Telecom Power System Market

Market Definition

The market encompasses the ecosystem of solutions and infrastructure designed to ensure reliable and efficient power supply to telecommunication networks and facilities. 

This market includes a broad range of components such as generators, rectifiers, inverters, converters, controllers, and heat management systems, all of which work together to support the continuous operation of telecom equipment. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Telecom Power System Market Overview

The global telecom power system market size was valued at USD 4.41 billion in 2023 and is projected to grow from USD 4.76 billion in 2024 to USD 8.71 billion by 2031, exhibiting a CAGR of 9.00% during the forecast period. 

The expansion of 5G networks is a major growth driver, as it requires reliable power systems to support the increased number of base stations, small cells, and remote radio heads (RRHs) necessary for delivering high-speed connectivity. Telecom operators are rolling out 5G infrastructure across urban and rural areas, which is boosting the demand for efficient and scalable power solutions.

Major companies operating in the telecom power system industry are Generac Power Systems, Inc., Advanced Energy, Monolithic Power Systems, Inc., Tata Motors Ltd., General Electric Company, Alpha Technologies Inc., Eaton, ZTE Corporation, Schneider Electric, Xantrex LLC., Delta Electronics, Inc., Huawei Technologies Co., Ltd., Saft, Vertiv Group Corp., and Cummins Inc.

Moreover, the need for compact and efficient power solutions has increased as telecom infrastructure continues to expand, particularly with the rollout of 5G. High power density systems provide telecom operators with the ability to maximize output while minimizing space requirements, making them ideal for small cells, edge data centers, and RRHs, where space is limited.

• In July 2023, Tata Motors launched a technologically advanced, high-performance range of gensets in India. Powered by CPCB IV+ compliant Tata Motors engines, these gensets are available in configurations ranging from 25kVA to 125kVA. The new gensets are designed to be fuel-efficient, with block loading capability, offering lower operating costs and uninterrupted power delivery for businesses.

Key Highlights:

1. The telecom power system market size was valued at USD 4.41 billion in 2023.
2. The market is projected to grow at a CAGR of 9.00% from 2024 to 2031.
3. Asia Pacific held a market share of 34.15% in 2023, with a valuation of USD 1.51 billion.
4. The generators segment garnered USD 1.42 billion in revenue in 2023.
5. The off-grid segment is expected to reach USD 5.38 billion by 2031.
6. The below 10 kW segment is expected to reach USD 4.66 billion by 2031.
7. The diesel-battery power source segment is expected to reach USD 3.94 billion by 2031.
8. The AC power systems segment garnered USD 3.01 billion in revenue in 2023.
9. The market in North America is anticipated to grow at a CAGR of 9.02% during the forecast period.

Market Driver

Rapid Expansion of 5G Infrastructure

The market is registering significant growth, driven by the rapid expansion of 5G infrastructure. The demand for reliable and efficient power systems to support new base stations and mobile towers is surging as telecom operators and service providers continue to roll out 5G networks globally. 

5G technology requires higher bandwidth, faster data transmission, and more robust network performance, which places additional power demands on telecom infrastructure. 

This growth in network deployments, particularly in urban, rural, and remote areas, necessitates advanced power solutions that ensure consistent operation and minimize downtime, further boosting the demand for telecom power systems. The need to support the vast number of base stations required for 5G rollout, especially in emerging markets, is a key factor driving the market.

• In November 2024, the Ericsson Mobility Report estimates that 5G subscriptions will surpass 270 million by the end of the year in India, representing approximately 23 percent of the total mobile subscriptions in the country. This growth trajectory is expected to continue, with 5G subscriptions anticipated to reach around 970 million by 2030, accounting for 74 percent of mobile subscriptions.

Market Challenge

Increasing Energy Consumption and Operational Costs

A major challenge in the telecom power system market is the increasing energy consumption and operational costs associated with powering telecom networks, especially as 5G infrastructure expands. 

The deployment of new base stations, small cells, and RRHs requires significant energy resources, and the reliance on traditional diesel generators in off-grid locations further exacerbates operational expenses and environmental impact. 

A potential solution to this challenge is the adoption of hybrid power systems that combine renewable energy sources, such as solar and wind, with traditional backup power solutions like batteries and diesel generators. These hybrid systems can reduce dependency on non-renewable energy, lower fuel costs, and decrease carbon emissions.

Market Trend

Growing Preference for High-power Density Systems

One of the prominent trends in the market is the growing preference for high-power density systems. Telecom networks, particularly with the expansion of 5G, are becoming denser and more widespread, boosting the need for power solutions that provide higher output in smaller, more compact form factors. 

These systems enable telecom operators to maximize energy output without requiring large physical space, which, in turn, reduces operational costs and optimizes site efficiency. The shift toward high power density is driving innovations in power conversion technologies, allowing for more energy-efficient and space-saving solutions that are vital for the ongoing deployment and growth of telecom infrastructure.

• In September 2024, Advanced Energy launched its Artesyn ADH1300-48S28 DC-DC converter, a high-efficiency power conversion solution engineered for telecom wireless base stations and equipment with radio frequency power amplifiers. With 96% efficiency at full load, this 1,300 W device offers a 28 V output in a compact half-brick form factor, reducing energy consumption.

