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Data Center UPS Market size was valued at USD 4.2 billion in 2022 and expected to grow at over 5.5% CAGR during forecasted period. Driven by the rapid expansion of the consumer electronics industry globally, the industry will grow at a lucrative CAGR between 2023 and 2032.
By preventing power interruptions, UPS systems help maintain data center reliability and minimize the impact of potential disruptions on consumer electronics services. Moreover, the rising adoption of edge computing and IoT is presenting lucrative growth opportunities for the industry. UPS systems are essential to ensure uninterrupted power supply for IoT-related data centers, enabling continuous connectivity even during power disruptions.
Report Attribute | Details |
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Base Year: | 2022 |
Data Center UPS Market Size in 2022 : | USD 4.2 Billion |
Forecast Period: | 2023 to 2032 |
Forecast Period 2023 to 2032 CAGR: | 5.5% |
2032 Value Projection: | USD 7.3 Billion |
Historical Data for: | 2018 – 2022 |
No. of Pages: | 300 |
Tables, Charts & Figures: | 289 |
Segments covered: | Data Center Size, Component, Application |
Growth Drivers: |
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Pitfalls & Challenges: |
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The surging number of hyperscale data centers across the globe is creating a plethora of opportunities for industry growth. As the number of data center facilities grows, so does the demand for UPS systems to provide backup power during utility outages or disruptions. UPS systems act as a critical power backup solution, preventing data center downtime and ensuring continuous availability of services. However, fluctuating costs of raw materials, such as copper, aluminum, or lead, add to the overall production costs of UPS systems, making them out of reach for many small manufacturers.
The COVID-19 pandemic had a negative impact on the data center UPS market due to supply chain disruptions caused by lockdowns. However, in the second half of 2020, the rapid adoption of cloud infrastructure attributed to remote working culture propelled the demand for data center UPS. Additionally, the rapid expansion of the e-learning industry presented lucrative opportunities for industry growth. In the post-COVID-19 era as well, the industry will grow significantly owing to surging digitalization.
Surging advancements in data center UPS is paving the path for industry growth. Modular UPS systems have gained popularity due to their scalability and flexibility. These systems consist of independent power modules that can be added or removed based on the power requirements of the data center. Modular UPS allows for easy capacity expansion, simplifies maintenance, and enhances redundancy. It offers higher efficiency as power modules can operate at optimal load levels, reducing energy wastage.
Based on application, the data center UPS market is segment into colocation, BFSI, energy, government, healthcare, manufacturing, IT & telecom. The IT & telecom industry held over 20% market share in 2022 and is projected to grow significantly over period of time. Growing data traffic and storage requirement in the IT & telecom sector has increased the demand for data center UPS. With the growing demand for data storage and processing, data centers require reliable power solutions to handle increasing data loads. UPS systems ensure the availability of power to data center infrastructure, supporting the efficient handling and storage of data.
With respect to the component, the data center UPS market is divided into solution and services segments. The solution segment held around 60% market share in 2022. Enhanced efficiency and improved reliability offered by data center UPS solutions favor their adoption. Modern UPS solutions are designed with energy efficiency in mind. They incorporate high-efficiency components, power management features, and advanced energy-saving modes. UPS systems optimize power usage, reduce energy waste, and contribute to lower operating costs. They also help organizations meet sustainability goals by minimizing carbon footprint and energy consumption.
North America held around 35% market share in 2022 and expected to expand significantly through 2032. Rapid expansion of cloud infrastructure is contributing to regional growth. Moreover, the flourishing IT & telecom industry is further positively impacting the industry landscape in North America. The region is also home to leading market players such as General Electric, Clary Corporation, Belkin International, Inc., and others constantly innovating new products, thus, streamlining market expansion.
Major companies operating in the data center UPS market are
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By Data Center Size
By Component
By Application
The above information is provided for the following regions and countries: