by Brianna Crandall — May 16, 2016 — Global technology research and advisory company Technavio recently released a market research report on data center uninterruptible power supply (UPS) market in the United States. UPS systems have become an integral part of modern data centers due to the rising number of power outages and voltage fluctuations.
The construction of new data center facilities and the renovation of existing ones in the United States is predicted to aid market growth in the next four years. Technavio’s analysts estimate the data center UPS market in the USA to grow at a compound annual growth rate (CAGR) of around 4% between 2016 and 2020.
Breakdown by UPS installations
The market research report includes a detailed breakdown and analysis of the U.S. data center UPS market by the position of UPS installations, namely centralized UPS, zone UPS, and rackmount UPS systems.
“Product innovations are expected to boost market growth during the forecast period. The topological requirements of UPS systems depend on the power needs of the facility. An increase in rack / row-based UPS will likely occur during the forecast period. Also, multimode UPS systems will gain increased traction among enterprise data center consumers in the coming years,” predicts Rakesh Panda, lead analyst, ICT, Technavio Research.
Centralized UPS systems are large UPS systems that can provide up to 3 MW power supply during outages in data. Large data centers mainly adopt these UPS systems, depending on the maximum power requirement of these facilities.
These UPS systems can cost up to several millions of dollars and will be sufficient to power the entire facility, including other power and cooling infrastructure. Since data center construction in the USA is likely to include mega data center facilities, the adoption of these UPS systems is expected to continue to grow in terms of revenue until 2020.
Key players
The key players in the data center UPS market in the United States include ABB, Eaton, Emerson Network Power, GE Industrial Solutions, Schneider Electric, and Tripp Lite. This market is highly fragmented because of the presence of numerous small and large vendors.
The providers in the market compete on the basis of price, quality, innovation, service, reputation, distribution, and promotion. The high vendor competition has led to an increased number of mergers and acquisitions (M&As), wherein smaller entities are being acquired by, or are being merged with, major players.
A more detailed analysis is available in the Technavio report, Data Center UPS Market in US 2016-2020, available for purchase from the Technavio Web site. The company says it can customize reports by other regions and specific segments upon request.