The global data center UPS market is projected to generate $10,096.5 million revenue in 2030, advancing at a CAGR of 6.5% during 2021–2030. The reasons behind the growth include the increasing investments to build data centers and expand existing ones, and the high volume of data generated, which needs to be stored and protected for further use.
Moreover, the increasing number of users of the internet, social media, and online services; the escalating smart device penetration; the surging adoption of cloud computing; and the rising need of enterprises and industries to migrate from traditional server rooms to data centers are driving the market growth.
The COVID-19 pandemic disturbed the global economy. The market was affected to a certain extent, where several data center projects were halted temporarily. However, the massive growth in data consumption and creation has led to the extensive use of data centers, which has led to the increased demand for data center UPS solutions.
The demand for UPS systems with a power capacity of up to 500 kVA is expected to grow at the highest rate during 2021–2030. This can be accredited to the growing adoption rate of these systems by small-scale and mid-level data centers. Moreover, most sectors are relying on the collation data centers and moving toward modern data centers, where data center companies provide full services like infrastructure (building), cooling, power, bandwidth, physical security, etc., with the adoption of effective green UPS systems.
Furthermore, in the upcoming years, the tier III category is expected to observe the fastest growth. This can be ascribed to the surging adoption of tier III standards in the construction of data centers. Moreover, facility operators are keen to obtain Uptime Institute's tier III certification, because tier III data centers are easy to maintain and offer customers value-added services.
Geographically, North America accounted for the largest share of the data center UPS market in 2021. This is because the adoption of hybrid and public cloud services is increasing multifold, and major market players, such as ABB Ltd., Eaton Corporation, Schneider Electric, and Mitsubishi Electric, are present in the region.
To stay ahead of their competitors, players offering UPS systems for data centers are extensively working on new product launches and partnerships strategies.
For instance, in August 2021, Keppel Data Centers and Salim Group announced their partnership with ABB Ltd. to offer seven-hectare IndoKeppel Data Center 1 with UPS, which supports operations of the data center.
In April 2020, ABB Ltd. launched MegaFlex, a compact UPS system, which delivers the system-wide capacity needed for data storage solutions.
Some of the key enterprises in the data center UPS market include ABB Ltd., Eaton Corporation, Schneider Electric, Mitsubishi Electric, General Electric Electrical Systems, Vertiv Co., Legrand, Emerson Network Power Inc., Delta Electronics, Huawei Technologies Co. Ltd., Toshiba, Langley Holdings plc, SolarEdge Technologies Inc., and Piller UK Limited.