The Company

Vertiv Holdings Co. is a global leader in providing critical digital infrastructure and continuity solutions for data centers, communication networks, and industrial applications. The company designs, manufactures, and services hardware and software that ensures the continuous operation of key systems in sectors like telecommunications, cloud computing, and commercial and industrial settings. Vertiv’s product offerings include power management, thermal management, and IT infrastructure management, with a focus on high availability, scalability, and energy efficiency. Vertiv operates in over 130 countries and serves enterprises, government agencies, and other organizations that rely on mission-critical systems.

Financials

Total Addressable Market (TAM) / CAGR

Vertiv operates in the broader data center infrastructure market, which has a Total Addressable Market (TAM) estimated at $27 billion in 2023. This market includes data center power, cooling, and infrastructure management systems, as well as edge computing solutions.

The expected Compound Annual Growth Rate (CAGR) for the data center infrastructure market over the next 5-6 years (2023-2028) is projected to be around 6.5%. This growth is driven by the increasing global reliance on cloud computing, the expansion of 5G networks, the growing importance of edge computing, and the rising demand for scalable and efficient infrastructure solutions.

Products

Vertiv’s product portfolio is diversified across multiple critical infrastructure segments. These are the primary categories, along with their approximate contribution to the company’s revenue:

1. Power Management Solutions (~40%): This includes Uninterruptible Power Supply (UPS) systems, switchgear, power distribution units (PDU), and integrated power solutions that ensure continuous and reliable power for data centers and communication networks.
2. Thermal Management Solutions (~35%): Vertiv offers a wide range of cooling solutions, such as precision air conditioners, liquid cooling systems, and thermal management equipment designed to maintain optimal operating conditions for critical systems.
3. Infrastructure Management & Monitoring (~15%): This includes software and services for remote monitoring, real-time data analytics, and managing the health and efficiency of IT infrastructure. It helps clients optimize performance and manage resources more effectively.
4. Edge Computing Solutions (~10%): Vertiv provides tailored solutions for decentralized, edge computing environments where data processing happens closer to where it is generated, ensuring low latency and high performance.

Competitors

Vertiv faces competition from several major players in the data center and critical infrastructure space. Key competitors include:

1. Schneider Electric: A global leader in energy management and automation, Schneider Electric offers a broad range of power and cooling solutions for data centers and industrial applications.
2. Eaton Corporation: Known for its power management solutions, Eaton competes in the UPS and power distribution markets for data centers and critical facilities.
3. ABB Group: ABB provides power and automation solutions, including UPS systems and other power protection technologies, often competing with Vertiv in industrial and data center markets.
4. Huawei Technologies: Though best known for telecommunications, Huawei also provides a wide range of data center infrastructure solutions, particularly in power and thermal management.
5. Rittal: A German company specializing in enclosures, climate control, power distribution, and IT infrastructure, Rittal is another competitor in the data center cooling and power solutions market.