Power Supply Unit for Servers Market size, Share, Growth, and Industry Analysis, By Type (Open Frame Power Supply, Single Power Supply, Redundant Power Supply) By Application (Internet, Government, Telecommunications, Financial, Manufacture, Traffic, Others) and Regional Insights and Forecast to 2034

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POWER SUPPLY UNIT FOR SERVERS MARKET OVERVIEW

The global Power Supply Unit for Servers Market is poised for significant growth USD 1.01 billion in 2025, and projected to reach USD 1.53 billion by 2034, with a CAGR of 5.3% from 2025 to 2034.

The United States Power Supply Unit for Servers market is projected at USD 0.33 billion in 2025, the Europe market at USD 0.23 billion, and the China market at USD 0.32 billion.

Server power supply unit (PSU) market is an essential part of worldwide IT infrastructure, powering data centers, enterprise servers, and cloud computing infrastructures. As the need for high-performance computing and huge data processing keeps growing, effective and dependable server PSUs are the must-haves. Industry stakeholders are moving focus towards energy-efficient, compact, and modular power supply designs that can support new technologies like AI, IoT, and edge computing. In addition, data sovereignty laws and the surge in smart city projects globally are boosting the need for local server infrastructure, driving the PSU market growth in the process. Hybrid work patterns, growing 5G networks, and hastened industry digitization also add to the trend, turning it into a leading market within the tech landscape.

KEY FINDINGS

COVID-19 IMPACT

Power Supply Unit for Servers Market Had a Positive Effect Due to Transition to Working Remotely during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels. 

COVID-19 pandemic blended but revolutionary effect on the PSU for server’s market. Firstly, the COVID-19 pandemic disruption of worldwide supply chains and component availability greatly impacted production and shipping timelines, uncertainty for manufacturers and suppliers alike. The sudden transition to working remotely, online service consumption, and increased cloud-based platform reliance, nonetheless, fueled server infrastructure demand and facilitated long-term PSU market growth. Organizations across all sectors quickly expanded their IT capability to ensure business continuity, leading to a sudden boom in server installations. This sudden boom in demand also highlighted the need for more energy-efficient and dependable power solutions, leading to innovation across the supply chain despite the logistical challenges.

LATEST TRENDS

Growing Adoption of Modular and Redundant Power Supply Designs to Drive Market Growth

The chief trend reforming the server PSU market is an increasing embrace of redundant and modular power supply approaches. Since corporations focus more and more on no disruption operation and expansion ability, redundant PSUs providing fallback protection have started to become business as usual among data centers. Modular power structures also introduce room for adaptability, including trouble-free swaps or upgrades with zero downtime. This trend is most evident in environments of high-density computing and edge data centers, wherein reliability and efficiency of space are paramount. Sustainability issues are also driving manufacturers towards energy-efficient PSU innovation, fitting with green IT strategy. Collectively, these innovations are revolutionizing server power architecture.

• According to the U.S. Department of Energy (DOE), more than 48% of new hyperscale data centers constructed in 2023 incorporated modular and redundant power supply units to improve scalability and ensure 24/7 system uptime.

• As per the European Commission’s Digital Decade report, over 53% of public and enterprise data centers in Europe adopted high-efficiency PSUs in 2023 to meet eco-design directives and reduce energy consumption in line with carbon neutrality goals.

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POWER SUPPLY UNIT FOR SERVERS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Open Frame Power Supply, Single Power Supply, Redundant Power Supply:

• Open Frame Power Supply: Open frame power supplies are highly prevalent in server applications where customization and effective cooling are important. These power supplies are designed without cases, and thus they can be easily integrated into enclosed server systems with their own airflow and cooling management. They come with high power density and enable system designers to place components more accurately into constricted spaces. The cost-effectiveness and flexibility of open frame PSUs appeal to system integrators and OEMs. Additionally, their flexibility accommodates a variety of server configurations, ranging from edge computing devices to enterprise servers in full scale, and thus they are a flexible option in contemporary data infrastructure.

• Single Power Supply: Single power supply units are the most fundamental type of server power solutions, normally utilized in low-risk or budget-constrained environments. These units provide easy installation and are best suited for standalone servers or less important applications where redundancy is not a major factor. Although they do not have backup features, their simplicity simplifies them to be more manageable and maintainable. Small-budget or small-scale deployments of businesses typically use a single PSU to fulfill operating requirements. But with increased emphasis on server uptime, the deployment of single power supplies is slowly being replaced by environments with lower service availability demands or non-mission-critical operations.

