Data Center Ups Market Will Grow at a Steady Rate of 7.3% CAGR from 2014 to 2020: Grand View Research, Inc.

Global data center UPS market is projected to exceed over USD 5.67 billion by 2020. This growth can be attributed to falling tolerance limits and interruptions in data transmissions. Besides, need to prevent loss of confidential data has subsequently augmented UPS installations in data centers. The market is expected to experience growth at CAGR of 7.3% on account of rising demand for CRM systems, ERP systems, file servers, data warehouses and cloud storage.

Product development through innovations exhibiting energy efficient and eco-friendly technologies have resulted in compensating for increasing power costs which are expected to propel growth over the forecast period. Portable UPS systems have gained widespread acceptance, particularly in small and medium businesses (SMBs), which is projected to drive the market. Increasing prominence of smart UPS systems owing to its capability of self-diagnosis and communication that considerably reduces troubleshooting time is anticipated to have a positive impact on the market. On a contrary, lack of product diversity among primary companies has hindered the product industry. Slowdown in semiconductor industry has subsequently affected the industry resulting in lack of inventory supply

Global data center UPS market by product, (USD Million), 2012 – 2020

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Small data center UPS systems constituted over 50.0% of the total revenue in 2013, and its growth can be attributed to increasing demand from SMBs, who prefer structuring their databases. Large data center UPS systems are anticipated to witness sizeable growth owing to organizations which aim at upgrading their data management systems and equipment over the forecast period.

North America dominated the market in 2013 which was majorly contributed by healthcare, insurance and financial services. France, UK, and Germany are expected to contribute considerably to the European revenue. UPS installations and connections are projected to experience significant growth in the next seven years in Asia

The market comprises of several eminent brands having experienced engineers for maintenance and proven testing and engineering divisions. In an attempt to expand globally and enter new markets, prominent players emphasize on setting up sales and service teams to gain competitive advantage.

Availability of flexible options offered by manufacturers that are aimed at increasing capacity by modifying software is expected to provide a competitive base for all the players in the industry. Sellers are anticipated to reintroduce and renew partnerships with flywheel suppliers for providing customers with efficient standby power alternatives. Key industry participants include Schneider Electric, Belkin International, Eaton, Clary, Emerson, General Electric, Toshiba and Gamatronic Electronic Industries

Acquisitions, strategic alliances, and mergers are key strategies being adopted by the companies to expand into newer marketplaces and grow globally. Manufacturers have been continuously emphasizing on improving the efficiency of these systems. As an instance, Chinese telecom network provider, Huawei, launched a modular data center UPS, in October 2014, claiming 97.0% efficiency. Other companies include Schneider Electric SA, Clary Corp., General Electric, Gamatronic Electronic Industries, Belkin International Inc., and Toshiba Corp.

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