Remote Power Panel Market Size, Share & Industry Analysis, By Type (Rack-mounted and Floor-standing), By Application (Data Center, Network Cabinet, and Server Rooms), and By End-User (IT & Telecom, BFSI, Healthcare, Retail, Manufacturing, and Others), and Regional Forecast, 2024-2032

The global remote power panel market size was valued at USD 1.38 billion in 2023. The market is projected to grow from USD 1.45 billion in 2024 to USD 2.22 billion by 2032, exhibiting a CAGR of 5.45% during the forecast period.

Remote Power Panel (RPP) is a component in data centers, server rooms, and network cabinets. It is a part of Power Distribution Units (PDUs) that provide power sources to server racks directly in the power segment of the data centers. There are several advantages of RPP, such as a single PDU sub-power or 208V distribution panel power supply, which provides circuit power to quickly increase server capacity without adding PDUs. RPPs reduce cooling requirements in the server room as extensions to the distribution of PDUs. RPPs are architecturally compatible with server racks. RPPs can be placed almost anywhere on the server room floor and adapted to different equipment layouts. RPPs, RPP panels, or individual circuits can be shut down for maintenance while their associated PDU remains powered.

The impact of the COVID-19 pandemic was positive for the RPP market, as the demand for data centers has increased exponentially since 2020. For instance, Google’s hangout witnessed a 60% day-over-day growth in 2020, with an increase of 25 times usage in March in comparison to January. Globally, the market is still witnessing the continued impact. Zoom has 200 million participants daily, more than the previous record of 10 million. So, with the increase in the installation of data centers and server rooms, the growth of the RPP market is buoyant in the long run.

Remote Power Panel Market Trends

Rising Trend to Reduce Carbon Emissions Due to Climate Change to Drive Market Growth

Reducing carbon dioxide emissions is a major global challenge. Many companies have decided to include carbon reduction in their strategies and have announced green initiatives. Scientists estimate that data centers in the U.S. consume 1.8% of overall electricity. According to studies, storage systems containing hard drives consume about 19% of the total capacity of data centers. According to industry analysts, 60% of data stored on disk is rarely used. The rapid increase in energy consumption of server centers has also raised concerns in the environmental community.

Greenpeace published February 2019 reports highlighting data center electricity and traditional fuel use in Virginia's Data Center Alley. They found that data center demand in Virginia was the highest worldwide and was projected to grow 10% annually through 2021, adding 2.4 terawatt hours of electricity demand. In addition, they estimate that the potential market for electricity from both existing data centers and data centers under development in Virginia is 4.5 gigawatts or approximately 39.5 terawatt hours of energy consumption per year. The reduction in carbon dioxide emissions is dramatic, but so is the reduction in electricity costs. The estimated electricity cost for the tape solution over ten years is USD 100,000 compared to USD 786,098 for the disk solution, an 87% reduction. With new changes in components in data centers, RPP is getting attention and has a lucrative opportunity in the market.

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Remote Power Panel Market Growth Factors

Surge in Number of Data Centers to Drive Remote Power Panel Market Growth

The explosive growth of data centers creates an excellent need for remote power panels fueled by cloud computing, big data, and digital transformation. These panels provide efficient management and distribution solutions for critical IT infrastructure that ensure availability, reliability, and scalability. Energy efficiency has become the priority for companies in all sectors. The remote power panels’ advanced monitoring and control functions make optimizing energy use, identifying energy efficiency, and implementing energy-saving measures possible. For instance, in October 2024, TotalEnergies’ subsidiary, Saft, supplied a Battery Energy Storage System (BESS) to replace diesel backup generators to Microsoft's sustainable data center in Sweden. The system went live in June 2023 and was a milestone on Microsoft's path to diesel-free data centers by 2030.

As industries seek to increase productivity and efficiency, they adopt advanced technologies, such as IoT devices, robotics, and machine-to-machine communication. These technologies need a reliable and remote power source, which RPPs can provide. RPPs enable seamless monitoring and centralized control of multiple devices and equipment by centralizing power distribution and control. They eliminate the need to physically access individual panels, saving time and reducing maintenance costs.

