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The UPS battery for data center market size is forecast to increase by USD 2.13 billion at a CAGR of 6.59% between 2023 and 2028. In the dynamic landscape of the UPS battery market for data centers, several key drivers, trends, and challenges are shaping its growth. The report on market trends and analysis reveals the significant impact of factors such as the increasing adoption of modular UPS systems, the growth in data center construction, and the consolidation of data centers. The modular UPS systems' rising popularity stems from their flexibility, scalability, and cost-effectiveness. Simultaneously, the construction of new data centers continues unabated due to the burgeoning digital economy and the increasing demand for cloud services. Lastly, the consolidation of data centers is a response to the need for operational efficiency and cost savings, as well as the growing trend toward hyperscale facilities. These drivers, trends, and challenges collectively shape the UPS battery market for data centers, ensuring its continued growth and evolution.
The UPS (Uninterruptible Power Supply) battery market for data centers is experiencing significant growth due to the increasing demand for reliable electricity sources and the expansion of cloud computing technologies. Modular UPS systems, including 20 kVA systems, are becoming increasingly popular in green facilities due to their energy efficiency and 2N power redundancy. Lithium-ion UPS systems are gaining traction over traditional Lead Acid and Nickel Cadmium systems due to their longer lifespan and higher energy density. Data centers require uninterrupted power to ensure the continuity of network services and automation processes. Fiber optic lines and satellites are essential for data transmission, making the availability of a stable power source crucial.
Electricity prices continue to rise, making energy-efficient UPS systems a cost-effective solution for data center operators. In conclusion, the UPS battery market for data centers is driven by the need for reliable power sources, energy efficiency, and cost savings. Modular UPS systems, Lithium-ion UPS systems, and automation are key trends in this market, as data centers continue to expand and cloud computing technologies become more prevalent.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The tier 3 data center segment is estimated to witness significant growth during the forecast period. In the realm of data center infrastructure, modular UPS systems play a pivotal role in ensuring uninterrupted power supply in advanced facilities, such as Tier 3 data centers. These data centers prioritize concurrent maintainability, featuring 2N power redundancy, and employ green facilities to minimize electricity prices. Colocation facilities, a common choice for businesses, also benefit from these advanced power systems. Modular UPS systems, available in sizes like 20 kVA, offer a low-technical component solution for handling unplanned outages and severe damage caused by power outages. Lithium-ion UPS systems, a modern alternative to traditional Lead Acid and Nickel Cadmium systems, provide enhanced efficiency and longer backup times.
Data center operators face challenges from inconsistent ambient temperatures, which can lead to overcharging, frequent discharge cycles, and excessive charge current. Cloud computing technologies and network services rely on automation and UPS systems, PDUs, generators, transfer switches, and switchgear to maintain optimal conditions for IT infrastructures, including servers, storage, network equipment, and fiber optic lines. Satellites and telecom broadband networks also require reliable emergency power systems to ensure uninterrupted connectivity. VRLA-based UPS systems, another option, offer a cost-effective solution for data centers, while maintaining the necessary power redundancy. In summary, modular UPS systems, green facilities, electricity prices, colocation facilities, 2N power redundancy, lithium-ion UPS systems, 20 kVA modular systems, emergency power systems, grid power, low-technical components, unplanned outages, severe damage, power outages, data center operators, inconsistent ambient temperatures, overcharging, frequent discharge cycles, excessive charge current, Cloud computing technologies, Network services, Automation, and various UPS systems, PDUs, generators, transfer switches, and switchgear are essential components in the data center landscape.
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The tier 3 data center segment was valued at USD 2.62 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 34% 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.
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Electrical inputs, including Lithium-ion, Flywheel, VRLA, and Gel Cell batteries, are integral components of these UPS systems, available in plate types like valve-regulated lead-acid (VRLA) and absorbed glass mat (AGM). As the demand for remote working and 5G technology increases, data centers require more efficient and reliable power solutions. UPS systems play a pivotal role in maintaining the integrity of data and ensuring business continuity. By providing clean and stable power, these systems protect sensitive equipment from power waves and outages. In summary, the market caters to the power requirements of various data center operators, offering advanced UPS solutions and components such as Rack-level UPS units, Rack PDU solutions, and diverse electrical inputs. These solutions ensure optimal power efficiency and reliability, enabling data centers to support the growing demand for digital services and technologies.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
An increase in the adoption of modular UPS systems is the key driver of the market. In the contemporary data center landscape, modular UPS systems have gained significant traction due to their adaptability and cost-effective advantages. With the growing emphasis on energy efficiency and sustainability in data center facilities, these systems are increasingly being adopted in green facilities to mitigate the impact of electricity price fluctuations and power outages. Colocation facilities, in particular, are embracing 2N power redundancy, which involves the installation of two independent UPS systems to ensure an uninterrupted power supply. Modular UPS systems, such as 20 kVA modular systems, are becoming a preferred choice due to their low-technical component design and ease of expansion.
