Data Center UPS Market Analysis: Key Growth Factors 2030

The global data center uninterruptible power supply (UPS) market is poised for robust growth in the coming years, driven by the surging demand for contactless payment solutions and the ever-expanding digital landscape. In a post-pandemic world where remote work and digital transactions have become the norm, data centers play a pivotal role in supporting this digital transformation.

The COVID-19 pandemic accelerated the need for cloud technology, facilitating remote work and connectivity. Major companies and government agencies swiftly moved to the cloud or adopted hybrid IT strategies to adapt to these changes. Consequently, the demand for data centers has continued to surge, with hyperscale giants like Amazon, Apple, Alibaba, Google, and Microsoft expanding their data center footprints globally.

One of the driving forces behind the growth of the data center UPS market is the necessity for reliable power supply to sustain the rapid increase in contactless payments. As online and mobile banking become increasingly prevalent, data center UPS systems ensure uninterrupted access for consumers and the seamless functioning of trading equipment within large-scale data centers operated by financial institutions.

Governments worldwide are also promoting digital payments as a means to enhance transparency, increase tax revenue, improve financial inclusion, and provide new economic opportunities. Initiatives like those in India have significantly increased the percentage of adults with bank accounts, thanks to the accessibility of digital payments through mobile devices.

Media and Entertainment Industry Offers a Strong Impetus to Data Center UPS Market

The media and entertainment sector is expected to be the fastest-growing segment of the data center UPS market in the coming years. With the shift towards digital content consumption, streaming services have gained immense popularity. Video-on-demand services, in particular, have revolutionized content distribution and revenue models, necessitating uninterrupted services provided by UPS systems.

Millennials, who spend more time streaming content than watching traditional television, are a significant consumer base for these services. This shift in consumer behavior has presented both opportunities and challenges for traditional broadcasters, further driving the need for UPS systems.

Increased Use of Data Center UPS to Drive Growth of North America Data Center UPS Market

North America, particularly the United States, is the largest user of data center UPS and is expected to experience rapid growth in the global market. Factors contributing to this growth include the expansion of data center infrastructure, increased investment in modular data centers in tier-2 cities, and the need to mitigate the impact of natural disasters.

The United States susceptibility to natural disasters, such as power outages, has led to a growing demand for UPS systems to ensure data center operations remain uninterrupted during these events. The countrys vast geographical expanse and diverse time zones further highlight the need for data center expansion and UPS systems.

The COVID-19 pandemic accelerated the digital transformation in the United States, leading to increased cloud infrastructure investment. Cloud computing services, known for scalability and remote operations, have become essential across various industries. This surge in data center expansion and cloud adoption has elevated the significance of data center UPS systems, emphasizing their role in achieving optimal power usage efficiency (PUE) ratios.

Global Data Center UPS Market: Competitive Landscape

In April 2022, ABB introduced new high-reliability and high-availability lithium-ion battery systems for UPS solutions, catering to data centers, medical facilities, offices, banks, schools, and other public buildings. Similarly, ABB introduced ABB Ability for data center automation and management in August 2020, in collaboration with Intel DCM.

Key players in the data center UPS market include ABB Ltd., Clary Corporation, AEG Power Solutions, Power Innovations International Inc., Belkin International Inc., Huawei Technologies Co., Ltd., Delta Electronics Inc., Eaton Corporation, Brainasoft, General Electric Company, Intellipower Inc., Legrand, Panduit Corporation, Shenzhen Kstar Science & Technology Co., Ltd, Schneider Electric SE, Mitsubishi Electric Corporation, Socomec, Toshiba Corporation, Vertiv Co., and Xiamen Kehua Hengsheng Co., Ltd.

As the digital era continues to evolve, the data center UPS market is set to play a vital role in ensuring the seamless operation of critical digital infrastructure, supporting the growth of contactless payments, and facilitating the expansion of the media and entertainment industry.

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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