Industry 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 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.
Slowdown in semiconductor sector is expected to obstruct data center
UPS market growth over the coming years. Several U.S. based
semiconductor makers with global presence have voiced concerns of a
broad-based slow down 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 from 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 approximatey 28% share
and have strong presence in the data center UPS industry. They address
customer needs through innovative stand-by 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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