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Data Centers and Emerging Markets to Ensure Future Growth Potential
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Even though the global UPS industry is highly mature, it still offers considerable growth opportunities in different market segments such as technology, end user vertical, power range and geography. This report provides in depth insights in to the total UPS market and various high growth segments with in the total market. The Global UPS industry also has a highly competitive landscape where one of the key challenges for a UPS manufacturer is to differentiate itself from its competitors. UPS manufacturers need to keep up with new technologies and industry trends and come up with UPS solutions that cater to the growing needs of businesses. With the demand for power steadily increasing, energy savings is a top challenge for end users of UPS systems, especially from those end-user industries handling critical loads, such as a data center. In the data center segment, the primary focus is improving power usage effectiveness (PUE) while being flexible enough to cope with rising energy bills, environmental constraints, and the increase in power density. Scalability and flexibility are the other top requirements. Given the high demand for modular UPS systems and the intensity of competition, UPS manufacturers will have to quickly come up with advanced modular concepts that will allow further flexibility and modularity.Data centers account for the largest share of the global UPS revenues; this is also the segment that is expected to grow the fastest over the forecast period. The global data center market maintained its growth streak through the pandemic and will continue on a higher growth trajectory in the coming years. Key factors that will drive the market during this period are, increasing demand from hyperscale data centres; high levels of investment pouring in; significant increase in data creation and consumption; high volumes of data traffic fuelled by emerging technologies such as 5G, Edge, IoT, along with AI/ML developments; ever-increasing enterprise outsourcing requirements; accelerated adoption of hybrid-cloud; and of course, high degree of data centre activity in emerging economies.From a technology standpoint, modular UPS will grow at a faster rate than that of monolithic UPS. The global market for modular UPS is still in the growth stage, with a lot of potential for penetration in the future. The awareness level on modular technology has been increasing steadily over the past five years. Currently, modular UPS accounts for around 13% of the total UPS market.Asia-Pacific is the biggest market for modular UPS systems, followed by North America and Europe. China will continue being the biggest and fastest-growing end-user market during the forecast period.Author: Gautham Gnanajothi
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