Modular UPS Market Size

Global Modular UPS Market size was valued at USD 4.1 billion in 2023 and is poised to grow from USD 4.46 billion in 2024 to USD 8.83 billion by 2032, growing at a CAGR of 8.9% during the forecast period (2025-2032).

As data centres, cloud computing, and industrial sectors grow, the need for reliable, uninterrupted power becomes essential. Modular UPS systems, known for their scalability and flexibility, allow businesses to ensure continuous operations even during power failures. Their ability to be expanded and adapted to increasing power demands makes them a preferred choice for sectors with 24/7 operational requirements. This escalating need for reliable backup power, particularly in critical infrastructure and IT industries, directly fuels the growth of the modular UPS market, ensuring business continuity and reducing downtime.

Governments all over the world are enforcing stringent energy efficiency measures to curb carbon emissions and ensure sustainable use of energy. Modular UPS systems, which are engineered to maximize power usage, are gaining popularity as they address these regulatory requirements. By reducing wastage of energy and enhancing efficiency, these systems enable companies to meet environmental regulations, save on operational expenses, and minimize their carbon footprint. This transition to energy-efficient technology is a major reason why the market is adopting modular UPS systems, leading to market growth as businesses focus on sustainability and regulatory adherence.

In what ways does AI Contribute to the Longevity of UPS Systems?

AI is directly influencing the global modular ups market by facilitating smart power management and predictive maintenance. AI-based systems can optimize energy consumption, anticipate potential failures, and modify load requirements in real-time, increasing the efficiency and reliability of UPS systems. This minimizes operating expenses and increases system lifespan. Indirectly, AI grows the market as it spurs the design of smart grids and IoT-enabled devices, which demand strong and flexible power solutions. A complementary advancement is the integration of AI into data centers, wherein UPS systems designed with AI ensure optimal utilization and minimum downtime, boosting modular UPS demand.

In December 2024, Kehua ranked fourth in the global modular ups market share for the second year in a row, according to Omdia. The success is indicative of Kehua's focus on innovation and quality in the modular UPS market. The reason behind the company's success is its responsiveness to customers, stringent quality control, and research and development advancements.

What role does Lithium-Ion Battery Integration Play in Modern UPS Startups?

The startup ecosystem in the global modular ups market is transforming at a fast pace, with new companies spearheading innovation with AI-based power management, lithium-ion battery incorporation, and modular architecture. The startups emphasize energy efficiency, sustainability, and scalability, meeting the increasing need for cost-effective, high-performance, and configurable power solutions. Their innovations benefit data centers, industrial automation, healthcare, and smart grids, providing uninterrupted power with lower operational expenses and carbon emissions.

Established in August 2024 in Munich, Germany, Pulsetrain designs electric powertrains that combine conventional systems with cutting-edge pulsing battery technology. Their top product, the Fully Integrated Powertrain Solution, brings together a multilevel converter and intelligent battery management, maximizing energy efficiency and battery life. One of their major innovations is their AI-based battery management system, which maximizes performance and forecasts maintenance requirements, thus minimizing downtime and operating expenses.

Founded in 2016 and headquartered in Tel Aviv, Israel, Hoopo specializes in energy-efficient tracking systems for managing assets such as airport ground support equipment and transportation logistics. Their technology uses low-power wide-area networks (LPWA) to deliver geolocation services without the excessive battery drain of conventional GPS tracking. One of Hoopo's breakthrough innovations is that it can deliver accurate tracking solutions with low energy consumption, prolonging the lifespan of tracking devices and lowering maintenance costs.