Transforming Growth in Power Market
The critical power market is expanding rapidly, driven by data centers, regulations, and sustainable innovations.
Critical Power
Market Analysis
The critical power market is experiencing robust growth, with the global market expected to rise from $25.2–$35 billion in 2024 to $43.8–$54.8 billion by 2030. The US market, currently valued at $5.76–$9 billion, is projected to reach $9.42 billion by 2030, driven by an 8.6%–12.4% CAGR. Key growth drivers include the expansion of data centers and cloud computing, stricter energy efficiency regulations, smart grid advancements, and rising electricity demand. However, high upfront costs, complex installation and maintenance, and regulatory compliance present notable challenges that must be managed to ensure continued market expansion.
~
$
7.4
B
Market Value 2024 (U.S)
$
9.4
B
Market Value 2030 (U.S)
8.60
%
CAGR (U.S)
Key Market Drivers
Rise in Data Centers and Cloud Computing
Stringent Regulations and Energy Efficiency
Smart Grid Technologies
Market Inhibitors
High Initial Investment
Complexity of Installation and Maintenance
Regulatory Compliance
Our Insights
The critical power market is poised for dynamic transformation amid rapid growth, consolidation, and shifting regulations. Business owners should prioritize agility—leveraging strategic partnerships and innovation to navigate regulatory complexity and capitalize on trends like data center expansion and sustainability. Distinctive value can be created by targeting niche or underserved segments, elevating customer service, and investing in advanced, energy-efficient technologies. Cybersecurity must be a central focus given rising risks and regulatory mandates. Ultimately, seizing whitespace opportunities and reshaping portfolios for resilience and focus will distinguish leaders as the sector becomes more competitive and reward-driven by digitalization and reliability demands.
Key Players in The Industry
Schneider Electric
Maximizing uptime and efficiency through digital solutions like EcoStruxure Power.
Eaton
Provides power protection, distribution, and management solutions.
ABB
Provides various solutions in the critical power sector.
Recent
M&A Activity
The critical power industry is experiencing strategic consolidation, driven by the need to expand product portfolios, enhance service capabilities, and gain access to key markets, particularly the data center sector. Joint ventures are also being utilized to leverage the strengths of different companies and offer comprehensive solutions. The increasing demand for reliable power solutions in data centers and other critical infrastructure is fueling these activities. There's also a trend towards portfolio reshaping, where companies streamline operations to focus on core assets and strategic expansion in emerging areas like the space sector.
Acquisition
No specific date provided
Evolve Capital sold Mission Critical Electronics (MCE) to Windjammer Capital Investors
Portfolio reshaping, focus on core assets.
Acquisition
September 24, 2024
Avail Infrastructure Solutions acquired WASP Critical Power & Equipment Solutions (CPES)
Expand switchgear portfolio to include low voltage solutions.
Acquisition
January 15, 2025
Alpine Power Systems acquired Austin Power Sales & Service
Enhance capabilities in data center battery and UPS products.
