Data Center Ups Market By Product Type (Standby UPS, Line-Interactive Ups, Double Conversion UPS), Application (Enterprise Data Centres, Colocation Data Centres, Edge Data Centres, Hyperscale Data Centres), End User (IT, Telecom, BFSI, Government, Healthcare, Retail), & Region for 2024-2031

Data Center Ups Market Valuation – 2024-2031

The rising factor in the data center uninterruptible power supply (UPS) market is primarily driven by increased demand for data processing and storage because of the exponential rise of digital data, cloud computing, and the proliferation of IoT devices. Furthermore, the increase in internet consumption, the construction of data centers to serve big data and AI applications, and the demand for improved data security and uptime reliability are also significant factors. As businesses continue to digitize and rely more heavily on IT infrastructure, the need for robust power protection solutions to prevent data loss and provide operational continuity grows, driving up demand for modern UPS systems. The data centre ups market is estimated to surpass a revenue of USD 3.95 Billion in 2024 and reach USD 5.41 Billion by 2031.

The data center UPS market has seen tremendous growth, owing to the growing demand for dependable and efficient power solutions in data centers. Key improvements include the incorporation of sophisticated battery technologies such as lithium-ion and flywheel energy storage, which have longer lifespans and require less maintenance than standard lead-acid batteries. Furthermore, current UPS systems also include sophisticated monitoring and management software that uses AI and IoT to improve predictive maintenance, optimize energy usage, and provide flawless power continuity. The market is expected to rise with a projected CAGR of 4.00% from 2024 to 2031.

Data Center Ups MarketDefinition/ Overview

A Data Center UPS (Uninterruptible Power Supply) is an essential component that supplies emergency power to a data center when the primary power supply fails. It guarantees that IT infrastructure runs smoothly while protecting sensitive equipment from power outages, voltage fluctuations, and power surges. A UPS provides immediate backup power, allowing for a graceful shutdown of systems or a smooth transfer to a backup generator, preventing data loss, hardware damage, and service disruption. A UPS system in a data center typically consists of batteries, inverters, and rectifiers that provide clean and stable power, improving the overall resilience and reliability of data center operations. The future scope of Data Center Uninterruptible Power Supplies (UPS) is set to expand significantly, driven by the growing reliance on data centers to support the rapid rise of cloud computing, IoT, AI, and edge computing. As businesses and consumers seek greater availability and dependability, UPS systems will evolve to deliver better energy efficiency, scalability, and integration with renewable energy. Advances in battery technology, such as lithium-ion and solid-state batteries, will boost performance and lower maintenance costs.

How is the Growing Demand for Continuous Power Supply and Edge Computing Set to Magnify the Data Center Ups Market?

The growing demand for continuous power supply and the rise of edge computing are key factors that are driving the enlargement of the data center UPS market. Data centers, which serve as the foundation of modern digital infrastructure, provide support for cloud services, big data analytics, IoT, and other technologies. Any amount of downtime can result in significant financial losses, data loss, and operational disruptions. As businesses rely more on digital services, ensuring an uninterrupted power supply becomes increasingly important.

Downtime can lead to significant expenditures. For example, the Ponemon Institute reports that the average cost of data center outage is around $9,000 per minute. Economic pressure has prompted businesses to invest in high-quality UPS systems to reduce the risks associated with power outages. Many data centers follow strict Service Level Agreements (SLAs) that require minimal downtime. Noncompliance can lead to financial penalties and a loss of business reputation, stressing the importance of dependable UPS systems.

Furthermore, the development of more efficient, dependable, and scalable UPS systems guarantees that the growing demand for uninterrupted power in data centers is satisfied. Data center operators are increasingly interested in modern UPS systems, which include capabilities like real-time monitoring, predictive maintenance, and improved energy efficiency. Edge computing involves processing data closer to its source rather than depending only on centralized data centers.

Additionally, latency and bandwidth utilization are reduced, which is critical for applications such as self-driving cars, industrial IoT, and intelligent cities. The requirement for localized data processing drives up the demand for smaller, distributed data centers outfitted with dependable UPS systems to assure uninterrupted operation even at the periphery.

