5G rollout to expand direct current power systems market

The global market for direct current (DC) power systems will expand by 2.7% between 2019 and 2025, according to Frost & Sullivan.

This marks an increase in units deployed from 895,000 to 1.04 million units during the forecast period.

Revenue generation per annum is expected to reach $5.5 billion by 2025.

An increase in the implementation of 4G and 5G networks across the world will lead to steady growth in demand for DC power systems.

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Although COVID-19 has resulted in a drop in market revenue in 2020, the sector is likely to rebound to pre-pandemic levels as early as 2021.

For further revenue opportunities, DC power system manufacturers should:

  • Focus on markets in both developed and developing countries where 5G, 4G, and LTE networks are being deployed.
  • Make their products more modular and efficient at a lower cost, which will drive wider acceptance once the rollout of the 5G network.
  • Set up manufacturing houses for better lead times and complement them with regional servicing hubs that can easily reach out to customers.
  • Forge relationships with engineering, procurement, and construction participants to design new and innovative solutions to implement the network.

Manoj Shankar, a senior research analyst with Frost & Sullivan’s energy and power systems division, said; “The increased power and processing requirements of 5G infrastructure creates the need for highly efficient and reliable power systems that can tolerate heavy loads. This can be fulfilled by DC power systems, which are modular and extremely efficient.

 “Telecom base stations in off-grid areas or in areas that lack proper power supply also present a large market opportunity for DC power systems, which can be coupled with renewable energy sources.

Shankar added: “The deployment of 5G networks across the globe is expected to be slow initially as most telecom companies have invested heavily in 4G technologies. The expansion is most likely to gather pace in the US, China, and Europe from 2021. The Asia-Pacific and North American markets will see strong growth as companies in these regions lead investments in the telecom sector. China and the US will vie for global leadership in the 5G space, which will lead to the increased demand for DC power systems from these two countries in the future.”

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