by Brianna Crandall — May 11, 2016 — The global critical power market will benefit significantly from substantial proposed investments in the data center end-user market in 2016, according to recent analysis from global growth partnership company Frost & Sullivan.
Particularly, the growth in modular data centers will give a strong push to the modular power solutions segment, with revenues for the modular UPS (uninterruptible power supply) market reaching $623.4 million in 2016. Meanwhile, the revenues from power management integrated circuit (PMIC) technology in portable and wearable devices will touch $13.63 billion market in 2016, at a year-on-year growth rate of 9.0%.
The report found that the market earned revenues of $28.98 billion in 2015, and expects this to reach $31.32 billion in 2016. UPS systems accounted for the highest revenue share of 32.6%. However, photovoltaic (PV) inverters will be primary drivers of the market, which is expected to grow at 6.9%, and light-emitting diode (LED) drivers, which will likely contribute to 27.9% growth in 2016.
2016 is expected to be a game-changing year for smart inverters with enhanced capabilities, as many utilities, especially in the United States, begin to roll them out.
Frost & Sullivan Energy & Environment Industry Director Malavika Tohani said:
As the critical power market’s prospects are highly dependent on the health of its end-user markets, it will be challenged by the weak investment climate in China, Brazil and weaker economies in Southern Europe. Low oil prices have dampened demand from the oil and gas sectors, while the decline in mining has further lowered the demand for critical power.
Nevertheless, there are opportunities for growth in the market. In addition to the data center and smart utility segments, the wireless power charging and LED driver segments will provide considerable support to the overall market. For instance, revenues for wireless power charging grew by more than 150% in 2015 over 2014, and this momentum is expected to extend into 2016.
Tohani noted:
While the demand from traditional applications is almost saturated, there is vast scope for growth in demand from new technologies, and a shift toward distributed energy. Overall, to survive in the market, critical power manufacturers and suppliers need to offer technologically superior products and a complete solution rather than just a product.
2016 Global Outlook of the Critical Power Market, available for purchase from the Frost & Sullivan Web site, is part of the company’s Power Supplies & Batteries Growth Partnership Service program. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
