AI Server Power Supply Market Poised for 20.6% CAGR Growth, Hitting USD 6.57 Billion by 2031

Pune, India – September 16, 2025 – A new market research report titled “Global AI Server Power Supply Market Share and Ranking, Overall Sales and Demand Forecast 2025-2031” reveals that the global AI server power supply market is set for explosive growth over the next decade. According to the report, worldwide revenue for AI-focused server power supplies is projected to climb from USD 1,374.15 million in 2024 to approximately USD 6,567.24 million by 2031, representing a robust CAGR of 20.60% during the forecast period (2025-2031). This surge is driven by the rapid adoption of artificial intelligence (AI) across industries and the expanding scale of data centers requiring high-performance power solutions.

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Key Market Highlights (2025-2031):

Global Growth: AI server power supply market revenue will reach an estimated USD 6.57 billion by 2031, up from USD 1.37 billion in 2024, achieving a 20.6% CAGR as organizations invest in AI-driven infrastructure.

Asia-Pacific Dominance: The Asia-Pacific region is set to lead the market, growing from USD 588.86 million in 2024 to about USD 3,154.16 million by 2031. With a projected 22.89% CAGR, Asia-Pacific not only boasts the fastest growth but will account for the largest share of global revenue by 2031.

North America & Europe: North America (led by the United States) remains a key market, expected to expand from USD 523.96 million to USD 2,156.37 million by 2031 (a 17.73% CAGR). Europe will grow from USD 222.60 million to USD 1,085.55 million in the same period (a 20.71% CAGR), reflecting strong adoption of AI servers across major EU economies.

Concentrated Competition: The industry is dominated by a handful of major players – the top five manufacturers (e.g. Delta Electronics, LiteOn Technology, Acbel Polytech, Chicony Power, and Advanced Energy) together accounted for approximately 78% of global market revenue in 2024. This high concentration underscores a competitive landscape where leading companies hold significant sway.

Surging Demand Driven by AI Adoption and Data Centers

The report indicates that the booming deployment of AI applications – from cloud-based machine learning services to edge AI in IoT devices – is fueling unprecedented demand for advanced server hardware, including power supply units (PSUs). “The escalating need for high-performance computing to support AI workloads is a primary growth engine for the AI server power supply market,” said Michael Brown, lead analyst of the study. “Organizations in sectors like technology, healthcare, finance, and automotive are scaling up their AI infrastructure. This is driving investments not just in AI servers themselves but also in specialized power supplies that can deliver reliable, efficient power to these power-hungry systems.”

According to the report, proliferation of large-scale data centers and cloud service providers is another key factor propelling market growth. Hyperscale and enterprise data centers worldwide are expanding to handle AI training and inference tasks, leading to higher demand for robust, efficient PSUs that can support dense racks of AI servers. Additionally, the rise of edge computing – deploying AI servers in decentralized locations to reduce latency – is creating a need for compact, high-efficiency power supplies capable of operating in varied environments.

At the same time, the industry faces challenges. High power consumption by AI servers has raised concerns about energy efficiency and heat management in data centers. High initial costs for cutting-edge AI-grade PSUs and integration complexity with existing infrastructure are noted as potential restraints. However, the report finds these challenges are being addressed through innovation: manufacturers are improving power conversion efficiency (with many aiming for Titanium-grade 96%+ efficiency) and incorporating intelligent power management features to optimize energy use. Ongoing technological advances are gradually reducing costs and easing integration, ensuring that power supply solutions keep pace with the evolving needs of AI hardware.

Asia-Pacific Emerges as the Dominant Region

In terms of regional dynamics, Asia-Pacific stands out as the dominant and fastest-growing market for AI server power supplies. By 2031, Asia-Pacific is forecast to contribute nearly half of the global market revenue. This regional ascendancy is attributed to massive investments in AI and cloud infrastructure across countries such as China, Japan, South Korea, and India. China, in particular, is a major driver – with its aggressive development of AI supercomputing centers and a strong base of electronics manufacturing, it fuels both demand and supply for server PSUs. Moreover, many leading PSU manufacturers (for example, Delta Electronics and LiteOn) have significant operations in Taiwan and China, leveraging established supply chains in the region.

