Report ID:
SQMIG45I2220 |
Region:
Global |
Published Date: November, 2024
Pages:
182
|Tables:
0
|Figures:
0
Global Data Center UPS Market size was valued at USD 4.94 Billion in 2022 and is poised to grow from USD 5.35 Billion in 2023 to USD 9.61 Billion by 2031, at a CAGR of 7.6% during the forecast period (2024-2031).
Rapidly increasing digital transformation around the world and increasing investments in data center construction are projected to bolster the sales of data center UPS (uninterruptible power supply) over the coming years. Growing power outages and increasing efforts to reduce data losses due to the same are also slated to promote the adoption of data center UPS going forward. Surge in demand for edge computing and cloud computing around the world are also estimated to favor the global data center UPS market outlook in the future. Rising demand for better reliability in data centers and increasing stringency of Service-Level Agreements (SLAs) are also slated to create new opportunities for data center UPS providers in the long run. Rising investments in digital transformation around the world are also expected to favor the demand for data center UPS over the coming years. On the contrary, high initial investments, complex maintenance requirements, limited scalability, and high competition from alternative backup technologies are slated to impede sales of data center UPS systems across the study period and beyond.
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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The global data center UPS market is segmented on the UPS type, data center size, industry vertical, and region. Based on UPS type, the market is segmented into standby, line interactive, and double conversion. Based on data center size the market is segmented into small, medium, and large. Based on industry vertical, the market is segmented into BFSI, colocation, energy, government, healthcare, manufacturing, IT & telecom, and others. Based on Region, the market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.
Analysis by Data Center Size
Large data centers are forecasted to account for a prominent data center UPS market share in the future. Large data centers are responsible for huge volume of data and high dependency on these data centers bolsters the demand for a backup power solution in this segment. Mostly large data centers utilize centralized UPS systems to power its IT infrastructure and keep it operational even in incidents of power outages. High spending potential of large data centers allows them to spend more on the deployment of advanced UPS systems and solutions thereby bolstering the dominance of this segment in the long run.
Meanwhile, the demand for data center UPS in small data centers is projected to rise at an impressive pace in the future. The growing number of small data centers around the world and rising demand for high flexibility and adaptability in the same are creating new opportunities for data center UPS providers going forward. Better scalability and cost savings offered by small data centers make them a perfect choice for data center UPS providers looking to enter the market and grow their business in the long run. Targeting small data centers is slated to be a key opportunity for data center UPS suppliers operating in developing regions.
Analysis by Industry Vertical
The IT & telecom industry is forecasted to hold a dominant share of the global data center UPS industry going forward. Extensive use of data centers by IT & telecom companies to store and access their huge volume of data and high financial and intellectual property losses associated with mishandling of this data bolster the demand for data center UPS in the future. IT & telecom company data centers are forecasted to invest heavily in backup power solutions and systems to avoid loss of data and prevent financial losses for their businesses as well. Surging use of artificial intelligence in this industry is also creating new opportunities for data center UPS providers.
On the other hand, the demand for data center UPS is estimated to rise at a robust pace for the BFSI industry vertical over the coming years. Increasing digitization of the BFSI industry and rise of decentralized finance are all expected to result in an increase in the number of BFSI data centers around the world. Banking solutions and systems require continuous availability of financial data, which is expected to bolster the importance of UPS systems in BFSI data centers going forward. Efforts to minimize downtime in the BFSI industry and optimization of data center operations are also slated to promote the demand for data center UPS across the study period.
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North America is forecasted to account for a major chunk of the global data center UPS market share. The presence of multiple data centers, rapid digital transformation, high use of cloud and edge computing, and increasing efforts to improve the digital business environment are key factors helping the dominance of this region. Moreover, rising investments in the development of new data centers is also promoting the sales of data center UPS in this region. The United States and Canada are forecasted to be leading markets for data center UPS companies operating in the North American region through 2031 and beyond.
Meanwhile, the demand for data center UPS in the Asia Pacific region is slated to increase at the fastest CAGR over the coming years. Launch of new digital transformation initiatives, growing number of data centers, and high number of power outages are expected to promote the sales of data center UPS systems in this region going forward. Absence of a reliable power infrastructure in developing countries of this region is also expected to bolster the demand for data center UPS in the Asia Pacific through 2031. India, China, Japan, and South Korea are estimated to emerge as the most opportune markets in this region for data center UPS suppliers.
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Drivers
Rapid Increase in Number of Data Centers
Rising Frequency of Power Outages
Restraints
High Initial Investments
Competition from Alternative Power Backup Solutions
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Data center UPS companies should focus on utilizing lithium-ion batteries to improve their affordability and efficiency going forward. Targeting developing regions with poor power supply infrastructure is slated to create new opportunities for data center UPS suppliers in the long run. Use of renewable energy is also slated to help data center UPS providers comply with sustainability goals and boost revenue generation potential as well.
Top Player’s Company Profiles
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing digital transformation and rising demand for reliable data center power supply are projected to boost the demand for data center UPS over the coming years. However, high initial investments and availability of alternative backup power solutions are slated to be key restraints for data center UPS market development in the future. North America is estimated to account for a dominant share of data center UPS demand outlook owing to the presence of multiple data centers in this region. The development of modular data center UPS and use of lithium-ion batteries are slated to be key opportunities for data center UPS companies to focus on going forward.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 4.94 Billion |
Market size value in 2031 | USD 9.61 Billion |
Growth Rate | 7.6% |
Base year | 2023 |
Forecast period | (2024-2031) |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Data Center UPS Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Data Center UPS Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Data Center UPS Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Data Center UPS Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQMIG45I2220
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