Increase in Remote and Offshore Operations to Increase Demand for Remote Power Panel

Expanding offshore and remote operations in industries, such as oil & gas, telecommunications, and renewable energy is expected to increase the demand for RPP. These activities often involve locations that are difficult to access, have difficult environmental conditions, or are far from centralized power sources that can produce server rooms, network blades for data storage, and massive data points. In August 2023, Ocean Power Technologies launched the Wave Adaptive Modular Vessel (WAM-V), which remotely attached itself to a buoy and connected to enable charging.

RPPs provide a reliable and efficient power distribution and control solution in such environments. They enable remote monitoring, diagnostics, and management of critical power infrastructure, ensuring uninterrupted power and minimizing server downtime. They help organizations manage their remote and overseas operations effectively, optimize resource utilization, and improve operational security and reliability.

RESTRAINING FACTORS

Complex Construction of RPP Requires Skilled Labor and High Capital Hindering Market Growth

The complex structure of remote panel power with small structures and components needs skilled labor and technology, making it more costly in coalition with data centers. According to Vertiv, it costs USD 11.4/w to build in Zurich, USD 9.1/w in London, USD 8.9/w in Stockholm, and USD 8.8/w in Copenhagen. The ten most prominent data centers in EMEA range from 74,300 to 9,000 square meters, while many facilities are much smaller. Therefore, remote power panels should be as small as possible, but the cost becomes more expensive. The rising complexity of the components of data centers is also increasing the cost of data centers, which may create a hurdle for the remote power panel market growth.

Remote Power Panel Market Segmentation Analysis

By Type Analysis

Rack-Mounted RPPs are the Leading Type with its High Adoption as it Takes Less Space

By type, the market is divided into rack-mounted and floor-standing, where rack-mounted type leads the remote power panel market. RPP model in rack-mounted type is suitable for all end-user industries. It takes less space and works efficiently, as it is directly attached to the system. Rack RPP offers perfect integration into data center space, matching the dimensions of a standard IT rack. The extended dimensions of the RPP rack allow for even easier installation due to better wiring and service space. For instance, in September 2021, Vertiv launched the Liebert RXA RPP, which is rack-mounted and primarily used in busway systems of data centers to distribute power evenly. It is available for sale in Europe and the Middle East & Africa.

Floor-standing, also known as wall-mounted panels, are floor-standing remote power panels used for high power consumption and distribution and take up massive space in the data center spaces. Large applications such as the IT and telecom sectors use floor-standing remote power panels.

By Application Analysis

Massive Demand for RPP is created due to Rise in Demand for Data Centers in Software and AI Revolution

The market is categorized as data center, network cabinet, and server rooms based on application. Data centers hold the leading position in the market and held the largest remote power panel market share in 2023. The rising need for data centers across all sectors of the economy, with a particular need for the software sector, is causing an increasing demand for RPP. Data centers play a significant role in the new age of AI, as a considerable flow of information is generated daily, making storage essential. For instance, in April 2024, Vertiv introduced low-based rack-mounted Vertiv SmartRow 2, an innovative, pre-engineered edge data center solution designed to reduce traditional edge data center deployment time and cost by up to 80% and 30%, respectively. The system is ideal for supporting the AI ​​ecosystem at the edge and provides a complete computing infrastructure that collects and transmits data for AI processing.

In server rooms, RPP is usually used in rack-mounted form and fitted at the end of the server rack. It also replaces the overhead rack busbar to feed individual power to many units and cabinets in the system.

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By End-User Analysis

IT & Telecom Sector Leads Market with Its Increased Demand for Data Centers

Based on end-user, the market is segmented into IT & telecom, BFSI, healthcare, retail, manufacturing, and others. The IT & telecom sector dominates the RPP market as the rise in demand for data centers, server rooms, and network cabinets in software is enormous. Due to constantly evolving requirements and increasingly important data storage, data center systems are still at their limits. The industry's dependence on continuity of service imposes higher demands on the electrical system, which is maintained by multiple regulated power sources on the grid. The power distribution and circuit protection method in the data center must also be considered a critical factor in the ease of use of a system using RPP. In August 2020, Schneider Electric announced the new Galaxy RPP (Remote Power Panel) 250 and 400 amps (208 V), extending high-density power distribution capability to data centers and workspaces.

