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The Data Center UPS Market size is estimated to grow at a CAGR of 10.92% between 2022 and 2027. The market size is forecast to increase by USD 4,991.08 million. The growth of the market depends on several factors, including an increase in the adoption of modular UPS systems, rapid growth in the construction of data centers, and growing awareness of operating green facilities. A UPS system is used to power the data center IT and support infrastructure during a power outage until the generator is turned on. These systems support the infrastructure for short periods of time, ranging from a few seconds to around 20 minutes. They are extremely useful in preventing damage to the infrastructure in the event of power sags and surges.
This data center ups market report extensively covers market segmentation by product (centralized UPS, zone UPS, and rack-mount UPS), application (tier 3 data center, tier 1 and 2 data center, and tier 4 data center), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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One of the key factors driving the Data Center Uninterrupted Power Supply (UPS) Market growth is the increase in the adoption of modular UPS systems. There is increasing adoption of modular UPS systems along with data racks which might support one or more racks depending on the IT load of the rack due to the increasing concerns about power fluctuations and outages.
Some of the key benefits of a modular UPS system include the ability to increase capacity as and when required (assuming an initial rightsizing) as well as diminished maintenance cost. The key advantage of a modular UPS system is that they cost lesser and additional modules can be installed based on the capacity needs. Hence, such factors are expected to drive the data center UPS market during the forecast period.
A key factor shaping the Data Center Uninterrupted Power Supply Market growth is the use of DC power distribution for data centers. AC power is the most commonly used power source in data centers as It is difficult for these facilities to operate on DC power without proven efficiency for long-term operations.
Even though the use of AC power is commoner in data centers, there is increasing adoption of the use of DC power as it can reduce OPEX by roughly 15%; the CAPEX involved in the installation of DC infrastructure is roughly 30% less than that of AC infrastructure. Hence, there is an increasing shift towards DC power following innovations that would increase the efficiency of power systems used in data center environments. Hence, such factors are expected to drive the data center UPS market during the forecast period.
Lack of technical expertise in developing countries is one of the key challenges hindering the Data Center UPS Market growth. There is a significant low awareness of data centers in most developing countries. The data center operators in developing economies should be aware of the overall costs involved in managing data center infrastructures of Tier-4 standards as well.
As a result, the substandard design that stems from the lack of technical expertise can lead to human error. Hence, this can lead to data center power outages owing to improper cabling as well as inappropriate use and maintenance of the infrastructure which can bring data center operations to a standstill. Hence, such factors are expected to significantly hinder the data center UPS market during the forecast period.
The centralized UPS segment is estimated to witness significant growth during the forecast period. The centralized UPS systems are most commonly used to power the entire data center floor space. This segment has a higher capacity of more than 1,000 kVA. Some of the common examples of UPS systems that are more than 500 kVA in less-capacity data centers include Fuji Electric Co. Ltd.
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The centralized UPS segment was the largest segment and was valued at USD 2,743.29 million in 2017. There is increasing adoption of centralized UPS in many facilities with N+1 or 2N redundancy. But one of the main disadvantages is the cabling of these systems to every rack in the infrastructure and its IT load because failure in these systems can lead to the disruption of all the data center operations. Hence, there is increasing adoption of the zone or rack-mount modular systems of capacities ranging from 20 kVA to 500 kVA across enterprises due to the rising heat at the rack. Hence, such factors are expected to drive the growth of the segment which in turn will drive the global data center UPS market during the forecast period.
The zone UPS system supporting a whole aisle of containment solutions in data centers is driving the market growth of this segment during the forecast period. There is an increasing shift towards zone UPS from centralized UPS systems which can support a whole aisle of containment solutions in data centers, while many vendors are involved in offering modular UPS systems of higher capacities. This segment supports higher capacities, mostly ranging from 60kVA to 500kVA. Zone systems will be best suitable for the installation of power module solutions in modular facilities that operate 20 racks per module with 10kW support for each rack. Hence, such wide applications will drive the growth of this segment which in turn will drive the growth of the global data center UPS market during the forecast period.
The expansion of tier-2 to tier-3 data centers is expected to drive the growth of this segment during the forecast period. This type of data center is it consists of redundant capacity components and multiple distribution paths with one serving at a time and also these components can be detached without shutting down the operations on a planned basis. Some of the key advantages of tier-3 data centers include redundant and dual-powered servers, storage, network links, and other IT components. Hence, such applications are expected to drive the growth of this segment which in turn will drive the growth of the global data center UPS market during the forecast period.
The growing adoption of tier-1 data centers across enterprises is expected to drive the growth of this segment during the forecast period. One of the main features of the tier-1 data center is that it offers two hours of backup power or onsite fuel for generators as these data centers are prone to planned and unplanned power disruptions. A Tier 1 data center provides 99.67% uptime and 28.8 hours of downtime in a year. Hence, such features are expected to drive the growth of this segment which in turn will drive the growth of the global data center UPS market during the forecast period.
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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main reasons for the growth of the data center UPS market in North America is due to the data center construction market in the US being CSPs and colocation providers. Some of the major regions with the highest market share in North America include US and Canada with the US contributing around 80% of the revenue in the North American market, followed by Canada. The main reason fuelling the growth of the data center UPS market in the region is the increasing demand for data centers and servers. Factors such as higher investments by hyper-scale cloud providers, colocation service providers, and enterprises, which are upgrading their IT infrastructure to support edge computing, 5G, multi-cloud services, big data analytics, and IoT are expected to drive the global data center UPS market during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global data center UPS market witnessed significant growth due to the increase in the emergence of a new business environment with the work-from-home culture leading to the adoption of cloud services and digitization in North America. However, the market has recovered post covid-19 and is estimated to grow at a CAGR of 10.92% during the forecast period.
The Data Center UPS Market industry report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Data Center UPS Market Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers data center UPS such as MV UPS, Relays, and modular UPS.
Centiel Global: The company offers data center UPS such as Premium Tower UPS, and Modular UPS, and CumulusPower UPS.
Cyber Power Systems Inc: The company offers data center UPS such as RT33, Online S, and HSTP3S.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The data center ups market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Data Center UPS Market Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.92% |
Market growth 2023-2027 |
USD 4,991.08 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.47 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 30% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Centiel Global, Cyber Power Systems Inc., Delta Electronics Inc., Eaton Corp. Plc, Enconnex LLC, EverExceed Corp., Fuji Electric Co. Ltd., General Electric Co., Hewlett Packard Enterprise Co., Hitachi Ltd., HITEC Power Protection BV, Kohler Co., Legrand SA, Mitsubishi Electric Corp., RPS Spa, Schneider Electric SE, SolarEdge Technologies Inc., Toshiba Corp., and Vertiv Holdings Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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