Remote Power Panel Market

[188 Pages Report] The global remote power panel market is estimated to grow from USD 1.1 billion in 2023 to USD 1.4 billion by 2028; it is expected to record a CAGR of 4.8% during the forecast period. Data centers is one of the major application areas of remote power panels. Data centers would continue to grow by the explosive growth in data generation and storage requirements as a result of widespread adoption of the Internet of Things (IoT), digital technologies, automation, robotics, and artificial intelligence (AI) by business entities. Additionally, more and more businesses and organizations are moving their operations online. This is anticipated to enhance the remote power panel market size.

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Remote Power Panel Market Dynamics

Driver: Adoption of digital technologies in IT sector

The IT sector is rapidly growing owing to massive digitalization drive. There is an increasing adoption of cloud storage solutions to prevent data losses and ensure automatic data backups. The requirement for robust data centers is increasing with rapid advancements in the IT sector and the growing preference for digital technologies and cloud services. Investments toward digitalization are also creating multiple opportunities for data center investments. Such efforts are anticipated to drive the demand for RPPs as they provide a critical layer of redundancy and failover protection, help optimize power usage and reduce energy costs, and enable IT administrators to manage power usage from anywhere in the world.

Restraint: Technological advancements in power distribution systems will reduce the usage of RPPs

Nowadays, different power distribution structural designs using overhead busway distribution systems are increasingly being incorporated in data centers for power distribution, owing to their multiple benefits. Originally power distribution in data centers was followed as a standard industrial practice, wherein main power distribution units (PDUs) branch out to smaller remote power panels (RPPs) that feed power whips to racks. The replacement rate of components at the rack for power distribution requirements is high, which forces electricians to use new whips all the time, even when they are excessively heated. If a raised floor space is not available, then the installation cost of power whips can be higher, as they must be installed on a dedicated cable ladder/tray.  This is reducing the need of PDUs and RPPs for power distribution.

Opportunities: Huge investments, along with enforcement of stringent standards, to reduce carbon footprint in data centers

Data centers are intense consumers of water and electricity and are responsible for significant carbon emissions. These developments give investors opportunities to secure data centers with carbon-free energy supplies. Measurement and monitoring of data center energy consumption is also gaining traction to enhance achieving sustainability goals. Rack PDUs, PDUs, bus drops, busway end feeds, remote power panels, UPS, and building meters help monitor power consumption and improve energy efficiency. RPPs allow data center operators to remotely monitor and manage power usage, enabling them to identify areas where energy is being wasted and make adjustments to reduce energy consumption. By using remote power panels to optimize energy usage, data centers can reduce their carbon emissions and environmental impact. This is particularly important as the demand for data storage and processing continues to grow and data centers become an increasingly important part of the global technology infrastructure.

Challenges: Entry barriers due to difficulty in complying with complex standards

Remote power panel vendors must comply with government regulations applicable for data center power equipment. Data centers must consume power according to the regulations provided by the International Organization for Standardization (ISO), the European Committee for Electrotechnical Standardization, the American National Standards Institute/Building Industry Consulting Services International (ANSI/BICSI). This has hindered the growth of the data center power market as most of the vendors prefer to consume power based on the requirement of data centers. New market entrants face difficulties in receiving accreditation while conforming to these standards.

Remote Power Panel Market Ecosystem

Leading companies in this market include well-established, financially secure producers of remote power panels. These corporations have been long operating in the market and have a differentiated product portfolio, modern manufacturing technologies, and robust sales and marketing networks. Major companies in this market include ABB (Switzerland), Schneider Electric (France), Toshiba International Corporation (Japan), Vertiv Group Corporation (US), and Socomec (France).

The network cabinets segment, by wall-mounted type, is expected to be the largest market during the forecast period.

This report analyzes the wall-mounted type market based on based on applications such as network cabinets, server rooms, and data centers. The network cabinets segment is expected to be the largest application of wall-mounted type remote power panels in the forecast period. The low footprint of wall-mounted remote power panels, and the lower capacity makes them ideal for smaller spaces like network cabinets. Additionally, their significantly low price provides an incentive for end users to adopt wall-mounted remote power panels in network cabinets.

By Application, the server rooms segment is expected to be the second fastest growing segment during the forecast period

This report segments the remote power panel market based on application into three segments: network cabinets, server rooms, and data centers. The server rooms segment is expected to be the second-fastest growing segment during the forecast period. Remote power panels can be configured to accommodate a range of power capacities, which makes them scalable and adaptable to changing power requirements without significant disruptions in server rooms. This flexibility is expected to bolster the segmental growth.

“Middle East & Africa”: The second-fastest in the remote power panel market”

Middle East & Africa is expected to be the second-fastest growing region in the remote power panel market between 2023–2028, preceded by the Asia Pacific,  and followed by South America. Rising investments in hyperscale and colocation data center infrastructure and enhanced adoption of cloud computing and digitalization are the key factors fostering the growth of the remote power panel market in the Middle East & Africa.

Key Market Players

The remote power panel market is dominated by a few major players that have a wide regional presence. The major players in the market are Schneider Electric (France), ABB (Switzerland), Toshiba International Corporation (Japan), Vertiv Group Corporation (US), and Socomec (France). Between 2019 and 2023, strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the remote power panel market.

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Scope of the Report

This research report categorizes the remote power panel market by component, power source, application, and region.

By type:

• Wall-mounted
• Floor-standing

By application:

• Data centers
• Network cabinets
• Server rooms

By region:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In January 2023, Schneider Electric acquired AVEVA, a provider of industrial software solutions. The acquisition will enable both companies to digitally transform customers’ operations and drive improvements through a reduction in energy, carbon, and resource intensity, encouraging customers to achieve their goals regarding efficiency and sustainability.
• In September 2021, Flex acquired Anord Mardix to shift toward higher margin lines of business and offer data center power solutions. This acquisition will help Anord Mardix to accelerate growth in the data center market. Anord Mardix leveraged Flex’s global footprint and supply chain to establish itself as quality provider across regions.
• In September 2021, ABB reached an agreement to sell the Power Conversion division to AcBel Polytech Inc. The transaction is subject to regulatory approvals and is expected to be completed in the second half of 2023. This segment offers power solutions for telecommunication, data center, and industrial applications. Upon closing, ABB expects to record a small non-operational book gain in income from operations on the sale. 
• In August 2020, Schneider Electric launched the Galaxy RPP. Galaxy RPP products are highly configurable and modular. It also offers anytime, anywhere monitoring and service support via cellphone. They are easy to install and maintain due to their compact design. The products  compleiments all 75–500 kVA PDUs.

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