Modular UPS Market Size, Share & Industry Analysis, By Capacity (Below 1.5 kVA, 1.5 kVA to 5 kVA, 5.1 kVA to 10 kVA, 10.1 kVA to 200 kVA, and Above 200 kVA), By Topology (Standby UPS, Line Interactive UPS, and Double Conversion Online UPS), By Phase (Single Phase and Three Phase), By End-user (Data Center, IT & Telecommunication, Healthcare, Industrial, BFSI, Utility, Energy, and Others), and Regional Forecast, 2022-2029

The global Modular UPS market size was valued at USD 1.32 billion in 2021 and is projected to grow from USD 1.41 billion in 2022 to USD 2.60 billion by 2029, exhibiting a CAGR of 9.2% during the forecast period. North America dominated the global market with a share of 36.36% in 2021. The global modular UPS market is set for faster growth, mainly due to the rising complexity of IT ecosystems, and increasing investments in data center facilities worldwide. Businesses are expected to focus on modular UPS installations to ensure steady operations, scale with changing infrastructure needs, and meet sustainability goals.

The growing demand for zero power downtime drives industry expansion. This factor increases the dependence on continuous power supplies and reliability. A stable and reliable power source is required in the event of a power outage or loss of primary energy. The Asia-Pacific modular UPS market is expected to grow significantly, driven by strong investments in infrastructure and technology adoption in India, China, and Southeast Asian countries. India's "Make in India" initiative, for example, promotes local manufacturing of IT and power infrastructure, supporting market expansion.

Modular UPS offers flexible and redundant power protection as the modular concept gives one the flexibility to adjust the performance of the UPS to meet one’s power needs. Individual modules are hot-swappable and connected modules are automatically recognized. The system can be upgraded within a few minutes while running. Load distribution is automated within all system modules, enabling modular (n + x) redundancy, and can also be used to increase the load. The "n" represents the space filled with the battery and the "x" represents the remaining space. The above factors and benefits are the main factors driving the growth of this market. 

COVID-19 IMPACT

Supply Chain Disruptions and Manufacturing Delays of Modular UPS Hampered Market Progress During the Pandemic

Due to the global blockade, the COVID-19 pandemic has brought business continuity challenges to various industries such as construction, real estate, IT, healthcare, and manufacturing. It affects the supply chain, such as import/export control, according to the policies of local governments and the impact on future industries. This factor is negatively impacting the growth rate of the market.

The global COVID-19 pandemic has been unprecedented and staggering, with Modular UPS experiencing lower-than-anticipated across all regions compared to pre-pandemic levels. Based on our analysis, the global Modular UPS market exhibited a decline of -5.9% in 2020 as compared to 2019.

The demand for UPS systems from enterprises is estimated to be negative throughout 2020, particularly in energy, retail, transportation, IT, and government sectors. COVID-19 is expected to impact the market growth significantly. The Modular UPS market analysis faces challenges due to supply chain disruptions and logistics issues during COVID-19.

Following the pandemic, the market demand is expected to be positively impacted by increased digitization as manufacturers integrate new technologies, including the Internet of Things (IoT), cloud computing and analytics, and AI and machine learning into their production facilities throughout their operations.

LATEST TRENDS

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Growing Dependence on Data Centers May Foster Market Growth

Companies in all industries are experiencing demand for cloud computing, hyperscale data centers, and extensive colocation facilities. They started using digital transformation. For example, in May 2020, Microsoft opened its first data center in New Zealand to help businesses build digital capabilities. Building a new data center is expected to increase the demand for modular systems in New Zealand. In recent years, hyperscalers and large colocation providers have rapidly expanded their data center space to increase revenue. The expanding use of cloud computing services, AI, and IoT is driving demand for reliable energy solutions. Data centers and IT enterprises are increasingly incorporating modular UPS systems to safeguard uninterrupted operations. 

The expansion of hyperscale data centers worldwide is increasing the need for scalable modular Uninterruptible Power Supply (UPS) systems. Major companies like Amazon and Microsoft are heavily investing in these facilities, focusing on scalability, efficiency, and redundancy. For instance, Microsoft plans to allocate $80 billion in fiscal year 2025 to build data centers designed to handle artificial intelligence workloads, significantly boosting the adoption of modular UPS systems

During the COVID-19 pandemic, despite a decline in enterprise data center infrastructure, there has been growth in hyper scale data center infrastructure, surging the demand for high-end Modular UPS systems that can provide scalable and reliable backup power. It is one way to compensate for the loss caused by the loss of primary power. It is possible to use an online UPS to handle various power supply issues without interrupting the overall operation. Several market players are launching affordable, high-quality power technologies to help businesses manage their operations.

More providers are adding AI and machine learning features to modular UPS systems. Real-time analytics, predictive maintenance, and improved power efficiency help businesses lower operating expenses and boost system reliability. This trend drives clear competitive advantage

The growing demand for eco-friendly solutions is shaping market trends, leading manufacturers to incorporate energy-efficient technologies into modular Uninterruptible Power Supply (UPS) systems. Companies like Schneider Electric have introduced sustainable models, such as the APC Smart-UPS Modular Ultra, which offers a compact design and utilizes Lithium-ion batteries to enhance energy efficiency and reduce environmental impact.

