Modular UPS Market Size, Share, Forecast, & Trends Analysis by Power Capacity (50kVA and below, 51-100 kVA), Organization Size, End-use Industry (Data Centers, Commercial, Enterprises), and Geography - Global Forecast to 2031

Modular UPS Market Size & Forecast

The Modular UPS Market is expected to reach $9.2 billion by 2031, at a CAGR of 11.4% from 2024 to 2031. The growth of this market is attributed to several factors, including the increasing demand for zero downtime from various end users, rising demand for large-scale data centers and cloud technology in the telecom sector, and the growing need for scalable and redundant power systems. Moreover, the rising demand for hyperscale data centers is expected to offer growth opportunities for the players operating in this market.

Modular UPS Market Growth Drivers

Increasing Demand for Zero Downtime from Various End Users Driving the Growth of the Market

Enterprises from every sector have undergone digital transformation. This has resulted in dependency on electronic devices to collect and access information for business processes. This increases dependence on a reliable and continuous power supply. In case of power failure or loss of primary power supply there must be assured and reliable power supply. When primary power goes down, UPS ensures continuity and reliability so that ongoing work can be saved and hardware can be protected. Although there is a high demand for UPS systems in the IT sector, many industrial processes have now adopted microprocessors and PC-based systems that are susceptible to power disturbances. A few seconds of power outage can disrupt industrial processes, causing major financial losses. Hence, most industries across sectors have started to adopt advanced UPS and modular UPS systems.

Rising Demand for Large Scale Data Centers and Cloud Technology in Telecom Sector to Fuel the Market Growth

As the telecom sector experiences exponential growth in data traffic due to the proliferation of mobile devices, IoT devices, and bandwidth-intensive applications, there's a corresponding need for larger and more efficient data centers to handle the increased workload. These data centers require reliable power backup solutions like UPS systems to ensure continuous operation and prevent data loss or downtime. Also, advanced UPS systems come equipped with monitoring and management capabilities, allowing operators to remotely monitor the health and performance of UPS units. This proactive approach enables pre-emptive maintenance and troubleshooting, enhancing overall reliability.

Thus, the adoption of modular UPS systems complements the rising demand for large-scale data centers and cloud technology in the telecom sector by providing scalability, redundancy, efficiency, flexibility, remote management, and integration capabilities essential for powering mission-critical infrastructure.

Modular UPS Market Trends

Rising Need for Green Power Supply

Modular UPS systems play a crucial role in supporting green power supply initiatives by optimizing energy usage, integrating renewable energy sources, providing energy storage, and offering grid support capabilities. By leveraging the flexibility and efficiency of modular UPS systems, businesses, and data centers achieve their sustainability goals while ensuring reliable and resilient power supply. Modular UPS systems offer scalability and flexibility, allowing businesses to easily expand or adjust their power capacity as needed. This scalability enables businesses to adapt to changing energy requirements and optimize resource utilization. By right-sizing their power infrastructure, businesses minimize energy waste and improve the overall efficiency of their operations, thereby supporting green power supply initiatives.

Modular UPS Market Opportunity

Rising Demand for Hyperscale Data Centers

As hyperscale data centers continue to expand and evolve to meet the growing demands of the digital economy, modular UPS systems play a vital role in supporting their critical power infrastructure requirements.

Hyperscale data centers require high levels of availability and uptime to ensure uninterrupted service delivery to customers. Modular UPS systems offer redundancy and fault tolerance through their modular architecture, where multiple power modules operate in parallel. This redundancy minimizes the risk of downtime due to power failures or maintenance activities, enhancing the reliability and availability of hyperscale data center infrastructure. Thus, the benefits offered by modular UPS are creating a strong growth opportunity in the market.

Modular UPS Market Analysis: Key Findings

By Power Capacity: In 2024, the 51-100 kVA Segment to Dominate the Modular UPS Market

In 2024, the 51-100 kVA segment is expected to account for the larger share of 35.0% of the global modular UPS market. The segment’s large share is attributed to the increasing demand for zero downtime from various end users, rising R&D investments, growing need for scalable and redundant power systems, and rising demand for small-scale servers and PCs. In addition, the benefits offered by 50kVA and below, such as usability, easy installation, capacity expansion, hassle-free maintenance, on-demand capacity expansion, and improving business efficiency, contribute to this segment's growth. Also, this segment is projected to grow at a higher CAGR during the forecast period of 2024–2031.

By Organization Size: In 2024, the Large Enterprises Segment to Dominate the Modular UPS Market

In 2024, the large enterprises segment is expected to account for the larger share of 71.0% of the global modular UPS market. The segment’s large share is attributed to the growing emphasis on developing strategic IT initiatives among large enterprises, the increasing need to manage large volumes of data, the growing need for scalable and redundant power systems, and the rising demand for flexible and convenient services by large enterprises.

