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The UPS battery market for data center industry market size is estimated to grow at a CAGR of 6.5% between 2022 and 2027. The market size is forecast to increase by USD 1,973.9 million. The growth of the market depends on several factors, including the increase in the adoption of modular UPS systems, growing awareness about green facilities, and increasing electricity prices..
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The key trend in the market is the increased construction of colocation facilities with 2N power redundancy. Data center colocation provides businesses with computing servers, storage, and networking for rent. These facilities, equipped with private racks, enable enterprises to operate their infrastructure. Colocation aids small and medium-sized enterprises (SMEs) in modernizing their operations at reduced costs. The number of such facilities is consistently growing.
Major colocation vendors like Equinix, Digital Realty, and TierPoint are expanding data centers with 2N power redundancy, enhancing availability during power outages. This trend, led by market players, is expected to drive growth among other providers in the forecast period, fostering market expansion.
The tier 3 data center segment is estimated to witness significant growth during the forecast period. Tier 3 data centers contain redundant capacity components and multiple distribution paths with one serving at a time. Without shutting down the operations on a planned basis redundant components can be detached. All the IT infrastructure in tier 3 data centers should have dual power input to establish concurrent maintainability. In 2018, many data center operators opened are of tier 3 standards. Even though these facilities should have a minimum N+1 redundant system, most of these facilities comprise 2N redundant power systems and N+1 redundancy in cooling systems. Such facilities are also involved in the use of flywheels and lithium-ion UPS systems.
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Tier 3 standards are used by many operators of 2018-opened data centers. The majority of these facilities have 2N redundant power systems and N+1 redundancy in cooling systems, despite the fact that these facilities should have at least N+1 redundant systems. Flywheels and lithium-ion UPS systems are used in these facilities as well. There are a lot of facilities that are being built with N+1 redundancy, especially colocation facilities. As more customers look for these certifications before colocating spaces, the need for uptime certifications will grow.
Servers, storage, network links, and other IT components in Tier-3 data centers are redundant and powered by two different sources. There are numerous connections between the computing infrastructure and the power and cooling systems in a tier-3 data center. In order to ensure operational continuity, these data centers have dual power inputs. Such factors will increase segment growth during the forecast period.
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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. Due to the increasing number of data centers established in the region, North America accounted for the highest share of the global UPS battery market for the data center industry. The US is the major contributor to the UPS battery market for the data industry in North America. The US is showing a rise in the construction of data centers. The major contributors to the data center construction market in the Americas are cloud service providers and colocation providers.
Moreover, some new data center projects have been announced in the US. For example, NTT Ltd., a leader in the IDC Marketspace globally, has announced the opening of three new data center campuses in Hillsboro, Santa Clara, and Chicago. In addition, due to the increasing need to reduce greenhouse gas emissions and power consumption from fossil fuels, data center operators are rising their adoption of renewable energy sources and energy-efficient technologies. These factors will also increase the demand for UPS batteries, which will help to the growth of the regional market during the forecast period.
The outbreak of COVID-19 in 2020 drive the growth of the UPS battery market for the data center industry in North America. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Such factors are expected to drive the market during the forecast period.
An increase in the adoption of modular UPS systems is the key driver for the growth of the market. Modern data center designs comprise UPS systems that can be categorized into the centralized, zone, and rack-mount systems for both high and lower capacities. On the installed locations and the information technology (IT) needs of an enterprise data center facility these systems vary in both capacity and size based. Nowadays, with rising concerns over power fluctuations and power outages, UPS systems of lower capacity, such as 20 kVA modular systems, are being adopted commonly and also depend upon the IT load of the rack.
Moreover, modular systems are available with lower capacity and less cost compared to regular batteries as the modular nature allows the installation of additional modules with a rising in capacity. They cost lesser in terms of installation and maintenance as compared with large systems, additionally providing higher efficiency. Another reason for the rise in the increasing adoption of modular systems they require lesser space when compared with conventional systems. Hence, modular systems have become an ideal choice for data center operators that experience frequent growth in rack-power UPS batteries, which will boost the growth of the market during the forecast period.
Failure of UPS batteries is the key challenge for the growth of the market. A UPS battery is a critical component of the emergency power system of a data center because it is the first line of defense in case of the failure of the grid power. Batteries are a low-technical component for supporting data center infrastructure during unplanned outages. Most data centers suffer severe damage that can ensue if batteries in the UPS, and power outages lasting for a few seconds infrastructure fail. Owing to losses per hour for data center operators, downtime can cost up to thousands of dollars.
Moreover, due to the failure of UPS systems, several data centers are facing major problems. As UPS systems are only as strong as the battery backup. In addition, in most cases, the battery is found to be the main cause of many data center outages. Factors such as inconsistent ambient temperatures, overcharging, frequent discharge cycles, excessive charge current, and poor and improper maintenance due to the limited service life. Hence, such constraints associated with UPS batteries will impede the growth of the global UPS battery market during the forecast period.
The market research 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 UPS Battery Market for Data Center Industry Market 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 research report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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.
The ups battery market for data center industry 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.
UPS Battery Market For Data Center Industry 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 6.5% |
Market growth 2023-2027 |
USD 1973.9 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.0 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, India, UK, Germany, and France |
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 Corp., 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, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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