Data Center Busway Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Data Center Busway Market is segmented By Product (Air splicing busway (BMC), Intensive insulation plug busway (CMC), High strength enclosed busway (CFW), Power distribution units (PDUs), Others), By Type (3-phase 4-wire, 3-phase 5-wire, Others), By Implementation (Raised floor, Ceiling overhead), By Current (Low, High), By End-User (IT & Telecommunications, Government & Defense, BFSI, Retail & E-Commerce, Energy & Utilities, Manufacturing, Healthcare, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Market Overview

The Data Center Busway Market  is estimated to reach  at a high CAGR during the forecast period (2024-2031).

Busways are prefabricated distribution systems employed in electrical distribution. A busway system consists of a housing system coupled with busbars arranged in straight lengths and devices and fittings within a protective enclosure. Busways generally act as flexible and high-density electrical conduits and require passing safety standards such as Occupational Safety and Health Administration (OSHA) standards 29-CFR, parts 1910.308, 1926.403,1910.303 1926.408.

As per data, in 2018, 1,500 injuries and 160 deaths were inflicted due to electrical accidents in the U.S. -based data centers alone. Busways are utilized in data centers to eliminate the possibility of electrical accidents and to ensure workplace safety.

Market Summary

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Market Dynamics

The boom in industrial digitalization and the IoT is a significant driving force for the global data center busway market. However, the high installation costs and availability of cheaper alternatives hampers the growth of the respective market.

Rising demand for digitalization in the industrial sectors

Due to the wide reachability and effectiveness of the internet, expansion of businesses became accessible, and many global conglomerates & small-scale companies are digitalizing their business. As a result, the demand for data centers is witnessing an all-time global hike. The steady growth of technologies such as cloud storage,  IoT, and government tax incentives further supplement the development of data centers globally. 

For instance, as per "data" in 2020, the growth in the data center market witnesses a 12-point jump. Further, 7-13% of major markets such as healthcare and pharma, education, data processing, financial sectors and construction and engineering currently utilize data centers' services.

Since data centers consist of complicated electrical systems such as power modules, local and distant network connections and cooling systems that are prone to accidents and draw a large amount of power, the growth in data centers due to large scale digitalization of industries also raises the needs protective gears to protect these data centers from various adversities. Since busways offer protection from damages associated with failures and power fluctuations of equipment utilized in data centers, the expected growth in digitalization of different industrial sectors acts as a primary driver for the global data center busway market.

High installation cost and availability of cheaper alternatives

Since busways in data centers have to be energy efficient and offer scalability and safety, the physical requirement of these busways has to meet a certain standard in terms of material quality. Further, busway systems consist of a complex network composed of numerous parts that require an expert technician for set-up and maintenance. Since both these factors result in a colossal investment, they can hamper the growth of the global datacenter busway market.

Secondly, compared to busway networks, cheaper alternatives such as under-floor power distribution channeling options are available in the market. Although these systems are less efficient than busways, new market entrants and players with less investment potential tend to opt for these cheaper options due to financial crunches. Therefore, the overall market demand for busways could be diminished and reduce the respective market's economic prospects. As a result, the high installation cost and cheaper alternatives could be considered a major market restraint.

COVID-19 Impact Analysis

The COVID-19 outbreak has had a significant influence on the global data center industry and its associated data center busway market. The resulting need for software as a service (SaaS) and a rapid change to a work-from-home lifestyle during the pandemic are some of the factors driving up data center demand. Furthermore, the formation of a new business environment due to the COVID-19 epidemic is expected to boost demand for digitization and cloud services, which will have a substantial impact on the global data center market. As the need for data center busways would go up to ensure the safety and securities of data centers, the growth in the data center market would supplement the development of the global data center busway market in the post-COVID-19 market scenario.

Furthermore, the COVID-19 health catastrophe has wreaked havoc on industries such as food and beverage, retail, automotive and semiconductors globally. As a result, significant companies utilize the internet and data centers to assist their industry and recover the losses inflicted on them by the pandemic of other enterprises.

In Romania, for instance, the COVID-19 pandemic has resulted in a surge in demand for online services such as games, films, live broadcasts and others. As a result, in September 2020, INVITE Systems, a technology platform innovation leader, partnered with Huawei to build a highly reliable data center to meet the enterprise's needs. Such developments associated with data centers further boost the economy and demand for data center busways in the post-pandemic world. 

