Data Center UPS Market By Type (Online/Double Conversion UPS, Line-Interactive UPS, Offline/Standby UPS); By Capacity (Less than 500 kVA, 500–1,000 kVA, Above 1,000 kVA); By Battery Type (Lead-Acid Battery, Lithium-Ion Battery, Nickel-Cadmium Battery, Flywheel UPS); By Industry Vertical (IT & Telecom, Banking, Financial Services, and Insurance [BFSI], Healthcare, Government & Defense, Retail & E-commerce, Energy & Utilities); By Geography, Segment revenue estimation, Forecast, 2024–2032.

The data center ups market was worth USD 5.5 billion in 2023 and will be worth USD 9.2 billion by 2030, growing at a CAGR of 7.1% during the forecast period.

 

The Data Center UPS is primarily influenced by the growth of data centers worldwide because of the increasing incorporation of virtualization, cloud processing, Artificial Intelligence, IoT, big data, and data analytics. With the global data center traffic projected to reach over 20 zettabytes per year by 2030, there is a need for efficient power backup systems that will ensure uninterrupted operations. For instance, hyperscale data centers like AWS the Microsoft Azure are incorporating sophisticated UPS systems to mitigate the effects of power disruptions and their impacts on uptime, which is critical for these companies. One of them is Schneider Electric’s new lithium-ion UPS system for data center application that provides up to 97% efficiency, up to three times longer battery life than lead-acid batteries and needs less maintenance. Such advancements have direction towards the development in the market to increase power and reliability for contemporary data centers.

 

The Data Center UPS Market is poised for substantial growth as the emerging geographic markets of the data centers continue to grow, with hyperscale data centers projected to be more than 1000 by 2025. This rise is attributed to the rise in cloud computing, artificial intelligence processing, and edge computing, where power has to be available and perform optimally. For instance, edge data centers that are smaller and closer to the users require compact and efficient UPS systems for decentralized architecture. One recent development is the release of Vertiv’s new modular UPS for edge and modular data centers with scalability and efficiency for fast deployment and growth. As data center operators are focusing on realizing both energy efficiency and reliability, the need for superior, flexible UPS systems is most likely to grow in the future, opening up great potential in the market.

 

 

Market Segmentation

By Type:

• Online/Double Conversion UPS

• Line-Interactive UPS

• Offline/Standby UPS

 

By Capacity:

• Less than 500 kVA

• 500–1,000 kVA

• Above 1,000 kVA

 

By Battery Type:

• Lead-Acid Battery

• Lithium-Ion Battery

• Nickel-Cadmium Battery

• Flywheel UPS

 

By Industry Vertical:

• IT & Telecom

• Banking, Financial Services, and Insurance (BFSI)

• Healthcare

• Government & Defense

• Retail & E-commerce

• Energy & Utilities

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

Segment Analysis for the Data Center UPS Market

By Type:

Leading Segment: Online/Double Conversion UPS

Online/Double Conversion UPS holds the largest market share, accounting for nearly 60% of the total market due to its high reliability and ability to provide continuous power without switching time. This UPS type is widely adopted in hyperscale and colocation data centers, where uninterrupted power supply is critical. Companies like Schneider Electric and Eaton provide advanced double-conversion UPS solutions for large-scale data centers. The segment is expected to grow at a CAGR of 7.5% during the forecast period.

Fastest-Growing Segment: Line-Interactive UPS

Line-Interactive UPS is witnessing the fastest growth, with a CAGR of 9%, driven by demand from small and medium-scale data centers. These UPS systems provide better voltage regulation than standby UPS while being more cost-effective than online UPS. The expansion of edge data centers and micro data centers in regions like North America and Europe is fueling the adoption of line-interactive UPS systems. For example, Vertiv has been offering innovative line-interactive UPS solutions to support modular data centers.

 

By Capacity:

Leading Segment: Above 1,000 kVA

The above 1,000 kVA segment holds a market share of around 50%, as hyperscale and large-scale data centers require high-capacity power backup solutions. Companies like Google, AWS, and Microsoft invest in high-capacity UPS systems to support AI-driven and cloud computing workloads. The increasing power consumption of data centers, which can exceed 100 MW per facility, is a key driver for this segment. The segment is growing at a CAGR of 7.8%.

