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Rising Cloud Computing Fuels Growth In The Data Center Uninterruptible Power Supply (UPS) Market Emerges as a Core Driver of the Data Center Uninterruptable Power Supply (UPS) Market in 2025
Data Center Uninterruptable Power Supply (UPS) Market
What Is the Expected CAGR for the Data Center Uninterruptable Power Supply (UPS) Market Through 2025?
The market size for uninterruptable power supply (UPS) in data centers has witnessed robust expansion in the recent period. It's projected to burgeon from a valuation of $6.79 billion in 2024, reaching $7.41 billion in 2025, recording a compound annual growth rate (CAGR) of 9.2%. The expansion during the historical period can be traced back to the rise in data center scale and density, escalation in edge computing, green and sustainability initiatives, enhanced efficiency and capacity, as well as a surge in demand for uptime.
What's the Projected Size of the Global Data Center Uninterruptable Power Supply (UPS) Market by 2029?
Strong growth is anticipated for the data center uninterruptable power supply (UPS) market size in the coming years, with expectation that it will reach $10.42 billion in 2029, expanding at a compound annual growth rate (CAGR) of 8.9%. Factors contributing to the projected growth of the forecast period include the growing data traffic, increase in remote workforce, soaring energy prices, virtualization and consolidation, as well as smart city programs. The forecast period will also witness major trends such as integrated monitoring and control, grid interaction and energy storage, the utilization of IoT (Internet of Things) technology, and heightened availability and fault tolerance.
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Top Growth Drivers in the Data Center Uninterruptable Power Supply (UPS) Industry: What's Accelerating the Market?
The data center uninterruptable power supply (UPS) market is set for expansion driven by the increasing adoption of cloud computing. This technology facilitates the use of computing services and resources via the internet, allowing users to handle, store, and process their data remotely instead of using personal computers or local servers. The popularity of cloud computing is on the rise due to its cost-effectiveness, scalability, and capacity to enable digital transformation and remote working arrangements. Data center uninterruptible power supplies (UPS) play a critical role in ensuring the seamless function of cloud computing, providing protection against power interruptions, maintaining data unity, and reducing the downtime of hosted services. For instance, per the December 2023 report by Eurostat, an intergovernmental organization based in Luxembourg, about 45.2% of EU businesses employed cloud computing services primarily for tasks such as file storage, email hosting, and various operational pursuits, marking a significant increase of 4.2% points since 2021. The services in high demand included email hosting (82.7%), file storage (68.0%), office software (66.3%), security applications (61.0%), finance or accounting software (51.6%), and enterprise database hosting (43.0%). Consequently, the burgeoning field of cloud computing is fueling the growth of the data center uninterruptable power supply (UPS) market.
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What Trends Will Shape the Data Center Uninterruptable Power Supply (UPS) Market Through 2029 and Beyond?
Large organizations present in the data center uninterruptable power supply (UPS) market are directing their efforts towards the creation of innovative products like compact UPS, aimed to provide dependable power to critical applications and compact data centers. Essentially, compact UPS is a small, portable gadget that supplies auxiliary power to electronic appliances during power interruptions or fluctuations, thereby safeguarding uninterrupted operations and protection against loss or damage of data. For example, in December 2023, the Ireland-based battery power management firm, Eaton Corporation plc, unveiled the Eaton 93T UPS. This compact solution has been designed keeping in mind the need for consistent power supply for critical spaces like server rooms and small data centers. This UPS system has been developed to optimize uptime while reducing total ownership costs, ensuring the continuity of business operations. The power capacity of the Eaton 93T UPS varies from 15 kVA to 80 kVA and is crafted for effortless assimilation with Eaton Brightlayer digital solutions, which improves performance management capabilities. It comes with enhanced operational and management attributes that utilize data insights for efficient surveillance, management, and augmentation of performance.
What Are the Main Segments in the Data Center Uninterruptable Power Supply (UPS) Market?
The data center uninterruptable power supply (UPS) market covered in this report is segmented -
1) By Component Type: Solution, Services
2) By Battery Technology: Lithium-Ion, Flywheel, VRLA (Valve Regulated Lead-Acid)
3) By Capacity: Less Than Or Equal To 500 kVA, 500 kVA-1000 kVA, More Than 1000 kVA
4) By Data Center Size: Small Data Centers, Medium Data Centers, Large Data Centers
5) By End Use Vertical: Banking And Financial Services, Manufacturing, Information Technology, Energy, Healthcare, Government, Entertainment And Media, Other End Use Verticals
Subsegments:
1) By Solution: Ups Systems (Single-Phase, Three-Phase), Battery Systems, Power Distribution Units (Pdus), Energy Storage Systems, Control Systems And Management Software
2) By Services: Installation Services, Maintenance And Support Services, Consulting Services, Battery Replacement And Recycling Services
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Which Top Companies are Driving Growth in the Data Center Uninterruptable Power Supply (UPS) Market?
Major companies operating in the data center uninterruptable power supply (UPS) market are Huawei Digital Power Technologies Co. Ltd., Mitsubishi Electric Corporation, Schneider Electric SE, ABB Ltd., Hewlett Packard Enterprise, Toshiba Corporation., Eaton Corporation, Emerson Electric Co., Delta Electronics Inc., KOHLER Uninterruptible Power Limited, Legrand S.A., Fuji Electric Co. Ltd., Vertiv Group Corp., LITE-ON Technology Corporation., SolarEdge Technologies Inc., Rittal Private Limited, Panduit Corporation, Piller UK Limited, Socomec Group, Kehua Hengsheng Co Ltd, Cyber Power Systems Inc., Hitachi Hi-Rel Power Electronics Private Limited, Borri S.p.A., Kstar New Energy Co Ltd, N1 Critical Technologies Inc.
Which Regions Will Dominate the Data Center Uninterruptable Power Supply (UPS) Market Through 2029?
North America was the largest region in the data center uninterruptable power supply (UPS) market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center uninterruptable power supply (UPS) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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