Modular UPS - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2024 - 2029

The Modular UPS Market size is estimated at USD 5.67 billion in 2024, and is expected to reach USD 10.65 billion by 2029, growing at a CAGR of 10.38% during the forecast period (2024-2029).

The rising need for uninterrupted operations and heightened reliance on data centers could propel sector expansion.

Key Highlights

• The modular uninterruptible power supply (UPS) is a resilient and adaptable power protection system that regulates UPS performance. The modules are hot-swappable and automatically recognized when connected. The product's adoption is expected to be strengthened by its robust implementation of zero and dependable power downtime. Modular UPS systems are becoming more prevalent among companies that require a dependable power source for their essential infrastructure.
• A modular uninterruptible power supply (UPS) system is constructed by integrating multiple individual modules that collaborate harmoniously. Each UPS module has all the necessary components, such as a rectifier, inverter, battery converter, static bypass switch, and back-feed protection. These modular UPS systems are typically housed in racks arranged in a stacked configuration. This sector is experiencing rapid growth, and renowned UPS manufacturers like Eaton, Riello, and APC provide top-notch modular UPS systems that can be tailored to meet diverse specifications.
• The primary benefits of a modular uninterruptible power supply (UPS) system lie in its capacity for scalable expansion and decreased maintenance expenses. Hyperscale data centers and colocation providers employ modular UPS technology, employing various architectures to minimize operational costs and maintain redundant capacity. Many organizations opt for smaller modules supporting 10-kilovolt amperes to 50 kVA, as N+1 designs offer cost-effective redundancy, superior loading, and efficiency compared to multiple parallel UPS systems. Meanwhile, 2N designs ensure precise load matching.
• Moreover, the redundancy package is a significant advantage of Modular UPS systems. In the event of a module failure, the redundant module within the rack can seamlessly fulfill the power requirements. Unlike standalone UPS systems, the need for redundant power protection throughout the entire system is eliminated by implementing an early warning system. One or two modules can be designated as redundant to compensate for the failure of another module. This N+1 redundancy is a fundamental feature of modular systems and represents a critical benefit over traditional standalone UPS systems.
• Modular systems offer a simplified and more manageable approach to maintenance. The modules are designed to be hot-swappable, allowing for seamless removal, replacement, and testing while the system remains operational. Modular UPS systems have power capacities ranging from 10-100 kVA, 100-250 kVA, 215 kVA, and 500 kVA and above. These systems are widely utilized in diverse sectors, including data centers, industries, telecommunications, commercial, BFSI, government, and other verticals.
• Several vendors are constantly investing in significant product launches, which are acting as a major driver of the market's growth. For instance, in April 2023, Schneider Electric unveiled the Easy UPS 3-Phase Modular, a resilient uninterruptible power supply (UPS) that safeguards vital loads and incorporates third-party validated Live Swap capability. The Easy UPS 3-Phase Modular is accessible in a range of 50-250 kW capacity, featuring an N+1 scalable setup, and is compatible with the EcoStruxure framework, providing remote monitoring services.
• Moroever, the initial installation expenses associated with modular UPS systems typically exceed those of conventional centralized UPS solutions. Although the modular approach provides scalability and adaptability, the upfront capital investment may dissuade budget-conscious clients, particularly those in smaller enterprises or organizations with limited financial resources.
• The global outbreak of COVID-19 had a profound impact on the supply chain and production of the market under study in early 2020. The pandemic forced numerous IT companies to cease operations, resulting in a decreased demand for UPS systems. However, amidst the pandemic, the modular UPS market is expected to experience growth in the forecast period due to the rising popularity of colocation and cloud services, along with increased usage of cloud applications across various industries.

Modular UPS Market Trends

IT and Telecommunications is Expected to Drive the Market

• The colocation sector has witnessed substantial expansion in recent years, primarily attributed to the growing dependence of numerous enterprises on large-scale applications that employ the resources of multiple clouds. Consequently, these enterprises anticipate their colocation providers to provide superior service levels to consolidate their infrastructure and integrate additional cloud services as required. This trend is generating fresh prospects in the modular UPS market.
• In recent years, the global expansion of Internet usage, the implementation of government regulations for data protection, and the growing need for various services have compelled cloud providers to establish data centers worldwide. The rising adoption of big data and IoT technologies in sectors like BFSI, healthcare, government, entertainment & media, education, and others will further drive the demand for such facilities. To ensure uninterrupted and reliable power supply during power outages, data centers are increasingly relying on modular uninterruptible power supply (UPS) systems. Consequently, the increasing number of data centers is expected to contribute to the modular UPS market's growth significantly.
• An increasing number of data centers is driving the growth of the modular uninterruptible power supply (UPS) market. These data centers, both existing and upcoming, are adopting modular UPS systems to achieve higher standardization, flexibility, and expandability. Due to international cloud service providers and a thriving tech startup, Berlin has emerged as a critical digital hub. The German government is also actively working towards improving the country's digital economy. By 2025, they plan to invest USD 3.09 billion in AI research and development. These factors will further boost the demand for colocation services and drive the growth of the modular UPS market.
• In March 2023, Maincubes declared that it had obtained the necessary building permit to construct its BER01 data center on the Berlin GoWest campus in Germany, with a completion date set for 2025. The BER01 data center will adhere to the "Blue Angel" requirements of the German Federal Environment Agency, as well as being German TUV-tested and ISO-certified. The company aims to assist its clients in reducing the environmental impact of their IT hardware while increasing energy savings and cost-effectiveness due to its cutting-edge technology and state-of-the-art architecture. Such investments are expected to create opportunities for the Modular UPS Market.
• The manufacturers of modular uninterruptible power supplies (UPS) are working on creating innovative products that align with the future infrastructure development trend and cater to the demands of modular data centers. For example, Huawei has recently introduced two new additions to its Smart Modular Data Center and SmartLi UPS series. These additions include the FusionModule2000 6.0, a modular solution for small to medium-sized data centers, and the UPS 2000-H, a compact power supply solution that operates on SmartLi Mini. These products aim to provide channel partners with a competitive advantage in the market while promoting cost-effective green digitalization for businesses.
• Furthermore, The increasing dependence on extensive applications and cloud services has led to a significant rise in the need for colocation services, generating fresh prospects for the modular UPS market. These pivotal systems are instrumental in ensuring uninterrupted operations and averting data loss, hardware impairment, and monetary setbacks, making them an indispensable investment for data center providers.