Moreover, these systems are particularly suitable for smaller IT loads and can be installed alongside racks to provide emergency power support. Lithium-ion UPS systems are gaining popularity due to their high energy density, longer cycle life, and reduced maintenance requirements. Power outages and unplanned outages can result in severe damage to IT infrastructure, including servers, storage, network equipment, and PDUs. Inconsistent ambient temperatures, overcharging, and frequent discharge cycles can also negatively impact the performance and lifespan of UPS systems. To address these challenges, data center operators are turning to advanced technologies such as Cloud computing, Network services, Automation, and Modular UPS systems.
Growth in data center construction is the upcoming trend in the market. The digitalization of the global economy has led to a significant increase in the demand for IT infrastructure, particularly data centers. Factors such as the proliferation of Internet services and communication, online banking transactions, the Internet of Things (IoT), digitization of services, and cloud computing have driven this trend. In response, numerous firms have invested in constructing new data centers, ensuring their facilities are equipped with the latest technology and energy-efficient solutions. For instance, Bulk Infrastructure Holding AS announced expansion projects in Norway in September 2022, focusing on green facilities with long-term power and land availability and highly connected and scalable sites powered by 100% renewable energy.
Green data centers prioritize the use of renewable energy sources and employ various energy-efficient measures to minimize their carbon footprint. These facilities often incorporate fiber optic lines, satellites, telecom broadband, and other advanced technologies to ensure seamless connectivity and high-performance operations. In conclusion, the data center market is witnessing significant growth, driven by the increasing demand for IT infrastructure and the need for reliable and energy-efficient power systems. Modular UPS systems, particularly lithium-ion-based systems, are becoming increasingly popular due to their advantages in terms of efficiency, reliability, and environmental impact. Data center operators must carefully consider the specific requirements of their facilities and invest in the appropriate power systems to ensure optimal performance and minimize the risk of severe damage from power outages or unplanned outages.
Consolidation of data centers is a key challenge affecting the market growth. Data center consolidation is a prevailing trend in the IT sector, leading to the reduction of facility size or the merging of multiple facilities. Key motivators include cost savings through decreased capital expenditures (CAPEX) and operating expenses (OPEX), enhanced security, improved data resiliency and scalability, and heightened data recovery efforts. This consolidation process encourages the transition of workloads to cloud platforms, thereby shrinking the data center footprint. However, this trend poses a challenge to the growth of the UPS battery market for data centers. Modular UPS systems are essential components in green facilities, ensuring uninterrupted power supply. Electricity prices and the need for 2N power redundancy drive the adoption of advanced UPS technologies, such as lithium-ion UPS systems, in 20 kVA modular systems.
Cloud computing technologies, network services, automation, and various IT infrastructures, including servers, storage, and network equipment, rely on UPS systems, PDUs, generators, transfer switches, and switchgear. VRLA-based UPS systems are widely used due to their low technical component count and ease of maintenance. Lead Acid and Nickel Cadmium UPS systems have been traditionally used, but Lithium-ion-based UPS systems are gaining popularity due to their higher energy density, longer cycle life, and faster response time. Fiber optic lines, satellites, telecom broadband, and other critical IT infrastructures require reliable power backup, making UPS systems an indispensable part of the overall IT ecosystem.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
Companies 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.
Amara Raja Group: The company offers UPS batteries for data centers through PowerStack, Amaron Quanta, Amaron Quanta HWS, and Amaron Quanta Sxel.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Ups batteries play a crucial role in the data center industry, ensuring uninterrupted power supply and preventing data loss. The UPS systems market is driven by the increasing demand for data center services and the need for reliable power backup solutions. UPS systems are essential for data centers as they provide emergency power during power outages and maintain the continuity of power during power fluctuations. The ups market for data centers is segmented based on capacity, technology, and end-user. Capacity-wise, the market is divided into small, medium, and large-scale data centers. Technology-wise, the market is categorized into online, offline, and line-interactive ups systems.
End-user-wise, the market is segmented into telecommunication, BFSI, IT and ITeS, healthcare, and other industries. The ups market for data centers is expected to grow significantly due to the increasing adoption of cloud computing and the growing demand for data center services. The market is also driven by the need for energy efficiency and the increasing focus on renewable energy sources. UPS systems are essential for data centers as they ensure the availability and reliability of critical IT infrastructure. The ups market for data centers is expected to grow at a steady pace due to the increasing demand for data center services and the need for reliable power backup solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.59% |
Market growth 2024-2028 |
USD 2.12 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.18 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, UK, Germany, France, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amara Raja Group, C and D Technologies Inc., Chaowei Power Holdings Ltd., Delta Electronics Inc., EaglePicher Technologies LLC, East Penn Manufacturing Co. Inc., Eaton Corp. Plc, EnerSys, ETERNITY TECHNOLOGIES FZ LLC, EverExceed Corp., Exide Industries Ltd., FIAMM Energy Technology Spa, First National Battery, Fullriver Battery, GS Yuasa International Ltd., HBL Power Systems Ltd., Kokam Co. Ltd., Schneider Electric SE, TotalEnergies SE, and Vertiv Holdings Co. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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