Data Center UPS Market Size & Share, by Data Center Size (Small, Medium, Large), By Component (Solution, Service), By Application (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 6171
  • Published Date: Jun 12, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Data Center UPS Market size was valued at USD 5 Billion in 2023 and is expected to exceed USD 11 Billion by the end of 2036, expanding at over 7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of data center UPS is evaluated at USD 5.3 Billion.

The demand for easy access to data and the trend toward cloud computing and virtualization are anticipated to drive the market during the forecast period. The growing use of digital services, the ubiquity of the digital age, and the overall increase in digitalization, particularly in developing economies, will all contribute to the data center UPS market's growth. Furthermore, worries about data loss in the event of a power outage may increase demand for continuous power supply to data centers.

In the 4th quarter of 2023, global spending on cloud infrastructure services increased by 19% year over year to USD 78.1 billion, a rise of USD 12.3 billion.  To provide services that increase demand for UPS, cloud services must be available on the Internet.


Data Center UPS Market overview
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Data Center UPS Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing data center building for dependable power supply - The growth of data centers emphasizes how vital it is to have a stable power infrastructure in order to maintain data integrity and continuous operations. The increasing need for dependable data processing and storage solutions is reflected in the construction industry's boom.

    Resilient power system investments, such as those in redundant power supply and backup generators, show the industry's dedication to maintaining uninterrupted uptime in the face of rapidly expanding digital infrastructure. For instance, according to US energy information administration; in 2022, US energy demand is projected to hit 4,027 billion kWh, which would be an all-time high.
  • Remote management solutions for evolving industry needs - The increasing need for flexible power management encourages the use of remote monitoring tools, which improve scalability and dependability. This is in line with the changing needs of the industry and presents potential prospects for the data center UPS market.

    For example, UPS systems with remote power monitoring capabilities can reduce downtime by proactively identifying and resolving power problems. In response to changing operating requirements, there is a trend towards power solutions that are more resilient and efficient. As observed by research Nester analysts, the globe remote monitoring & management tools industry garnered a revenue of around USD 840 million in 2022.
  • Growing use of IoT and AI to ensure uninterrupted power - The spike in AI and IoT usage in data centers ensures smooth power provisioning by supporting operational efficacy. This pattern encourages innovation in the uninterruptible power supply (UPS) industry, leading to the creation of specialized products to satisfy changing infrastructure requirements. Predictive analytics-enabled smart UPS systems, for example, can foresee power fluctuations and proactively reduce the risk of downtime, which is in line with the dynamic demands of contemporary data center environments.

    The data center UPS market is growing and evolving because of this dynamic tendency. AI's integration into data center operations raises transparency and accountability concerns. Sustainability also influences AI decisions in data centers, as resource-intensive workloads require advanced cooling systems, leading to a projected 12% increase in energy consumption by 2030.

Challenges

  • High initial costs limiting adoption to a large extent - One of the main obstacles to the widespread use of uninterruptible power supply (UPS) systems in data centers is their high initial costs. The significant initial outlay required for UPS solutions poses a financial hardship, particularly for smaller businesses. This could hinder the incorporation of essential power infrastructure elements and postpone their deployment in data center environments.
  • Using unfriendly materials, and outdated models negatively impacts the environment - The data center industry faces sustainability issues due to outdated UPS systems that contain components that are detrimental to the environment. Regulation observance and the growing inclination of consumers toward environmentally friendly products are essential. This might reduce the market for older UPS machines and necessitate expensive updates to comply with environmental regulations.

Data Center UPS Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

7%

Base Year Market Size (2023)

USD 5 Billion

Forecast Year Market Size (2036)

USD 11 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Data Center UPS Segmentation

 Data Center Size (Small, Medium, Large)

The large data center segment in data center UPS market is slated to garner the majority of revenue share over the forecast period, amounting to around USD 24 billion in 2024. Large data centers use centralized, highly capacitous UPS systems to protect critical IT equipment from power outages. These systems incorporate the newest power protection technology to reach new heights of efficiency and dependability.

Online double conversion is the most dependable type of data center UPS because it can provide computer-grade output to the viral load under a variety of input situations, including power from backup generators. The market is anticipated to grow as a result of an increase in data center construction worldwide, facility investments, and government campaigns promoting energy-efficient data centers. As observed the global data center construction industry procured a revenue of around USD 229 billion in 2023.

Component (Solution, Service)

Solution segment is set to hold data center UPS market share of more than 62% by 2036. The data center solutions provide increased dependability and efficiency. UPS solutions encourage their use. Energy efficiency is a key consideration in the design of modern UPS systems. They include sophisticated energy-saving modes, power management functions, and high-efficiency parts. UPS systems improve power use, cut down on energy waste, and help save operating expenses.  The energy efficiency of new energy-efficient UPS ranges from 92% to 95%. They also assist companies in achieving environmental objectives by reducing energy and carbon footprint.

Application (Colocation, BFSI, Energy, Government, Healthcare, Manufacturing, IT & Telecom)

In data center UPS market, it and telecom segment is likely to hold revenue share of more than 25% by 2036, growing at a CAGR of around 6%. Growing data traffic and storage requirements in the IT and telecom sector have increased the demand for data center UPS. With the growing demand for data storage and processing, data centers require reliable power solutions to handle increasing data loads.  