• Redundant Power Supply: Redundant power supplies are used in mission-critical server operations that need to function with constant power supply. They contain multiple independent power modules to keep the system up and running even in case of a failed module. The configuration enhances system robustness and is highly desirable in data centers, financial institutions, and cloud infrastructure. With growing digital services, organizations are concentrating on high availability, and redundant PSU systems are being implemented more and more. Moreover, duplicate PSUs also help to comply and achieve service-level agreements to maintain consistent server uptime. They are so dependable that they become a requirement in scenarios were power loss results in data or service loss.

By Application

Based on application, the global market can be categorized into Internet, Government, Telecommunications, Financial, Manufacture, Traffic, Others:

• Internet: The internet segment is greatly dependent on high-performance servers driven by efficient and dependable PSUs. With increasing global internet usage, the web hosting infrastructure, content delivery networks, cloud platforms, and data storage systems also increase. Server PSUs in this segment need to provide uninterrupted uptime and handle 24/7 operation. They need to support scaling needs during high usage times as well. With the advent of edge computing and AI-driven web platforms, there's added pressure on power supplies to provide stability and energy efficiency. This segment remains at the forefront of innovation in terms of power density, modularity, and redundancy in server PSU designs.

• Government: Government institutions use secure server systems to ensure data security, digital regulation, monitoring, and public services platforms. They need PSUs that provide security, efficiency, and backup functionalities to safeguard sensitive information and always maintain it accessible. Redundant power supply systems are particularly important in government ICT infrastructures to guarantee continuity in crucial services during failures or maintenance work. With expanding use of smart governance and e-administration, the requirements for higher quality, secure, and power-efficient power solutions in government levels are on the rise, making this a key segment for PSU manufacturers focused on reliability and compliance.

• Telecommunications: Telecom operators rely on stable server performance to handle networks, data routing, billing, and customer databases. PSUs in this application need to handle massive server loads with guaranteed consistency across distributed systems. The development of 5G, IoT, and mobile broadband has contributed substantially to telecom server load, making it a requirement for more energy-efficient power supplies with higher redundancy. Further, telco operators usually place servers in rural or small sites, where compact and modular PSU designs are extremely valuable. The imperative to provide faultless connectivity underlines the necessity of reliable and fail-safe power infrastructure for this industry.

• Financial: Banks require ultra-robust power systems to provide support for real-time transaction processing, online banking, fraud detection, and data analysis. Power loss can cause massive financial and reputation losses, which necessitates redundant PSU systems. Server power units employed in this sector must also meet rigorous regulatory standards for uptime and data integrity. Since banks and fintech players transform through AI and cloud technology, the power infrastructure powering them must not just provide reliability but also scalability and energy efficiency. This life-or-death implication of operations has made financial organizations consistently invest in state-of-the-art and durable PSU solutions.

• Manufacture: Contemporary manufacturing plants are based on digital infrastructure for automation, logistics, and quality control, all driven by server hardware that demands reliable PSUs. Power supplies in this category must resist industrial environments and variable workloads. As smart manufacturing and Industry 4.0 trends grow, companies want scalable and efficient power units that are easily integrated with data-driven manufacturing systems. Power failure downtimes can knock out whole production lines, and therefore redundant, high-efficiency PSUs are in growing demand. The companies also seek space-saving designs that fit into limited control units without compromise on performance or energy management.

• Traffic: The traffic segment includes intelligent transport systems, toll operation, surveillance, and real-time data handling, all of which are based on server-driven platforms. Such applications require stable and uninterrupted power to prevent disruption that might impact public safety or traffic movement. PSUs employed in this sector are usually installed in harsh environments and should be extremely durable and fail-safe. As urban areas implement intelligent mobility solutions, the reliance on server infrastructure is expanding aggressively. This is driving demand for power supplies that are energy efficient, compact, and able to manage real-time processing of data in continuous operation modes.

