NEW YORK, July 29, 2024 /PRNewswire/ — The global UPS battery for data center market size is estimated to grow by USD 2.12 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 6.59% during the forecast period. Increase in adoption of modular ups systems is driving market growth, with a trend towards growth in data center construction. However, consolidation of data centers poses a challenge. Key market players include Amara Raja Group, C and D Technologies Inc., Chaowei Power Holdings Ltd., Delta Electronics Inc., EaglePicher Technologies LLC, East Penn Manufacturing Co. Inc., Eaton Corp. Plc, EnerSys, ETERNITY TECHNOLOGIES FZ LLC, EverExceed Corp., Exide Industries Ltd., FIAMM Energy Technology Spa, First National Battery, Fullriver Battery, GS Yuasa International Ltd., HBL Power Systems Ltd., Kokam Co. Ltd., Schneider Electric SE, TotalEnergies SE, and Vertiv Holdings Co..

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Market Driver

The global shift towards digitalization and the resulting surge in IT infrastructure demand, driven by factors such as increased internet usage, online banking transactions, connected devices, digitization of services, and cloud computing, have led to a boom in data center construction. Notable investments include Bulk Infrastructure Holding AS’s expansion projects in Norway, T5 Data Centers’ 54 MW+ expansion in Oregon for Flexential, and Kao Data’s new 10MW facility in the UK. These projects highlight the growing importance of reliable power infrastructure, such as UPS systems, which are being adopted with N+1 and 2N redundancy. This trend is expected to fuel market growth, as data center expansion continues and the demand for cloud-based services increases. UPS systems, a crucial component of data center infrastructure, will therefore experience significant demand and revenue growth during the forecast period. 

The Ups Battery market for Data Centers is witnessing significant trends with key players like Archer Data Center, AQ Compute, Scala Data Centers, Echelon Data Centres, Cirrus Data Services, and Amazon Web Services adopting advanced Rack-level UPS solutions. Rack power density is increasing, leading to the demand for electrical inputs and Rack PDU solutions. HPC data centers and colocation service providers require 2N power redundancy and DRUPS systems for uninterrupted power supply. Lithium-ion UPS systems, Flywheel, VRLA, and Gel Cell batteries are popular due to their efficiency and low-technical components. Modular UPS systems, such as 20 kVA modular systems, are preferred for their scalability and emergency power system support. Data hall operators face challenges like power outages, unplanned outages, and severe damage due to inconsistent ambient temperatures. Cloud-based services, remote working, and 5G technology are driving the need for reliable power systems. Electricity prices and green facilities are also factors influencing the market. Stand-alone UPS systems and grid power are essential for emergency power backup. 

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Market Challenges

Data center consolidation is a prevalent trend in the IT sector, with companies prioritizing the reduction of facility size or merging multiple facilities. The primary motivators behind this trend include cost savings through reduced capital expenditures (CAPEX) and operating expenses (OPEX), enhanced security, improved data resiliency and scalability, and increased data recovery efforts and protective measures. Consolidation and workload migration to the cloud result in a smaller data center footprint, posing a challenge to the UPS battery market for data centers. This market contraction may negatively impact growth during the forecast period.Data centers require reliable and efficient power backup solutions to ensure business continuity. Traditional VRLA-based UPS systems, such as Lead Acid and Nickel Cadmium, have been the go-to choice for many data center operators. However, challenges like unplanned outages, severe damage from frequent discharge cycles, and excessive charge current have led to the adoption of modern UPS systems. Modular UPS systems, including 20 kVA modular systems, offer advantages like 2N power redundancy and lower technical components. Lithium-ion UPS systems are gaining popularity due to their longer life cycle, higher efficiency, and lower environmental impact. Data center operators face challenges with electricity prices, especially in colocation facilities. Green facilities and renewable energy sources are becoming essential to reduce operational costs and carbon footprint. Power outages, inconsistent ambient temperatures, and overcharging are common issues in data centers. Cloud computing technologies, network services, automation, and other IT infrastructures rely on UPS systems, PDUs, generators, transfer switches, and switchgear to ensure business continuity. Emergency power systems, fiber optic lines, satellites, telecom broadband, servers, storage, and network equipment all require reliable power backup. UPS systems play a crucial role in maintaining the availability of these critical systems. Major data center providers like Digital Realty, Switch, Colt DCS, CoreSite Realty, and Iron Mountain invest in advanced UPS systems to ensure business continuity and mitigate risks. The future of UPS systems lies in lithium-ion-based technologies, offering higher efficiency, longer life cycle, and lower environmental impact.

