According to a new market research report published by Credence Research, “Telecom Power Systems Market (By Component (Rectifiers, Controllers, Converters, Heat Management Systems, Inverters, Circuit Breakers, Generators, Protection Devices, Distribution Unit, and Others), By Grid (Off Grid, On Grid, and Bad Grid), By Power Source (Diesel-Solar, Diesel-Wind, Diesel-Battery, and Multiple Sources), By Geography (North America, Europe, Asia Pacific, and Rest of the World)) – Growth, Future Prospects, and Competitive Landscape, 2019 -2027”, the global telecom power systems market is expected to reach US$ 5,443.1 Mn by 2027, expanding at a CAGR of 6.9% during the forecast from 2019 to 2027.
Rising investment in 5G network critically drives the telecom power systems market. Recently, GSMA Intelligence has spotted total investment in 5G networks will hit US$ one trillion between 2018 and 2025, which accounts for 17% of total mobile operator revenue. Additionally, penetration of IoT in telecom sector along with cross-industry partnership is expected to boost the market growth over next several years. In March 2019, China Telecom Global signed a partnership agreement with Tata Communications that will allow companies to cost-effectively and easily deploy IoT devices all across China and internationally. Similarly, in October 2018, fourteen mobile operators joined GSMA IoT partnership program in Asia Pacific region. The program is expected to grow over 2,000 partners including mobile operators, manufacturers, system integrators, and vertical solution providers by the year 2020.
The global telecom power systems market is categorized on the basis of component, grid, power source, and geography. Rising adverse effect of Greenhouse Gases (GHG) and CO2 has created awareness among the people for using renewable energy source instead of non-renewable sources. A recent study conducted by Environmental Protection Agency (EPA) of United States concluded that electricity generation accounted for around 27% of total GHG emission. In the wake of same, consumer trend has shifted towards distributed and renewable generation. By this shifting trend, off-grid concept is expected to gain significant acceleration among other grid types during the forecast years.
In terms of geographic regions, Asia Pacific accounted for the largest revenue share in the year 2018. The prime reason behind the significant growth of the region is due to the enormous presence of telecom companies in the region. In addition to this, on-going development and increasing connectivity in the rural areas of Asian countries offer lucrative growth of telecom power systems market in the coming years. Tremendous growth in the mobile subscribers during past few years due to large percent of population concentrated in the region is the main cause for rise of connectivity.