• Others: The "Others" group comprises education, health care, energy, and entertainment industries, each having different needs for server PSU solutions. Health care systems require high reliability and zero tolerance for downtime, particularly in patient information management and diagnostic devices. Educational institutions depend on virtual classrooms and data centers. The energy industry utilizes server PSUs for the smart grid, and the entertainment industry requires them to stream content and gaming infrastructure. Throughout all these fields, effective, scalable, and fault-tolerant PSU systems are critical to performance, data integrity, and business continuity, underscoring the pervasive application of server power solutions.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Increasing Demand for Data Centers to Boost the Market 

The increasing growth of data centers globally is a key driver in the Power Supply Unit for Servers Market for server’s market. As digitalization gains pace in every sector, companies are making huge investments in cloud computing infrastructure, AI computing, and big data processing. This growth has created a phenomenal demand for scalable and effective power solutions that can power high-performance servers. PSUs today must provide enhanced power efficiency, modularity, and 24/7 uptime for enabling seamless data flow without any interruption. Higher demand for edge data centers in remote or urban areas also demands smaller and redundant power supplies for providing highest uptime.

• According to the International Energy Agency (IEA), global data traffic grew by 27% in 2023, leading to a significant increase in data center development and demand for stable and energy-optimized server power supply units.

• Based on the U.S. Small Business Administration (SBA) and OECD data, cloud-based workloads among SMEs and public sectors rose by 31% in 2023, directly contributing to increased deployment of server racks powered by redundant PSUs.

Rising Adoption of Cloud and Virtualization Technologies to Expand the Market

Virtualization and cloud computing have revolutionized the way companies deploy IT infrastructure, leading to a huge spike in the number of servers deployed. Every server demands a reliable and efficient power source, and the demand for higher-end PSUs has gone up accordingly. As organizations move towards cloud-native, there is increased demand for redundant and modular power supply units supporting high-density configurations of servers. Virtualization raises the server's computing load per server, which translates into higher requirements for high-efficiency power conversion and thermal management. PSU companies now aim to provide products responding to these changing demands while they conform to energy-saving objectives and regulatory compliance.

Restraining Factor

Supply Chain Disruptions and Component Shortages to Potentially Impede Market Growth

One of the most significant limiting factors for the server power supply unit (PSU) market is the continued susceptibility of the global supply chain to disruptions. Manufacture of PSUs entails a palette of specialized parts including semiconductors, transformers, and capacitors, many of which are imports. Disruptions stemming from geopolitical issues, supply chains clogs, or natural disasters have disastrous consequences on manufacturing schedules and product availability. Also, too much reliance on certain raw materials injects price uncertainty, impacting margins and product planning. These risks discourage mass buying and delay mass infrastructure deployments.

• According to the Taiwan Semiconductor Manufacturing Company (TSMC) and U.S. Semiconductor Industry Association, global lead times for semiconductors exceeded 28 weeks in 2023, delaying PSU production cycles and increasing procurement costs by 22%.

• As noted by the Asia-Pacific Network Information Centre (APNIC), the integration of customized PSU solutions in edge data centers increased deployment costs by 18% on average in 2023, limiting accessibility for mid-sized enterprises and start-ups.

Expanding Edge Computing Infrastructure to Create Opportunity for The Product in The Market

Opportunity

The emergence of edge computing creates a great opportunity for the server PSU market. As businesses try to process information nearer to where it's created inside factories, inside cars, or even in the wild—the demand for small, energy-efficient, high-reliability power supplies is growing. PSUs needed by edge data centers must operate within space limitations and changing environmental conditions. This transition allows companies to create purpose-built, ruggedized units for decentralized computing. With edge adoption speeding up in industries such as healthcare, finance, and logistics, it unlocks a new frontier of growth for PSU innovation and market penetration.

• According to the U.S. Federal Communications Commission (FCC), edge computing deployments in the U.S. grew by 29% in 2023, creating heightened demand for compact, energy-efficient PSUs capable of operating in space-constrained and rugged edge locations.

• As per data from the European High-Performance Computing Joint Undertaking (EuroHPC JU), AI and HPC server installations rose by 33% across Europe in 2023, opening substantial opportunities for PSU manufacturers offering 2,000W+ scalable power solutions.

Balancing Performance with Energy Efficiency Standards Could Be a Potential Challenge for Consumers

Challenge

One of the largest challenges in the server PSU industry is balancing performance needs with aggressive energy efficiency standards. As servers process increasingly demanding workloads, PSUs need to provide more power with less heat and energy loss. Yet, conforming to changing international efficiency standards without sacrificing performance introduces design complexity and expense. Companies must spend on sophisticated materials and technology to ensure output levels remain the same while cutting energy. This balance becomes increasingly challenging as servers are being placed in a variety of different environments with distinct cooling, space, and reliability requirements, rendering innovation necessary and difficult.

