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The data center UPS market size is forecast to increase by USD 6.73 billion at a CAGR of 12.83% between 2023 and 2028. The market is experiencing significant growth due to several key trends and drivers. One of the primary drivers is the increasing adoption of modular UPS systems, which offer scalability, flexibility, and improved efficiency. Another trend is the use of lithium-ion UPS systems, which provide longer backup power duration and are more environmentally friendly than traditional lead-acid batteries. However, the market also faces challenges such as UPS battery failure, which can lead to downtime and data loss. To mitigate this risk, data center operators are investing in preventive maintenance and battery replacement strategies. Overall, the market is expected to grow steadily due to these trends and the need for reliable power backup solutions.
In the digital age, data center reliability has become a top priority for businesses and organizations worldwide. Power interruptions can lead to significant downtime and financial losses. Uninterrupted power supply systems (UPS) play a crucial role in mitigating the risks of power interruptions. UPS systems provide backup power during power outages and ensure the continuity of critical operations. The market for UPS systems is driven by the increasing demand for data center reliability, especially in the context of edge computing and IoT. Remote working culture and cloud infrastructure also contribute to the growth of this market. UPS systems are available in various technologies, including copper, aluminum, and lead-acid batteries.
Moreover, power usage and operating costs are essential considerations for critical facility customers. UPS systems offer flexibility in terms of scalability, AI-powered monitoring and control solutions, and safety features. The carbon footprint of UPS systems is also a concern, with some manufacturers offering more efficient solutions to reduce environmental impact. The evolving economies and increasing IT spending in emerging markets are expected to boost the demand for UPS systems. SMEs are also investing in backup power solutions to ensure business continuity. Overall, the UPS market is expected to grow significantly due to the importance of uninterrupted power and reliability in the digital economy.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The centralized UPS segment is estimated to witness significant growth during the forecast period.UPS systems play a crucial role in ensuring data center reliability by providing uninterrupted power supply during power interruptions caused by utility outages or data center downtime. With the increasing adoption of edge computing, IoT, and remote working culture, the demand for UPS solutions is surging in various industries such as IT & telecom, e-learning, and digitalization. Modular UPS systems and independent power modules are popular choices due to their enhanced efficiency, improved reliability, and energy-saving modes. These solutions help mitigate energy wastage and reduce operating costs, making them an essential component of power infrastructure for data center facilities. Moreover, cloud infrastructure and cloud computing services rely heavily on reliable power infrastructure for data processing and storage solutions.
Furthermore, copper, aluminum, and lead are commonly used materials in UPS systems, with ongoing research focusing on reducing the carbon footprint through the use of more sustainable materials. The investment in UPS systems is a significant one, and their efficiency and reliability are crucial factors in determining the overall performance and success of a data center. The increasing data traffic and storage requirements further prioritize the importance of UPS systems in ensuring the uninterrupted operation of data centers.
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The centralized UPS segment accounted for USD 2.96 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is witnessing significant growth due to the increasing demand for resilient power systems and remote management solutions to address the evolving industry needs. Remote monitoring and control solutions enable scalability, efficiency, and reliability, making them essential components for critical facility customers. The Power Electronics Industry is at the forefront of providing power electronics products such as Industrial UPS Systems and Stallion Battery Chargers to ensure uninterrupted power supply. AI and sustainable power solutions are gaining traction in the market, offering eco-friendly alternatives while maintaining high reliability and efficiency. However, the high initial costs of implementing these systems pose a financial challenge for smaller enterprises.
Furthermore, the Power Conversion and Monitoring sectors are innovating to meet these demands, showcasing their offerings at events like ELECRAMA 2023. Backup power and safety are paramount in data centers, making the adoption of these solutions widespread.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increase in adoption of modular UPS systems is the key driver of the market. UPS systems play a crucial role in ensuring data center reliability during power interruptions, such as utility outages. With the rise of edge computing, IoT, and remote working culture, the demand for uninterrupted power supply in data center facilities has increased. Traditional UPS systems, made of copper, aluminum, and lead, have been the go-to solution for decades. However, modern data center designs incorporate more efficient and advanced UPS systems, such as modular UPS systems and independent power modules. These systems offer enhanced efficiency, improved reliability, and energy-saving modes, reducing power usage and operating costs while minimizing the carbon footprint. Modular UPS systems, in particular, are gaining popularity due to their scalability and cost-effectiveness.
