Data Center UPS Market Size, Share & Trends Analysis Report By Product (Small Data Centers, Medium Data Centers, Large Data Centers), By Region, And Segment Forecasts, 2012 - 2020

Industry Outlook

The global data center UPS market size was estimated at USD 4.27 billion in 2016. It is expected to progress at a CAGR of 7.3% over the forecast period. Proliferation of digital devices, widening base of connected customers, and growth in content are responsible for generating more data. Moreover, old data is seen to be a value to businesses and became an important part of forecasting, which is driving the need for more storage. Surging demand for data and networking capacity is one of the key trends stoking data center UPS market growth.

Spiraling demand for data centers is challenging their power distribution partners and protection suppliers to provide reliable electrical infrastructure topology solutions, which include UPS modules. These UPS modules provide a broad range of power reliability, which protects against system or utility power failures and anomalies.

Power outages can prove to be costly regardless of their duration; even short outages can cause sizeable damage. Power loss that lasts for even a quarter of a second has the potential to trigger events that may keep IT equipment unavailable for approximately 15 minutes to several hours.

Utility power fluctuates widely enough to help during a malfunction of IT infrastructure. In several developing countries such as India, Brazil, and China, power outages are a regular phenomenon, which makes UPS installations a necessity in data centers to ensure the smooth functioning of equipment.

Wide acceptance of cloud servers, which packs more power into smaller spaces, is projected to drive the data center uninterruptible power supply market. Manufacturers are focused to provide power supplies with a lower total cost of ownership, higher efficiency, and invest in developing reliable technology with the objective to address the growing demand for cloud computing.

Blade servers, which have high power requirements and dissipate a lot of heat, are a highly space-efficient alternative to conventional rack servers. UPS deployed should be efficient enough to power a leading power factor supply, with compact size, high efficiency, and high power density ratios.

To address growing UPS capacity demand and make room for expansion, UPS vendors have started providing flexibility to businesses by making provision for additional capacity through software modification. This prevents the need for re-installing an entire UPS system, which may turn out to be costly as well as consuming.

Several manufacturers have adopted greener and more energy-efficient technologies in product development in response to burgeoning environment concerns and higher power costs. Customer demand for improved reliability and zero downtime has resulted in manufacturers designing more robust components for UPS systems such as electronic switches.

Product Insights

On the basis of product, small data centers are anticipated to lead the market as they serve the requirements of SMBs. Enterprise data centers, server rooms, industrial environments, factory floors, localized, and mid-tier data centers are some of the typical application areas of this type of UPS system.

In 2016, the small data center segment accounted for more than half of the overall revenue in the data center uninterruptible power supply market and is estimated to experience substantial growth over the forecast period. The increasing number of organizations that are planning to up-scale their equipment is projected to fuel the demand for medium and large capacity UPS.

Regional Insights

North America was the leading revenue contributor in 2016 and is poised to witness remarkable growth over the forecast period. Financial services, healthcare, and insurance are likely to be key end users of data center UPS in the region. Due to the increasing preference for high availability computing, companies are compelled to address their data center footprint and other challenges to improve their assets.

The staggering volume of digital content created every day is driving the requirement for data center facilities and UPS solutions in the European region. France, Germany, and the U.K. are expected to be at the forefront of the growth of the region. Asia Pacific is also anticipated to witness noteworthy growth over the forecast period. The exceptional increase in collaborative data centers in developing countries such as China and India is estimated to stimulate the growth of the data center uninterruptible power supply market over the forecast period.

Data Center UPS Market Share Insight

Prominent market players such as The Emerson Electric Company, Eaton, and Schneider Electric are undertaking measures to increase their market shares through inorganic growth. These initiatives are projected to stable growth in the arena. Acquisitions, mergers, and alliances have been go-to strategies of market players in order to enhance presence worldwide and access untapped markets.

Manufacturers are focused on launching new and innovative UPS systems to widen product portfolio. For instance, in August 2017, Toshiba International Corporation launched a new UPS of 100kVA capacity (208/120V) with the objective to expand the company’s 4400 UPS Series. Prominent vendors in the industry include Clary Corp.; General Electric; Toshiba Corp.; Gamatronic Electronic Industries; and Belkin International Inc.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global data center UPS market report on the basis of product and region

• Product Outlook (Revenue, USD Million, 2012 - 2020)

  • Small Data Center UPS

  • Medium Data Center UPS

  • Large Data Center UPS

• Regional Outlook (Revenue, USD Million, 2012 - 2020)

  • North America

    • The U.S.

  • Europe

  • Asia Pacific

  • Rest of the World (RoW)