Published Date: Dec 2019 | Report ID: GMI116 | Authors: Ankita Bhutani, Saloni Gankar



Report Format: PDF | Pages: 380 | Base Year: 2019

Industry Trends

Data Center UPS Market size estimated at USD 4 billion in 2019 and will grow at around 3% CAGR between 2020 and 2026.



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Data center UPS systems provide secure and continuous power supply to data centers and protect them against power disruptions. These systems maintain data center infrastructure during power fluctuations and outrage by providing back up power, ensuring efficient operations. They also help suppress power surges and protect the equipment from damage. Since data centers are majorly used by organizations for processing & distribution of large data, the need to have reliable UPS to safeguard data becomes a vital factor.



The rising trend of cloud computing and virtualization has led to a subsequent rise in number of data centers globally, that are consuming over 2% of the total world’s electricity. In the U.S. market, data centers consume over 90 billion kWh electricity per year, which is equal to around 30 giant coal-powered plants. Stringent government standards are forcing companies to control improper surges in data center power consumption. For instance, the EU data center code of conduct mandates the companies operating in the market to limit energy consumption in data centers and reduce their impacts on environment, economy, and energy. Global data center UPS manufacturers are focusing on improving the UPS efficiency for maintaining ideal Power Usage Effectiveness (PUE) ratio in data centers. For instance, Google LLC has reported to achieve PUE of 1.12 on average for all its data centers by installing modern and efficient UPS systems. Moreover, the emerging trend of modular UPS systems in the market is helping data center operators to improve efficiency, reduce operating costs, and provide better customer service through high availability.



Growing usage of social media, online, and mobile computing services has increased the demand for advanced IT infrastructure in the market. Global cloud service providers, such as IBM, Microsoft, and Amazon, are depending on hyperscale facilities and renting out large spaces for enhancing data center operations. These companies are managing a massive amount of customer data through colocation services, allowing them to reduce operational expenditures. Data center colocation offers cost-effective and energy-efficient data center solutions to end users, allowing organizations to address their storage issues. With such increasing demand, colocation providers are focusing on redesigning their data center UPS solutions and speeding up their IT processes to meet customer demand for faster content/data delivery, driving the market demand for effective data center UPS solutions.



Market leaders are witnessing high competition and are increasingly investing in partnerships and collaborations for expanding their product reach and attracting new customers. For instance, in November 2015, General Electric Electrical Systems, a data center UPS vendor acquired the power & grid businesses segment of Alstom SA for around USD 13.67 billion. The combination of the business has helped the company to expand its global capability, installed base, and focus on core industrial growth. Such investments by global players are anticipated to drive the data center UPS market revenue. However, factors, such as complexity of data center designs and need for high initial investments for deploying energy-efficient solutions, are expected to hinder the industry growth. In addition, lack of proper infrastructure and awareness regarding the benefits of energy-efficient UPS solutions in data centers in regions, such as Asia Pacific and South America, are some of the challenges faced by the industry.



Data Center UPS Market Report Coverage Report Coverage Details Base Year: 2019 Market Size in 2019: over USD 4 Billion Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026 Forecast Period 2020 to 2026 CAGR: 3% 2026 Value Projection: 5 Billion (USD) Pages: 380 Tables, Charts & Figures: 749 Geographies covered (20): U.S., Canada, Mexico, UK, Germany, France, Spain, Poland, Benelux, China, India, Japan, Singapore, Australia, Brazil, Chile, Peru, Argentina, GCC, South Africa Segments covered: Data Center Size, Component, Application Companies covered (20): ABB Ltd., AEG Power Solutions, Belkin International Inc., Clary Corporation, Delta Electronics Inc., Eaton Corporation, Gamatronic Electronic Industries Ltd., General Electric Company, Huawei Technologies Co., Ltd., Intellipower Inc., Legrand, Mitsubishi Electric Corporation, Panduit Corporation, Power Innovations International Inc., Schneider Electric SE, Shenzhen Kstar Science&Technology Co., Ltd, Socomec, Toshiba Corporation, Vertiv Co., Xiamen Kehua Hengsheng Co., Ltd. Growth Drivers: Increasing use of online services in North America

Rapid infrastructure development of various end-use segments in Europe

Widespread adoption of cloud computing and IoT in Asia Pacific

Increasing number of new data centers in South America

Increasing urbanization in MEA Pitfalls & Challenges: Slowdown in the semiconductor industry

