Data Center Energy Storage Industry
The global data center energy storage market size is expected to reach USD 2.67 billion in 2030 and is projected to grow at a CAGR of 9.1% from 2024 to 2030 The data center industry has been growing owing to the rise in the adoption of cloud computing and the high penetration of smart phones. The workload on the data centers has increased exponentially which has contributed to varying load demands, in turn, increasing the power consumption. The increased power consumption has created a necessity for deployment of Energy Storage Devices (ESDs), which can provide swift demand response to the changing loads and provide efficient power management.
The energy storage in the data center has been used as a backup method to handle power outages until diesel generators are brought online. This typically takes a few seconds or a couple of minutes. ESDs are capable of discharging energy whenever there is a requirement. The devices equipped with high energy density can provide power backup for longer durations as compared to super capacitors. UPS acts as a backup device that can sustain the load of the entire system for a short interval of time, acting as a backup solution during power cuts. As a result, several data center UPS manufacturers are focusing on improving the efficiency for maintaining the ideal power usage by using efficient ESDs. This, in turn, is anticipated to boost market growth during the forecast period.
Energy storage in data centers is usually made up of lead-acid batteries and is used as centralized uninterruptible power supply. Potential ESDs include li-ion batteries, flywheels, supercapacitors, and compressed air energy storage. Li-ion and lead-acid batteries are mostly implemented as ESDs owing to their high energy density and reliability. Particularly, Li-ion batteries have considerably high efficiency, high energy density, long cycle life, and environmental friendliness, and hence are one of the most promising ESDs.
Based on geography, North America was the leading revenue contributor in 2019 and is poised to witness remarkable market growth over the forecast period. The region is characterized by the presence of several data center clusters and provides plenty of colocation opportunities. The regional growth is mainly backed by U.S., as the country represents about 50.0% of the data centers worldwide. Also, the growing usage of cloud computing applications and services coupled with the rising popularity of the Internet of Things (IoT) further drives the market in the region.
Gather more insights about the market drivers, restrains and growth of the Global Data Center Energy Storage market
Data Center Energy Storage Market Segments Highlights:
- The tier 3 segment held the largest market revenue share of 45.4% in 2023
- The BFSI segment dominated the market in 2023. As financial institutions expand their digital services, they require robust data centers capable of handling high volumes of transactions and data storage
- The entertainment & media segment is projected to grow at the fastest CAGR over the forecast period
- North America held the largest market revenue share of 39.5% in 2023. The increasing demand is driven by the region's rapid growth in data center construction, fueled by the expansion of cloud computing, edge computing, and the rise of big data
Data Center Energy Storage Market Report Segmentation
Grand View Research has segmented the global data center energy storage market report based on, type, application, and region:
Data Center Energy Storage Market Type Outlook (Revenue, USD Million, 2018 - 2030)
- Tier 1
- Tier 2
- Tier 3
- Tier 4
Data Center Energy Storage Market Application Outlook (Revenue, USD Million, 2018 - 2030)
- Healthcare
- BFSI
- Manufacturing
- Retail & E-commerce
- Entertainment & Media
- Others
Data Center Energy Storage Market Regional Outlook (Revenue, USD Million, 2018 - 2030)
- North America
- Europe
- Asia Pacific
- Japan
- China
- India
- Australia
- South Korea
- Latin America
- Middle East and Africa (MEA)
- Saudi Arabia
- South Africa
- UAE
Key Data Center Energy Storage Company Insights
- ABB
- Delta Electronics, Inc.
- Eaton
- General Electric Company
- Huawei Technologies Co., Ltd.
- Legrand
- Mitsubishi Electric Power Products Inc.
- Saft
- Schneider Electric
- Vertiv Group Corp.
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