Modular UPS Market - Forecasts from 2024 to 2029

The modular UPS market will reach US$2.880 billion in 2029 at a CAGR of 8.54% from US$1.912 billion in 2024.

Modular UPS comprises multiple smaller UPS modules that provide the desired level of redundancy and are based on rack-type enclosure inclusive of battery cabinets. Compared to conventional UPS, the modular architecture provides more flexibility and easy deployment, forming a critical tool for power applications, especially in data centers.

Available in various power capacities such as 10-100 kVA, 101-250 kVA, 251-500 kVA, and 500 and above kVA, the modular UPS offers additional power capacity when required, thereby enabling UPS to maintain its efficiency. It provides greater efficiency with a scalable load system and has high power backup due to a centralized battery system that reduces the cost of batteries and replacement. Favorable investment and the establishment of data centers, coupled with booming end-user demand, are anticipated to drive the market of modular UPS in the coming years.

Modular UPS Market Drivers:

• A rapid increase in technological developments and the need for power supply is driving the modular UPS market growth.

In data centers, modular UPS constitutes one of the major components. They are cost-effective and provide the facility to install more modules one above the other, thereby meeting the required power demand. The increase in demand for cloud-based services by many tech-based industries has led to the advancement of data centers, which has furthered the developments in UPS systems. It has also shifted from singular or monolithic modules to multiple modules, accelerating the overall market growth.

Additionally, sending information to the facilitation and monitoring center, communication protocols, and SNMP (single network management protocol) allows facility managers to monitor data. The increase in internet traffic has also contributed to the demand for modular UPS. Modular UPS, with its new development in DPA (Decentralised Parallel Architecture) modules that eliminate power failure and reduce maintenance, is used in Europe and Asia.

• Favorable investment in the establishment of data centers propels market expansion.

Modular UPS are designed to provide uninterruptible power supply to data centers. With rapid industrialization and growing internet traffic, the demand for data centers is witnessing a significant increase, resulting in investment being undertaken in their establishments. which will simultaneously drive modular UPS demand. In May 2024, Amazon Web Service announced investments of US$12.7 billion in India's cloud infrastructure, further supporting the country's data center supply chain.

Modular UPS Market Restraints:

• Alternative availability may hinder market growth.

Besides modular UPS, other architecture modules, such as parallel UPS and monolithic UPS, are also present in the market. Compared to their counterparts, these have lower initial purchase prices, which can pose a challenge to the overall demand for modular architecture in the market.

Modular UPS Market Geographical Outlook

• During the forecast period, North America is expected to grow significantly.

North America is anticipated to account for a considerable market share as the region's technological advancements and high use of the internet and power have increased power demand, positively impacting modular UPS market growth. Major regional economies such as the USA have many leading manufacturing and producing companies selling and distributing modular UPS, for example, Emerson Electrics, AEG Power Solutions, Generic Electric, and others.

Major data center companies such as Intel Corporation, Alphabet Inc., American Tower Corporation, Advanced Micro Devices, and Equinox have a well-established presence in the USA. These companies are investing in new establishments nationwide, which has paved the way for future market expansion.

Growing 5G penetration in North America also acts as an additional driving factor for market growth. According to the GSMA's "Mobile Economy 2023", North America's 5G subscription penetration is 89%, which is expected to increase to 91% by 2030.

Modular UPS Market Key Developments

• July 2023: ABB India launched the "MegaFlex DPA" UPS solution, the first sustainable UPS that forms part of ABB's "EcoSolution" portfolio. The solution is designed for a high-density computing environment in India.
• May 2023: Riello UPS launched the "Multi Power 2" modular system that offers high power capacity and efficiency of up to 98.1% than its predecessor. The modular system is specifically engineered to serve the data center's demand of providing a reliable power supply for a high-density computing environment while successfully lowering carbon emissions.
• April 2023: Schneider Electric launched the "Easy UPS 3-Phase Modular" which is designed to protect critical loads while providing live-swap functionality. The modular UPS comes in 50-250 kW and forms Schneider's "Green Premium" portfolio that ensures durability, efficiency, and transparency to reduce environmental footprint.
• November 2022: Vertiv announced the launch of its new high-density modular UPS solution, "Vertiv(TM) Liebert(R) APM Plus." Available in 50-500 kW, it offers 99% efficiency in eco0 mode and 97% in double conversion mode. The system is specifically designed to enable data centers to comply with environmental standards.
• September 2022: Cyber Power System Inc. launched its "3-Phase Modular System" in 20 Kw and 40 kW, which fully protects mission-critical applications in data centers and server rooms. The modular system adopts a double-conversion topology and supports the vertical addition of high-density power modules, allowing flexible capacity expansion.
• January 2022: Eaton Corporation acquired Royal Power Solutions for US$600 million as part of its strategic efforts to capitalize on the electrical business and improve its power management technology.

The Modular UPS market is segmented as follows:

By Power Capacity Type

• 10-100 kVA
• 101-250 kVA
• 251-500 kVA
• 500 and Above

By Industry Vertical

• BFSI
• Healthcare
• Media and Entertainment
• Telecommunication
• Manufacturing
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others