Rising cost for raw materials and skilled labor

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Increasing smartphone penetration and data generation are driving the market demand for advanced UPS systems from large data centers

Demand for data center UPS solutions in enterprise/hyperscale/mega IT infrastructure will witness high growth owing to rise in demand for cloud-based services, and high-speed broadband connections which has led to modernization and construction of data centers. These facilities contain sensitive and customized data that needs to be secured and protected from strategic and critical applications, encouraging companies to invest in advanced back-up solutions. Moreover, these facilities have driven the demand for a large number of servers, increasing the overall energy consumption in data centers. Data center UPS solutions help in providing high power performance, optimal reliability, and scalability to these facilities, helping them to match the increasing power requirements. It also offers advanced power monitoring and metering for maximum control and efficiency. These UPS systems have witnessed a high demand from the telecom & IT sector as the industry requires large IT facilities to manage a vast amount of data.



High reliability and energy efficiency demand will increase preference for line-interactive UPS in data centers globally

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The line-interactive data center UPS market is witnessing high demand as it provides high reliability and energy efficiency of around 98% to systems and peripherals. These data center UPS solutions are used to continuously regulate AC power to IT facility through power converter, which suppresses voltage spikes, filters the utility AC power, and regulates the voltage to provide the required power to equipment. They also protect the equipment by monitoring the voltage level and balancing under and over voltage. These units offer a battery extension pack capability, which enhances the power supply by enabling connection of additional battery packs. The UPS systems are available in 0.5-6 kVA size range and are majorly used in small data centers and departmental servers.



Growing adoption of advanced technology will spur the data center UPS market demand from the IT & telecom application segment

Rising smartphone penetration and emergence of advanced technologies, such as IoT and big data, will drive the market demand for data center UPS solutions from in IT & telecom sector. Telecom service providers are investing in enterprise data center facilities to manage the growing amount of data, resulting in high demand for UPS systems. In addition, rise in social media platforms and increase in streaming of video content has resulted in increased data traffic, which is encouraging companies to adopt dedicated and reliable data center systems to minimize the loss of data and ensure business continuity and security. Companies such as China Telecom, and Verizon Communication Ltd., are expanding their presence in several regions, driving the market demand for efficient solutions.



Construction and modernization IT facilities in Asia Pacific will drive the market demand for energy-efficient data center UPS solutions

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The Asia Pacific data center UPS market will witness high growth owing to rise in data center construction and increasing storage demand from cloud-based applications. Global players including Equinix, Inc., Google LLC, Digital Realty, and Iron Mountain are expanding their presence in the region. For instance, in June 2016, Equinix, Inc., announced the expansion of its data center services in China, through a partnership with Datang Telecom Group, a Chinese telecommunications equipment provider. Increase in the number of data centers in the region will provide lucrative growth opportunities to the market. Stringent government standards and policies to reduce carbon footprint and maintain energy levels in data centers are encouraging the adoption of smart UPS. Moreover, the ongoing development in the infrastructure and introduction of advanced technologies will provide several opportunities for the regional market growth.



New product development is a key market growth strategy

Key market players operating in the data center UPS industry include ABB Ltd., Belkin International Inc., Delta Electronics, Eaton Corporation, General Electric Electrical Systems, Huawei Technologies Co., Ltd., Legrand, Mitsubishi Electric, Panduit Corporation, Schneider Electric SE and Vertiv Co., among others. These companies are adopting several market expansion strategies and are increasingly developing advanced solutions to increase revenue and sustain in the data center industry. Market players are offering lithium-ion UPS systems to enhance power and energy efficiency in data centers. For instance, in April 2019, Vertiv Co., a provider of services and equipment for data centers introduced HPL lithium-ion battery cabinet for large capacity UPS systems. The cabinet allows connection of up to eight cabinets to a single UPS, helping in customizing redundancy and runtime capacity to the application.



The data center UPS market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

Market by Data Center Size

Small data center UPS

Medium data center UPS

Large data center UPS

Market by Component

Solution Standby (off-line) UPS Line interactive UPS Online UPS

Service Managed Professional



Market by Application

BFSI

Colocation

Energy

Government

Healthcare

Manufacturing

Telecom & IT

Others

The above information is provided on a regional and country basis for the following:

North America U.S. Canada Mexico

Europe UK Germany France Spain Poland Benelux

Asia Pacific China India Japan Singapore Australia

South America Brazil Chile Peru Argentina

Middle East & Africa (MEA) GCC South Africa



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