Power Distribution Unit (PDU) Market: Current and Future Trends

For decades, power distribution units (PDUs) have been a crucial part of data center power distribution equipment, providing the functions of controlling and distributing electrical power. According to a research, the global PDU market is estimated at USD 3.7 billion in 2019, and it is expected to reach USD 5.2 billion by 2024, at a CAGR of 7.1% during the forecast period.

Figure 1: Global power distribution unit （PDU) market size

PDU Market Share by Type, Power Phase, Application and Region

For type: Intelligent PDU will be increasingly adopted.

On the basis of PDU type, PDU market share can be segmented into basic PDU and intelligent PDU (including metered PDU, monitored PDU, switched PDU, and others), each holding a certain part of PDU market share. Intelligent PDUs enable advanced features like power metering and remote power monitoring, which can help data centers to reduce operating costs and increase energy efficiency. According to the new market research, intelligent PDU will grow at USD 2.48 billion by 2026 at a CAGR of 8.12% from 2019 to 2026.

For power phase: Three phase will be more widely used in hyper-scale data centers.

According to the classification by power phase, PDU can be categorized into single phase and three phase. The three phase is expected to grow at a quicker pace than the single phase. The advantages of the three phase PDU are that the cost is lower and the installation time is less compared with single phase. With the increase of hyperscale data centers and the cloud-based operations across the end-user industries, the demand for three phase PDU is bound to increase in the next few years.

For application: Telecom & IT is still the mainstream.

As for the application, telecom & IT, banking, financial services, healthcare, and others are where PDU is applied. Telecom & IT applications have occupied a major share of the PDU market for several years and it is expected to grow at the highest rate in the following years owing to the increasing use of telecommunication devices forced by the 5G deployment.

Figure 2: Global PDU market share by application

For region: North America holds the largest market, but Asian countries will grow rapidly.

The PDU market is generally scattered in North America, Latin America, Europe, Asia pacific, South East and Africa. According to the statistics of the last few years, North America accounts for a vital share of the PDU market, which can be a result of the fact that it’s a main hub for the colocation centers and the IT business. Judging from the present trend and the actual circumstances, the Asia Pacific market will grow at a fast speed in the global market, as there are huge consumer population and strong telecom industries in APAC, such as India and China.

Figure 3: Global PDU market share by region

Key Drivers and Challenges of PDU Market Growth

Power distribution market is witnessing multiple transformations while the whole trend is going to grow. The key drivers of the whole market growth are the increasing number of data centers and the rising concerns for continuous power supply.

The most important factor is the increasing number of data centers deployed all over the world. Over the past few years, we’ve witnessed the significant growth of hyperscale data center investment led by Google, Facebook, AWS, Alibaba, and Microsoft, which require high-power capacity units to run throughout the facilities. The growing demand for data centers is expected to lead to an increase in power distribution units.

The rising concerns for continuous power supply are also the enabler to the PDU market, especially in this special period when everyone is fighting against the coronavirus crisis. Due to the fact of the increase in demand for lifesaving equipment, which requires a continuous power supply for treating critical patients, the urgent need provides an opportunity for the PDU market.

Apart from these motivating factors, there are also challenges. The main challenge that the PDU market is faced with is the increasing complexity of the data center designs. The high investment costs and interoperability issues can also be the factors that get in the way of the PDU market growth.

PDU Trend of the Future

Overall, the future of the power distribution unit market looks good with the opportunities in telecom & IT, finance, healthcare and other industries. Digital transformation and consumer needs change all the time, therefore the power distribution unit is subjected to keep up with these changes. With the growth of high power IT devices, high density and high capability applications in data centers, the demand for PDU is projected to be higher no matter in the terms of quality, capability, or reliability. Over the forecasted period, intelligent power distribution unit solutions with additional capabilities such as remote monitoring & management and real-time digital monitoring will increase to maintain competitiveness in the future PDU market.