North America Holds the Largest Share in Modular UPS Market

• North America is estimated to be the leading region in the modular UPS market, driven by high demand from the I.T. and telecommunications, healthcare, and manufacturing sectors. These organizations have large operational bases, creating a massive demand for data centers and colocation services, increasing the demand for modular UPS solutions.
• The North American region is projected to retain its status as the largest market for modular uninterruptible power supply (UPS) solutions due to the rising investments by companies and the escalating demand for data centers and colocation services. The increasing number of data centers further fuels the growth of the modular UPS market. According to CloudScene, the United States alone had 5,375 data centers as of September 2023, the highest number globally. These substantial capabilities will bolster investments and propel the Modular UPS market.
• For instance, in January 2023, Amazon.com Inc.'s cloud division declared its intention to invest USD 35 billion in new data centers in Virginia by 2040, highlighting its resolve to maintain its lead over competitors Microsoft Corp. and Alphabet Inc. The investments, spread across various locations, are expected to generate approximately 1,000 employment opportunities in Virginia. Virginia is the most crucial hub for Amazon Web Services, with numerous data centers powering applications for clients throughout the Eastern U.S. These investments are anticipated to create substantial market demand.
• Modular UPS systems represent a flexible and scalable solution for healthcare facilities seeking to safeguard their critical equipment against the impact of power disruptions. The provision of modular UPS systems to upcoming and existing healthcare facilities enables them to achieve higher standardization, greater flexibility, and expandability. Consequently, the increasing investments, government initiatives, and vendor developments in the region's healthcare facilities are expected to present significant market opportunities.
• For instance, The Government of Canada, through Budget 2023-A Made-in-Canada Plan, is making strategic investments to bolster the middle class, foster an affordable economy, and ensure the well-being of Canadians. Budget 2023 emphasizes the government's commitment to allocate nearly USD 200 billion over 10 years to fortify Canada's universal public health care system. This allocation includes over USD 5 billion, designated explicitly for Nova Scotia, aimed at facilitating timely access to family health teams or providers, establishing a sustainable health workforce, and improving accessibility to high-quality mental health services. These governmental initiatives to enhance healthcare facilities will underscore the necessity for Uninterruptible Power Supplies (UPS), which are crucial in providing reliable backup power to support essential patient care, critical medical equipment, emergency lighting, and data center functionality.
• Modular Uninterruptible Power Supply (UPS) systems have the potential to mitigate downtime and its associated expenses in the manufacturing realm by offering dependable backup power during unforeseen circumstances. The burgeoning manufacturing sector and escalating investments are anticipated to propel market growth. As per the Bureau of Economic Analysis (BEA), the manufacturing industry contributed USD 2.79 trillion to the United States' gross domestic product (GDP) in 2022, representing a marginal upturn from the preceding year's 2.5 trillion U.S. dollars.

Modular UPS Industry Overview

The market for uninterruptible power supply (UPS) systems is highly fragmented, with a large number of players including ABB Ltd, Emerson Network Power, Delta Power Solutions, Huawei Technologies Co. Ltd, Schneider Electric SE, General Electric, Gamatronic Electronic Industries Ltd, and others. This implies that the market concentration is low.

In November 2022, Huawei launched two new products at its Sanyapo Campus in China. The first is FusionModule2000 6.0, which is a modular data center solution that is suitable for small- to medium-sized data centers. The second product is the UPS2000-H, which is a compact power supply solution that SmartLi Mini powers.

In December 2022, Vertiv introduced its latest product, the Vertiv Liebert APM Plus. This is a high-density, modular, and transformer-free UPS system that offers high efficiency. It has an eco-mode efficiency of up to 99 percent and a double conversion mode efficiency of up to 97 percent. The Liebert APM Plus is now available in India and is offered in a power output range of 50 to 500 kW.

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