Data Center UPS Market Dynamics 2021-2031
The data center UPS market size is projected to reach US$ 9.82 billion by 2031 from US$ 4.91 billion in 2023. The market is expected to register a CAGR of 9.1% during 2023–2031. The adoption of more efficient and scalable modular designs is likely to remain a key trend in the market.
Data Center UPS Market Analysis
The global data center UPS market is primarily driven by the rising demand for continuous power supply worldwide. This can be attributed to the high dependency on technology for performing business operations, resulting in an increasing demand for 24/7 availability of data centers. The data center UPS market has witnessed significant growth in recent years, driven by rapid digitalization, growing incidences of power outages, and increasing demand for eco-friendly solutions by reducing power consumption. Moreover, the growing number of data centers across the globe and the emerging trend of edge computing are driving the market during the forecast period. However, the rising adoption of modular UPS systems and growing investment in 5G edge data centers are creating lucrative opportunities in the market growth.
Data Center UPS Market Overview
Data Center UPS (uninterruptible power supply) is a device specially designed to give data center equipment as backup power when the main power source is lost. Data Center UPS allows computers to stay running for a few hours during a power blackout and protects them from power surges. These devices help the user guarantee smooth functioning and safeguard against loss or damage to the data center. The main purpose of a data center UPS is to supply essential data center equipment with power backup, preventing data loss, equipment damage, and downtime. Data Center UPS offers one of the most important features is its capacity, which is based on the system's runtime that specifies how long backup power is provided with its kilovolt-amperes (kVA) or megavolt-amperes (MVA) rating. Data Center UPS can control the voltage and frequency to provide equipment with a consistent and reliable power supply. Furthermore, these devices also offer numerous product variations, such as remote monitoring and administration management features, which provide data center operators with a centralized way to monitor, manage, and control the functioning of the UPS.
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Data Center UPS Market: Strategic Insights
Market Size Value in US$ 4.6 billion in 2022 Market Size Value by US$ 9.4 billion by 2030 Growth rate CAGR of 6.7% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Data Center UPS Market: Strategic Insights
| Market Size Value in | US$ 4.6 billion in 2022 |
| Market Size Value by | US$ 9.4 billion by 2030 |
| Growth rate | CAGR of 6.7% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Data Center UPS Market Drivers and Opportunities
Growing Power Outrages to Favor Market
Data centers across the globe are facing high amounts of power outages, which increases the demand for data center UPS among users and drives the global market during the forecast period. For instance, according to CBRE Group, in September 2022, the power supply in under-construction data centers reached 1.9 gigawatts in the US, which is an increase of 52.8% compared to the previous year's supply. These trends increase the demand for data centers UPS among users, which further drives the global data center UPS market. Moreover, according to the Uptime Institute Survey, in March 2023, 78% of data centers faced power outages in 78% during the previous three years, which resulted in lost revenue and additional expenses. The power outrage creates issues in software and networking of the data center, which is the most frequently caused by power problems. This increases the adoption of data center UPS among users for supplying power throughout the data center.
Moreover, power outrage in the data center may also hamper the business productivity from data loss. Loss of data makes it difficult for users and employees to access files and perform their essential job duties. Meanwhile, many small and large businesses are dependent on the regular operation of their business, and providing regular data security to its customers increases the demand for data centers UPS among users to reduce outages and downtime. This encourages market players to develop solutions for reducing the frequency of power outages in the data center. For instance, Amazon Web Services provides in-rack UPS systems to the data center to prevent power outages and downtime, which is driving the market during the forecast period.
The advent of IoT, Big Data, Machine Learning, and AI
The Internet of Things (IoT), big data, machine learning, and artificial intelligence (AI) are a few technologies that generate massive amounts of data, require low latency processing, and demand localized computing resources. According to IoTExpress Technologies Pvt. Ltd., in APAC, IoT devices are expected to surpass 15 billion by the end of 2023, a 55% increase from 2021. Additionally, these devices are expected to generate 79.4 zettabytes (ZB) of data by 2031, according to IoTExpress Technologies Pvt. Ltd. IoT generates a huge amount of data that must be processed, stored, and analyzed in real-time. IoT devices are widely used across the region, connecting various physical objects and enabling data collection and communication. Such advent of the Internet of Things (IoT), big data, machine learning, and artificial intelligence will drive the need for data centers, which in turn will increase the demand for data center UPS.