Global data creation, capture, copying, and consumption are expected to increase significantly in 2020, with 64.2 terabytes projected for 2020. Global data creation is expected to increase to more than 180 terabytes in the next five years up to 2025.UPS systems ensure the availability of power to data center infrastructure, supporting the efficient handling and storage of data.

Our in-depth analysis of the global market includes the following segments:

          Data Center Size

  • Small
  • Medium
  • Large

          Component

  • Solution
  • Service

          Application

  • Colocation
  • BFSI
  • Energy
  • Government
  • Healthcare
  • Manufacturing
  • IT & Telecom 

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Data Center UPS Industry - Regional Synopsis

North America Market Statistics

North American data center UPS market is predicted to account for revenue share of around 35% by 2036. The rapid expansion of cloud infrastructure is contributing to the regional growth. Moreover, the flourishing It & telecom industry is further positively impacting the industry landscape in North America. Cloudscene estimates that by 2022, there will be over 2,000 data centers in the United States, which will create a huge market for UPS solutions.

The power supply of data centers that were being built in the US was noted to have reached 1.9 gigawatts in 2022—a 52.8% increase over the previous year's supply. These patterns show how the need for data centers is rising in the US, which is driving up demand for the market.

Furthermore, Canada, the nation will include IoT, blockchain, AI, and other cutting-edge technology as it seeks to build more smart cities in the future, which will lead to a greater generation of data. additional than 225 towns indicated interest in exploring the benefits of the plan by submitting their applications for the Government of Canada's Smart Cities Challenge, which was introduced in 2017. This indicates a desire to establish additional smart regions in the future. The widespread deployment of smart devices that are managed by smartphone apps would be made possible by the introduction of 5G edge cloud networks and services and other faster network technologies in smartphones, thus propelling the market’s demand.

European Market Analysis

The European region will also encounter huge growth for the data center UPS market during the forecast period held around USD 21 billion in 2023, and will hold the second position owing to growth in e-commerce and logistics. One of the major drivers for the UPS market in Europe is growing industries and production facilities. As hyperscalers, startups, and enterprises seek space that can cope with their cloud and AI needs, the demand for data centers in Europe is expected to increase by 440 MW until 2024.

Businesses are moving toward locations that provide uninterrupted computing services as a result of the increasing usage of new devices and the deployment of a 5G network to supply the speeds required to utilize these devices to their maximum potential. According to data from the Federal Network Agency of Germany, 5G networks have covered 90% of German territory as of October, compared with 79% in October 2023.

The United Kingdom aims to achieve net-zero emissions by 2050 and a minimum 68% reduction in its economy-wide greenhouse gas emissions from 1990 levels by 2030, according to an article published by the International Energy Agency (IEA). In particular, data centers are
anticipated to achieve carbon neutrality by around 2030

France is ahead of Germany and the UK in Europe for digital product leadership. The majority of French companies think that managing their product line will be greatly impacted by the move to digital items. Furthermore, French companies are leading the way in this technique, with almost 40% of them leveraging data insights to inform their product plan.

Research Nester
Data Center UPS Market size
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Companies Dominating the Data Center UPS Landscape

top-features-companies

    Leading market participants are taking action to grow their market shares inorganically. It is anticipated that these efforts will lead to steady expansion in the field. Market participants have traditionally turned to acquisitions, mergers, and partnerships as a means of expanding their global reach and breaking into undiscovered markets.

    • Eaton Corporation plc
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • ABB Ltd
    • Legrand
    • Vertiv Group Corp
    • Delta Electronics, Inc.
    • Schneider Electric SE
    • Huawei Technologies Co., Ltd.
    • Power Innovations International, Inc./LITEON Group
    • KOHLER Uninterruptible Power Limited 

In the News

  • ABB Ltd introduced MegaFlex DPA (Decentralized Parallel Architecture) UPS solutions for the Indian market. The ABB EcoSolutionsTM portfolio includes the first-ever sustainable UPS that conforms with the ABB circularity concept. Its lowest footprint and maximum efficiency rating are suited for high-density computing environments.
  • Delta Electronics, Inc. took part in the China International Industrial Fair 2023 (CIIF 2023) in Shanghai. Under the subject "Delta Net Zero Factories," Delta's display had three sections: "Green Manufacturing," "Smart Health Office," and "Factory Microgrid." Over 200,000 people attended the five-day event. Numerous individuals who stopped by Delta's stand expressed interest in its industrial and data center power solutions.

Author Credits:  Abhishek Verma


  • Report ID: 6171
  • Published Date: Jun 12, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2023, the industry size of data center UPS was over USD 5 billion.

The market size for data center UPS is projected to cross USD 11 billion by the end of 2036 expanding at a CAGR of 7% during the forecast period i.e., between 2024-2036.

The major players in the market are ABB Ltd, Legrand, Vertiv Group Corp, Delta Electronics, Inc., Schneider Electric SE, Huawei Technologies Co., Ltd., Power Innovations International, Inc./L ITEON Group, KOHLER Uninterruptible Power Limited, SOCOMEC Mitsubishi Electric Corporation and others.

The solution segment is anticipated to garner a share of 62% during 2024-2036.

The North American data center UPS sector is poised to hold 35% share by the end of 2036.
Data Center UPS Market Report Scope
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