Data Center UPS Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Data Center UPS Market Trends & Growth Drivers

Technological Advancements in UPS Are Key Trends

• With the rising number of data centers, the increasing demand for a stable power supply, and variable loads, UPS systems are undergoing continuous advancements.
• Among these, modular UPSs are significant as they allow users to simply add or subtract power modules to increase or decrease the overall output of the system as per their requirement.
• Additionally, they offer redundant components; if one breaks down, the others keep working.
• This is beneficial for data centers, each tier of which has increasingly stringent requirements for uptime and redundancies.
• The integration of AI and IoT in data center UPSs is also gaining popularity as these technologies allow these systems to optimize their performance based on the actual electrical load.
• Moreover, UPSs integrated with these technologies use predictive analytics to forecast voltage fluctuations and faults and enable preventive maintenance.

Increasing Investment Propels Market Growth

• Technologies including ML, IoT, AI, and robotics generate exponential volumes of data that need to be stored and processed.
• This gives rise to the increasing investments in the area, and the data in the cloud requires the creation of new data centers.
• Moreover, 6 out of the top 10 data center firms in the world, namely, Equinix, Digital Realty, Amazon Web Services, Coresite, Verizon, and Cyxtera Technologies, are based in the U.S.
• Thus, the country is one of the key global players when it comes to data center investment activity.
• Amongst the U.S. data center companies, one of it has more than 235 data centers, globally.
• The COVID-19 pandemic wreaked the global economy.
• The production and supply chain disruptions were also exasperated during the period, which posed a challenge to UPS manufacturers and dealers.
• However, the rapid demand and interest in cloud computing resulted in the surging establishment of hyperscale data centers.
• The demand for online systems and software is increasing rapidly in sectors such as IT, entertainment, banking, and healthcare, which drive the need for data centers, which, in turn, will boost the market growth in the coming years.
• Governments are taking several initiatives to decrease the carbon footprint.
• For instance, Carbon Neutral Government Program is set up to accelerate the reduction of emissions within the public sector.
• Thus, business enterprises, manufacturing units, and IT players are taking several steps and moving toward environment-friendly and efficient power backup systems, where green UPS systems are trending in the data center UPS market, which consume less energy and have a lower carbon footprint.

Frequent Power Outages and Voltage Spikes Are another Key Driver

• The world is witnessing increased power outages and high voltage spikes.
• For instance, the U.S. Department of Energy data shows that power outages have doubled over the past two decades in the country, and people on average experienced more than eight hours of power interruptions in 2020, which directly impacted the operations of data centers.
• The National Grid electricity system operator (ESO), the U.K., presented that the amount of reserve electricity supply was 6.6% of the demand, but resulted in a fall to as low as 4.2%, in 2021.
• This results in power outages, which are affecting customers of trading sectors, manufacturing units, and several businesses, due to the increased downtime of data centers.

Data Center UPS Market Analysis

UPS Capacity Insights

The more than 1,000 kVA category dominates the market in 2024 with 55% share. This is because of the growing number of hyperscale data centers for hosting massive amounts of consumer, enterprise, and government data. Rather than some specific devices, such large UPS systems are generally used to power entire data center floors or the entire building at once. The demand for these UPSs is especially high in North America, which is the biggest hub for data centers around the world. Moreover, these facilities are rapidly upgrading their power infrastructure to abide by compliance requirements and accommodate increasing volumes of digital information.

The up to 500 kVA category will grow at the highest CAGR, of 6.2%, during 2024–2030. This can be because they are widely used in data centers of small to large organizations, to provide short-term backup energy during power outages or voltage spikes.

The following UPS capacities have been analyzed:

• Up to 500 kVA (Fastest-Growing Category)
• 500−1,000 kVA
• More than 1,000 kVA (Largest Category)

Data Center Tier Insights

The tier III data centers category dominates the data center UPS market, in 2024. In the coming years, it is likely to witness the highest CAGR too. This is because most data centers are built with tier III requirements and tier III facilities are widely used by growing and large businesses. Moreover, there are several ongoing data center projects across the world, which fall under this category.

