This market research report on the global data center UPS market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by systems (VRLA UPS, flywheel UPS, and lithium-ion UPS), by system capacity (<=500 kVA, 500 kVA- 1000 kVA, and >1000 kVA), by tier standards (Tier I & II, Tier III, and Tier IV), and by geography (Americas, APAC, and EMEA).
The increasing amount of power fluctuation and power outages because of the instability of grid connectivity is fueling the demand in the global data center UPS market. These systems available in the market in the form of topologies such as standby UPS, line interactive UPS, and double conversion UPS systems. The growing rack power density and construction of multiple facilities campuses with a power capacity of over 100 MW will lead to the installation of N+N, 2N, and 2N+N redundant systems in the global market. Systems with capacity ranging from 500 kVA to 1,000 kVA systems generate higher revenue than other systems to support the critical IT and cooling load of the data center in the global market. The leading operators are laying higher emphasis on the monitoring of batteries because battery being the primary reason for service disruption in the data center. The adoption of flywheel UPS systems and lithium-ion batteries is growing in the market. Lithium-ion batteries are likely to increase significantly as its price will continue to decline during the forecast period. The installation of flywheel UPS systems can provide up to 20% savings in OPEX in the global data center UPS market. Digital Realty is a notable player in the market leading the adoption of lithium-ion batteries and has adopted these systems in the Boston and Sydney facilities in the market. Modular data center operator will promote lithium-ion UPS systems for deployment with a power capacity of less than 1 MW in the market. Moreover, the adoption of a single rack prefabricated data center solution will include single phase lithium-ion systems with a power capacity of less than 10 kVA and boost revenues in the global data center UPS market.
The emergence of nickel-zinc batteries and an increase in the adoption of 48V DC systems by cloud and colocation providers involved in the OCP community will give a significant boost the global market in the next five years. The installation of multiple systems across new facilities in Southeast Asia, Australia, and Latin America will create lucrative opportunities for leading vendors in the market. The global data center UPS market is estimated to reach revenues of approximately $5 billion by 2024, growing at a CAGR of around 5% during 2018-2024. The market research report also offers market size analysis in terms of power capacity (MW) during the forecast period.
The emergence of nickel-zinc battery-based systems will lead to multiple innovations in the global data center UPS market. Leading vendors are providing lithium-ion UPS systems as an effective alternative to VRLA battery systems in the worldwide market. In 2018, the market witnessed the entry of Nickel-Zinc UPS systems by ZincFive, based in the US. These systems are more effective than VRLA based systems and much safer compared to a lithium-ion battery in the market. The company tested its battery in a data center environment at the end of 2017 and introduced the product to the market in mid-2018.In September 2018, Quality Technology Services (QTS), among the leading colocation provider in the US had adopted Nickel-Zinc battery from ZincFive for its operations.ZincFive modular systems can support the capacity of up to 48kW, which can be placed inside the facility IT room to support up to six IT rack with a maximum capacity of 8 kW. These systems will improve the effectiveness of facilities and boost revenues in the global data center UPS market.
This market research report includes a detailed segmentation of the market by systems, system capacity, tier standard, and geography.
Data Center UPS Market – By Systems
Lithium-ion will continue to replace VRLA batteries among existing and new facilities in the global data center UPS market
The global data center UPS market by systems is segmented into VRLA UPS, flywheel UPS, and lithium-ion UPS. VRLA UPS dominated the global market share in 2018. These battery systems find applications in the data center environment and other major industries across the global market. These batteries are cost-effective solutions in facilities environment with an average life cycle of 5 years from the time of installation. VRLA batteries are classified as Gel Cell and Absorbed Glass Mat (AGM) based on the electrolyte. These systems need constant maintenance and service checks to avoid failure during grid outages in the global market. The increase in datacenter construction and the advent of cloud computing will continue to increase demand for VLRA systems in the market as they are cost-effective solutions. The VLRA battery systems contribute to over 90% of the revenues in the global data center UPS market. The development of flywheel and lithium-ion systems will, however, result in the decline of adoption of these systems in the market over the next five years.
The innovations and increase in acceptance of flywheel systems will create new avenues for the leading vendors operating in the global market. Factors such as reduced installation space, less weight, faster-charging cycle, high capacity support and service life, varied operational temperature, low OPEX, limit carbon emission, and reduced maintenance is driving the demand for lithium-ion systems in the global data center UPS market.
