US Data Center UPS Market Size Likely to Reach at a CAGR of 5.3% By 2033

As per the current market research conducted by the CMI Team, the US Data Center UPS Market size is expected to record a CAGR of 5.3% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 2,272.6 Million. By 2033, the valuation is anticipated to reach USD 3,617.2 Million.

US Data Center UPS Market: Growth Factors and Dynamics

• Increasing Demand for Reliable Power: The proliferation of digital services, cloud computing, and IoT devices has exponentially increased data processing demands. This surge necessitates continuous, reliable power supply, thereby driving significant demand for advanced UPS systems in data centers to mitigate the risks of downtime and data loss.

• Focus on Energy Efficiency: Data center operators are increasingly prioritizing energy-efficient UPS solutions to manage operational costs and meet stringent environmental regulations. Modern UPS systems incorporate technologies such as high-efficiency designs, energy-saving modes, and smart monitoring capabilities to optimize power usage and reduce carbon footprints.

• Technological Advancements: Ongoing advancements in UPS technology include the development of modular, scalable designs that offer enhanced reliability, flexibility, and ease of maintenance. These innovations not only improve system efficiency and uptime but also support data centers in adapting to evolving workload demands and infrastructure scalability requirements.

• Rising Data Center Investments: Continuous investments in data center infrastructure are driven by the exponential growth in data generation and storage needs across various industries. This growth fuels the adoption of UPS systems as critical components to ensure uninterrupted operation and protect against potential disruptions, thereby supporting the robust expansion of the data center UPS market.

• Integration with Renewable Energy: The shift towards sustainability in data center operations has led to increased adoption of renewable energy sources such as solar and wind power. UPS systems are now being designed to integrate seamlessly with these fluctuating renewable energy outputs, ensuring stable and reliable power supply while reducing dependency on traditional fossil fuels.

• Emerging Edge Computing Requirements: The deployment of edge computing infrastructure, aimed at reducing latency and improving data processing speeds for IoT and AI applications, requires UPS solutions tailored to smaller, distributed data centers. These facilities demand UPS systems that offer compact footprints, high efficiency at partial loads, and robust remote management capabilities to ensure continuous operation and data integrity at the network edge.

US Data Center UPS Market: Partnership and Acquisitions

• In 2024, AGM Group Holdings Inc., a technology company, partnered with RED DOT ANALYTICS PTE. LTD. to build AI hyper-connected, GPU-driven data centers. This collaboration combines AGMH’s technology expertise with RDA’s AI services to develop advanced infrastructure supporting AI applications and workloads.

• In 2022, Schneider Electric launched the 5kW APC Smart-UPS Ultra, addressing hybrid IT challenges with EcoStruxure™ for remote monitoring and Lithium-ion batteries. It extends the range with enhanced management capabilities and is noted as the lightest single-phase 5kW UPS available.

• In 2022, Eaton Corporation acquired Royal Power Solutions, a manufacturer of high-precision electrical connectivity components based in the United States. This acquisition enhances Eaton’s portfolio and capabilities in delivering comprehensive electrical solutions across various industries.

Report Scope

US Data Center UPS Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the US Data Center UPS Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Supply Chain Disruptions: The pandemic caused disruptions in global supply chains, affecting the availability of UPS components and increasing lead times for equipment procurement, which delayed data center projects and installations.

• Shift to Remote Work and Digital Services: The rapid shift to remote work and increased reliance on digital services during the pandemic led to higher demands on data centers for processing, storage, and connectivity, highlighting the critical role of UPS systems in maintaining uninterrupted operations.

• Acceleration of Digital Transformation: Businesses accelerated their digital transformation initiatives post-pandemic, driving increased investments in data center infrastructure and UPS systems to support enhanced digital services and remote work capabilities.

• Focus on Business Continuity Planning: Organizations prioritized robust business continuity planning, including investments in resilient power infrastructure like UPS systems, to mitigate future disruptions and ensure uninterrupted service delivery.

• Adoption of Energy-Efficient Solutions: There is a growing emphasis on energy efficiency and sustainability in data center operations, leading to the adoption of energy-efficient UPS systems that reduce operational costs and environmental impact.

• Expansion of Edge Computing: The deployment of edge computing solutions accelerated post-pandemic to support distributed workforces and IoT applications, driving demand for UPS systems tailored to smaller, edge data center environments.

• Government Stimulus and Incentives: Government stimulus packages and incentives aimed at economic recovery supported investments in critical infrastructure projects, including data centers and UPS systems, stimulating market growth and expansion.

• Enhanced Focus on Cybersecurity: The increased digital reliance highlighted cybersecurity vulnerabilities, prompting heightened investments in UPS systems with integrated cybersecurity features to protect against potential cyber threats and ensure data integrity and confidentiality.

In conclusion, the COVID-19 pandemic has had a mixed impact on the US Data Center UPS Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the US Data Center UPS Market:

• Schneider Electric
• Eaton Corporation
• Vertiv Co.
• ABB Ltd.
• Delta Electronics Inc.
• Legrand SA (Raritan)
• Huawei Technologies Co. Ltd.
• Toshiba Corporation
• Riello UPS
• Mitsubishi Electric Corporation
• Socomec Group
• Cyber Power Systems (USA) Inc.
• Emerson Electric Co.
• Hitachi Hi-Rel Power Electronics Pvt. Ltd.
• Advanced Energy Industries Inc.
• Others

The US Data Center UPS Market is segmented as follows:

By Type

• Offline/Standby UPS
• Line-interactive UPS
• Online/Double-conversion UPS

By Component

• Solution
• Standby UPS
• Line Interactive UPS
• Online UPS
• Service
• Professional Service
• Managed Service
• Others

By Application

• Small Data Centers
• Medium Data Centers
• Large Data Centers

By End User

• IT and Telecom
• BFSI (Banking, Financial Services, and Insurance)
• Government
• Healthcare
• Energy
• Others