Energy and Power

Data Center Energy Storage Market

Global Industry Analysis and Forecast 2023-2030

Pages : 120

Base Year : 2022

Released Year : February 2024

Format :Pdf Ppt Xls

Report ID:KR446

Author : Priyanka V.

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Base Year

2022

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Forecast Year

2023-2030

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Historical Years

2018-2021

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MarketValue (2022)

USD 1.30 Billion

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Forecasted Value (2030)

USD 2.24 Billion

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CAGR (2023 - 2030)

7.15%

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Fastest Growing Region (2023 - 2030)

Asia Pacific

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Largest Region

North America

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By Type

Battery Energy Storage, Flywheel Energy Storage, Fuel Cell Energy Storage, Thermal Energy Storage, Others.

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By Application

Uninterruptible Power Supply (UPS), Load Leveling, Renewable Integration, Others.

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By End User

IT & Telecom, BFSI, Healthcare, Government, Manufacturing, Others.


Market Perspective

The global Data Center Energy Storage Market was valued at USD 1.30 billion in 2022 and is projected to reach USD 2.24 billion by 2030, growing at a CAGR of 7.15 % from 2023 to 2030.

The data center energy storage market is witnessing significant growth due to the increasing demand for uninterrupted power supply in data centers. With the exponential growth of data generation and storage, data centers are facing immense pressure to ensure continuous operations and prevent any downtime. This has led to the adoption of energy storage solutions that can provide backup power during grid outages or fluctuations, ensuring seamless operations and data protection.

Additionally, the rising focus on sustainability and energy efficiency in data centers has propelled the demand for energy storage solutions that can help reduce carbon emissions and optimize energy consumption. As data centers strive to meet the increasing demand for uninterrupted power supply, energy storage solutions have become crucial. These solutions, such as batteries and flywheels, enable data centers to store excess energy during off-peak hours and use it during peak demand, thereby reducing reliance on the grid.

Moreover, energy storage systems can help data centers harness renewable energy sources, such as solar or wind power, thereby enhancing their sustainability and reducing their carbon footprint. Overall, the incorporation of energy storage solutions not only ensures continuous operations but also aligns data centers with the growing focus on sustainability and energy efficiency.

Analyst’s Review on Data Center Energy Storage Market

The market for energy storage in data centers is projected to experience substantial growth in the forthcoming years due to the rising need for uninterrupted power supply in these facilities.  Additionally, the growth of the market can be attributed to the rising utilization of sustainable energy alternatives in data centers. As companies strive to minimize their environmental impact and accomplish sustainability objectives, they are integrating renewable energy solutions such as solar panels and wind turbines into their data center facilities.

Renewable energy systems play a crucial role in mitigating the environmental impact of data centers while ensuring a reliable and sustainable power supply. By leveraging solar or wind energy, these systems enable data centers to generate electricity on their premises, reducing their reliance on conventional power grids. Implementing an uninterrupted power supply not only guarantees consistent electricity availability but also contributes to reducing operational expenses over time. The rising demand for eco-friendly and sustainable data centers is projected to drive the growth of the data center energy storage market in the forthcoming years.

Market Definition

Data center energy storage refers to the use of energy storage systems within data centers to optimize their energy consumption and improve overall efficiency. These systems are specifically designed to store excess energy during periods of low demand and release it during peak demand, thereby reducing reliance on the grid and minimizing energy costs.

Additionally, incorporating energy storage within data centers offers businesses the opportunity to not only improve their sustainability initiatives but also guarantee uninterrupted operations in the event of power outages or grid failures. These energy storage systems, which incorporate technologies like batteries, flywheels, or compressed air systems, allow data centers to store excess energy generated by their power infrastructure.

During periods of decreased demand, the energy that is stored can be utilized to supply power to the facility, thereby minimizing the requirement to obtain electricity from the main power grid. This not only aids in decreasing energy expenses but also enhances the resilience and dependability of the data center. By having a continuous power supply, businesses can prevent expensive periods of inactivity and data loss, guaranteeing uninterrupted operations even in unexpected situations.

Market Dynamics

The increasing need for storing and processing data is fueling the expansion of the market for energy storage in data centers. With the continuous generation and accumulation of vast amounts of data by companies, there is now a critical requirement for energy storage solutions that are both efficient and dependable. Hence, organizations are making significant investments in advanced energy storage technologies and solutions to cater to the growing power demands of data centers. These investments aim to ensure uninterrupted operations, minimize downtime, and optimize energy efficiency in data centers.

By incorporating cutting-edge energy storage systems, data centers have the ability to ensure uninterrupted power while simultaneously decreasing their dependence on conventional fossil fuel resources. The shift towards sustainable energy storage choices aligns with the global endeavor to protect the environment and reduce carbon emissions. Furthermore, improving energy efficiency in data centers can result in significant financial advantages for companies, establishing a mutually advantageous situation for both businesses and the environment. As a result, the data center energy storage market is projected to experience notable growth in the forthcoming years due to the increasing demand for dependable and environmentally-friendly energy solutions.