Market Segment Analysis

By end-user, the data center busway market is segmented into IT & telecommunications, government & defense, BFSI, retail & e-commerce, energy & utilities, manufacturing, healthcare and others.

IT & telecommunications dominates the vertical segment of the data center busway market due to complexities associated with railways freight management.

In data centers, busway systems are utilized to ensure the safety of hi-tech devices such as servers, coolers, among others employed in data centers. The global data center busway market's IT & telecommunications sub-segment is expected to increase due to emerging IT & telecom service providers deploying massive data center infrastructure to manage the vastly rising data. Furthermore, throughout the forecast period, the government's favorable policy developments and the strong presence of important companies such as CtrlS Datacenters and Schneider Electric in growing countries are predicted to have a beneficial impact on the sub-segment.

CtrlS Datacenters, a pioneer in Rated-4 Hyperscale Data Centers, outlined a plan in February 2020 to operationalize 6 million square feet of hyper-scale data center parks in India by the end of 2023 with roughly 500+ edge data centers. 

Further, the enormous demand from the BFSI sector also got significantly driven by the increased focus on digitalization. The BFSI end-user for the data center busway market is expected to grow to improve banking capabilities, the sector's quick transition to cloud networking and cloud computing.

Market Geographical Share

Asia-Pacific is expected to dominate the global data center busway market due to high technology adoption in the region.

The Asia-Pacific data center busway market is expected to develop the fastest, owing to the region's widespread adoption of modern technologies such as AI and IoT. In addition, in recent years, the governments in this region have been heavily supporting data center projects. For example, Yotta Infrastructure, a primary hyper-scale Data Center solutions provider, inked a memorandum of understanding (MOU) with the Tamil Nadu government in India in July 2020 to develop a $450 million to $600 million data center park in south India. Furthermore, the Thai Cabinet approved $146.6 million for state cloud and data center services in 2020. 

Such initiatives and essential factors in the Asia Pacific region are expected to boost the data center market further. However, since the growth in the data center market develops a massive increase in demand and sales for busways, for ensuring the safety of data centers, the respective factors could also be considered a significant market driver for the global data center busway market. 

Market Competitive Landscape

The Data Center Busway market is competitive due to many key players present in the region and advancements in freight management technologies. Some of the key players in the market are EAE Inc, Vass Electrical Industries, Anord Mardix, ABB, Dingsheng Group, Schneider Electric, Eaton, Siemens, Delta Power Solutions, Wetown, among others domestic and global players. The companies are adopting various new strategies to dominate the market, such as launching new schemes, acquisitions and collaborations, contributing to the worldwide growth of Data Center Busway for the education market. 

Delta Power Solutions

Overview: 

Delta Power Solutions focuses on manufacturing and sales power management, energy efficiency, mission-critical infrastructure solutions (MCIS) and data center infrastructure solutions. The company's product portfolio is widely segmented into UPS, data center and power quality. The company was established in 1971 and is headquartered in Taipei, Taiwan.

Product Portfolio: The Company offers various products, including:

• Delta Cast Resin Busway System: Delta's pioneer power electronics technology is utilized to design the BR and BL series of busway systems that are adaptable, secure and robust. Delta has used epoxy cast resin technology to vastly enhance ingress protection, reliability, and dependability, unlike conventional power transmission lines or sandwich busway solutions.

Key Development: On May 29, 2019,  Delta Power Solutions presented its DCIM and UPS technologies in the Datacenter Dynamics España 2019 exhibition held in Madrid, Spain. The company intends to familiarize its product and vision to the crowd in the production to enhance its global presence and sales.

Why Purchase the Report?

• Visualize the data center busway market segmentation by product, Type, implementation, current, end-user and region, highlighting the key commercial assets and players.
• Identify commercial opportunities in the data center busway market by analyzing trends and co-development deals. 
• Excel data sheet with thousands of data points of data center busway market-level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Component mapping in excel for the key product of all major market players

The global data center busway market report would provide approximately 76 market data tables, 82 figures, and 180 pages.

Target Audience

• Data Center Busway System Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Distributors/Suppliers
• Emerging Companies