Data centers of the following tiers are covered:

• Tier I and II
• Tier III (Largest and Fastest-Growing Category)
• Tier IV

End User Insights

IT and telecom are the largest category, holding a share of 35% in 2024. The category is also expected to witness the highest growth rate during the forecast period, of 6.5%. Top IT companies are dependent on cloud computing systems and data analytics, having a high need to store and secure data in data centers. To achieve business goals, the companies adopt data center UPS solutions that ensure reliable power supply. Google, Amazon, and Microsoft are a few major companies that account for more than half of major data centers, and significantly contribute to the growth of the market.

The report offers analysis for the below-mentioned end users:

• IT and Telecom (Largest and Fastest-Growing Category)
• BFSI
• Healthcare
• Energy
• Manufacturing
• Retail and E-Commerce
• Government and Defense
• Others

Geographical Analysis

• In 2024, North America accounts for the largest revenue share in the data center UPS market.
• This is accredited to the presence of major market players, such as ABB Ltd., Eaton Corporation, and Schneider Electric, and the region has the largest concentration of data centers globally.
• As per the U.S. International Trade Administration, the U.S. was home to 33% of all the data centers in the world in 2021.
• Moreover, by February 2024, the country was home to over 5,300 of these.
• Additionally, the region is home to major companies across critical industries, such as defense, BFSI, and healthcare, which deal with massive volumes of data generated every day, which must be carefully stored, securely shared, and efficiently analyzed.
• The APAC market is projected to record the fastest growth in the coming years, with 6.6% CAGR.
• This can be due to the increasing investments, expanding data center facilities, and rising acceptance of public and hybrid cloud by various organizations, in the region.
• Moreover, with the increasing rate of urbanization, governments are modernizing their IT & telecom infrastructure to cater to people’s modern demands.
• A similar modernization trend is apparent in the regional BFSI, healthcare, manufacturing, energy, and even retail sectors, all dependent on and driven by a robust data center network.
• For this, Software Technology Parks of India, which works under the Ministry of Electronics and Information Technology, has set up several tier-III data centers in Bengaluru, Bhubaneswar, Chennai, Vijayawada, and Mohali.

The following regions and countries have been studied:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • U.K. (Largest Country Market)
  • Germany (Fastest-Growing Country Market)
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Fastest-Growing Country Market)
  • South Africa
  • U.A.E. (Largest Country Market)
  • Rest of MEA

Data Center UPS Market Share

The market is fragmented as UPSs are a well-established source of backup power, in use at homes, industrial facilities, and commercial sites for decades. As a result, a large number of companies offer these products for varying data center loads. Further, as there are different tiers of data centers, so are companies with varying technical capabilities that are able to cater to their requirements. Moreover, UPSs integrated with AI, IoT, and predictive maintenance capabilities are usually preferred in developed countries, whereas emerging economies generally go for those with the basic functionality.

Data Center UPS Market News

• In July 2024, Vertiv Group Corporation launched the Vertiv Trinergy UPS and Vertiv PowerNexus UPS-to-switchgear close coupling solution for data centers. The Trienergy UPS is available in power ratings of 1,500 kVA, 2,000 kVA, and 2,500 kVA.
• In May 2024, Eaton Corporation invested an undisclosed sum in NordicEPOD AS, a former subsidiary of CTS Nordics, to enhance its range of power modules for data centers.
• In May 2024, Schneider Electric SE operationalized a smart factory in Dunavecse, Hungary. This 28,000-square-meter facility produces customized electrification and digitization solutions for data center & cloud and other critical industries, which will be exported across Europe.
• In November 2023, ABB Ltd. inaugurated a new office building at its Untersiggenthal, Switzerland, site, developed at a cost of CHF 45 million. The office houses its regional R&D, project management and engineering, and sales and service teams.