DRIVING FACTORS

Increasing Demand for Reliable and Zero Power Downtime to Fuel Market Growth

Enterprises from all sectors are undergoing digitalization which has led to the reliance on electronic devices to access and collect information about their business processes, thus increasing dependency on reliable and continuous power supplies. If there is power loss owing to power failure or loss, the enterprises cannot run business processes; subsequently, there must be an assured and reliable power supply to overcome those issues. An UPS provides continuity and reliability during power outages, saving ongoing effort and protecting the hardware. Despite the high demand in the IT industry, microprocessor and PC-based systems are used in many industrial processes. They are fragile and sensitive to power outages. It can store work in progress, protect industry hardware, and ensure continuity and reliability during power outages. A power outage that lasts just a few seconds can disrupt industrial processes and cause significant economic losses. Therefore, most industries are beginning to adopt advanced and modular UPS systems.

Growing Investments in Data Centers and Round the Clock Network Usage

In the current market scenario, market is driven primarily by the least visible but most critical components of modern information technology and communication infrastructure. This factor includes data centers, which often require 100% uptime. Demand for modular uninterruptible power supplies is driven primarily by the increasing number of new data centers and lower ownership costs. A significant move toward cloud computing could create data storage and security requirements. These data centers often require continuous power and service, thus increasing the global demand for modular UPS in data centers.

An easy-to-implement and highly scalable model also drives the market. The system can be upgraded within just a few minutes while running. The load distribution is automated within all system modules, providing modular (n+x) redundancy that can also be used for load expansion where "n" indicates the space filled with the battery and "x" indicates the remaining space.

RESTRAINING FACTORS

High Installation and Maintenance Cost May Hamper Market Growth

The key restraint for the global market is the high capital expenditure (CAPEX) and operational expenditure (OPEX) required for modular UPS systems. CAPEX includes purchasing large cabinets, modular systems, and monitoring software. Modular systems require large cabinets to stock modules that allow expansion, so the price of these systems is higher than that of standalone units. Therefore, these systems should be designed to meet the power needs of your business to maximize your business profits. Once the battery is installed, the cost of regular battery maintenance becomes an additional expense for the consumer, negatively impacting the market's growth. Like all electrical units, this system requires regular maintenance. Additionally, there is always a risk during repairs if a service person touches its batteries while the system runs. Therefore, enterprises are occasionally hesitant to opt for modular UPS systems.

MODULAR UPS MARKET SEGMENTATION

By Capacity Analysis

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10.1 kVA to 200 kVA Segment to Dominate Owing to its Mid-range Capacity over Other Types 

The market is segmented into below 1.5 kVA, 1.5 kVA to 5 kVA, 5.1 kVA to 10 kVA, 10.1 kVA to 200 kVA, and above 200 kVA based on capacity. The 10.1 kVA to 200 kVA segment holds a dominant market share, primarily used as continuous power backup in large data centers and I.T. & telecom infrastructure. The 5.1 kVA to 10 kVA segment is the fastest growing capacity segment as these system solutions in this range are broadly used by various small & medium-sized data centers, BFSI service providers, cloud service providers, and telecommunication operators as they provide better scalability, efficient maintenance, and improved services.

By Topology Analysis

Double Conversion Online UPS Segment to Dominate Market Growth Backed by its High Efficiency

Based on topology, the market is segmented into standby, line interactive, and double conversion online UPS. The use of modular system as a double conversion online UPS having high energy efficiency is dominating the global market. Further, double conversion, on the other hand, filters frequency variations as part of its regular operation, thereby preserving battery life.

By Phase Analysis

Three Phase Segment to Dominate the Market Attributable to its Ability to Power Most of Electric Equipment

Based on phase, the market is categorized into single phase and three phase. Three phase segment has the largest market share globally and is also anticipated to grow with a higher CAGR. It is also feasible for use in heavy-duty applications as power is supplied through at least three wires, each carrying power from a standard generator but offset in its cycle from the other two. Most of the products available in the market provide three phase existing configurations to increase their power or backup time.

By End-user Analysis

Data Center Segment to Dominate the Market Owing to its Robust Demand

Based on end-user, the market is categorized into data center, IT & telecommunication, healthcare, industrial, BFSI, utility, energy, and others. The data center segment has a dominant market share and is also anticipated to drive the market with the highest CAGR over the forecast period.

REGIONAL INSIGHTS

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North America is expected to account for the largest Modular UPS market share during the forecast period due to the presence of data centers and colocation facilities as well as technologically advanced countries such as the U.S. and Canada. According to the U.S. International Trade Commission Executive Briefings on Data Centers around the World in May 2021, the U.S. stood first with around 33% of global data centers constituting substantial data demand across various sectors. Data center operators are also diversely spread in the U.S. - the top five (Verizon, Lumen Technology, AT&T, Digital Realty, and Equinix) constitute about 25.9% of total U.S. data centers. The U.S. remains at the forefront of modular UPS innovation with substantial R&D investments. For example, recent projects by companies like Schneider Electric concentrate on software-enhanced UPS systems that support smart grid integration.

