Data Center UPS Market Size worth $5bn by 2026
Published Date: December 11, 2019 Authors: Ankita Bhutani, Saloni Gankar
Data Center UPS Market size is poised to cross USD 5 billion by 2026; according to a new research report by Global Market Insights, Inc.
Increasing power fluctuations and outages in data centers will drive the market demand for efficient data center UPS solutions to continuously supply emergency power to equipment. These systems provide instant power back-up and enhance the power quality in data centers. Data centers are highly adopting lead-acid batteries for UPS systems for providing backup power during outages. These batteries provide uninterrupted and regulated power supplies to data centers during failure in input voltage. However, they require regular monitoring and replacement, increasing the maintenance cost for data center operators. To overcome these issues, operators are shifting toward lithium-ion battery-based data center UPS solutions to eliminate the risk of downtime posed by battery replacement.
Rapid data center establishment in the U.S. and Europe is driving the data center UPS market size
Growing adoption of cloud-based services is driving the market growth for converged, commodity-based, and hyperconverged data center solutions. Global cloud service providers, such as Facebook, Google, Microsoft, Tencent, Alibaba, and IBM, are highly investing in data center construction mainly in the U.S. and Western Europe. Demand for high power density and capacity solutions has increased the number of UPS installations in organizations to use power effectively and efficiently. The use of these systems helps organizations to process and distribute large data without interruptions, protecting data centers against power disruptions through continuous power supply. With such factors, the market demand for UPS solutions will increase in the coming years.
Browse key industry insights spread across 380 pages with 722 market data tables and 27 figures & charts from the report, “Data Center UPS Market By Data Center Size (Small, Medium, Large), By Component (Solution [Standby UPS, Line Interactive UPS, Online UPS], Service [Managed, Professional]), By Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026,” in detail along with the table of contents:
Growing demand to improve efficiency and reduce operational cost among small organizations is providing several opportunities for the market
The small data center UPS market accounted for majority of the industry share in 2019 and will witness steady demand during the forecast timespan. Data center UPS solutions have witnessed high market demand from SMEs as these industries have less budget, encouraging them to incorporate economic or affordable technologies. Increasing number of modular and micro data centers in countries including China, India, Japan, Brazil, and Australia is another factor responsible for the rise in adoption of these data center UPS solutions. Moreover, market leaders are developing power technologies that are modular and compatible to handle the business operations of SMEs.
Benefits of high level of power protection and wide input voltage tolerance are driving the market for online data center UPS systems
The online data center UPS market size will witness rapid growth owing to its wide adoption in business applications in various industries. These systems offer power protection and decrease the occurrence of data loss caused by power disruptions in data centers. They include dual conversion design, confirming a high degree of load isolation from irregularities on the main supply. Such advanced features help businesses to effectively perform their business operations with all-time power support, increasing the demand for these systems.
Rising costs involved in owning a large infrastructure facility is encouraging enterprises to shift toward colocation facilities
The colocation segment accounted for majority of the data center UPS market share. Companies are focusing on shifting their IT infrastructure to the cloud as colocation data centers help to reduce the costs involved in installing infrastructure facilities. Several colocation companies are installing UPS-as-a-Service (UPSaaS) technologies to enhance data center quality, improve processing, and modernize the operations. The technology offers conditioned and uninterruptible power to mission-critical applications
Rising technological advancements in the data center UPS solutions will spur the market demand in North America
In 2019, the North America data center UPS market accounted for majority of revenue share, owing to rising technological innovations by global players in the region. Several players are launching advanced data center UPS solutions to remain competitive in the market. For instance, Fuji Electric Co., Ltd. introduced its latest UPS system, which can withstand an explicit load and deliver up to 98.5% efficiency and unparalleled reliability in data centers. Such technological advancements in UPS solutions will drive the market growth in the region. Moreover, the increasing government push toward the application of energy-efficient technologies in the region is encouraging businesses to replace their conventional data center UPS solutions with modern technologies that will have a less environmental impact.
Increase in strategic initiatives such as partnerships & collaborations and new product development by major players will drive the market growth
Major companies participating in the data center UPS market include Vertiv Co., Schneider Electric SE, Panduit Corporation, Mitsubishi Electric, Legrand, Huawei Technologies Co., Ltd., General Electric Electrical Systems, Eaton Corporation, Delta Electronics, Belkin International, Inc., and ABB Ltd., among others. These companies are adopting market strategies, such as partnerships & collaborations and new product development, in the market. For instance, in July 2019, Cyber Power Systems (USA), Inc., a manufacturer of power systems, announced the launch of new models of smart app online high-density UPS systems. These systems use 2U racks and LCD control panels and include several features for enhancing energy-saving and power technology in data centers.
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