A concise overview of Data Center UPS Market, North America to make significant contributions toward the global industry revenue

Data Center Ups Market driven by growing trend of virtualization, and cloud computing. This trend has fueled the rise in the number of UPS installations for data centers in SMBs and large enterprises which has allowed these organizations to use power efficiently and effectively. These systems provide continuous power supply to the data centers and protect them against power interferences. In addition, a major driver of the data center UPS market is the growing usage of online services such as Amazon Prime, Netflix and Hulu coupled with the growth of data center colocation market.
The deployment of data centers has been growing with the robust expansion of the tech space and the subsequent rise in data usage. The exponential adoption of technologies such as cloud computing, Internet of Things (IoT) and machine learning as well as the upsurge in the usage of online services such as Amazon Prime and Netflix has generated the demand for continual speed, reliability and security. In consequence, this has led to data center UPS market witnessing a significant boost. In fact, as per statistics, data center UPS industry is estimated to grow at a CAGR of more than 3% over 2017-2024.
Renovation of existing data centers and manufacturing of new facilities will aid the data center UPS market growth over the coming years. Effective backup power systems have become critical for modern data centers owing rise in the amount of voltage fluctuations and power outages. These systems need regular maintenance and check-up which acts as a key challenge for deployment of the systems. Lack of dedicated and skilled personnel in companies to manage the systems is a major factor hindering the data center UPS market growth.
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The increased adoption of IoT across several applications such as BFSI, healthcare, manufacturing, telecom & IT has generated a demand for data center UPS market which provide enhanced efficiency through reduced energy consumption. The industry is witnessing a shift towards data center colocation, as colocation services help simplify several processes. Companies implementing and using colocation services are relying on the vendors to handle intricate facility systems, such as IT setup and hardware upgrades without having to concern about the data center facility-related issues thereby driving the colocation demand.
North America, the hub for tech advancements, accounted for close to 30% of the overall data center UPS market share in 2016, driven by rapid expansion of the manufacturing, IT & telecom, entertainment, and healthcare sectors. Furthermore, data center UPS market companies have been striving to come up with innovations on the home ground so as to increase the momentum of the regional industry.
For instance, Fuji Electric Corp Of America has recently come up with their latest UPS system - the UPS7300WX-T3U, which is apparently a transformer-less UPS that can withstand an explicit load and environmental condition of the data center. The system utilizes Fuji Electric's patented RB -IGBT Technology to deliver up to 97.5% efficiency and is likely to heavily impact the product landscape of North America data center UPS industry.
Some of the major companies operating in the industry include Mitsubishi Electric, Ametek Inc., General Electric Co., ABB Ltd., Schneider Electric S.A., Emerson Corporation, Eaton Corporation, Delta Electronics Inc, and Siemens AG among others. Several companies are trying to capture the data center UPS market with a customized product portfolio, which is helping them gain high market share. The industry is moving towards consolidation on a global level with companies looking to expand in previously untapped locations.