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Assessment of Opportunities in the Gobal Data Center UPS Market, 2019 to 2024 - A CAGR of 5% is Anticipated - ResearchAndMarkets.com

February 25, 2019

DUBLIN--(BUSINESS WIRE)--Feb 25, 2019--The “Data Center UPS Market - Global Outlook and Forecast 2019-2024” report has been added to ResearchAndMarkets.com’s offering.

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 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 driven by the adoption of flywheel UPS technology with DRUPS systems. The growing need for battery monitoring products that provide facility operators with details of the maintenance requirements for UPS will fuel the growth of the global market.

Market Dynamics

The adoption of lithium-ion UPS systems is growing among colocation providers owing to the increasing CAPEX involved in operating VRLA-powered UPS Systems. Few colocations have installed flywheel UPS. However, the majority have opted for DRUPS systems with flywheel technology.

The adoption of fuel cell is a challenge to the market. It is because this installation would not require UPS systems, generators, and other power infrastructure, including local grid supply. The investment in fuel cells by colocation providers can be witnessed across countries or regions where the power cost is more than $12 cents per kWh.

Ineffective in operations of VRLA-based UPS systems has brought multiple innovations in the market. In the past three years, prominent vendors operating in the UPS market started providing lithium-ion UPS systems as an effective alternative to VRLA battery systems.

In 2018, the market witnessed entry of Nickel-Zinc UPS systems by ZincFive, based in the US and operating in China. According to ZincFive, Nickel-Zinc Battery are very effective than VRLA based systems and much safer compared to lithium-ion battery.

Data center automation identifies the maintenance requirements of power infrastructure to avoid operational failure. For example, UPS batteries are monitored for maintenance to avoid backup power failure during outages. The reduction in power consumption and wastage in modern data centers is achieved through end-to-end monitoring and automation of facilities.

Market Segmentation

This market research report includes a detailed segmentation of the market by systems, system capacity, tier standard, and geography. 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.

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.

The system capacity segment in the global data center UPS market is classified into <=500 kVA, 500 kVA1000 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.

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.

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 redundancy of Tier II data centers 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.

Market Segmentation by Systems

Market Segmentation by System Capacity

Market Segmentation by Tier Standard

Geography

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 data centers are some of the factors attributing to the growth of the APAC region in the global 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 to Systems will lead to the growth of the European region in the global data center UPS market.

Market Segmentation by Geography

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.

For more information about this report visit https://www.researchandmarkets.com/research/2tc3d6/assessment_of?w=4

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PUB: 02/25/2019 05:02 AM/DISC: 02/25/2019 05:02 AM

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