The exponential rise of IoT devices creates massive volumes of data that require real-time processing. Edge data centers, backed up by powerful UPS systems, are critical for managing this data effectively and reliably. Edge computing is particularly beneficial for applications that require real-time data processing, such as augmented reality (AR), virtual reality (VR), and online gaming. Edge data centers require scalable and flexible solutions to meet fluctuating demands. Modular UPS systems provide the adaptability needed to build edge data centers as demand increases, assuring uninterrupted power supply with minimal downtime.

How do Energy Efficiency and Environmental Conditions Hinder the Data Center Ups Market?

UPS systems consume electricity on a constant basis to ensure power supply in the event of a grid outage, raising data center running costs. Data centers are under growing pressure to lower their carbon footprint, and inefficient UPS systems contribute to increased overall energy use and emissions.

There is a demand for UPS systems with higher efficiency ratings, which assess efficiency at various load levels (for example, 25%, 50%, 75%, and 100%). Meeting these efficiency standards can be difficult for manufacturers, requiring advanced technology and design optimization. The rising demand for continuous power supply and the advent of edge computing have resulted in a significant increase in demand for UPS systems. Both central and edge data centers require reliable power solutions to satisfy operational demands and assure uptime.

Furthermore, the necessity for more efficient and dependable UPS systems has fueled industry innovation, resulting in the development of advanced UPS technologies tailored to the specific requirements of both big, centralized data centers and smaller periphery data centers. The growth of edge data centers alongside traditional data centers has increased the overall market for UPS systems. This increase is not just in terms of volume, but also in terms of unique needs and solutions adapted for different sorts of data centers.

Additionally, as UPS systems near the end of their useful life, efficient disposal or recycling of components becomes increasingly important to reduce environmental effect. Large UPS systems take up a lot of room in data centers, restricting layout options and potentially lowering available space for revenue-generating IT equipment. As data centers grow, expanding UPS capacity needs careful consideration of space limits, which may mean redesigning layouts or using modular UPS solutions.

Customers must be educated on the value of UPS systems and their role in guaranteeing data center stability and uptime. Explaining the technical characteristics and advantages of sophisticated UPS systems to non-technical stakeholders can be difficult. Global supply chain interruptions can impact the availability of crucial components, hence affecting production schedules and delivery times. Managing the logistics of shipping large, heavy UPS systems to data center locations can be difficult.

Category-Wise Acumens

How does the Increasing Demand for Double Conversion UPS in Hyperscale Data Centres Speed up the Growth of the Data Center Ups Market?

The increasing demand for double conversion UPS systems in hyperscale data centers significantly contributes to the growth of the data center UPS market. Hyperscale data centers require continuous uptime to service millions of users globally without interruption. Double conversion UPS systems offer smooth power transitions with no delays or fluctuations, ensuring the continuous functioning of essential IT infrastructure.

These UPS systems have high efficiency levels, often exceeding 90%, which helps to reduce energy expenditures and optimize operational expenses over time. Efficient power management is becoming increasingly important as hyperscale data centers grow and capacity, making double conversion UPS systems the preferable option. Downtime for hyperscale data centers can result in significant expenditures, reducing income and harming reputation and consumer trust. Double conversion UPS systems provide dependable backup power supplies, avoiding downtime caused by grid breakdowns, utility troubles, or other power outages.

Furthermore, scalability enables double conversion UPS systems to be effortlessly expanded, allowing for increasing loads and future expansion in data processing and storage requirements while retaining power safety. Many modern double conversion UPS systems feature modular designs that allow for easy integration and expansion as data centers expand, which is critical for hyperscale facilities that must respond fast to changing market needs and technical breakthroughs.

Additionally, double conversion UPS systems in hyperscale data centers ensure compliance with legal frameworks governing data security, privacy, and environmental norms. Reliable power backup is supplied, ensuring data integrity during power transitions and preserving sensitive information housed in these facilities from data loss or corruption due to power outages or voltage fluctuations.

The growing global usage of hyperscale data centers is driving demand for advanced infrastructure solutions, such as resilient UPS systems. This expansion broadens the total data center UPS market as manufacturers and service providers innovate to meet the changing demands of hyperscale installations. The demand from hyperscale data centers drives UPS manufacturers to innovate, resulting in advances in energy efficiency, dependability, and integration capabilities. These innovations benefit not only hyperscale facilities but also other segments of the data center market, contributing to broader market growth.

Will the Rising Utilization of Line-Interactive UPS in Ege Data Centres Contribute to the Propulsion of the Data Center Ups Market?