Data Center UPS Market – By System Capacity
Centralized UPS systems are expected to be replaced by rack/row-level UPS systems in the global data center UPS market
The system capacity segment in the global data center UPS market is classified into <=500 kVA, 500 kVA- 1000 kVA, and >1000 kVA. The >1,000 kVA systems are the fastest growing segment in the global market, at a CAGR of around 6% during the forecast period. The increasing number of facility operators offering a combination of systems of varied capacity to support a single facility or data hall as per the customer needs is fueling the growth of this segment in the global market. The increasing number of installations with centralized UPS systems are likely to support other support infrastructure such as cooling systems will contribute to the growing revenues in the global market. The installation of datacenter racks that can support power density of up to over 20 MW will increase the use of containerized UPS systems with a capacity of >1,000 kVA at the facility level in the global market. The use of these systems to support a data hall of over 1 MW capacity will continue to contribute to the growth of the global data center UPS market by 2024.
Facebook and Google use the open compute project (OCP) rack design that uses 48V DC UPS battery cabinet to achieve savings of up to 20%, where the only conversion is DC to DC to sub-components of servers such as CPUs, RAM, and hard disks in the market. The use of 500–1,000 kVA systems in the global data center UPS market will dominate during the forecast period.
Data Center UPS Market – By Tier Standard
Tier III datacenter will be involved in the adoption of 2N redundant UPS systems in the global data center UPS market
The global data center UPS market by tier standard categorized into Tier I & II, Tier III, and Tier IV. The Tier III segment occupied the largest market share in 2018, growing at a CAGR of approximately 4% during the forecast period. The growing need for redundant components to support mission-critical applications across facilities is fueling the growth of this segment in the global market. The increasing number of facilities designed with flexibility and built with minimum N+N redundancy across critical infrastructures such as PDUs and UPS systems will drive the demand for Tier III facilities in the global market. The increasing number of modular datacenter deployments in the developing nations also include minimum redundancy in power capacity to avoid power fluctuations and outages which is resulting in the growth of this market segment. New facilities with a minimum of N+1 redundancy and can be reconfigured with up to 2N+1 redundancy as the need arises and incorporation of flexible facility designs will drive the global data center UPS market.
The redundancy of Tier II datacenters is mostly N+1 for UPS infrastructure which is widely adopted in the global market. Hyperscale developers such as Facebook, Apple, Microsoft, and Google are constructing facilities of Tier IV standards and fueling demand in the global data center UPS market.
Data Center UPS Market – By Geography
The increase in the construction of hyperscale facilities by cloud and colocation providers across the APAC region will drive the global data center UPS market
The geographical segment in the global data center UPS market is divided into the Americas, APAC, and EMEA. APAC is the fastest growing region in the global market, at CAGR of over 8% during the forecast period. The increasing use of social media, high penetration of smartphones, increased adoption of public cloud and hybrid cloud services, and the requirement for enterprises to shift from a server room to datacenters are some of the factors attributing to the growth of the APAC region in the global market. The growing number of cloud service and global colocation providers investing in the APAC region will boost the revenues in the global market. Continual investments by AWS, Microsoft, Google, Baidu, Alibaba, and Apple will drive the demand for innovative infrastructure in the APAC market. The government initiative to digitalize economy will lead to the increasing deployment of facilities and is contributing to the growth of the data center market in India. The introduction of government regulations to reduce carbon emissions from facilities will drive the demand for energy efficient systems in the global data center UPS market.
The US is witnessing an increase in the adoption of lithium-ion UPS systems among facilities and is fueling the growth of the global market. Increasing investments by colocation providers such as Equinix, Digital Realty, Interxion, NTT Communications, Data4, CyrusOne, Aruba, STT GDC (VIRTUS), Hydro66, and T-Systems will lead to the growth of the European region in the global data center UPS market.
Key regions profiled in the report are:
Key Vendor Analysis
The global data center UPS market is witnessing the development of systems with more than 95% efficiency to enable high availability service offerings by the vendors. The increasing number of players with a strong presence in a specific country and have partnerships with various service providers in the region will intensify the competition in the market. Almost all the vendors are offering lithium-ion UPS systems at an affordable price to increase their customer base and boost their market share. The focus on promoting the use of lithium-ion batteries will boost the profitability in the global data center UPS market.
The major vendors in the global data center UPS market are:
Other prominent vendors in the global data center UPS market include AEG Power Solutions, AMETEK Powervar, Borri Group, Controlled Power Company, Cyber Power Systems, Delta Group, Fuji Electric, Gamatronic (SolarEdge), Hitachi Hi-Rel Power Electronics, HPE, Kohler (Uninterruptible Power Supplies Ltd), Legrand, Mitsubishi, Riello UPS, Rittal, Shenzhen KSTAR Science and Technology, Socomec, Toshiba, Tripp Lite, VYCON, and ZincFive.
Key market insights include
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