Global Data Center UPS Market Overview
The key driver impacting the data center UPS market is the growing trend of virtualization, and cloud computing has subsequently given rise to the number of data centers globally. Data center globally consumes around 205 terawatt-hours (TWh) in 2018, or 1 percent of global electricity use according to the Energy Innovation. As per the U.S. department of energy, the world's largest data centers can each contain many tens of thousands of IT devices and require more than 100 megawatts (MW) of power capacity which is enough to power around 80,000 houses of U.S.. This creates a need to control inappropriate surge in data center power consumption and to prevent losses occurring due to power outages, especially in developing and underdeveloped economies. This leads to high adoption of UPS installations by several organizations globally. Moreover, growing adoption of cloud computing services and elevated need for uninterrupted power to guarantee efficient operations in financial institutions, banks, and technology industries contributes to the data center UPS market growth in the coming years.
According to Value Market Research, the global data center UPS market size was valued at around USD 5675 million in 2020 and is estimated to grow at a CAGR of about 7.25% during the forecast period 2021 to 2027.
The rapidly growing data related services and data traffic leads to the constant expansion of the global data center thus likely to augment the data center UPS demand in the forecast period. For instance, As per IEA, the need for digital services and data is likely to continue its exponential rise in the coming years, with global internet traffic anticipated to double by the end of 2022 and reach 4.2 zettabytes per year (4.2 trillion gigabytes). global IP traffic—the quantity of data traversing the internet—increased more than ten-fold, while global data center storage capacity increased by a factor of 25 in parallel. However, the slowdown in the semiconductor industry may hamper the market in the long run. Also, the Rising cost for raw materials and skilled labor negatively impacted the market. The current industry trends, such rapidly growing smartphone penetration and appearance of advanced technologies, such as IoT and big data, cloud are expected to offer several lucrative market opportunities for the key players.
The Data center UPS market is vast, with many local and global players. The Data center UPS market is extensive, with many regional and international players. The key market leaders follow numerous strategies to climb their market status, such as acquisitions, extending product base, contracts, expanding product portfolio, amalgamation, product upgrades to increase their market share worldwide. For instance, in November 2015, General Electric Electrical Systems, a data center UPS vendor acquired the power & grid businesses segment of Alstom SA for around USD 13.67 billion. The combination of the business has helped the company to expand its global capability, installed base, and focus on core industrial growth. The important players studied in the report include Schneider Electric, Gamatronic Electronic Industries Ltd., General Electric, Power Innovations International, Inc. and Borri S.p.A.
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In this research report, the data center UPS market is segmented by product and region.
Analysis by Product:
By product, the report is categorized into small data center UPS, medium data center UPS, and large data center UPS. The Small Data Center UPS segment dominates the product segment with over 50% in the forecast period. It is due to the increase in demand from small and medium enterprises as small data centers are best suited for the requirements of small and medium-sized businesses (SMBs). Moreover, the growing number of small and medium enterprises across the globe contributes to the small data center UPS segment growth in the forecast period.
Analysis by Region:
In the regional outlook of the global data center UPS market, the North America region dominates globally with a 30% market share in the forecast period. It is due to the rising technological development and expanding Financial services, healthcare, and insurance industries in the U.S. and Canada which are prime users of data center UPS. Moreover, growing preference for high availability computing, companies are obliged to address their data center footprint and other challenges to enhance their assets contributed to tremendous market growth across North America.
Market Segmentation covered in the Report:
By Product
- Small Data Center UPS
- Medium Data Center UPS
- Large Data Center UPS
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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