Data Center UPS Market Report Segmentation Analysis
Key segments that contributed to the derivation of the data center UPS market analysis are type, data center size, application, and end user.
- Based on type, the data center UPS market is divided into solution and services. The solution segment is further sub-segmented into standby UPS, line interactive UPS, and double conversion online UPS. The service segment is further sub-segmented into managed and professional. The solution segment held a larger market share in 2023.
- By data center size, the market is segmented into small data centers, medium data centers, and large data centers. The large data centers segment is expected to hold the largest share of the market in 2023.
- In terms of application, the market is segmented into cloud storage, enterprise resource planning (ERP) systems, data warehouses, file servers, application servers, and customer relationship management (CRM) systems. The cloud storage segment is expected to grow with the highest CAGR over the forecast period.
- In terms of end-users, the market is segmented into banking and financial services, information technology, manufacturing, energy, healthcare, government, entertainment and media, and others. The information technology segment is expected to hold the largest share of the market in 2023.
Data Center UPS Market Share Analysis by Geography
The geographic scope of the data center UPS market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America has dominated the market owing to growing demand for various industries such as healthcare, finance, and insurance, among others. These industries are adopting data center UPS to manage the high availability of computing by maximizing their resources. North America is home to a large number of colocation facilities and data center service providers, particularly in the US. For instance, according to Cloudscene, in December 2022, the US had over 2,000 data centers, which created a substantial market for UPS solutions. Companies like Cologix, Equinix, Inc., CoreSite, US Signal Company, L.L.C., and others are the major colocation facilities and data center service providers in North America. The size and mode of operation performed by wholesale and cloud data centers are creating a unique need for power efficiency, and special requirements for conditioned uninterrupted power supply are driving the market in the region.
Data Center UPS Market Report Scope
Data Center UPS Market News and Recent Developments
The data center UPS market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the data center UPS market are listed below:
- Fuji Electric Co., Ltd. launched the 7500WX Series to expand its high-capacity uninterruptible power supply systems series. 7500WX Series has a single-unit capacity of 2,400 kVA, which contributes to the secure electricity supply by reducing CO2 emissions. (Source: Fuji Electric Co., Ltd, Press Release, July 2023)
- ABB launched a new innovative MegaFlex DPA UPS solution for data centers. The new MegaFlex DPA UPS solution is the most resilient and compact UPS system for the Indian market and has reduced its footprint by up to 45 percent. (Source: ABB, Press Release, July 2023)
Data Center UPS Market Report Coverage and Deliverables
The “Data Center UPS Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Data center UPS market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Data center UPS market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Data center UPS market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the data center UPS market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Data Center Size, Application, End-user
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The global data center UPS market is projected to reach US$ 9.82 billion by 2031.
The adoption of more efficient and scalable modular designs is anticipated to play a significant role in the global data center UPS market in the coming years.
The leading players operating in the data center UPS market are Vertiv Co., Delta Power Solutions, Eaton Corp., ABB, AEG, General Electric, Schneider Electric SA, Gamatronic Electronic Industries, Emerson Network Power Inc., Toshiba Corp., Mitsubishi Electric Power Products Inc., Cyber Power Systems, Inc., Aspen Systems Inc, Eaton., Legrand SA, Delta Electronics, Inc, Rolls-Royce plc, RPS Spa, Right Power Technology Sdn Bhd, and Numeric.
The major factors driving the data center UPS market are the growing power outages and the growing number of data centres across the globe.
The global data center UPS market is expected to grow at a CAGR of 9.1% during the forecast period 2024 - 2031.
North America is expected to dominate the market in 2023
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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