A market research report released by P&S Intelligence in May 2022 predicted that the data center UPS market would grow at a compound annual growth rate (CAGR) of 6.5% from 2021 to 2030, surpassing $10 095.5 million by 2021.
High global demand for data storage services, which would necessitate the founding of new data centers, driving market growth for the UPS systems market. Power cuts can seriously hinder smooth operations at data centers, causing data loss, corrupted files, and malfunctioning equipment. Such disruptions are highly costly to businesses with high-density cloud computing systems. Hence, UPS systems, which protect data centers from power surges and cuts, are expected to remain in high demand, to accommodate anticipated high global demand for big data solutions and data storage spaces.
Favourable Market Projections for UPS systems
P&S Intelligence’s report forecasted future demand for UPS systems based on prevailing market conditions in 2021. The report’s key findings are as summarized below:
Demand for up to 500-kVA UPS systems will grow at the highest CAGR of 8%, from 2021 to 2030. The fast growth of demand for these systems may be attributed to their wide usage in data centers of small and large organisations, providing short-term backup energy during power disruptions that protect companies’ data.
Market revenue for data centers made according to tier III standards reached $3 billion in 2021. In the immediate future, market revenue for these data centres is expected to remain high because most data centers are constructed to fit tier III standards, and are commonly used by firms of all sizes.
Since the IT sector is the major end user of data center UPS systems, and is projected to observe high growth rates, it will be a key driver of demand for effective computer-based data storage. Regionally, while North America had the largest revenue share in the data center UPS market in 2021 (due to the presence of major electrical companies and IT giants), the APAC market is projected to have the fastest growth in the near future. Favourable projections of the APAC market’s growth may be attributed to snowballing investments, increasing numbers of data storage facilities, and increasing acceptance of public and hybrid clouds by administrations within the Asia Pacific region.
The favorable market projections for UPS systems are ultimately dependent on the growing frequency of power outages and voltage spikes, which has occurred concurrently with global increases in data center traffic. While the US, host to 60% of data center firms globally, is currently one of the largest data center market investors, strong and growing demand for cloud services will likely drive strong future demand for UPS market systems around the world.