The European uninterruptible power supply industry is highly competitive, and one of the key challenges for manufacturers is to differentiate themselves from their competitors. Manufacturers need to adapt to new technologies and industry trends to develop UPS solutions that meet the growing needs of their businesses. Energy saving is one of the most critical challenges for the end-users. Especially in the data center segment, the focus is on improving the Power Usage Effectiveness (PUE) with the flexibility to meet ever-changing demands such as rising energy prices, environmental regulations, and rising power densities. In Europe, demand for modular UPS systems is growing as more data centers are built and energy efficiency becomes a priority. According to the European Data Centre Association, the region has experienced a 15% annual increase in data center capacity since 2018.

There is a high demand for robust and continuous network connectivity to provide seamless support to large enterprises, facilitating the Asia Pacific modular UPS market analysis. The regional government's initiatives have driven the construction of innovative yet dependable telecom infrastructure. According to International Data Corporation (IDC), spending on APAC telecommunications and pay-TV services jumped from USD 494 billion in 2020 to USD 505 billion last year. Global spending has also increased, reaching USD 1,566 billion in 2021, up 1.6% yearly.

Latin America has gained momentum in recent years. Advanced technologies such as IoT, big data, and A.I. are increasingly being adopted in the region. Cloud adoption is also accelerating rapidly in this area. In addition to setting up microgrids and local power generation, operators procure redundant power infrastructure, including UPS systems, to power their facilities, creating revenue opportunities for system manufacturers and leading to further market growth. For instance, Kudos Datacenter 2N is equipped with an uninterruptible power supply system with redundant lithium-ion batteries.

Growing investment in the commercial sector with several ambitious government visions in the region, such as Saudi Vision 2030, Turkey Vision 2023, and South Africa Vision 2030, would drive significant development activities, which would drive the power demand backup solutions such as UPS in the Middle East and Africa region. Further, increasing data centers, increasing I.T. spending, and additions of SMEs, hospitals, and several industries, such as manufacturing units, would ultimately surge the demand for UPS systems in the future to support business continuity in critical service conditions.

KEY INDUSTRY PLAYERS

Schneider Electric to Remain at Forefront with its Wide Product Offerings and Established Brand Name

Schneider Electric offers a broad range of Modular UPS used across segments for many end-users. The report has several small and big corporations operating at regional and country levels, providing modular UPS of different sizes. In addition, significant corporations aim to optimize device efficiency with heavy investments in research & development. Moreover, the companies aim to capture a substantial share in a particular region, enhancing their capability to have a superior footprint in the global market.

LIST OF KEY COMPANIES PROFILED:

• Kehua Data Co., Ltd. (China)


• Eaton (Ireland)


• Delta Electronics, Inc. (Taiwan)


• ABB (Switzerland)


• Schneider Electric (France)


• Shenzhen Kstar Technology Co., Ltd. (China)


• Vertiv Group Corp. (U.S.)


• Riello UPS (RPS S.p.A.) (Italy)


• Toshiba International Corporation (U.S.)


• Gamatronic Electronic Industries Ltd. (Israel)

KEY INDUSTRY DEVELOPMENTS:

• June 2022 - Schneider Electric introduced one of the most sustainable modular single phase UPS of its kind, APC Smart-UPS modular ultra, reinventing the Modular UPS as the industry’s smallest, lightest, most powerful modular 5-20kW UPS with lithium-ion technology. With 50% smaller dimensions, 60% lighter weight, and 2.5x greater power density than comparable UPSs, Smart-UPS Modular Ultra is the industry's smallest, lightest, and most powerful uninterruptible power supply.


• September 2021 - Delta announced a partnership with International Information Technology Co. LLC. (IITC), an OHI Group company in Oman. IITC and Delta will collaborate closely on upcoming data center and IT infrastructure projects in Oman and the Middle East. Additionally, IITC will distribute Delta's uninterruptible power supply systems and cooling systems, which are ideal for the region's growing number of data centers and operators.

• March 2021 - Eaton acquired Tripp Lite for USD 1.65 billion. A leading provider of power quality products and connectivity solutions to the industrial, medical, and communication data center markets in the Americas, Tripp Lite offers single phase uninterruptible power supply systems, rack power distribution units, surge protectors, and enclosures. Tripp Lite is reported within the Electrical Americas and Global business segment.


• July 2021 - Eaton delivered new lithium-ion transformative for UPSs in connected backup power in critical edge environments, long battery life, and a smaller footprint than valve-regulated lead-acid (VRLA) battery-powered UPS technology. The 9PX lithium-ion UPS is now available globally for customers.


• October 2021 - ABB won an order to supply 300 future-proof UPS systems to Dutch railway operator ProRail to replace its existing static frequency converters. ABB's UPS systems provide high efficiency for reduced energy costs, environmental impact, and low ownership costs while minimizing downtime. The upgrade will ensure safe and continuous power for trains and passengers. UPS delivery will take place in phases between 2022 and 2023.

REPORT COVERAGE

An Infographic Representation of Modular Uninterruptible Power Supply Market

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The research report highlights leading regions worldwide to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at a global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the industry.

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