Telecom Power System Market by Grid Type (On-Grid, Off-Grid, Bad-Grid), Component (Rectifiers, Inverters, Controllers, Converters), Power Source, Technology, Power Rating (Below 10 KW, 10-20 KW, Above 20 KW) and Geography - Global Forecast to 2028
[261 Pages Report] The global telecom power system market is projected to grow from USD 4.2 billion in 2023 to USD 6.6 billion by 2028; it is expected to grow at a CAGR of 9.4% from 2023 to 2028. The telecom power systems market is witnessing significant growth due to several key factors. Firstly, the increasing deployment of 5G networks, which require more efficient and reliable power systems, is driving the demand for telecom power systems. Secondly, there is a rising awareness of the carbon footprint associated with the telecom industry, leading to a shift towards more sustainable power systems. Additionally, the expanding telecom infrastructure, driven by the growing demand for connectivity and the rise of remote working, is fueling the need for reliable and efficient power solutions. Government initiatives and investments in telecom infrastructure are also contributing to the market growth. Furthermore, the adoption of smart devices, the growth of cloud computing, and the increasing demand for secure telecom networks are additional driving factors. These factors combined are expected to propel the telecom power systems market in the coming years.
Telecom Power System Market Forecast to 2028
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Market Dynamics:
Driver: Increasing number of telecom infrastructures in remote areas
The demand for mobile, telephony, and data services has increased in rural areas from developing economies such as India, Africa, and Brazil. The telecom service providers and mobile network operators are expanding their network from the urban and semi-urban regions to rural areas to tap the existing market potential of the rural market in the developing economies. The need for power-efficient networks also rises with the increase in technological advancements in the telecommunications sector. The number of users connected to a network increases due to various services provided by service providers. To provide users with high-speed, large-scale broadband services, and computational activities, service providers install numerous devices/equipment, such as routers, servers, switches, and radio base stations, in locations such as data centers, companies, homes, streets, and public spaces. Also, there is an increased requirement for efficient power management solutions to increase the energy efficiency of these devices, along with power systems, cooling systems, and batteries. With the increase in the number of users and telecom infrastructure in rural areas, the networks’ requirements for telecom power systems will also witness significant growth.
Restraint: Environmental concerns due to usage of diesel
Diesel generators are the preferred source of electrical power for off-grid and standby power applications, such as cellular base stations, because of their durability and reliability. Diesel generators emit harmful pollutants like particulate matter (PM), volatile organic compounds (VOCs), and nitrous oxide (NOx), contributing to the formation of smog and worsening respiratory conditions. These emissions are directly released into the atmosphere, and they deteriorate the environment as well as inhabitants. The emission limits for nitrogen oxides and hydrocarbons have also been reduced for generators between 8 kW and 19 kW power. Thus, environmental concerns coupled with regulations by various regulatory bodies globally regarding the use of diesel generators are expected to hamper the telecom power system market growth during the forecast period.
Opportunity: Increasing technological advancements in cellular networks (5G, LTE services, etc.)
Long-term evolution (LTE), marketed as 4G LTE, is the standard for high-speed data for data terminals and mobile phones. It is one of the fastest wireless technologies in the market, and the rapid global adoption of the technology drives the telecom power system market. The penetration of 4G technology is rapidly increasing in developing countries worldwide. According to the ITU, the 4G penetration in APAC was ~96% in 2022. Also, the countries in Africa witnessed a 4G penetration of ~50% in 2022.
Moreover, the rising penetration of 4G technology has increased demand for high-efficiency telecom power systems, particularly from developing countries such as India. This is expected to drive the market for telecom power systems in developing countries across the world. Also, technological advancements such as the rolling out of 5G services are trending in developed countries such as the US and Japan. According to the GSM Association, global 5G connections are expected to reach 27.14% by 2025. This is further expected to propel the demand for telecom power systems.
Challenge: Design challenges for telecom power systems
The telecom operators face infrastructure-related challenges in expanding network coverage to rural and remote areas due to higher operational costs and low return on investment. To deploy telecom networks in emerging markets is a technical and major economic challenge due to the absence of power grids, remote locations, harsh climatic conditions, and often the absence of qualified personnel on the ground. The energy required for electricity production should mostly be through renewable energy sources such as diesel-wind, diesel-solar, etc. The challenge is that awareness for the same is difficult to create and the installation costs for renewable energy sources are high, posing it as a challenge for adopting telecom power systems.
