further highlighted the importance of telecom services, with a growing reliance on digital connectivity for remote work, education, and healthcare. This trend is expected to continue in the post-pandemic world, driving the demand for telecom power systems. The deployment of 5G networks is expected to drive the demand for telecom power systems, as these networks require a more reliable and continuous power supply to meet the higher data rates and lower latency requirements.
Growing demand for energy-efficient telecom power systems
The increasing focus on energy efficiency and sustainable operations has created a significant opportunity for companies offering energy-efficient telecom power systems. With the rising costs of energy and the need to reduce carbon emissions, telecom companies are seeking ways to optimize their energy consumption and reduce their operational costs. The global market for energy-efficient telecom power systems is expected to grow at a CAGR of 10.5% from 2025 to 2033. This growth is driven by factors such as the increasing adoption of renewable energy sources, government initiatives to reduce carbon emissions, and the need to reduce operational costs. There is a growing awareness among consumers, governments, and businesses about the impact of climate change and environmental degradation. Energy-efficient power systems can help telecom companies save on energy costs in the long run. According to a report by Ericsson, the use of energy-efficient power systems can result in a reduction of up to 50% in energy consumption and operating costs for telecom operators.
High Initial Investment Cost
One of the major restraints for the telecom power systems market is the high initial investment cost required for the installation and maintenance of these systems. Telecom power systems require significant capital expenditure and investment in infrastructure to support the deployment of these systems. This includes the cost of purchasing and installing the necessary equipment, such as backup batteries, rectifiers, and generators, as well as the cost of maintaining and upgrading these systems over time. The high initial investment cost is a major barrier to the adoption of telecom power systems, especially in developing countries where cost is a major consideration. The high initial investment cost for telecom power systems can vary depending on a variety of factors, such as the size and complexity of the network, the location and terrain of the deployment, and the specific requirements and specifications of the telecom operator. However, the total cost of ownership for a typical hybrid telecom power system can range from $7,000 to $15,000 per site, depending on the size and complexity of the installation.
Market Segmentation by Component
The component market was dominated by rectifiers that held about 35% of revenue share in 2024, followed by controllers with a revenue contribution of 18% in 2024. Rectifiers are a critical component of a telecom power system as they convert AC power from the grid into DC power needed for telecom equipment. One of the significant advantages of rectifiers is their high efficiency in converting AC to DC power. They typically have an efficiency rate of around 95%, which means that they waste minimal energy in the conversion process. This high efficiency translates into cost savings for telecom operators, as they can reduce their energy consumption and lower their energy bills. They have a long lifespan and require minimal maintenance, which makes them ideal for use in telecom power systems. As the telecom industry requires high levels of reliability and uptime, rectifiers provide a reliable power supply to the telecom equipment and ensure that there is no interruption in the services.
Market Segmentation by Grid
The telecom power systems market by grid was dominated by on-grid segment that contributed about 43% of revenue share in 2024. On-grid power systems are more cost-effective than off-grid power systems. On-grid systems can be connected to the main power grid, which means that they do not require expensive battery backup systems. This makes them more cost-effective and efficient for telecom companies. On-grid power systems can ensure a continuous supply of power to telecom towers. This is because they are connected to the main power grid, which ensures that they have a constant supply of electricity. This is important for telecom companies that need to ensure that their towers are always powered, even during power outages. Many governments around the world are providing incentives for the installation of on-grid power systems. This is because on-grid systems are more efficient and can reduce the overall energy consumption of the telecom industry. Governments are also promoting the use of renewable energy sources such as solar power, which can be connected to the main power grid. On-grid power systems are more efficient than off-grid systems.
Regional Insights
In 2024, the Asia Pacific (APAC) region dominated the global telecom power systems market by geography with a revenue contribution of 35%. This can be attributed to several factors that have contributed to the growth of the market in the region. One of the primary factors is the rapid expansion of the telecommunications industry in the APAC region. The demand for telecom services has been growing steadily in recent years, driven by the increasing adoption of smartphones, the growing popularity of social media, and the increasing use of cloud-based services. This has resulted in a significant increase in the number of mobile and internet users in the region, which has created a huge demand for telecom power systems.
Key Players & Competitive Landscape:
Some of the leading vendors profiled in the global telecom power systems market report include Huawei Technologies Co. Ltd., Eaton Corporation, Cummins Inc., ABB LTD, Delta Electronics Inc., Schneider Electric SE, Vertiv Group Corp., ZTE Corporation, Myers Power Products Inc., Unipower LLC, Eltek AS, Ascot Industrial S.r.l., Alpha Technologies, Inc., Mitsubishi Electric Corporation, Dynamic Power Group, AEG Power Solution B.V.
Historical & Forecast Period
This study report represents an analysis of each segment from 2023 to 2033 considering 2024 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2025 to 2033.
The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Telecom Power Systems market are as follows:
Research and development budgets of manufacturers and government spending
Revenues of key companies in the market segment
Number of end users & consumption volume, price, and value.
Geographical revenues generated by countries considered in the report
Micro and macro environment factors that are currently influencing the Telecom Power Systems market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top-down and bottom-up approach for validation of market estimation assures logical, methodical, and mathematical consistency of the quantitative data.