Rack Mount UPS Market Driven by Rising Industrialization

Posted 2024-01-29 07:35:25

A rack mount uninterruptible power supply or rack mount UPS is a critical component widely adopted across various industries to ensure continuous operations during power outages or fluctuations. It is commonly installed in data centers, IT infrastructure, healthcare facilities, industrial automation systems and other areas where disruption of power supply can cause significant operational and financial losses. Rack mount UPS systems offer reliable backup power through battery arrays and keep equipment operational during blackouts or brownouts until the grid power is restored or a generator kicks in.

The Global Rack Mount UPS Market Size is estimated to be valued at US$ 3.44 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The Rack Mount UPS Market is estimated to witness steady growth owing to increasing reliance on constant power supply for critical infrastructure operations. One of the key drivers for the growth of the market includes growing deployment of rack mount UPS systems across data centers to ensure uninterrupted operations of servers and network equipment. Data centers nowadays house thousands of server racks and other IT assets worth millions of dollars, for which even a few minutes of downtime can lead to substantial losses and damage to reputation. Rack mount UPS effectively provides backup power to the entire racks of servers and networking switches during outages. Additionally, industries such as healthcare, banking, manufacturing are also increasingly adopting rack mount UPS due to strict norms around operational continuity and to avoid losses caused by power fluctuations. This growing demand from critical industry verticals is expected to drive the growth of global rack mount UPS market over the coming years.

SWOT Analysis

Strength: The rack mount UPS market is highly consolidated due to the presence of large vendors. The presence of a large number of battery suppliers ensures a steady supply of raw materials. Many established players are focusing on product innovation and launching advanced rack mount UPS systems to meet the growing demand across industries.

Weakness: Rack mount UPS systems have high installation and initial costs. The battery replacement and maintenance costs are also high over the product life cycle. Many small and medium enterprises are reluctant to install rack mount UPS systems due to significant investment requirements.

Opportunity: Growing demand for rack mount UPS from data centers and telecom networks driven by digitization and rising cloud usage provide major growth opportunities. Increasing investment in renewable energy integration and decentralized power infrastructure will augment the deployment of rack mount UPS.

Threats: Volatility in raw material prices including lead and oil can squeeze profit margins. Intense competition from local players offering inexpensive generic versions poses market threat. Shift to lithium-ion batteries for data center usage can disrupt established lead-acid battery-based product landscape.

Key Takeaways

The global rack mount UPS market is expected to witness high growth over the forecast period of 2024 to 2031 driven by increasing demand from data centers and telecom networks. The global rack mount UPS market is estimated to be valued at US$ 3.44 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2031.

Regional analysis comprises: North America dominates currently with largest share owing to strong presence of leading cloud data centers. Asia Pacific region is expected to grow at fastest pace led by China, India with expanding digital infrastructure and 5G rollout. Majority of global data center capacity additions are also shifting to Asia Pacific.

Key players: Key players operating in the rack mount UPS market are Johnson & Johnson Services Inc., AbbVie Inc., Takeda Pharmaceutical Company Ltd., UCB Pharma S.A., Pfizer Inc., Bristol Myers Squibb Co., Roche Holding AG, GlaxoSmithKline Plc, Eli Lilly & Company, and Novartis International AG. These companies are focusing on new product development and global expansion to gain higher market share.

Get More Insights Here: https://www.newsstatix.com/rack-mount-ups-market-size-share-and-growth-forecast-2023-2030/

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