North America to be the leading region in the data center UPS market: Revenue to hit USD 2.1 billion by 2022
The emergence of data centers as core computing hubs across enterprises has been a popular trend lately. The enterprises are focusing towards enabling centralized hosting services which smoothens the organizational operations. Adoption of cloud computing technology, concerns regarding the data loss, increasing power outages, and voltage fluctuations are factors likely to drive the data center UPS market size over the coming years.
According to a report on Data Center UPS Market by Global Market Insights, Inc., “the data center UPS market is projected to surpass USD 6.65 billion by 2022, at a CAGR of 7.4% over the period of 2015-2022”. Wide acceptance of cloud computing across enterprises and reduced tolerance with respect to data loss are key factors driving the growth of data center UPS industry, as per the report.
Asia Pacific data center UPS market size by product, 2012-2022 (USD Million)
With the growing trend of replacing localized data centers with the centralized model, there comes a lot of risk pertaining to the network infrastructure. For instance, a power outage may cause the failure of the entire network infrastructure. The companies are deploying the use of data center UPS on a large scale to keep the networks secure and safe, in turn boosting the data center UPS market share.
However, saturation in the semiconductor industry may pose a threat to the growth of this market. Electronic hubs like India and Taiwan are likely to be the most affected regions.
The North America is estimated to lead the global data center UPS system market with revenue expectations of USD 2.1 billion by 2022. The growth can be attributed to increasing demand for such systems from industries such as insurance, finance, and healthcare. The U.S. is estimated to be the major revenue pocket in this region.
The Asia Pacific data center UPS market, which is pegged to grow at a CAGR of 8.6 % over the period of 2015-2022, is estimated to surpass USD 1.7 billion by 2022. Huge adoption of cloud computing technology is likely to drive the regional growth over the coming timeframe. The Europe market is forecast to reach USD 1.68 billion by the end of 2022.
The data center UPS system can be deployed as Large, Small, or Medium UPS. Small data center UPS was dominant in 2014, owing to its huge demand in factory floors, medical imaging, server rooms, industrial environments, enterprise centers, and mid-tier & localized data centers. The small data center UPS market is expected to record a CAGR of 7% over the timeframe of 2015-2022.
Large data center UPS market is estimated to grow at a CAGR of 8.5%, exceeding USD 1 billion by 2022. Medium data center UPS market will also witness a significant surge over the coming years owing to its wide set of applications in government organizations, commercial infrastructure, cable handling junctions, hospitals, etc.
The industry is moderately competitive with top manufacturers contributing towards the majority of the market share. Key industry participants are Emerson Network Power, Schneider Electric, Eaton Corp, Belkin International, Inc., General Electric Industrial Solutions, Controlled Power Company, Gamatronic Electronic Industries Ltd., Toshiba, IntelliPower, Inc., Power Innovations International Inc, etc.
Written By : Shikha Sinha