Telecom Power Systems Market Ecosystem
Diesel–Battery power source likely to dominate overall telecom power systems market from 2023 to 2028
The high adoption of diesel-battery based combination power sources in telecom power systems can be attributed to several key factors. Firstly, these power systems are highly reliable, making them suitable for remote areas without access to the grid. The diesel generator ensures a constant power supply, while the batteries serve as backup during generator failures, ensuring uninterrupted operations. Secondly, these power systems offer great flexibility, as they can be utilized in both on-grid and off-grid environments and can be scaled to meet the specific requirements of any telecom site. Moreover, despite higher initial investments, diesel-battery power systems are cost-effective in the long run.
Bad grid connected telecom power systems likely to hold the largest market size during the forecast period.
The primary reasons for the widespread adoption of bad grids (battery-assisted direct current grids) in telecom power systems are the location of telecom power sites in remote areas with unreliable or limited grid power, the cost efficiency of bad grids compared to alternative power systems, their flexibility to meet diverse power requirements, and their lower environmental impact, appealing to telecom companies aiming to reduce their carbon footprint. These factors collectively drive the high deployment of bad grids, especially in developing economies and remote locations.
Generators to hold the largest market share for telecom power systems from 2023 to 2028
Based on components, generators are likely to dominate among all components as it provide reliability and long hours of use in remote locations without compromising performance. The use of generators has been a mainstay in the telecommunications industry. Generators that run on diesel are the most common sources of portable power since diesel fuel is widely available and requires a low initial setup cost. Backup diesel generators are built to last, providing reliability and long hours of use in remote locations without compromising performance.
China to hold the largest share of the telecom power system market in APAC from 2023 to 2028
China is expected to hold a significant share in the telecom power system market in APAC owing to high investments in network infrastructures, along with the presence of telecommunication companies, such as China Telecom and China Mobile, and low-cost communication technology providers, such as ZTE Corporation and Huawei Technologies. It is also a densely populated country worldwide, leading to a rise in demand for mobile and data connectivity infrastructures. The country's dense population is expected to lead to issues regarding the reliability of connectivity, resulting in call drops and network failures. Therefore, the key telecommunication players in China are collaborating to deploy advanced wireless infrastructures to offer enhanced wireless connectivity.
The key telecommunication equipment providers in China, including ZTE Corporation and Huawei Technologies, have signed more than 95 5G commercial deals with the leading global operators. Huawei launched 35 5G commercial networks in December 2020. Huawei Technologies and ZTE Corporation have a complete industrial chain in 5G technology with broader coverage than Nokia and Ericsson. They offer chips, terminals, power systems, and specialized end-to-end 5G solutions.
Telecom Power System Market by Region
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Key Market Players
The telecom power system companies is dominated by a few globally established players such as Eaton (US), Huawei Technologies (China), Cummins (US), ZTE Corporation (China), General Electric (US), Delta Electronics, Inc. (Taiwan), and Schneider Electric (France). These companies have adopted both organic and inorganic growth strategies such as product launches and developments, partnerships, contracts, expansions, and acquisitions to strengthen their position in the market.
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Report Metric |
Details |
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Market Size Available for Years |
2019-2028 |
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Base Year |
2022 |
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Forecast Period |
2023–2028 |
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Forecast Unit |
Value (USD Million/Billion) |
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Segments Covered |
By Region, By Technology, By Grid Type, By Power Source, By Power Rating, By Component |
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Geographic Regions Covered |
North America, Europe, Asia Pacific, and RoW (includes the Middle East, Africa, and South America) |
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Companies Covered |
The major players include Eaton (US), Huawei Technologies Co., Ltd. (China), Cummins, Inc. (US), ZTE Corporation (China), General Electric (US), Delta Electronics, Inc. (Taiwan), Alpha Technologies (US), ABB (Switzerland), Staticon Ltd. (Canada), and Schneider Electric (France).(Total 25 companies) |
Telecom Power System Market Highlights
This report categorizes the telecom power system market based on Component, grid type, power source, power rating, technology, and region available at the regional and global levels.
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Segment |
Subsegment |
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By Component |
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By Grid Type |
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By Power Rating |
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By Power Source |
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By Technology |
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By Region |
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Recent Developments
- In June 2023, ZTE Corporation has signed a Memorandum of Understanding (MOU) with TM, Malaysia's prominent converged telco and technology company.
- In April 2023, ABB is driving forward its expansion strategy in the US through an investment of around USD 170 million, aimed at establishing advanced manufacturing, innovation, and distribution facilities.
- In May 2023, ZTE Corporation and the International Project Management Association (IPMA) have officially entered a memorandum of understanding (MOU) to establish a collaborative partnership. This collaboration will encompass various aspects, including research on project management standards, sharing best practices in project management, and conducting professional talent training.