Moreover, they can be installed alongside data racks, supporting one or more racks based on IT load, and can be expanded as needed. The benefits of modular UPS systems include increased capacity, diminished maintenance costs, and the ability to cater to the varying power requirements of cloud infrastructure, IT & telecom, data traffic, and storage solutions. Additionally, cloud-based solutions and data center construction rely on reliable power infrastructure for data processing and storage solutions, making the investment in advanced UPS systems a wise choice.
Use of lithium-ion UPS systems is the upcoming trend in the market. Data centers rely on uninterrupted power supply (UPS) systems to ensure reliability during power interruptions, such as utility outages. UPS systems are essential components of data center facilities, particularly in the era of remote working culture, e-learning industry, digitalization, and increased data traffic and storage requirements. Traditional UPS systems often utilize copper or aluminum components and employ VRLA, or lead-acid batteries, for backup power. However, the maintenance of these batteries can be challenging, requiring regular monitoring and replacement every three to five years. Alternative solutions, such as flywheel-based UPS systems, offer reduced maintenance and improved efficiency. While these systems have lower carbon footprints and energy savings through enhanced efficiency and improved reliability, they currently have a shorter backup time than lead-acid batteries.
Furthermore, modular UPS systems and independent power modules are other energy-saving solutions gaining popularity in the IT & telecom, cloud infrastructure, and cloud computing services sectors. These solutions provide power infrastructure for data processing and storage solutions, ensuring reliable power for critical applications and reducing operating costs. Investing in advanced UPS systems is crucial to minimize data center downtime and maintain a strong power infrastructure for the digital age.
UPS battery failure is a key challenge affecting the market growth. UPS systems play a crucial role in ensuring data center reliability by providing uninterrupted power supply during power interruptions. However, UPS battery failure is a significant concern, accounting for approximately 55% of data center downtime. Power fluctuations are common in data center facilities, making utility outages a persistent issue. Severe outages can result in substantial financial losses, with costs reaching up to USD 500,000 per hour for operators. For instance, the 2016 Delta Airlines power outage caused by an infrastructure failure resulted in a loss of around USD 150 million and disrupted services for almost three days. To mitigate the risks of downtime and battery failure, data center operators must prioritize UPS battery maintenance.
Moreover, edge computing and IoT applications, which require uninterrupted power, are increasingly popular. Modular UPS systems and independent power modules offer enhanced efficiency, improved reliability, and energy-saving modes to minimize power usage and operating costs. Moreover, the remote working culture, e-learning industry, digitalization, and cloud infrastructure expansion necessitate reliable power infrastructure. Colocation, IT & telecom, data traffic, and storage requirement further prioritize the importance of investing in strong power infrastructure. Energy wastage and carbon footprint reduction are also essential considerations, making energy-efficient UPS solutions a preferred choice. Cloud-based solutions and data center construction projects require comprehensive power infrastructure planning to ensure uninterrupted data processing and storage solutions.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd. - The company offers data center UPS such as MV UPS, Relays, and modular UPS.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
UPS systems play a crucial role in ensuring data center reliability during power interruptions caused by utility outages or data center downtime. With the increasing adoption of edge computing, IoT, and remote working culture, the demand for uninterrupted power supply (UPS) solutions in data center facilities is surging. UPS systems are essential components of power infrastructure for IT & telecom, e-learning industry, digitalization, and cloud infrastructure. UPS systems come in various forms, including modular UPS systems and independent power modules, designed to cater to different data center sizes and power requirements. Copper, aluminum, and lead are commonly used materials in UPS systems due to their conductivity and cost-effectiveness.
Moreover, data center construction and expansion require reliable power infrastructure to support data processing, storage solutions, and cloud-based services. Energy wastage is a significant concern in data centers, and UPS systems offer energy-saving modes and improved efficiency to reduce operating costs and carbon footprint. The increasing data traffic and storage requirement in cloud infrastructure and cloud computing services necessitate the need for efficient and reliable UPS solutions. Investment in advanced UPS systems is a strategic move for businesses to enhance efficiency, improve reliability, and minimize power usage.
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Market Scope |
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Report Coverage |
Details |
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Page number |
178 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.83% |
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Market growth 2024-2028 |
USD 6.73 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.13 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 30% |
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Key countries |
US, Germany, China, UK, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Centiel Global, Cyber Power Systems Inc., Delta Electronics Inc., Eaton Corp. Plc, Enconnex LLC, EverExceed Corp., Fuji Electric Co. Ltd., General Electric Co., Hewlett Packard Enterprise Co., Hitachi Ltd., HITEC Power Protection BV, Kohler Co., Legrand SA, Mitsubishi Electric Corp., RPS Spa, Schneider Electric SE, SolarEdge Technologies Inc., Toshiba Corp., and Vertiv Holdings Co. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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