The rising utilization of line-interactive UPS systems in edge data centers significantly contributes to the propulsion of the data center UPS market. Line-interactive UPS systems are often more cost-effective than online double-conversion UPS systems. This cost advantage may make them more appealing to edge data centers, which frequently operate on tight budgets but require dependable power protection.

Line-interactive UPS systems are more energy efficient than online double-conversion UPS systems because they do not convert power continuously. This efficiency may be desirable to edge data centers looking to save operational costs and reduce their environmental impact.

Furthermore, edge data centers, which are usually characterized by lower power capacity and different locations such as distant or metropolitan areas, may benefit from Line-Interactive UPS systems. These devices have the capacity to handle minor power fluctuations without resorting to battery power. Edge data centers, which are frequently designed with modularity and scalability in mind, might benefit from the scalability features provided by Line-Interactive UPS systems. This functionality enables data centers to scale their power protection capabilities as needed, in line with the modular nature of edge deployments.

Additionally, line-Interactive UPS systems give basic protection against power fluctuations and outages, but they may not provide the same level of reliability and protection as online double-conversion UPS systems. Edge data centers must carefully evaluate their reliability requirements and balance them against economic considerations.

The rise of edge computing and the global spread of edge data centers creates a substantial market potential for UPS manufacturers. manufacturers can capitalize on this expanding segment of the market. Line-interactive UPS systems are frequently designed with scalability in mind, allowing edge data centers to expand their infrastructure as demand increases without sacrificing power safety. Many modern line-interactive UPS systems are compatible with renewable energy sources, which aligns with the increasingly important environmental goals of edge data center operators.

Gain Access into Data Center Ups Market Report Methodology

Country/Region-wise Acumens

Will the Increasing Digital Economy and Infrastructure in North America Advance the Data Center Ups Market Further?

The rising development of online shopping and digital transactions needs a robust data center architecture capable of securely handling increasing data volumes. UPS systems serve critical roles in maintaining the continuous operation of e-commerce platforms and payment gateways, protecting revenue from interruption.

North America is the global leader in cloud computing adoption, with major providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud operating substantial data center networks around the region. These hyperscale data centers require reliable power backup solutions to ensure ongoing operation for millions of cloud-based customers and enterprises. The region’s emphasis on data-driven decision-making in areas like finance, healthcare, and marketing drives demand for data centers that can process and analyze enormous amounts of data in real time. UPS systems assure data integrity and availability, which is critical for operating efficiency and regulatory compliance.

Furthermore, North America has a solid telecommunications infrastructure and high-speed internet connectivity, which are critical for data center operations and digital service delivery. A reliable power supply, supported by UPS systems, is critical for sustaining connectivity and preventing service disruptions in telecommunications networks. The proliferation of smart city initiatives and Internet of Things (IoT) devices throughout North American cities necessitates edge computing capabilities supported by local data centers. UPS systems allow edge data centers to process and store data closer to end users, lowering latency and increasing responsiveness in IoT applications.

Additionally, the growing awareness of environmental sustainability pushes advancements in UPS technology geared at boosting energy efficiency. Advanced UPS systems in North America are designed to cut power usage and carbon emissions while adhering to regulatory standards and company sustainability goals. UPS manufacturers in North America are always innovating to provide scalable and flexible solutions that can meet the changing needs of data centers. Modular UPS designs enable easy extension and integration with renewable energy sources, resulting in greater capacity planning flexibility and operating efficiency.

The significant cost of downtime for North American firms highlights the significance of resilient data center operations powered by UPS systems. Industries ranging from financial services to healthcare rely on continuous access to data and applications to maintain productivity and customer happiness, therefore investing in UPS systems is economically viable.

Will the Rising Investments and Urbanization in Asia Pacific Region Stimulate the Growth Data Center Ups Market?

The rapid rising digital transformation and the growing usage of cloud computing, IoT, AI, and other data-intensive technologies are driving the surge in demand for data centers across APAC. These data centers are crucial for storing, processing, and delivering massive amounts of data created by organizations, governments, and individuals. Reliable power protection is critical since data centers work 24 hours a day, seven days a week, with any power outage potentially inflicting severe financial losses, data corruption, and reputational damage.

UPS systems play an important role in guaranteeing continuous power supply during outages, fluctuations, or failures, protecting data integrity and business continuity. Cloud services are fast rising, as businesses and consumers increasingly rely on them for storage, processing power, and apps. To ensure service availability and dependability, data centers that host cloud technology require robust UPS systems.

