A report by Transparency Market Research envisages the global UPS market to peg a CAGR of 7.5% between 2017 and 2025, for the market to become worth US$9,881.9 mn by the end of 2025 from US$5,201.9 mn in 2016.
Majorly fuelling the global UPS market is the increasing frequency of power fluctuations and growth in the number of data centers and cloud storage utilization capacity. Natural causes, short circuits as well as manmade outages are the some of the key factors for power fluctuations that can cause equipment degradation over a period or instantaneous loss of data stored on the equipment. This necessitates power backup, especially in emerging economies that do not have reliable energy infrastructure.
At present, expansion of wireless internet connectivity and the incessant penetration of smartphones have led to generation of massive volumes of data thus leading to the need for mega capacity data centers. Data centers require continuous power supply to protect operational data, IT equipment and to keep cooling systems running.
Emerging economies such as China and India have emerged as preferred destinations for setting up data centers due to the advantage of reliable infrastructure at low costs. Global mobile service providers are constructing mega capacity data centers in these destinations to manage rapidly-increasing data traffic. As a result, Asia Pacific is emerging to be a key market for UPS for power backup needs of these establishments.
Lastly, advancements in UPS systems leading to the development of transformer-less UPS, lithium-ion technology and modular UPS are expected to positively influence the market’s growth.
Source: UPS Market (Application – Data Centre & Facility UPS, Industrial UPS, Marine UPS, Network, Server & Storage UPS, PC, and Workstation & Home UPS; kVA Range – Less than 5 kVA, 5.1-20 kVA , 20.1-60 kVA , 60.1-200 kVA , and Above 200 kVA ) – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 – 2025