Data Center UPS Market Outlook by UPS Capacity (Up to 500 KVA, 500−1,000 KVA, More Than 1,000 KVA), Tier (Tier I and II, Tier III, Tier IV), End User (Information Technology, BFSI, Healthcare, Energy, Manufacturing) – Global Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The data center UPS market size stood at $5,729.0 million in 2021, and it is expected to rise at a compound annual growth rate of 6.5% during 2021–2030. The market is augmented with the establishment of new data centers, as demand for data storage is exponentially increasing amongst all the sectors globally, majorly to provide big data solutions. As the UPS systems protect data centers from power surges and power outages, their demand is increasing.

In the present scenario, there is an exponential increase in the use of cloud computing and dependency on the internet is normal, which generate a huge amount of data. This requires large storage spaces, which are provided by data centers. In order to make sure that data information is available 100% all the time, data centers are designed for maximum reliability with the use of UPS to provide power backups.

A sudden short-term power outage and even voltage spikes can disturb entire data center operations, resulting in loss of data, corrupt files, and damaged equipment. Data centers need reliable power sources for their efficient operations. Industries and business enterprises with high-density cloud computing systems have a high dependency on data centers and cannot compromise with any data loss, thus they need consistency in power supply for effective data protection. Apart from this, there is a significant rise in the establishment of hyperscale facilities and thus the use of the high-power UPS systems is increasing.

Sale of up to 500-kVA UPS Will Boost at the Fastest Growth

The demand for up to 500-kVA UPS systems will grow at the highest CAGR, around 8%, during 2021–2030. 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.

Tier III Data Centers Generated Largest Revenue in the Market

The tier III data centers category dominated the data center UPS market, with a revenue of around $3 billion, in 2021. In the upcoming years, it is also likely to follow the same pattern. 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.

IT Sector as End User To Escalate at Highest Rate in Coming Years

The IT sector is the largest end user of data center UPS solutions. The category is also expected to witness the highest growth rate during the forecast period. 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.

North America Is Principal Contributor to the Market

In 2021, North America accounted 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.

Whereas, the APAC market is projected to record the fastest growth in the coming years. 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.

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Increasing Investment Propels the Market Growth

According to the International Energy Agency, global data center traffic had quadrupled between 2015 and 2020. The 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.

Increased Power Outages and Voltage Spikes Propel the Market Growth

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. Thus, the demand for power backup systems has increased, which, in turn, fueled the market growth.

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.

Key Players in Data Center UPS Market Are

• ABB Ltd.
• Eaton Corporation
• Schneider Electric
• Mitsubishi Electric
• General Electric Company
• Vertiv Group Corporation
• Legrand
• Emerson Electric
• Delta Electronics
• Huawei Technologies Co. Ltd.
• Toshiba
• Langley Holdings plc
• SolarEdge Technologies Inc.
• Piller UK Limited

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with the revenue estimation for the period 2017–2030.

Based on UPS Capacity

• Up to 500 kVA
• 500−1,000 kVA
• More than 1,000 kVA

Based on Tier

• Tier I and II
• Tier III
• Tier IV

Based on End User

• Information Technology
• Banking, Financial Services, and Insurance (BFSI)
• Healthcare
• Energy
• Manufacturing

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Spain
  • Italy
• Asia-Pacific (APAC)
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa
  • U.A.E.