The rapid advancement of self-diagnostics features and adoption of modular UPS in data centers drive the market growth. Similarly, the emergence of fly-wheel technology as an alternative for power supply provides an impetus to the market growth. On the other hand, high maintenance cost restricts the market growth.
The UPS systems are widely used in residential, industrial, and commercial sectors to provide uninterrupted data services. Globally, rapid digitalization and increasing adoption of connected infrastructure have compelled the enterprises to increase their data center capacity. Rising incidences of network latency are subsequently increasing the adoption of Fiber to the Home (FTTH) services and hyperscale data centers.
The uninterruptible power supply (UPS) market was valued at USD 10.1 billion in 2019 and is expected to reach USD 16.2 billion by 2029, with a CAGR of 4.0%.
Fly-wheel is an advanced technology developed to provide power sources to the manufacturing and oil and gas industries in harsh environments. The technology offers high power efficiency to protect equipment with constant voltage fluctuations and clean power sources without compromising the environment.
The online UPS segment accounted for the largest market share of more than 62% in 2019. Online UPS is extensively used across several industrial verticals for its two conversion stages of AC-DC and DC-AC. They are significantly used in critical power applications that include low power IT buildings, ATMs, vending machines, CCTV, small offices power protection, edge data centers, and small to medium-sized server rooms. Online UPS offers zero transfer time and higher power density compared to line-interactive UPS when switching to battery mode.
The free-standing segment dominates the market as it offers longer battery life, which lasts up to 5–6 years compared to the limited battery life of rack-mounted, lasting 2–3 years. Freestanding also offers higher efficiency and scalability up to 10KW and above, further driving its adoption across small-scale businesses.
The rack-mounted segment is expected to grow with a significant CAGR on account of the rising number of hyper-scale data centers and increasing demand for edge computing data centers by enterprises to deliver efficient content and services. Additionally, surging need to provide reduced network latency, coupled with high network bandwidth provide an impetus to the segment growth. The IT enterprises are emphasized on establishing small scale edge data centers in emerging economies such as India, Indonesia, and the Philippines, further driving the segment growth.
The 60.1–200 KVA segment held about 18% of the market share in 2019. The segment’s most prominent driver is the surging adoption of modular UPS in small scale businesses and the industrial sector. The 60–200KVA UPS protects critical equipment in a multitude of physical environments, such as power outages, surges, and spikes. It offers greater convenience in installation and maintenance, helping in long term business continuity. In 2018, ABB Ltd. launched Cyberex PowerBuilt Industrial UPS, single phase, with the capacity of 80kVA to support the continuing demand of energy from refining and petrochemical, oil and gas, and power generation sectors.
Asia-Pacific accounted for the largest market share of 44% in 2019 and is expected to dominate the market during the forecast period. The regional market is largely driven by the lack of robust grid infrastructure, causing frequent power cuts and voltage fluctuations. An increasing number of small and mid-size outsourcing companies, coupled with the rising number of small scale data centers drive the regional market growth. Furthermore, the heavy use of electronic gadgets and appliances, such as mobile phones, laptops, smart TVs, and air conditioners, is subsequently rising the demand for backup power to prevent appliances from damage. The COVID-19 outbreak has compelled the governments in the region to build with advanced equipment, such as ventilators, further driving the demand for efficient UPS to prevent equipment failure during power outages.
Europe’s uninterruptible power supply market is projected to grow with the second-highest CAGR during the forecast period. The surging the number of data centers and increasing adoption of connected technologies generating huge volumes of datasets drive the regional market growth. As per the U.K.’s Office for National Statistics (ONS), in 2017, approximately 7.4% of autonomous machines have been employed by several industrial verticals to enhance productivity, further driving the adoption of UPS to protect equipment during power outages.
Innovative technologies such as the Internet of Things (IoT) and analytics platforms require high speed and frequency data centers, further driving the market growth. In 2018, the Medical University of Gdansk(MUG), the largest medical university in Northern Poland, partnered with BORRI S.p.A. to install UPS with the capacity of 600KVA and 160 KVA in the university’s data center to protect equipment against power failure.