North America is expected to maintain significant market share as well, owing to the presence of major cloud providers and AI technology companies in the United States. North American buyers focus on high-end, specialized power supplies to support mission-critical AI systems, and initiatives around energy efficiency are strong in this region. Europe also shows robust growth, led by countries like Germany, the UK, and France where AI adoption in enterprise and research settings is accelerating. European organizations are increasingly updating their data center power infrastructure to meet sustainability goals and regulatory standards, driving demand for next-generation PSUs.

Other regions, including Latin America and the Middle East & Africa, are at earlier stages of AI infrastructure development. They are expected to gradually increase adoption of AI server power solutions toward 2031, especially as digital transformation initiatives and cloud services expand in those markets. The report covers a comprehensive regional analysis, with detailed revenue and volume figures for key countries in each region, highlighting emerging opportunities in these areas.

Competitive Landscape: Key Players and Market Share

The competitive landscape of the AI server power supply market is relatively concentrated, with well-established electronics and power solution companies at the forefront. According to the report, Delta Electronics (a global leader in power and energy management solutions) and LiteON Technology are among the top vendors, reflecting their strong portfolio of server PSUs and deep relationships with data center clients. Other prominent manufacturers include Acbel Polytech and Chicony Power Technology, known for their high-efficiency power supply designs, and Advanced Energy, which provides specialized high-performance power conversion products. Together, the top five suppliers constituted roughly 77.66% of worldwide revenue in 2024, indicating a market where a few big players capture the lion’s share of sales.

These dominant companies are continuously innovating to maintain their edge. They are investing in higher wattage PSUs (to power the latest GPU and ASIC servers), improving power density (so units deliver more power in smaller form factors), and enhancing reliability and redundancy features. For instance, many top vendors now offer modular and hot-swappable power supply units, allowing data centers to scale and service their power systems with minimal downtime – a critical requirement for AI applications that run 24/7. Additionally, intelligent monitoring and control features are being integrated into power supplies, enabling remote management and predictive maintenance, which is highly valued by large data center operators.

The report also notes a competitive trend towards strategic partnerships and acquisitions. With the rapid growth in demand, larger players are eyeing smaller, specialized PSU makers for acquisition to broaden their product portfolios or enter new regional markets. New entrants and regional manufacturers, particularly from China and other parts of Asia, are emerging with cost-competitive offerings. However, given the technical expertise and certifications required for data center-grade power supplies, the established companies retain a significant advantage in credibility among enterprise buyers. Market competition is expected to intensify, but the strong growth pie ensures ample opportunity for both global and niche players.

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Market Segmentation: High-Capacity PSUs and GPU Servers in Focus

The AI Server Power Supply Market Report 2025-2031 provides a detailed breakdown of the market by power capacity and server application, uncovering which segments will drive future growth:

By Power Capacity (Type): The market is segmented into Below 3 kW, 3–5.5 kW, and Above 5.5 kW power supply units. Currently, a significant portion of deployments use PSUs in the mid-range (3–5.5 kW) to power standard server racks. However, the report highlights that the highest growth is expected in the Above 5.5 kW segment, as next-generation AI servers and clusters demand ultra-high wattage power solutions. Power supplies exceeding 5.5 kW are increasingly needed for GPU-heavy servers and advanced AI training clusters, which consume enormous power. Manufacturers are responding by developing 5kW+ high-density PSUs that can reliably support these intensive workloads. Lower capacity ranges (below 3 kW) mainly cater to edge servers and smaller installations, and while they will grow steadily, they represent a smaller share of total revenue.

