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Rise of Cloud and Colocation Data Centers Fuels the Need for Modular UPS Systems

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Advances in Electronics and Communication Devices Expand the Market for Online Uninterrupted Power Supplies, Finds Frost & Sullivan

With digital transformation across all industry sectors stoking demand for data centers, there has been a surge in modular uninterrupted power supply (UPS) systems in the range of up to 300 kVA. While cloud and colocation data centers are driving the above-200 kVA segment, the above-50 kVA segment is receiving a boost from Internet of Things (IoT) technology. The overall market is expected to grow from $9.22 billion in 2018 to $11.89 billion in 2025, at a compound annual growth rate (CAGR) of 3.7%, driven by demand from data centers, commercial, the public sector, and utilities.

Asia-Pacific is a key growth region for small power range UPS, with strong demand from China and India, followed by the emerging economies of the Middle East and developing countries of Africa and Latin America,” said Suba Arunkumar, Research Manager, Energy & Environment at Frost & Sullivan. “Meanwhile, the US and Western European countries will continue to dominate the above-100 kVA range due to opportunities in the data centers and backup segments that require lead-acid batteries (LABs).”

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Frost & Sullivan’s recent analysis, Global Uninterruptible Power Supplies Market, Forecast to 2025, examines the current competitive structure of the market and the ways in which it is likely to change. It assesses current and future trends in the segments of rotary and static, as well as single-phase and three-phase UPS systems. The geographic markets covered include North AmericaEuropeAsia-Pacific, and Rest-of-the-World.

“As demand is gradually shifting towards lithium-ion for certain applications, offering both lithium-ion and LAB product lines will give manufacturers a competitive edge,” noted Arunkumar. “Another important trend influencing the UPS market is the advent of smartphones, wearables, remote patient monitoring, and 3D printing. As these devices are sensitive to power fluctuations, there is a strong requirement for online UPS and power conditioners to protect them from current and voltage fluctuations.”

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Manufacturers will find additional revenue opportunities by:

  • Expanding in regions with high growth potential and setting up facilities and distributor chains that significantly reduce the supply chain costs.
  • Enhancing their technology and product portfolios as well as marketing their products globally.
  • Collaborating with local vendors and OEMs.
  • Offering a separate product line with lithium-ion batteries.
  • Developing a leaner, highly efficient UPS with a small footprint.

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