- In March 2023, General Electric revealed its intention to allocate over USD 450 million towards enhancing its current manufacturing facilities in the United States this year.
- In March 2023, ABB entered into a strategic partnership with Direct Energy Partners (DEP), a digital technology start-up focused on expediting the adoption of Direct Current (DC) microgrids.
- In March 2022, Huawei launched and added a brand-new addition to its network solution by launching a 50 Gbps E band solution for ultra-high bandwidth requirements in urban areas, which can provide up to a 50% transmission range when compared to other available solutions in the industry. This helps to save network energy on all bands and to scale up the deployment of 5G networks.
- In February 2022, General Electric revealed a multiyear strategic collaboration agreement with Amazon Web Services, Inc. (AWS) to expedite grid modernization for utilities.
- In January 2022, Eaton introduced the latest addition to Eaton's 5 series UPS line, the Eaton 5PX G2 rackmount, and tower UPS provide the maximum power possible at each power rating. The 5PX G2 UPS has power ratings ranging from 1 to 3 kVA, with low and high voltage options, and offers up to four optional external battery modules for extra runtime. The UPS is primarily used in servers (including VoIP (Voice over Internet Protocol)), storage, networking equipment, switches (including PoE (Power of Ethernet)), and other IT equipment. It provides enhanced connectivity and cybersecurity protection, suitable for universities, medical facilities, IT, etc.
- In December 2021, ZTE added a product to its router product series, which focuses on internet core nodes, backbone aggregation nodes, large-scale MAN core egress nodes, and DC-GW (Data Centre Gateway). It is a high-capacity router, which is safe, reliable, and can be expanded to transport integrated services as it is a standalone system and it focuses on building flat networks, facilitating unified transport, and future-oriented network evolution.
- In November 2021, ZTE launched its first-ever pilot network to facilitate and support 5G-SA (5G- Standalone Access) capabilities. It further included the use of advanced 5G network capabilities in medical applications.
Frequently Asked Questions (FAQ):
How big is the global telecom power system market?
The global telecom power system market is projected to grow from USD 4.2 billion in 2023 to USD 6.6 billion by 2028; it is expected to grow at a CAGR of 9.4% from 2023 to 2028.
Who are the winners in the global telecom power system market?
Companies such as Eaton (US), Huawei (China), Cummins (US), ZTE (China), General Electric (US), and Schneider Electric (France) are the winners in the telecom power system market. These companies cater to the requirements of their customers by providing advanced telecom power systems with a presence in multiple countries.
How recession is likely to impact telecom power system suppliers?
The recession has undeniably impacted the telecom power system market in different regions across the globe. The recession has led to a reduction in capital expenditure (Capex) for telecommunication service providers. Financial constraints have compelled these companies to scale back or delay investments in network infrastructure, including power systems. This decrease in Capex spending directly affects global demand for telecom power systems.
What are the opportunities for the existing players and those planning to enter various stages of the telecom power system value chain?
There are various opportunities for the existing players to enter the value chain of the telecom power system industry. Growing telecom infrastructure, increasing adoption of hybrid power systems and increasing demand and adoption of telecom services in remote areas will likely provide significant market opportunities.
Which region is likely to offer lucrative growth in the telecom power system market?
Asia Pacific presents a huge opportunity for mobile network operators and energy service companies to work toward deploying green power alternatives for powering telecom sites to save energy OPEX and address the infrastructural challenges present and achieve success in the implementation of green technologies.
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The study involved four major activities for estimating the telecom power system market size. Exhaustive secondary research has been conducted to collect information relevant to the market, its peer markets, and its parent market. Primary research has been undertaken to validate key findings, assumptions, and sizing with industry experts across the value chain of the telecom power system market. Both top-down and bottom-up approaches have been employed to estimate the complete market size. It has been followed by the market breakdown and data triangulation methods to estimate the size of different segments and subsegments of the market.
Secondary Research
The research methodology used to estimate and forecast the size of the telecom power system market began with the acquisition of data related to the revenues of key vendors in the market through secondary research. The secondary research referred to for this research study involves telecom power and telecom network magazines, and journals. Moreover, the study involved extensive use of secondary sources, directories, and databases, such as Hoovers, Bloomberg Businessweek, Factiva, and OneSource, to identify and collect valuable information for a technical, market-oriented, and commercial study of the telecom power system market. Vendor offerings have been taken into consideration to determine market segmentation. The entire research methodology included the study of annual reports, press releases, and investor presentations of companies; white papers; and certified publications and articles by recognized authors; directories; and databases.