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Segment Overview 

This ups battery for data center market report extensively covers market segmentation by  

Application 1.1 Tier 3 data center1.2 Tier 1 and 2 data center1.3 Tier 4 data centerProduct 2.1 Lead acid battery2.2 Lithium-ion batteryGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 Tier 3 data center-  Tier 3 data centers are crucial infrastructure for businesses seeking high availability and reliability. These data centers feature redundant components and multiple distribution paths, allowing for planned detachment of redundant components without disrupting operations. Tier 3 data centers require dual power inputs to ensure concurrent maintainability, ensuring minimal downtime. However, they are susceptible to unplanned disruptions, offering a 99.98% uptime and 1.6 hours of annual downtime. The market for UPS batteries in data centers is poised for growth, particularly in the tier 3 segment. As more organizations upgrade their facilities to tier 3 standards, the demand for 2N redundant power systems and N+1 cooling redundancy will increase. Notable developments include VNG Corp.’s new carrier-neutral tier 3 data center in Ho Chi Minh City and Airtel Nigeria’s tier 3 data center in Lagos State. These expansions and upgrades will drive the demand for UPS batteries in the data center market.

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The global Data Center UPS Market is experiencing rapid growth due to increasing demand for uninterrupted power supply in data centers. Similarly, the global Data Center Power Market is expanding as data centers seek reliable power management solutions to handle rising data volumes. Additionally, the global UPS Battery Market is witnessing significant growth, driven by the need for advanced battery technologies to support UPS systems in data centers. These markets are essential for ensuring data center efficiency, reliability, and uptime in an era of growing digital transformation and data dependency.

Research Analysis

Modular UPS systems have gained significant traction in the data center market due to their flexibility and scalability. These systems allow data centers to efficiently manage power distribution and ensure uninterrupted power supply, which is crucial for the reliable operation of IT infrastructure. Green facilities, powered by renewable energy sources, are increasingly adopting modular UPS systems to minimize their carbon footprint and reduce electricity costs. Colocation facilities and cloud computing technologies also rely heavily on these systems to provide 2N power redundancy, ensuring business continuity and data protection. Modular UPS systems come in various sizes, including 20 kVA systems, and use different battery technologies such as Lead Acid, Nickel Cadmium, and Lithium-ion-based UPS systems. Automation and network services are also essential components of modern data centers, and modular UPS systems can be integrated with these technologies to optimize energy usage and improve overall efficiency. Fiber optic lines and satellites are used to connect data centers to the outside world, and modular UPS systems help ensure uninterrupted connectivity by providing backup power during power outages. Electricity prices continue to rise, making the energy efficiency and cost savings offered by modular UPS systems increasingly valuable for data center operators.

Market Research Overview

Ups Battery for Data Center Market: Modular UPS systems are gaining popularity in data centers due to their scalability and efficiency. Green facilities prioritize electricity prices and energy efficiency, making modular UPS systems an ideal solution for colocation facilities. These systems offer 2N power redundancy, ensuring uninterrupted power supply during power outages or severe damage. Lithium-ion UPS systems, such as 20 kVA modular systems, are increasingly used due to their high energy density and longer lifespan. Emergency power systems rely on grid power as a primary source but require backup power systems like UPS and generators with transfer switches and switchgear for unplanned outages. Data center operators face challenges like inconsistent ambient temperatures, overcharging, frequent discharge cycles, and excessive charge current. Cloud computing technologies, network services, automation, and modular UPS systems help mitigate these issues. Lead Acid, Nickel Cadmium, and Lithium-ion-based UPS systems are commonly used. Fiber optic lines, satellites, telecom broadband, IT infrastructures, servers, storage, network equipment, PDUs, and generators are integral to data centers. VRLA-based UPS systems are a low-technical component, while DRUPS systems offer stand-alone power backup. Cloud-based services, remote working, 5G technology, and various UPS system types like Flywheel, VRLA, Gel Cell, and Plate types cater to diverse data center needs.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ApplicationTier 3 Data CenterTier 1 And 2 Data CenterTier 4 Data CenterProductLead Acid BatteryLithium-ion BatteryGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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SOURCE Technavio