Telecom Power System Market Dynamics - Global Forecast to 2027

Global telecom power system market is projected to grow from USD 3.9 billion in 2022 to USD 5.4 billion by 2027; it is expected to grow at a CAGR of 7.1% from 2022 to 2027.

The telecom power system market is dominated by a few globally established players such as Eaton (US), Huawei Technologies (China), Cummins (US), ZTE Corporation (China), General Electric (US), Schneider Electric (France).

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Opportunity: Surging requirements for advanced telecom infrastructure and M2M connections

The speed and reliability of advanced telecom infrastructure are expected to have a massive impact on machine-to-machine (M2M) and IoT. Key reasons for the increased adoption of new M2M technologies are better connectivity for smooth communication and low power requirement. The existing capacity of mobile networks must be able to handle billions of nodes that are expected to ascend in the next couple of years to achieve effective M2M communication. Currently, the network capacity is incapable of handling M2M and human-based communications, as well as their different communication patterns such as latency time.

Challenge: Design challenges for telecom power systems

All transmitters and receivers are embedded with semiconductor devices. There is a high level of design complexity in semiconductor devices. The major challenge for designers is to achieve better power efficiency while keeping the cost low and the structureless complex, particularly for devices working at higher frequency bands (SHF and EHF). Also, the varying requirements of different applications further increase the design complexity of semiconductor devices. Device manufacturers must continuously upgrade the design to accommodate changes such as the upgrading of LTE technology and the evolution of 5G technology. These rapid technological developments are creating design challenges that include maximizing linearity and isolation, managing power consumption, and antenna tuning. High integration is required since an increasing number of bands must squeeze into the limited space allocated to the telecom power systems.

Driver: Growing adoption of telecom services and high data traffic

With time and understanding about telecommunication services such as voice, internet, networking, and data services, people have started adopting them at a faster pace. With the growing need for telecommunication services, they are now used in all sectors i.e., schools, offices, data centers, healthcare, etc. With the smoother work execution including better communication services, improved internet services pertaining to better file transfer in offices, etc., people have started trusting these services for their day-to-day uses and necessities. The rapid adoption of these services will lead to enhanced telecom infrastructure development in terms of more towers to provide services to more people and hence, higher demand for telecom power systems. The increasing number of wireless devices that can access mobile networks is leading to the growth of mobile data traffic. As the number of mobile devices with advanced computing and multimedia capabilities is increasing, the demand for more capable and intelligent networks is also growing simultaneously. Mobile connections are evolving from 2G network connectivity to higher-generation network connectivity such as 3G, 3.5G, 4G, and 4.5G (LTE/LTE-A). With the evolution of mobile connectivity, the need for network monetization is also rising, which is leading to the growing adoption of telecom power systems.

Restraint: High deployment and operational costs

The telecom power systems are used to avoid operational downtime and maintain a high level of power quality. As telecom power system equipment are equipped with a number of features, their costs are high. The high-end power quality equipment are equipped with various features, such as high-power efficiency and disturbance detection, and flicker detection. Thus, these equipment are expensive and have high installation costs. Moreover, the construction and maintenance of telecom towers along with the maintenance of the power system components or devices incur more operational costs as more people are deployed to maintain the sites and it requires manpower to conduct site visits, which will majorly be on the outskirts of the city. High costs of high-end telecom power equipment are expected act as a restraint for the growth of the market.