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A recent study by Radiant Insights, Inc. estimates the worldwide data center UPS market at more than USD 5 billion by 2020. Today’s organizations deal with massive amounts of data and cannot risk losing them because of power cuts and related issues.  

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High demand for UPS solutions from cloud storage, CRM (Customer Relationship Management) systems, ERP (Enterprise Resource Planning) systems, data warehouses, and file servers will fuel the data center UPS market in the coming years. Lower tolerance in relation to data loss and data transmission interruptions is also driving market demand. Other factors contributing to expansion include rising adoption of SaaS – Software as a Service, online gaming, and mobile computing services.

The major market inhibitor is sluggish technological advancements due to economic downturn. Lack of product differentiation is another restraint. A slowly expanding semiconductor industry has resulted in the inconsistent availability of inventory for data center UPS systems.  

Radiant Insights segregates the data center UPS market into products, and regions. The main products include small data centers, medium data centers, and large data centers. The rated capacities of the aforementioned products are 20kVA – 200 kVA, 200.1 kVA – 500 kVA, and more than 500 kVA respectively.

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Small data centers, with more than 49% revenues, led the market in 2013. This may be attributed to high demand from small and medium businesses constructing their data warehouses. Small data centers are commonly used in medical imaging, server rooms, industrial environments, etc. Medium and large data centers are expected to grow with small and medium sized organizations scaling up their operations.

The key regional segments of the data center UPS market are North America, Europe, Asia Pacific, and ROW – rest of the world. North America was the leading region in 2013. Majority of its demand comes from the healthcare, financial services, and insurance sectors. France, U.K., and Germany will make significant contributions to the European market.

Main competitors in the data center UPS market are Schneider Electric SA, General Electric, Toshiba Corporation, Emerson Network Power Inc., Belkin International Inc., Eaton Corporation, and Gamatronic Electronic Industries. Mergers, acquisitions, alliances, and partnerships are the primary strategies of these players to make market presence.

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