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.
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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.
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.
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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.
Hexa Research is a market research and consulting organization, offering industry reports, custom research and consulting services to a host of key industries across the globe. We offer comprehensive business intelligence in the form of industry reports which help our clients obtain clarity about their business environment and enable them to undertake strategic growth initiatives.
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