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Home > Data Center > 5G deployment starts to expand from 2021

5G deployment starts to expand from 2021

It is estimated that the increasing implementation of 4G and 5G networks across the world will lead to steady growth in demand for data center (DC) power systems.


Seda Nur Cinar Seda Nur Cinar
May 28, 2020
2 min read
5G deployment starts to expand from 2021

Frost & Sullivan’s recent analysis, Global DC Power Systems Market, Forecast to 2025, estimates the increasing implementation of 4G and 5G networks across the world will lead to steady growth in demand for data center (DC) power systems. While Global DC Power Systems Market revenue will fall in 2020 due to the COVID-19 pandemic, it is expected to hit 5.5 billion in 2025 with increasing investment in 5G infrastructure.

5G deployment leads the demand for DC power usage

With the start of increased demand from telecom companies about 5G deployment, DC power systems are expected to see growth essentially between 2020 and 2022. Manoj Shankar, Senior Research Analyst, Energy and Power Systems Practice at Frost & Sullivan, said,

Manoj Shankar, Senior Research Analyst, Energy and Power Systems Practice at Frost & Sullivan,
Manoj Shankar, Senior Research Analyst, Energy and Power Systems Practice at Frost & Sullivan

“The increased power and processing requirements of 5G infrastructure creates the need for highly efficient and reliable power systems that can tolerate heavy loads. This can be fulfilled by DC power systems, which are modular and extremely efficient.

Telecom base stations in off-grid areas or in areas that lack proper power supply also present a large market opportunity for DC power systems, which can be coupled with renewable energy sources. The deployment of 5G networks across the globe is expected to be slow initially as most telecom companies have invested heavily in 4G technologies.”

After the drop in market revenues in 2020, the expansion is most likely to start in the US, China, and Europe from 2021. According to Shankar, the Asia-Pacific and North American markets will see strong growth as companies in these regions lead investments in the telecom sector. 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.

Power system manufacturers should:

  • Focus on markets in both developed and developing countries where 5G, 4G, and LTE networks are being deployed.
  • Make their products more modular and efficient at a lower cost, which will drive wider acceptance once the 5G networks rollout.
  • Set up manufacturing houses for better lead times and complement them with regional servicing hubs that can easily reach out to customers.
  • Forge relationships with engineering, procurement, and construction (EPC) participants to design new and innovative solutions to implement the network.

See more Data Center News


Tags: 5GFrost & Sullivan
Seda Nur Cinar

Seda Nur Cinar

Seda Nur Cinar is the news editor of the Cloud7 News. With more than 8 years of Linux and cloud experience, Seda is a Linux and opensource enthusiast, security researcher and a web application developer.

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