Primary Research
Extensive primary research has been conducted after understanding the telecom power system market scenario through secondary research. Several primary interviews have been conducted with market experts from the demand and supply-side players across key regions: North America, Europe, Asia Pacific, Middle East, Africa, and South America. Various primary sources from both the supply and demand sides of the market have been interviewed to obtain qualitative and quantitative information. Following is the breakdown of the primary respondents.
Primary data has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, various departments within organizations, such as sales, operations, and administration, were covered to provide a holistic viewpoint in our report. After interacting with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings from our primaries. This and the in-house subject matter experts’ opinions have led us to the findings described in the remainder of this report.
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Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the size of the telecom power system market and its segments. The research methodology used to estimate the market size includes the following:
- Key players in the market have been identified through extensive secondary research.
- In terms of value, the supply chain and the size of the telecom power system market have been determined through primary and secondary research processes.
- Several primary interviews have been conducted with key opinion leaders related to the telecom power system market, including key OEMs, IDMs, and Tier I suppliers.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
- Qualitative aspects such as market drivers, restraints, opportunities, and challenges have been taken into consideration while calculating and forecasting the market size
Global Telecom Power System Market Size: Bottom-up Approach
Global Telecom Power System Market Size: Top-down Approach
Data Triangulation
The market has been split into several segments and subsegments after arriving at the overall market size—using the market size estimation process explained above. Data triangulation and market breakdown procedures have been employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for each segment and subsegment of the market. The data has been triangulated by studying various factors and trends from both the demand and supply sides of the telecom power system market.
Market Definition
Telecom power systems secure telecommunication services in case of grid power interruptions and fluctuations. These systems are essential for running telecommunication networks efficiently. These systems comprise a combination of smaller systems such as converters, distributors, controllers, and batteries, along with conventional AC/DC diesel generators, an electrical distribution system, and distributed AC/DC loads. Power systems offer direct current (DC) and alternating current (AC) backup for various indoor and outdoor applications, thus saving essential operating costs for telecom operators. They ensure safe business continuity and operation.
In direct current (DC) power systems, a rectifier converts alternating current (AC) to DC and provides the power necessary to charge the batteries. In AC power systems, an inverter converts DC into uninterruptible AC. A power system controller monitors and controls the entire system, maximizes battery life, supports energy and cost savings, and informs the operator of maintenance needs. The power system can be integrated with renewable energy sources, which enables major energy and operation cost savings. Additional AC line conditioning elements can be integrated into the system for optimal operation in regions with highly unstable AC main conditions.
Key Stakeholders
- Telecom power system component providers
- Telecom power system integrators and installers
- Telecom power system solution providers
- Consulting companies
- Product manufacturers
- Telecom power system-related associations, organizations, forums, and alliances
- Government and corporate bodies
- Research institutes and organizations
- Venture capitalists, private equity firms, and start-ups
- Distributors and traders
- OEMs
- End users
- Research institutes and organizations
- Market research and consulting firms
- Telecom power system buyers
- Telecom power system technology providers
Report Objectives
- To describe and forecast the telecom power system market in terms of value, based on Component, grid type, power rating, power source, technology, and region.
- To forecast the telecom power system market in terms of volume.
- To forecast the market size, in terms of value, for various segments, with respect to four main regions—North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW).
- To provide detailed information regarding the major factors influencing the growth of the telecom power system market (drivers, restraints, opportunities, and challenges).
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market.
- To analyze opportunities for the market stakeholders by identifying high-growth segments of the telecom power system market.
- To benchmark players within the market using the proprietary “Company Evaluation Matrix” framework, which analyzes market players on various parameters within the broad categories of market rank and product offering.
- To strategically profile the key players, comprehensively analyze their market shares and core competencies2, and provide a detailed competitive landscape for market leaders.
- To track and analyze competitive developments, such as partnerships, collaborations, agreements, and joint ventures; mergers and acquisitions; expansions; and product launches in the telecom power system market.
- To map competitive intelligence based on company profiles, strategies of key players, and game-changing developments such as product launches, partnerships, collaborations, and agreements undertaken in the telecom power system market.
Available Customizations
Along with the market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of telecom power system market
- Estimation of the market size of the segments of the telecom power system market based on different subsegments
Generating Response ...
Growth opportunities and latent adjacency in Telecom Power System Market
Hi team, I have interest in your report and would like to have the report brochure or sample for reviewing it. After sharing the brochure, we can discuss about the proceedings.
we are listing different telecom power solutions for different grid types from batteries to fuel cells to generators and renewables and hybrid systems.
I am looking for data on number of Off-Grid and Bad-Grid telecom sites in Asia, Africa, and South America by country. Please let me know the price for this data set.