However, the small & medium-sized enterprises segment is expected to register a higher CAGR during the forecast period of 2024–2031. The rising demand for small-scale servers and PCs by small & medium-sized enterprises, increasing demand for zero downtime, and the rising adoption of 51-100 kVA power capacity solutions in SMEs are expected to support the growth of this segment. In addition, several leading key players are taking initiatives to support the growth of this segment. For instance, in July 2023, Schneider Electric SE (France) introduced its EUPS 3-Phase Modular. This uninterruptible power supply (UPS) is designed to protect critical loads while offering third-party verified Live Swap functionality to small and medium-sized data centers and business-critical applications.

By End-use Industry: In 2024, the Data Centers Segment to Dominate the Modular UPS Market

In 2024, the data centers segment is expected to account for the largest share of 24.0% of the global modular UPS market. The segment’s large market share is attributed to the rising demand for hyperscale data centers, rising demand for sustainable power protection to enable continuous operations, and growing demand for large-scale data centers and cloud technology in the telecom sector. In addition, global leading key players are taking initiatives to redefine their business strategies. For instance, in September 2022, Cyber Power Systems (USA), Inc. (U.S.) launched its 20kW and 40kW 3-phase Modular UPS systems, which offer complete protection for mission-critical applications in server rooms and data centers.

However, the enterprises segment is expected to register the highest CAGR during the forecast period of 2024–2031. The rising demand for robust implementation of zero and dependable power downtime, growing reliance on large-scale applications and cloud services, demand for colocation services, and rising need for reliable power supply are expected to support the growth of this segment.

Geographical Analysis

In 2024, North America is expected to account for the largest share of 37.0% of the global modular UPS market. North America’s large market share is attributed to the presence of prominent players offering advanced modular UPS solutions. For instance, in September 2020, Vertiv Group Corporation (U.S.) introduced its industry’s most flexible modular UPS system for North American cloud and colocation data centers. Furthermore, the growing demand for new technology advancements, such as cloud computing adoption, data storage needs, digital services, regulatory requirements, expanding user base, and business scalability across regions are supporting the market growth.

However, the Asia-Pacific region is projected to register the highest CAGR of 13.0% during the forecast period. The rapid growth of this region is mainly driven by factors such as the rising adoption of advanced technologies, rising demand for hyperscale data centers, and market players’ efforts to launch advanced modular UPS solutions. For instance, in June 2021, SOCOMEC Group (France) launched NETYS RT, a range of superior UPS products in 5 to 11kVA capacities for the Indian market in response to the growing demand for extremely high quality and uninterrupted power from organizations rapidly adopting digitalization and automation for business continuity.

Modular UPS Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the modular UPS market are Schneider Electric SE (France), Huawei Technologies Co., Ltd. (China), Eaton Corporation plc (Ireland), Vertiv Group Corporation (U.S.), Delta Electronics, Inc.(U.S.), Toshiba International Corporation (Japan), Cyber Power Systems (USA), Inc. (U.S.), Xtreme Power (U.S.), SOCOMEC Group (France), Centiel (Switzerland), RPS Spa (Italy), AEG Power Solutions B.V. (Netherlands), Borri S.p.A. (Italy), Emerson Electric Co.(U.S.), and Numeric (India) (A part of Legrand S.A. ).

Modular UPS Industry Overview: Latest Developments from Key Industry Players

• In April 2023, Schneider Electric SE (France) introduced its Easy UPS 3-Phase Modular. This robust uninterruptible power supply (UPS) is designed to protect critical loads while offering third-party verified Live Swap functionality. Easy UPS 3-Phase Modular available in 50-250 kW capacity with N+1 scalable configuration and supports the EcoStruxureTM architecture, which offers remote monitoring services.

• In July 2023, ABB Ltd. (Switzerland) launched its MegaFlex DPA (Decentralized Parallel Architecture) UPS solutions in India. ABB's MegaFlex UPS line is aimed at the UL and IEC markets, with a power range of 1.6 and 1.5 MW. The MegaFlex solution provides exceptional availability and dependability while having the smallest footprint on the market.

• In June 2023, Xtreme Power (U.S.)  launched its M90C 208/120V three-phase Uninterruptible Power System (UPS). This cutting-edge modular UPS series offers customers unparalleled reliability and cost-effectiveness.
• In August 2022, Cyber Power Systems (USA), Inc. (U.S.) launched its online double conversion, 3-Phase Modular UPS (uninterruptible power supply) systems, which provide industrial-grade power protection in a modular, scalable form factor. The line of UPS systems features N+X power redundancy to ensure continuous operation and backup power, while the high-density 2U 10kVA/10kW power modules allow for easy installation and service.

Modular UPS Market Research Summary

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