In the BFSI sector, the RPP is a separate enclosure that allows the sub-power of the PDU to connect to the distribution panel that operates the load equipment. RPP will enable PDUs to be placed in a separate room, and larger PDUs with underpower switches will be used. Load banks are routinely utilized to implement RPP to ensure proper operation and power distribution from the PDU to the rack systems.

REGIONAL INSIGHTS

The global market has been analyzed in five key regions: North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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North America, which consists of the U.S. and Canada, dominates the RPP market. Increasing renovation and upgrading existing infrastructure is one of the most critical factors driving the demand for RPP in the region. RPPs offer a cost-effective solution to upgrade and optimize electricity distribution systems without extensive infrastructure changes. Additionally, the proliferation of innovative grid technologies for centralized monitoring, control, and optimization of power distribution networks is fueling market growth in the region. In addition, the region's market is positively influenced by the growing data center function for efficient power management, which ensures high scalability, availability, and reliability of the data center infrastructure. In November 2023, JLL announced a new partnership with Schneider Electric and Lumen Technologies to provide turnkey deliveries of modular data center platforms across the U.S. The partners said the new relationship prioritizes modular data centers' rapid deployment, adaptability, and scalability.

Asia Pacific is projected to grow at a higher rate due to the augmented use of renewable energy, rise in the IT sector, integration of advanced technologies, and others. The growth of the RPP market in Europe is steady, as the new data centers installations are not growing as expected due to rising maintenance costs and tight data security and privacy regulations.

KEY INDUSTRY PLAYERS

Vertiv is a Major Player with its Installations of Data Centers for Various Industries

Vertiv is a global company established in 1946 in Columbus, Ohio, U.S. Vertiv connects and secures the network from the core to the edge with leading solutions and expertise unmatched worldwide. Today's networks have become more distributed and complex, making usability and connectivity symbiotic.

In March 2024, Vertiv installed an interactive UPS system in the network of Swedish data center provider Conapto. The companies installed Vertiv Liebert EXL S1, a UPS system that provides an integrated solution for critical power protection and network support functions, in Conapto's data centers.

List of Top Remote Power Panel Companies:

• Altruent Systems (U.S.)


• Eaton (U.S.)


• ABB (Switzerland)


• Vertiv (U.S.)


• Toshiba (Japan)


• C&C Power (U.S.)


• Schneider Electric (France)


• Allied Power & Control (U.S.)


• Delta Power Solutions (Taiwan)


• Socomec (France)


• CRSC (Canada)


• Raptor Power Systems (U.S.)


• Lutron (U.S.)


• LynTec (U.S.)


• Legrand Group (France)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: In India, Vertiv introduced the Vertiv™ Avocent® ACS8000 series of consoles used in RPP for remote data center management and off-site management of critical IT infrastructure. The Avocent® ACS8000 optimizes remote management with many state-of-the-art features, including 4G LTE connectivity, environmental sensors, and advanced security capabilities. The Avocent ACS8000 is now available in India in several AC and DC models with port and connectivity options.


• July 2023: Legrand Data Center Solutions launched a brand new data center experience center to understand the components of data centers and their working modules in the U.K. The center can explore new applications for RPP modules in the industry.


• January 2023: AVEVA was acquired by Schneider Electric, a supplier of industrial software solutions. The acquisition will assist both companies in digitally transforming customer operations and drive improvements in reducing carbon, energy, and resource intensity, encouraging customers to achieve their efficiency and sustainability goals.


• January 2023: ABB Ltd. agreed to sell the power conversion division to AcBel Polytech Inc. This segment offers robust telecommunications, data centers, and industrial applications solutions.


• September 2021: Vertiv launched two new power distribution systems to simplify data center management and scalability. The Liebert® RXA Remote Power Panel (RPP) is a flexible and secure solution for high-density power applications with one of the smallest footprints in the industry. At the same time, the Liebert® MBX busbar system enables reliable power distribution in data centers of all sizes and floor space for equipment.

REPORT COVERAGE

The report provides a detailed analysis and focuses on key aspects, such as leading companies, product types, and applications. Besides, it offers insights into the latest market trends and highlights key industry developments. In addition to the abovementioned factors, it encompasses several factors that have contributed to the market's growth in recent years.

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REPORT SCOPE & SEGMENTATION