Global Data Center UPS Market to Grow at a CAGR of 4.61%

Introduction

Data centers are established and evolved as essential infrastructures to handle the data generated by consumers and corporate end-users. Data centers are linked to clients and companies using fiber optic connections that are connected to satellites or telecom broadband. They consist of IT infrastructures that are interconnected for the purpose of processing and storing user data. This includes servers, storage devices, and network equipment.

Market Dynamics

Innovative UPS Battery Technology Drives the Global Market

Data center operators are generating significant demand for lithium-ion UPS systems, leading to market participants, including Vertiv Group, ABB, Schneider Electric, and Eaton, experiencing a surge in sales. Specifically, Digital Realty's data centers in Sydney are equipped with lithium-ion batteries to improve performance.

Edge data centers also utilize lithium-ion batteries. For example, the Mumbai data center of GPX Global Systems (Equinix) has implemented Eaton UPS systems equipped with lithium-ion batteries to provide power to the facility. Therefore, the majority of vendors provide lithium-ion-based UPS systems for data centers, which will contribute to the market's expansion throughout the projected timeframe.

Growing Rack Power Density to Provide Opportunities for the Global Data Center UPS Market

The increasing power density of racks has resulted in the development of innovative and flexible facility designs that incorporate various electrical inputs for racks, along with rack-level uninterruptible power supply (UPS) systems. Many large and extremely large data centers have power infrastructures capable of accommodating rack densities of up to 50 kW. During the projected period, there will be an increase in the quantity of new data center projects utilizing this setup, resulting in a greater demand for power infrastructure solutions.

Similarly, the UPS units of Amazon Web Services data centers are tailored for high-density racks and exclusively provide power to assigned racks. Implementing this measure will guarantee that any malfunction in a single UPS system will impact the corresponding rack and not affect the remaining sections of the data hall.

Regional Analysis

North America is the most significant global data center UPS market shareholder and is estimated to exhibit a CAGR of 3.45% during the forecast period. The North American data center market is fueling growth in the overall data center sector due to the prompt availability and adoption of advanced technology, as well as investments from colocation service providers, hyperscale data center operators, enterprises, and governmental entities. The region plays a crucial role and serves as a leader for any new technical advancement in the data center industry. The United States represents around 45% of the total global investments in data centers and is thus a significant contributor to the global market for data center power.

Key Highlights

• The global data center UPS market was valued at USD 5.25 billion in 2022. It is estimated to reach an expected value of USD 7.82 billion, growing at a CAGR of 4.61% over the forecast period (2023–2031).
• Based on the UPS battery technology, the global data center UPS market is classified into lithium-ion, flywheel, and VRLA.The VRLA segment dominates the global market and is estimated to expand substantially during the forecast period.
• Based on the UPS system, the global data center UPS market is 500-1,000 kVA, >1,000 kVA, and <=500 kVA. The <=500 kVA segment owns the highest market share and is anticipated to exhibit a CAGR of 5.85% during the forecast period.
• Based on tier standards, the global data center UPS market is categorized into Tier I & II, Tier IV, and Tier III. The Tier III segment dominates the global market and is expected to exhibit a CAGR of 6.80% during the forecast period.
• North America is the most significant global data center UPS market shareholder and is estimated to exhibit a CAGR of 3.45% during the forecast period.

Competitive Players

1. Schneider Electric
2. Rittal Systems
3. HPE
4. Delta Power Solutions
5. Huawei Technologies
6. ABB
7. Eaton
8. Vertiv Group
9. Ametek Powervar
10. and AEG Power Systems

Recent Developments

Recent Developments

• July 2023 - Schneider ElectricTM started offering Easy UPS 3-Phase Modular. This reliable uninterruptible power supply (UPS) offers third-party validated Live Swap capabilities while being built to safeguard essential loads. Easy UPS 3-Phase Modular supports the EcoStruxureTM architecture and comes in capacities ranging from 50 to 250 kW with an N+1 expandable design.
• June 2023 - Delta unveiled the "Intelligent Sustainable Connecting Hub" at COMPUTEX 2023 to Echo Our New Brand Value Proposition of "Realizing an Intelligent, Sustainable, and Connecting World."

Segmentation

1. By UPS Battery Technology
   1. Lithium-Ion
   2. Flywheel
   3. VRLA
2. By UPS System
   1. 500-1,000 kVA
   2. >1,000 kVA
   3. <=500 kVA
3. By Tier Standards
   1. Tier I and II
   2. Tier IV
   3. Tier III