However, high initial investment costs are a major factor restraining the growth of the data center energy storage market. The installation and maintenance of energy storage systems require substantial capital investment, which can deter companies from adopting these solutions.

Segmentation Analysis

The global data center energy storage market is segmented based on type, application, end user, and geography.

Based on technology, the data center energy storage market is bifurcated into battery energy storage, flywheel energy storage, fuel cell energy storage, thermal energy storage, and others. The battery energy storage segment generated a significant revenue share in 2022. This considerable growth is mainly attributable to the increasing demand for data centers and their power-intensive operations, the ability to store energy efficiently is crucial. Additionally, batteries provide a consistent power supply and can be easily expanded or upgraded to meet the growing energy needs of data centers. Furthermore, battery energy storage systems are highly flexible and can be integrated with renewable energy sources such as solar or wind, enabling data centers to reduce their reliance on fossil fuels and lower their carbon footprint.

Based on application, the data center energy storage market is bifurcated into uninterruptible power supply (UPS), load leveling, renewable integration, and others. The uninterruptible power supply (UPS) segment dominated the data center energy storage market in 2022. UPS systems provide critical backup power during outages, ensuring that data centers can continue to operate without any disruption. This is particularly crucial in industries where even a few minutes of downtime can result in significant financial losses. Additionally, UPS systems offer protection against power fluctuations and surges, safeguarding sensitive equipment and preventing damage or data loss. With the increasing reliance on digital infrastructure and the growing demand for uninterrupted connectivity, UPS systems have become indispensable for data centers.

Geographical Analysis

Based on region, the global data center energy storage market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America secured a significant market share in 2022 due to its robust infrastructure and advanced technology, which collectively provide a solid foundation for the industry in the region. Moreover, North America benefits from a well-established power grid and a significant number of data centers, making it an optimal location for energy storage solutions. Additionally, the region has played a leading role in the development and implementation of renewable energy sources such as solar and wind power. This further strengthens North America's position as a dominating region in the data center energy storage market.

Asia-Pacific is anticipated to be the fastest growing region over the forecast period due to a significant increase in Internet penetration and digitalization, which is leading to a surge in data center construction. This has created a higher demand for energy storage solutions to support the growing data storage and processing needs. Additionally, governments in the region are implementing favorable policies and incentives to encourage the adoption of renewable energy sources, which has further fueled the growth of the data center energy storage market in APAC. Furthermore, the region is experiencing rapid urbanization and population growth, resulting in the growing need for more data centers to support various industries such as e-commerce, finance, and healthcare. The region's vulnerability to natural disasters, such as typhoons and earthquakes, highlights the importance of reliable energy storage. These systems are crucial to safeguard critical data and maintain business continuity in the event of potential power outages.

Competitive Landscape

The global data center energy storage market study will provide valuable insights with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization. The major players in the market are:

  • ABB Ltd.
  • Delta Electronics, Inc.
  • Eaton Corporation
  • General Electric
  • Huawei Technologies Co., Ltd.
  • Legrand
  • Mitsubishi Electric Corporation
  • Saft
  • Schneider Electric
  • Vertiv Group Corp.

Key Developments:

May 2022(Launch): NTT, a technology services provider, has launched the first data center, NAV1A, on its hyperscale data center complex in Navi Mumbai. This data center can easily accommodate 5,000 racks and handle more than 30 MW of IT load.

The global Data Center Energy Storage Market is segmented as:

By Type

  • Battery Energy Storage
  • Flywheel Energy Storage
  • Fuel Cell Energy Storage
  • Thermal Energy Storage
  • Others

By Application

  • Uninterruptible Power Supply (UPS)
  • Load Leveling
  • Renewable Integration
  • Others

By End User

  • IT & Telecom
  • BFSI
  • Healthcare
  • Government
  • Manufacturing
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
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Frequently Asked Questions (FAQ's)
The global data center energy storage is projected to reach USD 2.24 billion by 2030, growing at a CAGR of 7.15% from 2023 to 2030.
The global data center energy storage market was valued at USD 1.30 billion in 2022.
The major driving factor for the market growth is the increasing adoption of renewable energy sources, such as solar and wind, in data centers necessitates effective energy storage solutions.
Top manufacturers of data center energy storage market are ABB Ltd., Delta Electronics, Inc., Eaton Corporation, General Electric, Huawei Technologies Co., Ltd., Legrand, Mitsubishi Electric Corporation, Saft, Schneider Electric, and Vertiv Group Corp.
Asia-Pacific is the fastest growing region in the forecasted period (2023-2030).
By technology, battery energy storage segment will hold the maximum share in the data center energy storage market in forecast period.
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