Data Center UPS Market to Reach $6.5 Billion by 2030
New York, Wednesday, 5 November 2025.
The global UPS market is forecasted to grow, driven by cloud computing and IoT expansion, reaching $6.5 billion by 2030, with advanced, reliable power solutions leading the way.
Growth Drivers in the Data Center UPS Market
The data center UPS market is expected to grow from $4.9 billion in 2024 to $6.5 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 4.6% over this period [1]. This growth is largely driven by the increasing demand for reliable power solutions amid the rapid expansion of cloud computing and the Internet of Things (IoT) [1]. The need for continuous, uninterrupted power supply has become critical as businesses increasingly adopt hybrid and multi-cloud strategies [1].
Technological Advancements in UPS Systems
Modern UPS systems have evolved significantly, becoming more compact, modular, and scalable. These advancements are complemented by improvements in battery technology, such as the adoption of lithium-ion batteries which offer higher energy density and reliability [1]. Such innovations are crucial as they address the need for efficient power management in data centers, which face increasing demands due to technological advancements [1].
Key Market Segments and Regional Insights
The market for data center UPS systems is segmented by size, with the small data center UPS segment projected to reach $3.9 billion by 2030 at a CAGR of 3.9% [1]. Meanwhile, the medium data center UPS segment is expected to grow at a 4.6% CAGR during the same period [1]. Geographically, the demand for UPS systems spans regions including the U.S., Canada, Japan, China, and Europe, highlighting the global nature of this market growth [1].
Market Challenges and Opportunities
Despite the promising growth trajectory, the UPS market faces challenges such as grid instability and frequent power outages, which increase the demand for reliable backup systems [1]. This has opened opportunities for companies to innovate with advanced UPS solutions that cater to the specific needs of data centers [1]. Companies like Eaton Corporation Plc, Delta Electronics, and East Penn Manufacturing are key players in this competitive landscape [1].