Large cloud and colocation providers are increasing sales of high-end UPSs as they continue to expand and build gigantic data centers. According to IHS Markit, the installed base of three-phase UPS systems with an output of more than 500 kVA grew by 5 percent worldwide between 2016 and 2017. In fact, UPS’s global revenue increased 1.6 percent to $7.44 billion in 2016, and preliminary data suggests that revenue increased by approximately 3 percent in 2017. (Source)
This new market dynamics is forcing UPS providers to adapt. As customer requirements have changed, manufacturers have redesigned their UPS products and accelerated their manufacturing processes to meet customer demands for faster delivery. Because customers demand only what they need and demand scalability when needed, infrastructure is becoming more and more on-demand.
The big trends:
- High-end UPS products for large data centers will continue to be the fastest growing segment of the market.
- However, the lower end of the market is expected to recover. UPS systems in the 10.1 to 100 kVA range will stabilize and grow in the coming years as more and more companies adopt the hybrid cloud model and require smaller UPSs for their remaining local workloads.
- Many companies have moved a lot of workloads to the cloud, but still have to manage internally remaining business-critical applications, such as old ERP and manufacturing applications that cannot be easily migrated to the cloud. With fewer internal workloads, these companies need smaller internal data centers with new IT infrastructure that include new UPS systems for the smaller sized rooms.