By Application (Server Type): The report segments demand across GPU Servers, ASIC Servers, FPGA Servers, and Others. GPU servers form the backbone of the current AI revolution and accordingly make up the largest application segment for power supplies. Tech giants and research institutions are deploying GPU-based systems for machine learning and deep learning tasks, driving strong demand for compatible power units. ASIC servers, which use custom AI chips (such as AI accelerators and TPUs), and FPGA-based servers (used in specialized low-latency tasks) are niche but growing segments – these often require highly efficient and stable power delivery to maximize the performance of specialized hardware. The report notes that as AI diversification continues, power supply vendors are tailoring solutions for each server type. For example, GPU server PSUs prioritize extremely robust +12V rails and cooling support, while FPGA/ASIC server PSUs might focus on ultra-low noise and precise power regulation. The “Others” category, including traditional CPU-centric servers augmented for AI and emerging neuromorphic computing, will also contribute to market expansion, albeit at a more modest scale.

The granular analysis of these segments helps industry stakeholders identify “blue ocean” opportunities. For instance, suppliers focusing on high-capacity, high-efficiency PSUs for GPU and ASIC server farms are likely to capitalize on the fastest-growing niche. On the other hand, there remains an addressable market for compact, reliable PSUs for edge AI servers (often in the sub-3kW range) as AI inference moves closer to end-users. Each segment’s development potential is evaluated in the report, providing insights into where companies can differentiate and capture value.

Report Scope and Industry Outlook

The Global AI Server Power Supply Market Report 2025-2031 offers a comprehensive overview of this emerging industry’s trajectory. The study provides market size estimates in terms of both sales volume (thousand units) and sales revenue (USD millions). 2024 is treated as the base year for the analysis, with historical data spanning 2020-2023 and detailed forecasts through 2031. Both quantitative and qualitative analysis are included to give a well-rounded view:

Market Drivers & Challenges: Readers will find an in-depth look at the market’s driving forces (e.g. surging AI investments, data center expansion, technological advancements in power electronics) as well as restraints and risks (such as high costs, integration issues, and policy/regulatory impacts on energy efficiency standards). The report discusses recent developments, like sustainability initiatives and government regulations, that are influencing design and adoption of server PSUs.

Competitive Analysis: A thorough competitive landscape is presented, including market share rankings of key players, their pricing and revenue figures, and recent developments such as new product launches, partnerships, or mergers and acquisitions. Profiles of major companies like Delta Electronics, LITEON Technology, Acbel Polytech, Chicony Power Technology, Advanced Energy, and others are provided, detailing their product offerings and strategies in the AI server power supply space. This helps investors and industry watchers gauge how each leading firm is positioned in the current marketplace.

Regional and Country Insights: The report breaks down sales and revenue by region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) and further by key countries within these regions (USA, China, Germany, etc.). For each geography, the report introduces current market status and future growth prospects, highlighting which regions are expanding fastest and what factors are driving local demand. For example, North America’s growth is linked to cloud data center construction, while Europe’s is partly driven by strict energy-efficiency mandates requiring PSU upgrades.

Industry Value Chain: An analysis of the industrial chain is included, examining upstream components (like transformers, power semiconductors) and downstream integration (in server assembly and data center operations). Understanding the supply chain – from component suppliers to end-users – provides a holistic view of how AI server PSUs are developed and deployed, and where potential bottlenecks or opportunities for cost optimization lie.

Overall, the outlook for the AI server power supply market is highly optimistic. Double-digit annual growth is anticipated as AI becomes ever more ingrained in business operations and consumer services worldwide. The report concludes that to meet this growing demand, PSU manufacturers will need to continue innovating in power density, efficiency, and intelligent management features. Investors and industry professionals reading the study can leverage its insights to develop strategic growth plans, identify investment opportunities, and make informed decisions in this dynamic sector.

Important Questions Answered included in the Report:

(A) What is the market size and growth rate of the global and regional market by various segments?

(B) What is the market size and growth rate of the market for selective Countries?

(C) Which region or sub-segment is expected to drive the market in the forecast period?

(D) What factors are estimated to drive and restrain the market growth?

(E) What are the key technology and market trends shaping the market?

(F) what are the key opportunity in the market?

(G) Who are the leading manufacturers operating in the global AI Server Power Supply market?

(H) Which key player accounted for the highest market share?

(I) What are the growth opportunities for the new entrants in the global AI Server Power Supply market?

For more information about the report and its findings, please visit: https://www.qyresearch.in/report-details/6190572/Global-AI-Server-Power-Supply-Market

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