Global Data Center UPS Market is expected to reach USD 5.67 billion by 2020, according to a new study by Grand View Research, Inc. Falling tolerance limits regarding disconnections in data transmissions and data loss have consequently increased UPS installations in data centers. Increased demand from ERP systems, CRM systems, cloud storage, file servers and data warehouses is expected to drive data center UPS market growth. Growing power costs coupled with an increase in eco-friendly initiatives has given rise to the incorporation of green and energy efficient technologies into product development.
Smart UPS systems capable of self-diagnosis and communication have gained prominence as they help in considerably reducing troubleshooting time. Portable UPS systems have gained popularity, particularly in SMBs, which is further expected to boost the data center UPS market. Lack of product differentiation among leading players has hampered the data center UPS industry to a certain degree. The industry has been hit by lack of inventory supply as a consequence of semiconductor market slowdown.
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Further key findings from the study suggest:
- Small data center UPS systems accounted for over 50% of the overall market revenue in 2013, which can be attributed to high demand from SMBs who prefer building their own data warehouses. Large data center UPS systems are expected to witness considerable growth over the forecast period as organizations look to up-scale their equipment.
- North America led the data center UPS market in 2013; financial services, healthcare, and insurance being the major contributors. Germany, France and the UK are expected to contribute significantly to the European revenue. UPS installations in Asia Pacific are projected to witness considerable growth over the forecast period
- The market is moderately consolidated with the presence of several well-known brands having proven engineering & testing divisions, and providing engineers for maintenance. Leading players have emphasized on setting up sales and service teams in untapped locations for gaining competitive advantage.
- Data center UPS manufacturers have started offering flexibility options by enabling an option to increase capacity via software modifications to remain competitive. Vendors are expected to renew partnerships with flywheel vendors for providing customers with greener standby power options. Key industry participants include Belkin International, Clary, Eaton, Emerson, Gamatronic Electronic Industries, General Electric, Schneider Electric and Toshiba.
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About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, the company offers market intelligence studies ensuring relevant and fact-based research across a range of industries including technology, chemicals, materials, healthcare and energy.
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