Telecom Power System Market Report Snapshot

Segmentation	Details
By Component	Generators, Rectifiers, Inverters, Convertors, Heat management systems, Controllers, Others
By Grid Type	Off-grid, On-grid
By Power Rating	Below 10 kW, 10-20 kW, Above 20 kW
By Power Source	Diesel-battery Power Source, Diesel-solar Power Source, Diesel-wind Power Source, Multiple Power Sources
By Technology	AC power systems, DC power systems
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Component (Generators, Rectifiers, Inverters, Convertors, Heat management systems, Controllers, Others): The generators segment earned USD 1.42 billion in 2023, due to their critical role in providing backup power during grid outages and ensuring uninterrupted telecom operations.
• By Grid Type (Off-grid, On-grid): The off-grid segment held 56.88% share of the market in 2023, due to increasing network expansion in remote and rural areas with limited grid access.
• By Power Rating (Below 10 kW, 10-20 kW, Above 20 kW): The below 10 kW segment is projected to reach USD 4.66 billion by 2031, owing to the rising number of small cell deployments and compact base stations.
• By Power Source (Diesel-battery Power Source, Diesel-solar Power Source, Diesel-wind Power Source, and Multiple Power Sources): The diesel-battery power source segment is projected to reach USD 3.94 billion by 2031, owing to its cost-effectiveness and reliability in hybrid energy configurations.
• By Technology (AC power systems, DC power systems): The AC power systems segment held 68.22% share of the market in 2023, due to their widespread compatibility with traditional telecom equipment and infrastructure.

Telecom Power System Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America .

Asia Pacific accounted for 36.44% share of the telecom power system market in 2023, with a valuation of USD 1.51 billion. This dominance is primarily driven by rapid telecom infrastructure expansion across emerging economies such as China, India, and Southeast Asian countries. 

The region's rising mobile subscriber base, aggressive 5G rollout plans, and increasing demand for reliable power solutions in off-grid and rural areas have significantly contributed to the market growth. Additionally, large-scale investments in smart city projects and growing data consumption are accelerating the deployment of telecom towers, thereby boosting the demand for efficient power systems.

• In March 2025, the Department of Telecommunications and the Telecom Regulatory Authority of India announced the development of a groundbreaking hydrogen fuel cell-powered backup solution for telecom towers. The solution, created using a plug-and-play model, aims to advance India’s renewable energy objectives, maintain uninterrupted connectivity for millions, and foster the adoption of clean energy within the telecom sector.

The market in North America is poised to grow at a significant CAGR of 9.02% over the forecast period, fueled by ongoing advancements in telecom technology, including 5G network expansion and edge computing. The region benefits from a well-established telecom infrastructure and increasing demand for energy-efficient and sustainable power solutions. 

Moreover, the rising need for network reliability, especially with the surge in remote work and digital services, is prompting telecom operators to upgrade their power systems with modern, hybrid, and renewable-based solutions. Supportive regulatory frameworks and a strong focus on reducing carbon emissions also contribute to the regional market growth.

Regulatory Frameworks

• In the U.S., telecom power systems must comply with standards outlined by the Federal Communications Commission (FCC) and follow safety & installation requirements defined by the National Electrical Code (NEC), which ensures electrical reliability and safe operation in telecom infrastructure.
• In India, the Telecommunication Engineering Centre (TEC) under the Department of Telecommunications provides technical specifications for telecom equipment, including power systems. These specifications help ensure operational reliability, safety, and interoperability across telecom infrastructure.

Competitive Landscape:

Companies in the telecom power system market are actively focused on strengthening their positions through a range of strategic initiatives. Innovation remains a central approach, with an emphasis on developing energy-efficient, hybrid, and renewable-based power systems to support modern telecom demands. 

Efforts are being directed toward expanding modular and scalable solutions that can adapt to diverse power needs, particularly in off-grid and remote installations. Collaborations with telecom operators and infrastructure developers are used to offer tailored systems that align with specific deployment environments. 

Companies are also integrating digital capabilities such as real-time monitoring, remote management, and predictive maintenance to enhance system performance and add value for telecom providers.

• In February 2024, Ooredoo Group launched the GCC Innovation Hub for Power Solutions, a pioneering initiative aimed at driving innovation in telecom power solutions. The hub, developed in collaboration with industry leaders such as Zain, Huawei, Omantel, Batelco, Ericsson, du, Nokia, STC, and e&, focuses on exploring sustainable energy alternatives to address the rising fuel & power costs.

List of Key Companies in Telecom Power System Market:

• Generac Power Systems, Inc.
• Advanced Energy
• Monolithic Power Systems, Inc.
• Tata Motors Ltd.
• General Electric Company
• Alpha Technologies Inc.
• Eaton
• ZTE Corporation
• Schneider Electric
• Xantrex LLC.
• Delta Electronics, Inc.
• Huawei Technologies Co., Ltd.
• Saft
• Vertiv Group Corp.
• Cummins Inc.

Recent Developments (Product Launch)

• In April 2025, Generac Holdings, Inc. expanded its portfolio with the launch of new generators designed specifically for the data center market. These products complement Generac’s existing energy solutions, which include diesel & natural gas generators and multi-asset energy systems, designed to scale flexibly with the needs of colocation, hyperscale, enterprise, and edge data centers.
• In November 2023, Delta, a global leader in power and thermal management solutions, introduced its IPack65, an outdoor rectifier system under its Eltek brand. The system, designed with a dustproof and waterproof structure achieving the IP65 protection level, offers 97.7% efficiency and is tailored to power telecommunications systems.