Growing Demand for Contactless Payment Solutions to Fuel Growth of Data Center UPS Market
Data centers play a central role in global digitalisation, which has resulted in exponential data growth. Industries across the board have been confronted with change and disruption due to COVID-19 pandemic. In early 2020, many businesses faced a sudden and heightened need for greater cloud technology to connect a dispersed workforce and enable people to do their jobs in a work-from-home environment. The changes that began throughout 2020 became permanent (and the trend continued) during 2021, with companies, and government agencies alike moving to the cloud or determining their hybrid IT strategy. The need for data centers thus continues to grow and as major data-producing platforms - hyperscalers like Amazon, Apple, Alibaba, Google, and Microsoft - spread their data center footprints throughout the world. Healthy growth has been projected for global data center UPS market as well over the course of next few years.
Today, the question is no longer whether the largest hyperscale data center users will expand to new regions each year but how many will expand and how quickly. Growth across Asia continues rapidly, with an ever-growing array of secondary markets moving to primary size. As South America, and Africa continue to expand as data center locations, expect ever-larger campus sizes coming in these areas. Data center UPS systems that offer a dependable power supply will continue to witness climbing demand on account of the rapidly growing use of contactless payments. The data center UPS market is thus on an uptrend as help to maintain consumer access to online and mobile banking and the functioning of trading equipment in sizeable data center facilities run by banks and financial organisations, will develop rapidly because of their increasing acceptability. ICT is used by nations all over the world to advance digital economies. The payment process is being digitised through a number of government programmes. One of the main economic growth imperatives for a nation is the adoption of digital payments. As well as increasing transparency, tax revenue, financial inclusion, and end-user access to new economic opportunities, it can assist promote productivity and economic growth.
To promote digital payments, the Indian government has started a number of programmes. Nearly 190 million adults in India do not have bank accounts, according to a 2020 World Bank estimate. However, thanks to the government of India's policies and efforts, the proportion of adults with bank accounts rose from 53% to 80% in 2021. Additionally, the percentage of adults having bank accounts increased globally from 61 percent in 2020 to 69 percent in 2021, according to the Global Findex database 2021. Digital payments are essential to the growth of bank account ownership because they make it possible to open and manage bank accounts even in remote locations using a mobile phone. Digital wallets are being introduced, and this has a big impact on financial inclusion.
Media and Entertainment Industry Offers a Strong Impetus to Data Center UPS Market
The media and entertainment is expected to be the fastest-growing segment of the data center UPS market over the forecast period. The creation, gathering, and distribution of content, including news and information, advertising, and entertainment, through a variety of media channels and platforms, is a typical activity of the media and entertainment industry. This activity is crucial for data centers and contributes to the rise in demand for UPS. In the contemporary environment, millennials spend more time streaming material than they do viewing traditional television, and over 20% of this population has been observed to use mobile devices to watch shows. With around 60% of people utilising them monthly, streaming services are becoming more popular.
The most popular service in the media and entertainment sector right now is video-on-demand. This paradigm change is forcing distributors to develop new methods of content circulation and distribution, develop several new income models, and present numerous opportunities to push the market for content creation, necessitating the requirement for UPS systems to provide unbroken services. Over the past ten years, there has been a significant shift in how people consume news and entertainment, which has presented both opportunities and difficulties for traditional broadcasters.
Increased Used for Data Center UPS to Drive Growth of North America Data Center UPS Market
North America is the largest user of data center UPS and is expected to grow at the fastest rate in global data center UPS market throughout the forecast period. In terms of data center infrastructure solutions, the United States has kept expanding. Particularly for local users who are fuelling the expansion of the data center UPS market, modular data center investments in tier-2 city data center facilities have risen steadily. The United States is a disaster-prone country, and power outages tend to be more of a seasonal occurrence. In 2020, there were roughly 342 disasters reported; while this number was below the average for the United States, which is about 376.4, it was above average for a number of other nations. Such natural disasters help to fuel the growth of market for UPS systems, which are necessary to keep the systems working during natural disasters. However, these devices are also essential for controlling the local power surges.
A population of more than 321.42 million, with a 75 percent internet penetration rate (241.06 million internet users). The country spans nine separate time zones, posing special obstacles for the tech industry that highlight the potential for data centers to expand and increase demand for UPS systems. As they provide the best scalability and remote operations, cloud computing services are becoming increasingly popular in a variety of industries. The COVID-19 pandemic hastened the United States' digital transformation, as evidenced by a spike in cloud infrastructure investment of 1.1 percent in the third quarter of 2021, according to the World Trade Statistical Review. The use of UPS technologies is growing as the industry observes a proliferation of data centers across the globe, spurred by the expansion of cloud services. These elements are raising the value of data center UPS systems, thereby fuelling the growth of data center UPS market by providing the best power usage efficiency (PUE) ratio.
Global Data Center UPS Market: Competitive Landscape
In April 2022, for its UPS solutions, ABB introduced new lithium-ion battery systems. These recently released high-reliability and high-availability lithium-ion battery solutions enable effective UPS operations in data centers, hospitals, and medical facilities, as well as offices, banks, schools, and other public buildings. On the other hand, in August 2020, ABB introduced ABB Ability for data center automation and management along with Intel DCM.
A few of the players in data center UPS market include ABB Ltd., Clary Corporation, AEG Power Solutions, Power Innovations International Inc., Belkin International Inc., Huawei Technologies Co., Ltd., Delta Electronics Inc., Eaton Corporation, Brainasoft, General Electric Company, Intellipower Inc., Legrand, Panduit Corporation, Shenzhen Kstar Science & Technology Co., Ltd, Schneider Electric SE, Mitsubishi Electric Corporation, Socomec, Toshiba Corporation, Vertiv Co., and Xiamen Kehua Hengsheng Co., Ltd.
Global Data Center UPS Market is Segmented as Below:
By Data Center Size
Key Elements Included In The Study: Global Data Center UPS Market
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