Fastest-Growing Segment: 500–1,000 kVA

The 500–1,000 kVA segment is growing at a CAGR of 9.2%, driven by the increasing number of medium-sized data centers and colocation facilities. These data centers are expanding rapidly in emerging markets like India, Brazil & Southeast Asia, where businesses are shifting to digital operations. Companies like ABB & Mitsubishi Electric are introducing UPS systems in this range to cater to growing mid-sized data centers.

 

By Battery Type:

Leading Segment: Lead-Acid Battery

Lead-acid batteries dominate the market with a 55% market share, as they remain a cost-effective and reliable energy storage solution for data centers. They are widely used in UPS systems due to their low initial investment & well-established supply chain. Despite advancements in lithium-ion batteries, lead-acid batteries are still preferred in low and medium-scale data centers. Companies like Exide Technologies and EnerSys lead in manufacturing UPS-integrated lead-acid batteries. The segment is expected to grow at a CAGR of 6.5%.

Fastest-Growing Segment: Lithium-Ion Battery

Lithium-ion batteries are growing at a CAGR of 12%, fueled by their longer lifespan, lower maintenance, and higher energy efficiency. Hyperscale & colocation data centers are rapidly adopting lithium-ion UPS solutions to reduce energy consumption and footprint. For instance, Google has transitioned to lithium-ion batteries in its data centers to enhance energy efficiency and sustainability. Additionally, the declining cost of lithium-ion batteries is accelerating adoption, making them the fastest-growing battery type in the market.

 

By Industry Vertical:

Leading Segment: IT & Telecom

The IT & Telecom sector leads with a 40% market share, as data centers are critical for cloud services, 5G deployment & hyperscale computing. Large technology companies, including Amazon, Microsoft & IBM, are investing heavily in advanced UPS systems to ensure zero downtime & uninterrupted power supply. The rise of AI-driven workloads & edge computing further solidifies this segment’s dominance. Growth in this sector is projected at a CAGR of 8%.

Fastest-Growing Segment: Healthcare

The healthcare sector is growing at a CAGR of 11%, driven by the rapid adoption of electronic health records (EHRs), telemedicine, and AI-powered diagnostics. Data centers in hospitals and research institutions require highly reliable UPS systems to prevent power failures that could disrupt critical medical services. The Mayo Clinic & Cleveland Clinic have significantly invested in UPS-integrated backup power systems to ensure data security & 24/7 operation.

 

By Region:

Leading Region: North America

North America holds a 40% market share, driven by the presence of hyperscale data centers, cloud service providers, and tech giants. The U.S. leads the region, with states like Virginia, Texas, and California being major hubs for data centers. The U.S. Department of Energy reports that data centers in the country consume nearly 2% of the total electricity generated, highlighting the demand for robust UPS solutions. The region is projected to grow at a CAGR of 7.5%.

Fastest-Growing Region: Asia Pacific

Asia Pacific is the fastest-growing region, with a CAGR of 10.8%, driven by rapid digitization, government initiatives, and cloud computing expansion in countries like China, India, and Japan. Alibaba Cloud, Tencent, and Reliance Jio are heavily investing in high-density data centers that require advanced UPS systems. The Indian government’s Data Center Policy and China’s push for AI-driven infrastructure are fueling the demand for high-capacity and energy-efficient UPS solutions in the region.

 

Key Players

• Schneider Electric

• Eaton Corporation

• Vertiv Holdings Co.

• ABB Ltd.

• Mitsubishi Electric Corporation

• Huawei Technologies Co., Ltd.

• Toshiba Corporation

• Delta Electronics, Inc.

• Legrand

• Siemens AG

 

Data Center UPS Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 5.5 billion
Revenue Forecast in 2030	USD 9.2 billion
Overall Growth Rate	CAGR of 7.1%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Type, By Capacity, By Battery Type, By Industry Vertical, By Region
By Type	Online/Double Conversion UPS, Line-Interactive UPS, Offline/Standby UPS
By Capacity	Less than 500 kVA, 500–1,000 kVA, Above 1,000 kVA
By Battery Type	Lead-Acid Battery, Lithium-Ion Battery, Nickel-Cadmium Battery, Flywheel UPS
By Industry Vertical	IT & Telecom, Banking, Financial Services, and Insurance (BFSI), Healthcare, Government & Defense, Retail & E-commerce, Energy & Utilities
By Region	North America, Europe, Asia Pacific, LAMEA
Country Scope	US, Mexico, Canada, Germany, UK, France, China, Japan, India, etc.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.