July 14, 2024

Rising Adoption of Rack Mount UPS Systems to Support Growth of the Rack Mount UPS Market

The Global Rack Mount UPS Market is estimated to be valued at US$ 2.98 Bn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Rack mount UPS systems are important power protection and conditioning systems installed in data centers and industrial facilities. They provide a reliable backup power supply in case of power outages or fluctuations. Rack mount UPS systems consist of battery backup along with voltage regulation components fitted in standardized cabinet frames for easy assembly into equipment racks. They deliver high power capacity ranging from 5 kVA to over 6 kVA and offer benefits like low maintenance, expandability, and scalability. Rapid digitalization and growth of data centers are majorly driving the demand for rack mount UPS systems to ensure uninterrupted power supply for critical servers and network infrastructure. Their compact design with multiple power distribution units makes them suitable for dense IT environments.

Market key trends:
Smart and digitally connected rack mount UPS systems are gaining popularity as they enable remote monitoring and management through network connectivity. They are integrated with software and sensors to provide real-time analytics on system performance, battery health, and energy usage. This helps reduce downtime and maintenance costs. Furthermore, augmented integration of artificial intelligence and IoT capabilities is allowing rack mount UPS to predict anomalies and failures in advance. Manufacturers are also focusing on developing lithium-ion battery-based rack mount UPS solutions as they offer higher energy density and require less maintenance than lead-acid batteries. Growing deployment of edge data centers and 5G networks will further spur the demand for intelligent rack mount UPS solutions in the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is low in the rack mount UPS market due to the high capital requirement for setting up manufacturing facilities and strong brand positioning of existing players.

Bargaining power of buyers: The bargaining power of buyers is high as rack mount UPS are standardized products and buyers can switch between various brands easily.

Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of substitute components. However, suppliers do not pose significant threat as industry concentration is moderate.

Threat of new substitutes: Threat from substitutes is low as rack mount UPS provide unique benefits of reliable backup, affordable pricing and low maintenance that are not offered by alternative sources.

Competitive rivalry: Intense competition exists among existing players due to their global presence.

Key Takeaways

The Global Rack Mount UPS Market is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period, due to increasing adoption of rack mount UPS across data centers, healthcare, communication centers and other critical industries. The market size for 2023 is estimated to be US$ 2.98 Bn.

North America dominated the global market in 2022 owing to large number of data centers and high server rack density in the region. However, Asia Pacific is expected to exhibit fastest growth through 2030 supported by growing IT infrastructure, rising digitalization and increasing establishment of data centers across China and India.

Key players operating in the rack mount UPS market are Schneider Electric, Eaton, Emerson Electric, Toshiba, Siemens, General Electric, Delta Electronics, Huawei, ABB, Vertiv. Players are engaged in new product launches, partnerships and geographical expansions to strengthen their market presence. For instance, Eaton introduced 9900CX rack/tower UPS with lithium-ion battery in 2021 to provide flexible, scalable power protection for edge computing.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it