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5G Deployment to Lead Demand for DC Power Usage
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DC power systems are expected to see growth as increased demand from telecom companies leads to increased deployment. Advent of 4G and 5G networks leads to steady growth of DC power systems as telecom base station power demand increases steadily. 5G deployment is the key driver for DC power systems, which is expected to see modest growth between 2020 and 2022 as the pace of 5G investment slowly builds across the globe, with strong growth likely to be seen around 2025. APAC and North America will see strong growth as companies in these regions lead investments in the telecom sector and as the pace of mobile penetration reaches nearly 100% in these regions. China and the US will vie for global leadership in the 5G space, which will lead to the increased demand for DC power systems from these two countries in the future. Increased power and processing requirements for 5G technology need increased power requirements, which will be fulfilled by modular and highly efficient DC power systems. The move away from lead to lithium-ion batteries is seen as increased miniaturization and power needs drive fundamental changes in the structure of DC power systems. The DC power systems market size is expected to increase from $4.2 billion in 2019 to $5.5 billion in 2025, with units increasing from 895k in 2019 to 1.04 million by 2025. The market for DC power systems is likely to grow stronger in the telecom power segment compared to that of the AC power systems, with the demand for DC power being strong throughout 5G deployment. We estimate the market to drop in 2020 due to the effect of the Coronavirus Pandemic (COVID-19), with growth restarting from 2021 onwards.
The market trends have been analyzed for the study period between 2019 and 2025, with the base year being 2019. The study covers North America, Europe, APAC, Latin America, and the Middle East and Africa. Fierce competition is expected, especially in APAC, from Chinese and the US participants that compete with cheaper and quality products.
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