Data Center UPS Market - Global Outlook & Forecast 2023–2028

Data Center UPS Market - Global Outlook & Forecast 2023–2028
The global data center UPS market is expected to grow at a CAGR of 6.49% from 2022 to 2028.

KEY HIGHLIGHTSThe global demand for data centers fueled the growth of the data center UPS market. This surge in demand has led to increased operator investments, creating fresh prospects for UPS vendors. The widespread adoption of cutting-edge technologies like IoT, big data, and Artificial Intelligence (AI) in sectors such as BFSI, education, government, and private and public entities worldwide, combined with the expansion of 5G networks, has significantly augmented data generation. As a result, there has been a substantial boost in data center investments globally.The lithium-ion data center battery market is anticipated to account for 30% and 40% by 2024. Modern UPS systems are being transformed to adopt a modular design and use less space inside facilities to keep up with changing needs. A significant increase in data generation and storage, a decreasing tolerance for downtime, and a growing focus on sustainability are among the predicted trends. As a result, the adoption of lithium-ion batteries will likely increase significantly, causing the market share of VRLA batteries to decline significantly.Vendors are investing extensive resources in R&D to cut the energy consumption of IT infrastructure by as much as 50%. However, the rising demand has pushed many providers, particularly in developing nations, to put in place high-performance infrastructure, leading to an average rack power density of about 10 kW in those countries.KEY TRENDS

Adoption of Advanced UPS Batteries

The utilization of lithium-ion batteries in the data center UPS market is primarily driven by two key factors: the need for reduced space and lower operating expenses (OPEX). These benefits are achieved through less frequent battery replacements and maintenance requirements.

A modular UPS system employs a rack-type enclosure that includes battery cabinets positioned at the bottom of the UPS or in separate racks. The system features vertically stacked hot modules, which can be expanded by adding additional modules whenever there is a requirement for greater power capacity or increased redundancy.

Adoption of DC UPS Systems to Reduce Power Loss

Many colocation providers globally are actively designing OCP-ready data centers, which are anticipated to incorporate DC power systems. Furthermore, numerous enterprises are contemplating adopting the data center design practices employed by hyperscale operators. This shift is driven by the desire to reduce operating expenses (OPEX) and enhance operational efficiency.

SEGMENTATION ANALYSIS

The development of data centers boosts the global data center UPS market. Several new entrants are entering the industry for the development of data centers. Hyperscale operators are also increasing their market presence with investment in cloud regions. Almost all regions across the globe have witnessed investment in data centers in 2022, which also fuels the growth of the data center UPS market.Regarding UPS infrastructure, the market is growing for UPS systems with 500-1,000 kVA capacities. In contrast, the growing number of hyperscale facilities will grow the scope of adoption of UPS systems with capacities of over 1,000 kVA. The on-premises data centers will continue to invest in adopting UPS systems with capacities of up to 500 kVA.While the development of data centers primarily concentrates on prominent cities worldwide, the progress in tier II and tier III cities is still in its early stages. Nevertheless, the increasing adoption of technologies in smaller locations relatively distant from major urban centers is gaining momentum, particularly in deploying edge data centers.Regarding geography, North America has dominated the global data center UPS market, followed by APAC, Western Europe, the Middle East, Latin America, Nordics, Africa, and Central & Eastern Europe.Emerging markets such as South Korea, Taiwan, Indonesia, and Malaysia are experiencing notable growth, primarily due to rapid digitalization and increased connectivity in those regions. Moreover, countries like the Philippines, New Zealand, and Vietnam are also witnessing new investments in their data center infrastructure, indicating their growth potential in the data center UPS market. These markets attract attention from operators who recognize these locations' unique advantages and preferences.Segmentation by UPS Battery TechnologyLithium-IonFlywheelVRLASegmentation by UPS Systems<=500 kVA>500–1,000 kVA>1,000 kVASegmentation by Tier StandardsTier I & IITier IIITier IVSegmentation by GeographyNorth AmericaThe U.S.CanadaLatin AmericaBrazilMexicoChileOther Latin American CountriesWestern EuropeThe U.K.GermanyFranceNetherlandsIrelandSwitzerlandSpainItalyBelgiumOther Western European CountriesNordicsSwedenDenmarkNorwayFinland & IcelandCentral and Eastern EuropeRussiaPolandAustriaOther Central & Eastern EuropeMiddle EastUAESaudi ArabiaTurkeyIsraelOther Middle Eastern CountriesAfricaSouth AfricaKenyaNigeriaEgyptEthiopiaOther African CountriesAPACChinaHong KongAustraliaNew ZealandIndiaJapanTaiwanSouth KoreaRest of APACSoutheast AsiaSingaporeIndonesiaMalaysiaThailandPhilippinesVietnamOther Southeast Asian CountriesKey Vendor ProfilesABBEatonSchneider ElectricVertivPiller Power SystemsOther Prominent VendorsAEG Power SolutionsAMETEK PowervarBorriBxterra Power TechnologyCanovateCENTIELControlled Power CompanyCyber Power SystemsDelta ElectronicsEnconnexEverExceedFuji ElectricHewlett Packard Enterprise (HPE)Hitachi Hi-Rel Power ElectronicsHITEC Power ProtectionHITZINGER Electric PowerHuawei TechnologiesKEHUA Data (KEHUA Tech)KohlerLegrandMarathon PowerMitsubishi ElectricNatron EnergyPanduitRittalRiello Elettronica GroupShenzhen KSTAR Science and Technology (KSTAR)SocomecSolarEdge TechnologiesThyconToshibaTripp LiteVYCONZincFiveProminent Battery ProvidersEnerSysExide TechnologiesFIAMM Energy TechnologyHaze BatteryHBL Power SystemsPower SonicUNIPOWERSaftStorage Battery Systems (Exponential Power)Vision Group (Shenzhen Center Power Tech)ZAF Energy SystemsKEY QUESTIONS ANSWERED:

1. How big is the data center UPS market?

2. What is the growth rate of the data center UPS market?

3. Who are the key players in the data center UPS market?

4. What are the key trends in the data center UPS market?

5. How many MW of power capacity is expected to reach the data center UPS market by 2028?