Data Center Busway Market Report

Market Insights

“The data center busway market size was US$ 3.2 billion in 2024 and is likely to grow at a robust CAGR of 16.3% in the long run to reach US$ 9.4 billion in 2031.”

Market Dynamics

Introduction

A busway is a modular, enclosed power distribution system that delivers electrical power efficiently within a data center. It consists of an insulated metal enclosure containing conductors, which can be customized with plug-in units to provide power to IT equipment. Busways offer flexibility, scalability, and ease of maintenance compared to traditional power distribution methods like cable and conduit systems.

In modern data centers, efficient power distribution ensures uninterrupted operations and optimal energy management. A busway system is a reliable and scalable power distribution solution designed to support high-density IT environments. Unlike traditional wiring methods, busways provide a streamlined and adaptable approach, allowing for quick modifications and expansions without extensive downtime. They enhance power efficiency, reduce installation complexity, and improve safety by minimizing cable clutter and heat generation.

Market Drivers

The growing demand for scalable and energy-efficient power distribution in data centers is a key driver for the busway market. As businesses increasingly rely on cloud computing, big data, and AI-driven applications, data centers must expand rapidly while ensuring optimal energy management. Busway systems offer a modular and flexible solution, reducing downtime and installation costs compared to traditional cable-based power distribution. Their ability to enhance power density, minimize heat loss, and improve operational efficiency makes them an attractive choice for modern IT infrastructures.

Another significant factor fueling market growth is the rise in hyperscale and colocation data centers. With global digital transformation accelerating, companies are investing heavily in high-capacity data centers to support growing computational needs. Busways help meet increasing power demands by providing high-reliability power distribution, reducing cable clutter, and enabling rapid system reconfigurations. Additionally, sustainability concerns and regulatory compliance drive the adoption of energy-efficient busway systems, aligning with green data center initiatives and carbon reduction goals.

Recent Market JVs and Acquisitions:

A considerable number of strategic alliances, including M&As, JVs, etc., have been performed over the past few years:

• In 2023, Siemens and Compass Data Centers entered a multi-year agreement to supply 1500 pre-fabricated medium-voltage power skids incorporating transformers and busways.
• In 2022, Legrand acquired French power firm Voltadis, aiming to strengthen its portfolio in data center electrical systems.
• In November 2021, Vertiv acquired E&I Engineering for US$ 1.8 Billion. At the time of acquisition, E&I ranked 5^th in the data center Busway market. This acquisition expanded Vertiv’s capabilities in busways, switchgear, and transfer switches.

Recent Product Development:

• In April 2024, Schneider Electric unveiled I-line Track, a next-gen power distribution system providing an all-in-one solution to help build more flexible data centers. Its innovative design enables flexible deployment and rapid expansion in colocation data centers.
• In September 2022, Vertiv expanded its power distribution portfolio and introduced Powerbar iMPB, busbar solutions, a modular busbar system designed to enable seamless, on-demand power upgrades in dynamic data center environments.

Market Segments' Analysis

By Product Type

“Sandwich-style busways have the most dominant share of the market, whereas track busways are the fastest-growing category of the market.”

The data center busway market is classified into sandwich-style busway, track busway, and air-insulated busway based on product type. Sandwich-style busways are estimated to remain dominant in the forecasted period. The dominance of sandwich-style busways is attributed to their compact size, improved power density, and better thermal performance, allowing them to be the first choice for large-capacity and high-power data centers. 

Track busways are estimated to grow at the highest rate, owing to benefits like future expansion compatibility and easier installation. On the other hand, the most rapid growth is powered by its scalability, modular nature, and ease of expansion. With the increasing adoption of AI and cloud computing, data centers increasingly need more flexible and easily reconfigurable power distribution solutions, thereby driving the demand for track busways.

By Voltage Type

“Low-voltage Busway is expected to remain most dominant, whereas demand for medium-voltage Busway is likely to grow faster during the mentioned period.”

The market is segmented into low-voltage and medium-voltage busways. The low-voltage busway is expected to generate the most demand, as it is widely employed within distribution networks and data halls to meet the power needs of IT equipment and racks. However, the medium voltage busway is the most rapidly developing category, and it is fueled by the increasing power requirements of hyperscale and AI-based data centers, which need high-capacity power distribution systems for effective management of growing loads. As data centers grow in density and scale, the adoption of medium-voltage busway is gaining traction, due to advantages like minimized transmission loss, better power efficiency, and greater next-generation scalability.

By Data Center Type

“Colocation data center is expected to retain its share, whereas hyperscale data center is expected to be the fastest-growing demand generator for data center busways.”

The data center busway market is segmented into hyperscale, colocation, and enterprise based on the type of data center. Colocation data centers are expected to dominate the market in the forecasted period. Colocation data centers possess the largest market share, fueled by the growth in demand from companies wanting cost-effective, scalable, and high-redundancy infrastructure without the capital expense of constructing their facilities. Increased acceleration in the cloud service provider market, digital transformation, and edge computing have fastened the adoption of colocation, driving demand for efficient and flexible power distribution solutions like busways.

Regional Analysis

“The North America region is expected to continue being the largest demand generator for data center busway, whereas Asia-Pacific is exhibiting the fastest growth in the forecasted period.”

North America's dominance is driven by the high density of hyperscale data centers, sophisticated digital infrastructure, and the pronounced presence of major cloud services in the form of AWS, Microsoft, and Google. Moreover, strict regulations regarding energy efficiency and sustainability fuel the use of cutting-edge power distribution solutions like busways in data centers throughout the region. At the same time, the Asia-Pacific is experiencing the fastest growth, propelled by accelerated digitalization, enhanced cloud adoption, and heavy data center infrastructure investment in China, India, and Southeast Asia. The growth in AI workloads, hyperscale facility expansion, and government-sponsored data localization drive the demand for high-efficiency power distribution technologies such as busways even higher, making the Asia-Pacific a major growth driver in the international market.

Key Players

The market is highly consolidated, with 5-6 players dominating more than 75% of the market. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the data center Busway market. Some of the major players provide a complete range of services.

Here is the list of the Top Players (Based on Dominance)

• Schneider Electric SE
• ABB Company
• Vertiv Holdings Co.
• Eaton Corporation PLC
• Siemens AG
• Legrand Group
• Cummins Inc.
• Mitsubishi Electric Company
• S&C Electric Company Inc.
• Delta Electronics Inc.

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The global data center busway market is segmented into the following categories. 

Data Center Busway Market by Product Type

• Sandwich-style Busway (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Track Busway (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Air-insulated Busway (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Data Center Busway Market by Voltage Type

• Low-voltage Busway (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Medium-voltage Busway (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Data Center Busway Market, by Data Center Type

• Hyperscale (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Colocation (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Enterprise (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Data Center Busway Market by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, Australia, Japan, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Africa, and Others

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s data center busway market realities and future market possibilities for the forecast period 
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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