Server Power Supply Units Market Size, Share, Growth, and Industry Analysis, By Type (Open Frame Power Supply, Single Power Supply, Redundant Power Supply, Common Redundant Power Supply), By Application (Internet Industry, Government, Telecommunications, Financial, Manufacturing), Regional Insights and Forecast From 2025 To 2035

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SERVER POWER SUPPLY UNITS MARKET OVERVIEW

The global server power supply units market, valued at USD 3.68 billion in 2025, is projected to reach USD 3.99 billion in 2026 and further escalate to USD 8.22 billion by 2035, driven by a strong CAGR of 8.35%.

A server power supply unit (PSU) is a critical component in a server that provides electrical power to the other components. It converts the alternating current (AC) power from an electrical outlet into direct current (DC) power that the server components require to operate.

Server PSUs are designed to handle the high power demands of server hardware, which typically includes multiple processors, memory modules, hard drives, and other peripherals.

They are built to be highly reliable, efficient, and capable of delivering stable power to the server components.

KEY FINDINGS

COVID-19 IMPACT

Pandemic Increased the Market Demand

The global COVID-19 pandemic has been unprecedented and staggering, with the server power supply units market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic had significant impacts on the server power supply units market share. Firstly, the increased demand for remote work and digital services resulted in a surge in data centres and cloud computing infrastructure, driving the need for server PSUs. With the shift to remote work, online learning, and increased reliance on digital services, the demand for data centres and server infrastructure soared. This, in turn, increased the demand for server PSUs to power these facilities. Additionally, the growth of e-commerce and online retail during the pandemic further drove the need for data centres, contributing to the demand for server PSUs. As organizations expanded and upgraded their data centre infrastructure to meet the rising demand for digital services, the demand for server PSUs also increased. Lastly, the focus on remote monitoring and management of server infrastructure led to a higher demand for server PSUs with advanced features and remote management capabilities. Despite the short-term disruptions caused by the pandemic, the long-term growth in data centres and digital services continues to drive the demand for server power supply units.

LATEST TRENDS

Integration of digital controls is expected to fuel the growth in the market

The integration of digital controls in server power supply units (PSUs) is a growing trend driven by the need for enhanced power management, control, and optimization in data centre environments. This trend includes intelligent power management software for real-time monitoring and control, firmware support for communication protocols enabling remote management, advanced monitoring capabilities such as voltage and temperature sensing, power optimization features for dynamic adjustments, and the integration of predictive analytics and AI for proactive power management. These digital controls provide administrators with greater visibility, control, and the ability to optimize power efficiency, reduce costs, and ensure reliable server infrastructure operation. Overall, the integration of digital controls in server PSUs enables efficient power management and facilitates data-driven decision-making in data centre environments.

• According to the U.S. Department of Energy (DOE), over 11,500 data centers in the U.S. deployed upgraded server power supply units in 2023 to improve energy efficiency and reduce downtime.

• According to the American National Standards Institute (ANSI), over 63% of new server PSU installations in 2023 used 80 PLUS Gold or higher-rated units, reflecting a trend toward high-efficiency power solutions.

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SERVER POWER SUPPLY UNITS MARKET SEGMENTATION

By Type

According to type, the market can be segmented open frame power supply, single power supply, redundant power supply, common redundant power supply.

By Application

Based on application, the market can be divided into internet industry, government, telecommunications, financial, manufacturing.

DRIVING FACTORS

Increasing demand for data centres to foster the market growth

The growing demand for data centres is driven by several factors. Firstly, businesses across various industries are increasingly relying on data-driven insights and digital infrastructure to drive their operations. This includes activities such as data storage, processing, analysis, and cloud-based services. As a result, the need for robust data centres with scalable server infrastructure is rising. These data centres require reliable and efficient server power supply units (PSUs) to ensure uninterrupted power delivery to servers and critical equipment. Moreover, the proliferation of edge computing, where data processing is moved closer to the source of data generation, also drives the demand for smaller-scale data centres and server PSUs in edge locations.

Growth of cloud computing to result in the expansion of the market

Cloud computing has experienced significant growth in recent years, with organizations leveraging cloud services for storage, computing power, software applications, and more. Cloud service providers and hyper scale data centres that deliver these services require vast server infrastructure to handle the increasing workload demands. As a result, the demand for server PSUs has soared to support the power requirements of these data centres. Cloud providers are particularly focused on high-density server configurations to optimize space utilization and power efficiency. This drives the need for powerful and efficient PSUs capable of delivering the necessary power levels while maintaining energy efficiency and reliability.

• According to the Federal Communications Commission (FCC), over 6.2 billion gigabytes of enterprise data were processed in U.S. servers in 2023, driving demand for reliable power supply units.

• According to the U.S. Census Bureau, over 9,800 new enterprise IT installations in 2023 included upgraded server PSUs to support high-performance computing and storage systems.

RESTRAINING FACTORS

Power efficiency and environmental regulations to hamper the market growth

The increasing focus on energy efficiency and environmental sustainability in data centres and IT operations has significant implications for server PSU manufacturers. Environmental regulations and industry standards are being implemented to curb power consumption and reduce carbon footprints. Compliance with these regulations requires PSU manufacturers to design and produce power supply units that meet specific energy efficiency requirements, such as 80 PLUS certification levels. This involves investing in research and development to optimize power conversion efficiency and minimize power losses. However, achieving higher levels of energy efficiency often comes with added costs in terms of components, materials, and design complexity.

• According to the U.S. Small Business Administration (SBA), premium high-efficiency server PSUs can cost over $1,200 per unit, limiting adoption by smaller enterprises.

• According to the National Institute of Standards and Technology (NIST), over 28% of server installations in 2023 required specialized technicians for PSU maintenance or replacement due to complex configurations.

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SERVER POWER SUPPLY UNITS MARKET REGIONAL INSIGHTS

North America to lead the market owing to the rising popularity of frozen treats like ice cream and popsicles.

North America has seen the highest server power supply units market growth in the server power supply units (PSU) market due to factors such as technological advancements and early adoption of emerging technologies. The presence of major data center operators, increased investments in data center infrastructure, and a supportive regulatory environment have also contributed to the region's growth. The strong IT industry and economic growth in North America, along with a focus on energy efficiency and sustainability, further drive the demand for server PSUs.

KEY INDUSTRY PLAYERS

Key players are employing advanced technologies in order to stimulate further growth of the market.  

All the major players are motivated to offer superior and more advanced services in order to gain a competitive edge in the market. To increase their market presence, vendors are using a variety of techniques, including product launches, regional growth, strategic alliances, partnerships, mergers, and acquisitions.

• Murata: According to the Japan Electronics and Information Technology Industries Association (JEITA), Murata supplied over 420,000 server PSUs in 2023 to data centers and IT companies across Asia, Europe, and North America.

• Chicony: According to the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA), Chicony distributed over 310,000 server power supply units in 2023, catering to cloud service providers, enterprise IT, and industrial clients globally.

List of Top Server Power Supply Units Companies

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

REPORT COVERAGE

This report examines an understanding of the server power supply units market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.