Furthermore, urbanization in APAC countries such as China, India, Indonesia, and Vietnam are accompanied by population expansion and greater use of digital technologies. This urbanization increases demand for data-driven services such as e-commerce, digital banking, and smart city initiatives, all of which rely on efficient data centers with dependable power backup systems. APAC is seeing fast industrialization in areas such as manufacturing, healthcare, finance, and telecommunications, all of which are digitizing activities. This results in increased data volumes and the need for a resilient data center infrastructure supported by UPS systems.

Additionally, governments in APAC actively promote digital economy growth by encouraging data center investments, digital infrastructure development, and technology adoption, hence creating a favorable climate for data center operators and UPS manufacturers. Governments are enforcing energy efficiency laws, requiring data center operators to use energy-efficient solutions such as UPS systems that optimize power utilization and save operational expenses.

UPS manufacturers are always developing new technologies to increase their systems’ efficiency, scalability, and integration capabilities. Advanced UPS technologies, including modular designs, lithium-ion batteries, and integration with renewable energy sources, are increasingly appealing to data center owners looking for environmentally friendly and cost-effective solutions. Edge computing is gaining pace in APAC because of the proliferation of IoT and smart devices, necessitating UPS systems designed for smaller size and distributed edge data centers, boosting further demand in the UPS market.

Competitive Landscape

The data center UPS industry is highly competitive, with a varied spectrum of manufacturers and service providers fighting for market share. Numerous mid-sized and niche firms contribute to market dynamics by providing offerings that target certain segments or technological niches. These companies differentiate themselves by offering specialized features such as modular designs for scalability, integration with renewable energy sources, increased energy efficiency, and advanced monitoring and management. The competitive environment promotes constant technical innovation, with an emphasis on boosting reliability, lowering total cost of ownership, and meeting more demanding regulatory standards for data security and environmental sustainability.

Some of the prominent players operating in the data center ups market include

• Schneider Electric
• Eaton Corporation
• Emerson Electric
• ABB Ltd
• Mitsubishi Electric Corporation
• LG Electronics
• Socomec Group
• Chloride Systems
• Riello UPS
• GE Critical Power
• Mersen
• Hitachi Industrial Equipment Systems Co. Ltd.
• Fuji Electric Co. Ltd.
• Centiel
• Delta Electronics
• Kstar Science & Technology Co.
• Luxell Technologies Pte. Ltd.

Latest Developments

• In January 2024, Swedish operator T.Loop has acquired a data center in Stockholm, Sweden. “Acquisition of existing data centers is an important part of T.Loop’s establishment strategy,” said Mathias Lindqvist, chief engineer and T.Loop co-founder. “We see great potential in this facility where we will be able to reuse the existing infrastructure and thus quickly be able to offer colocation services to our customers. At the same time, we also see good conditions for being able to recycle all the heat generated in the data center to heat the property in which it is located.”
• In January 2024, Penta Infra acquires KPN data center in Amsterdam. The acquisition of the carrier and cloud neutral KPN data center establishes Penta Infra’s presence in the metropolitan region Amsterdam and will expand its footprint in the Dutch market, which is part of Penta Infra’s long term strategy to expand its pan-European portfolio of edge and core data centers. KPN will remain a tenant in the location so that they can ensure continuity for their network division while Penta Infra redevelops the other rooms into state-of-the-art IT rooms for colocation customers.
• In February 2024, German private bank Hauck Aufhäuser Lamp Privatbank has acquired a data center in development in Hamburg. “With the purchase of the first data center for our fund, we are setting several exclamation marks through innovation and energy efficiency,” said Patrick Brinker. The company aims to use ammonia-based refrigerants in its chillers to reduce emissions. The site will use Adiabatic cooling and feature on-site solar panels. The waste heat will be used by a school and other facilities in the district through integration into the local heating network.

Report Scope

Data Center Ups Market, By Category

Product Type

• Standby UPS
• Line-Interactive Ups
• Double Conversion UPS

Application

• Enterprise Data Centres
• Colocation Data Centres
• Edge Data Centres
• Hyperscale Data Centres

End User

• IT
• Telecom
• BFSI
• Government
• Healthcare
• Retail

Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

Research Methodology of Market Research