Data Center UPS Market Size (2024 - 2029)

The data center UPS market is experiencing growth driven by the rising adoption of cloud computing services and the increasing number of data centers worldwide. This market expansion is fueled by the need for reliable power supply systems that ensure the availability and protection of critical equipment in data centers. The demand for UPS systems is heightened by the necessity for improved energy efficiency and business continuity, as these systems mitigate power disruptions and enhance the reliability of power distribution. Despite the growth potential, challenges such as a shortage of skilled personnel and high raw material costs may impede market expansion.

Market Size of Data Center UPS Industry

Data Center UPS Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 7.05 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Data Center UPS Market Major Players

*Disclaimer: Major Players sorted in no particular order

Data Center UPS Market Analysis

The Data Center UPS Market is expected to register a CAGR of 7.05% during the forecast period.

The increased use of cloud computing services by small and medium-sized businesses and the massive increase in the amount of data centers globally are the primary reasons driving the growth of the data center UPS market.

  • Uninterruptible power supply (UPS) systems ensure large data centers' availability, which also protects delicate equipment across the entire building. They include redundant configurations and dual bus capabilities to ensure that the crucial systems will continue to function in the event of power disruptions like blackouts, brownouts, sags, surges, or noise interference.
  • Data centers of all sizes utilize backup power supplies called data center uninterrupted power supplies (UPS). These systems are used during a power outage or a power shortage. The market for data center uninterrupted power supplies (UPS) is expanding rapidly due to the rising popularity of cloud computing, virtualization, and the demand for accessible data accessibility.
  • The installation of a UPS system in a power supply line significantly improves business continuity by filtering main disturbances and outages and by providing clean power to vital loads like servers or other privileged equipment. The most crucial goal for reducing operating costs for all IT-related vital applications, such as data centers, is to increase energy efficiency. UPS solutions guarantee significant energy savings for data center applications, starting with low load percentages, which reduces the amount of carbon dioxide produced.
  • Data centers' power distribution partners and protection vendors are under pressure to meet the rising demand for reliable electrical infrastructure topology solutions, which include UPS modules. The increased use of cloud servers, which pack more power into smaller spaces, is projected to fuel the market for data center uninterruptible power supply. Producers are focusing on creating power supplies with a lower total cost of ownership, improved efficiency, and investments in trustworthy technology to satisfy the expanding demand for cloud computing.
  • UPS solutions are utilized to increase an infrastructure tolerance to AC grid failures and fluctuations and to improve the reliability and availability of a power distribution system. Most UPS systems are designed to power at maximum load for at least 5 minutes in the event of a power outage. In these 5 minutes, backup generation has enough time to try multiple attempts to start and take over the load from the UPS system. Inefficient data center power distribution can lead to wasted power and space, raising existing costs and constraining future growth. Data centers need to account for redundancy when sizing a UPS to prevent any cases of failure.
  • One of the primary trends driving data center UPS market growth is the increased need for data and networking capacity. However, a significant obstacle to expanding the data center UPS market will be a lack of qualified or skilled employees. Furthermore, the high costs of raw materials would hinder market expansion.

Data Center UPS Industry Segmentation

An Uninterruptible Power Supply or Uninterruptible Power Supply (UPS) is an electrical device that provides emergency power to a load in the event of an input or mains failure. UPSs are different from auxiliary or emergency power systems or standby generators. It provides near-instantaneous protection from power interruptions by supplying the energy stored in the battery, supercapacitor, or flywheel.

The data center UPS market is segmented by type (standby, line interactive, and double conversion online), size of data center (small, medium, and large), end-user vertical (banking and financial services, manufacturing, information technology, energy, healthcare, government, and entertainment and media), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The report offers the market size in value terms in USD for all the abovementioned segments.

By UPS Type
Standby
Line Interactive
Double Conversion on Line
Other UPS Types
By Size of Data Center
Small
Medium
Large
By End-user Vertical
Banking and Financial Services
Manufacturing
Information Technology
Energy
Healthcare
Government
Entertainment and Media
Other End-user Verticals
By Geography***
North America
Europe
Asia
Australia and New Zealand
Latin America
Middle East and Africa
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Data Center UPS Market Size Summary

The Data Center UPS Market is experiencing significant growth, driven by the increasing adoption of cloud computing services and the proliferation of data centers worldwide. Uninterruptible power supply (UPS) systems are essential for maintaining the availability and protection of sensitive equipment in data centers, offering redundancy and dual bus capabilities to safeguard against power disruptions. The demand for UPS solutions is further fueled by the need for energy efficiency and business continuity, as these systems provide clean power to critical loads and help reduce operational costs. The market is also benefiting from advancements in technology, such as online double conversion systems, which offer superior power protection and are increasingly being adopted in data centers to ensure high levels of security and reliability.

North America is poised to dominate the Data Center UPS Market, with a robust presence of colocation facilities and data center service providers, particularly in the United States. The region's financial, healthcare, and insurance sectors are significant end-users, driving the demand for reliable power infrastructure. The market is characterized by high initial investments and a fragmented landscape, with key players like Emerson, ABB, and Siemens leading the charge. Innovations such as modular data center solutions and energy-efficient UPS systems are being introduced to meet the growing demand for power management and protection. Despite challenges like the high cost of raw materials and a shortage of skilled labor, the market is expected to continue its upward trajectory, supported by ongoing technological advancements and strategic vendor initiatives.

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Data Center UPS Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitutes

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment of the Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By UPS Type

      1. 2.1.1 Standby

      2. 2.1.2 Line Interactive

      3. 2.1.3 Double Conversion on Line

      4. 2.1.4 Other UPS Types

    2. 2.2 By Size of Data Center

      1. 2.2.1 Small

      2. 2.2.2 Medium

      3. 2.2.3 Large

    3. 2.3 By End-user Vertical

      1. 2.3.1 Banking and Financial Services

      2. 2.3.2 Manufacturing

      3. 2.3.3 Information Technology

      4. 2.3.4 Energy

      5. 2.3.5 Healthcare

      6. 2.3.6 Government

      7. 2.3.7 Entertainment and Media

      8. 2.3.8 Other End-user Verticals

    4. 2.4 By Geography***

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia

      4. 2.4.4 Australia and New Zealand

      5. 2.4.5 Latin America

      6. 2.4.6 Middle East and Africa

Data Center UPS Market Size FAQs

The Data Center UPS Market is projected to register a CAGR of 7.05% during the forecast period (2024-2029)

ABB Ltd, Schneider Electric, Eaton Corporation, Power Innovations International and Vertiv Holdings Co are the major companies operating in the Data Center UPS Market.

Data Center UPS Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)