Data Center UPS Market Will Reach USD 10,096.5 Million by 2030
In 2022, the data center UPS market was worth around USD 5,729.0 million, and it is projected to advance at a 6.5% CAGR from 2022 to 2030, hitting USD 10,096.5 million by 2030, according to P&S Intelligence.
The growth can be ascribed to the formation of new data centers, as the need for data storage is strongly growing among all the sectors worldwide, mainly to offer big data solutions. Mainly because the UPS systems shield data centers from power flows and power outages, their need is growing.
In the coming few years, the requirement for up to 500-kVA UPS systems will raise at the highest CAGR, of approximately 8%. This can be credited to the fact that they are extensively utilized in data centers of small to large establishments, to offer short-term backup power during a power cut or voltage spikes.
In 2021, the tier III data centers category led the industry, with a revenue of approximately USD 3 billion. the category is projected to maintain its dominance in the future as well. This is mainly due to the majority of data centers being constructed with tier III needs and tier III services are extensively utilized by rising and large businesses.
Furthermore, there are numerous ongoing data center projects throughout the globe, that fall under this category.
The largest end-user of data center UPS solutions in the IT sector. Also, the IT category is projected to experience the highest growth in the coming few years. Topmost IT businesses are reliant on cloud computing systems and data analytics, having a huge requirement to store and protect the information in data centers.
To accomplish business targets, the businesses accept data center UPS solutions that guarantee consistent power supply. Microsoft, Google, and Amazon are some of the main companies that hold more than half of the main data centers, and significantly boost the development of the industry.
North America generated the largest revenue share in the market in 2021. This can be credited to the existence of key market players, including Eaton Corporation, ABB Ltd., and Schneider Electric, and the continent has the major concentration of data centers worldwide.
In the coming few years, the APAC industry is estimated to witness the fastest growth. This is mainly because of the growing investments, increasing data center amenities, and increasing adoption of public and hybrid clouds by numerous organizations, in the region.