Global data center UPS market size is estimated to reach USD 5.7 billion by 2020, as per a new research report by Radiant Insights, Inc. Declining tolerance levels pertaining to data loss along with amplifying acceptance of cloud computing is likely to boost global demand over the forecast period.
Small data center UPS market was the leading segment and was valued USD 2.1 billion in 2014. It is expected to observe significant gains, with estimates of USD 3.2 billion by 2020, at a CAGR of 6.8%. It is widely used in application areas such as enterprise data centers, server rooms, factory floors, industrial environments, medical imaging and localized & mid-tier data centers. This has boosted the global demand over the forecast period.
Power outages are a regular phenomenon, which makes UPS installations a necessity in data centers to ensure smooth functioning of equipment. Use of ultra-miniature components in servers, storage systems and network devices make them vulnerable to falter and fail under power conditions which were easily withstood by earlier generation equipment. Lack of inventory supply due to slowdown of the semiconductor industry is expected to pose a challenge to the industry growth.
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Key report insights suggest:
• Global data center UPS market was valued USD 3.7 billion in 2014, with estimation of USD 5.7 billion by 2020, growing at 7.3% from 2014 to 2020
• Global demand for medium data center UPS was USD 975.6 million in 2013 which is probable to achieve USD 1.6 billion by 2020, growing at a CAGR of 7.5% from 2014 to 2020. This is mostly usage in cable handling stations, hospitals, government, commercial organizations and universities which in turn has spurred the demand. Large product segment is expected to witness the fastest growth and reach USD 859.2 million by 2020.
• North America dominates the regional demand with industry share of 34.12% in 2014. Increasing need from end-use industries is likely to support the demand growth over the forecast period. European region is expected reach 1.6 billion by 2020, at a CAGR of 6.2% up to 2020.
• Data center UPS market share is moderately concentrated and consists of top three manufacturers accounting for more than 50% of industry share in 2013. Major participants in this industry include Eaton, Emerson, Ametek Inc., ABB Ltd, Delta Electronics Inc, Mitsubishi Electric, General Electric Co., Siemens and Schneider Electric S.A. among others.
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Global Data Center UPS Product Overview (Revenue, USD Million, 2012 – 2020):
• Medium data center
• Large data center
• Small data center
Global Data Center UPS Regional Overview (Revenue, USD Million, 2012 – 2020):
• North America
• Asia Pacific
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