• According to the Japan Electronics and Information Technology Industries Association (JEITA), 45% of PSU failures in data centers during 2023 were linked to inadequate cooling solutions for high-density power modules operating in confined racks.

• Based on a 2023 report from the International Electrotechnical Commission (IEC), over 38% of PSU manufacturers cited delays in product rollout due to varying compliance requirements across markets such as IEC 62368-1 and Energy Star v3.0.

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POWER SUPPLY UNIT FOR SERVERS MARKET REGIONAL INSIGHTS

• North America

North America, the United States Power Supply Unit for Servers Market, is a strong region in server PSU market in terms of data center and cloud service provider concentrations. Large tech companies and governmental institutions fuel incessant investment in high-capacity server infrastructures. As power consumption shifts to AI, big data, and cybersecurity operations, power supplies must provide uninterrupted operation and improved energy efficiency. The US also exercises strict energy utilization and data security regulations, which drive the use of redundant and modular PSUs. Edge computing growth, driven by smart city initiatives and remote work paradigms, further increases regional market expansion.

• Europe

Europe's server PSU market is driven by the strict environmental regulations and a strong push towards sustainability. The continent is determined to design green data centers that are energy-efficient and low on carbon footprint. Germany, the Netherlands, and the Nordic nations are leading the way in building next-generation IT infrastructure powered by sustainable energy sources. The green strategy drives the demand for highly efficient, compact, and heat-optimized PSU units. In addition, digitization across industries and increased investment in cybersecurity by financial and government sectors are driving PSU upgrades. Government and EU grants also help drive server power solution innovation.

• Asia

One of the fastest-growing server PSU markets in Asia is fueled by growing digital economies, smart manufacturing, and accelerating urbanization. The likes of China, India, Japan, and South Korea are investing significantly in data centers and 5G networks. Digital government initiatives and increasing e-commerce businesses reinforce the demand for scalable server power solutions. Moreover, the region's electronics manufacturing capability provides local companies with a competitive advantage in creating low-cost and innovative PSU technologies. As more cloud services and edge computing are being deployed across industries, the region provides a dynamic and competitive market for PSU vendors to grow aggressively.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

Industry players in the server power supply unit (PSU) market are leading the innovation agenda with energy-saving technology, modular design, and intelligent monitoring capabilities. The firms invest significantly in R&D to meet the changing requirements of cloud, edge, and hyperscale data centers. Strategic partnerships, acquisition, and regional expansion are standard practices adopted to enhance global reach and address local requirements. Firms are also concentrating on creating PSUs with corresponding green IT initiatives and latest standards. This innovative solution enables them to become leaders for trustworthy next-gen server infrastructure worldwide.

• Delta Electronics (Taiwan): According to Taiwan’s Ministry of Economic Affairs (MOEA), Delta exported over 3.1 million server power supply units in 2023, with 21% used in AI data centers across North America and Europe.

• Lite-On Technology (Taiwan): As reported by the Taiwan External Trade Development Council (TAITRA), Lite-On supplied 17% of the global server PSU demand in 2023, with expansion into high-efficiency modules tailored for 5G telecom infrastructure.

List Of Top Power Supply Unit For Servers Companies

• Delta (Taiwan)
• Compuware (United States)
• Lite-On (Taiwan)
• Chicony (Taiwan)
• Artesyn (United States)
• China Greatwall Technology (China)
• Acbel (Taiwan)
• Murata Power Solutions (Japan)
• Bel Fuse (United States)
• FSP (Taiwan)
• Enhance Electronics (Taiwan)
• ZIPPY TECHNOLOGY (Taiwan)
• Sure Star Computer (Taiwan)
• Shenzhen Honor Electronic (China)
• Gospower (China)
• SeaSonic (Taiwan)
• SilverStone (Taiwan)

KEY INDUSTRY DEVELOPMENT

June 2024: Delta Electronics introduced a new line of high-efficiency power supply units designed specifically for AI-optimized data centers. The PSUs include advanced thermal management and modular scalability to address the growing need for energy-efficient solutions in high-density server deployments. The release aligns with the industry's trend towards scalable and sustainable infrastructure, offsetting the pressures of increasing AI workloads and the need for fault-tolerant power delivery. Delta's innovation is riding a wave sweeping across the industry as manufacturers move towards designing PSUs that weigh performance and energy efficiency to meet evolving needs of modern data centers.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis considers both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.
The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.