Data Center UPS Market Share and Trends

Data Center UPS Market in US 2016- 2024

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The global data center UPS market size is anticipated to surpass USD 6 billion by 2024. The global market is said to experience a stable growth on account of the rising adoption levels of UPS solutions in different businesses to counteract falling tolerance levels pertaining to disconnections in data transmission and data loss. Growing demands from major application segments such as Customer Relationship Management (CRM) systems, cloud storage, application servers, Enterprise Resource Planning (ERP) systems, data warehouses, etc. are also projected to boost the demand from 2016 to 2024.

Increasing cloud computing implementation along with the sensitive & omnipresent data requirements has promoted the data center UPS installations. Other aspects helping the market growth are high-performance computing, augmented adoption levels of Software as a Service (SaaS), online gaming & media streaming etc. The usage of handy UPS systems has gained importance, which is further projected to spur the data center UPS market growth. However, strong competition and the lack of end-product differentiation are likely to hinder the market growth.

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The global market is categorized as products and regions. The products sector is further segregated into small (20-200 kVA), medium (200.1-500 kVA), and large (500+ kVA) data centers. The small data centers segment is said to dominate the global market since they suffice the needs of small & medium-scale businesses (SMBs). The small data center UPS sector dominated the market in 2013 occupying half of the overall revenue. It is further expected to dominate the market over the forecast period. The large and medium data center UPS sectors are also expected to experience high growth.

Regionally, North America was the dominant regional data center UPS market in 2015 and it is further projected to experience a considerable growth in the near future. The United Kingdom, Germany, and France are likely to occupy significant market revenue in the Europe region. The Asia-Pacific region is also estimated to experience high growth over the next few years.

The major market players include Clary Corp.; Emerson Electric Co.; Belkin International Inc.; Schneider Electric SA, Eaton Corp.; General Electric; Gamatronic Electronic Industries; and Toshiba Corp. All such players have undertaken measures in order to enhance their market share through inorganic growth, resulting in steady market growth.

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Data Center UPS Market Size Is Expected To Exceed Over USD 5.7 Billion By 2020

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Data Center UPSIndustry Overview

Global data center UPS market size is expected to exceed over USD 5.7 billion by 2020, growing at 7.3% from 2014 to 2020. Diminishing tolerance limits pertaining to data loss coupled with increased adoption of cloud computing is anticipated to drive demand growth over the coming years. Power outages can prove to be costly irrespective of their duration; even short outages cause a considerable amount of damage.

It is supposed that the U.S. economy loses up to USD 550 billion annually due to power outages and other disturbances. Large data centers were valued USD 500 million in 2014 and is likely to attain over USD 850 million by 2020, growing at CAGR of 7% over next few years. The industry has been substantially boosted by the eager acceptance of cloud servers, which pack more power into smaller spaces.

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To address growing demand for cloud computing, data center UPS manufacturers have geared up to provide models with higher efficiency, lower total cost of ownership, and invest in developing the reliable technology. In several developing countries, power outages are a regular phenomenon, which makes installations a necessity in data centers to ensure smooth functioning of equipment.

The slowdown in semiconductor sector is expected to obstruct data center UPS market growth over the coming years. Several U.S. based semiconductor makers with the global presence have voiced concerns of a broad-based slowdown in markets including network equipment in regions ranging from Asia to Europe. The weakness is centered in China, which serves as an electronics hub for many finished products to be shipped worldwide.

Product Overview

Small data center leads the industry and accounted close to 55% of the total share in 2014, with gains estimated at over 6% during the forecast period. Increasing usage in application areas such as server rooms, factory floors, enterprise data centers, industrial environments, medical imaging and localized & mid-tier data centers has spurred the global demand.

Medium data centers are expected to observe high growth owing to mounting usage in diverse areas including cable handling stations, universities, hospitals, government and commercial organizations.

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Regional Overview

North America data center UPS market was valued over USD 1.3 billion in 2014. It is expected to reach USD 1.9 billion by 2020 at a CAGR of over 6% during the forecast period. Increasing demand for insurance, financial services, and healthcare sectors have spurred the demand growth in this region. Asia Pacific was anticipated to reach USD 1.7 billion by 2020, with gains estimated of over 8% from 2014 to 2020. Rising acceptance of computing services to optimize the assets is predicted to spur the demand in this region over the next few years.

Europe was valued over USD 1.1 billion in 2014 and is likely to attain USD 1.6 billion by 2020. Growing demand for reliable power in data centers is expected to be the key driving force for the regional industry over the next six years.

Competitive Market Share

The global data center UPS market share is moderately competitive, with the top three major players accounted for more than 50% of the total industry share in 2013. Eaton accounted for approximately 28% share and have a strong presence in the data center UPS industry. They address customer needs through innovative standby power solutions that run in parallel with current industry trends. Other key companies include Emerson, ABB Ltd, Ametek Inc., Delta Electronics Inc, General Electric Co., Mitsubishi Electric, Schneider Electric S.A. and Siemens among others.

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