Modular UPS Market

Rapid colocation expansion and the rising adoption of cloud applications across industries drive market growth

In the current market environment, the primary drivers of the modular UPS market are the least visible but most important components of contemporary information technology and communication infrastructure, such as data centers, which frequently require 100 percent uptime. The data center industry must use UPSs due to the power supply irregularities that can cause data loss, the inability to access vital services, a risk to hardware, and potential financial losses. Thus, driving the modular UPS market revenue.

The Global Modular UPS Market Industry is poised for substantial growth, with projections indicating a market value of 4.2 USD Billion in 2024 and an anticipated increase to 11.2 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate (CAGR) of 9.32% from 2025 to 2035, driven by various factors such as technological advancements, increasing demand for reliable power supply, and the expansion of data center infrastructure. These projections highlight the dynamic nature of the modular UPS market and the potential opportunities for stakeholders in the industry.

The expansion of data center infrastructure significantly influences the Global Modular UPS Market Industry. With the increasing reliance on cloud computing and data storage, data centers require robust power solutions to maintain operations. Modular UPS systems are particularly well-suited for this environment, offering scalability and redundancy to meet the high power demands of modern data centers. As the market evolves, the compound annual growth rate (CAGR) for the period from 2025 to 2035 is projected at 9.32%, indicating a strong growth trajectory driven by the data center sector's needs.

Regulatory compliance and standards are pivotal in shaping the Global Modular UPS Market Industry. Governments and industry bodies are establishing stringent regulations regarding energy efficiency and emissions for power systems. Modular UPS solutions that meet these standards are increasingly favored by organizations seeking to comply with regulations while optimizing their energy consumption. This trend not only promotes the adoption of modular UPS systems but also drives innovation in the industry. As organizations strive to align with regulatory requirements, the demand for compliant modular UPS solutions is expected to rise, further propelling market growth.

Technological advancements play a crucial role in shaping the Global Modular UPS Market Industry. Innovations such as lithium-ion battery technology and advanced energy management systems enhance the efficiency and performance of modular UPS solutions. These advancements not only improve energy storage capabilities but also reduce the overall footprint of UPS installations. As a result, organizations are increasingly adopting modular UPS systems that integrate these cutting-edge technologies. The anticipated growth of the market, projected to reach 11.2 USD Billion by 2035, underscores the impact of these technological developments on the industry.

The Global Modular UPS Market Industry experiences a surge in demand for reliable power supply solutions across various sectors, including healthcare, data centers, and manufacturing. As organizations increasingly rely on uninterrupted power for critical operations, the need for modular UPS systems becomes paramount. These systems offer scalability and flexibility, allowing businesses to expand their power capacity as needed. In 2024, the market is projected to reach 4.2 USD Billion, reflecting the growing recognition of the importance of power reliability. This trend is likely to continue, with the market expected to grow significantly in the coming years.

The Global Modular UPS Market Industry is witnessing a shift towards the integration of renewable energy sources, such as solar and wind power. This transition necessitates reliable backup power solutions, as renewable energy can be intermittent. Modular UPS systems provide the necessary support to ensure continuous power supply, especially in regions heavily investing in renewable infrastructure. As businesses and governments prioritize sustainability, the demand for modular UPS systems that can seamlessly integrate with renewable energy sources is expected to rise. This trend aligns with the broader global movement towards cleaner energy solutions.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American modular UPS market area will dominate this market, the largest geographic market for modular UPSs. Modular UPS solutions are in high demand in the region, particularly from the IT, telecommunications, healthcare, and manufacturing industries. Due to the organizations' extensive operational footprint, there is a high demand for colocation and data center services, raising the need for modular UPS solutions.

Additionally, the nearly 30 largest data center leases in North America in 2016 were signed by hyper-scale cloud service providers, according to NADC.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Modular UPS Market SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s modular UPS market accounts for the second-largest market share to create UPS solutions that satisfy the expanding demands of their customers' businesses, manufacturers must adapt to new technologies and market trends. One of the biggest problems facing end users is energy saving. The emphasis is on increasing Power Usage Effectiveness (PUE), particularly in the data center sector, with the flexibility to meet ever-changing demands like rising energy prices, environmental regulations, and rising power densities. Further, the German modular UPS market held the largest market share, and the UK modular UPS market was the fastest-growing market in the European region.

The Asia-Pacific Modular UPS Market is expected to grow at the fastest CAGR from 2023 to 2032. Regional government initiatives have sparked the construction of cutting-edge but dependable telecom infrastructure. APAC telecommunications and pay-TV service spending increased from USD 494 billion in 2020 to USD 505 billion in 2017, according to International Data Corporation (IDC). Spending across the globe has increased. Moreover, China’s modular UPS market held the largest market share, and the Indian modular UPS market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the modular UPS market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The modular UPS industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global modular UPS industry to benefit clients and increase the market sector. The modular UPS industry has offered some of the most significant advantages recently. Major players in the modular UPS market, including ABB Group (Switzerland), Emerson Electric Co. (U.S.), Eaton Corporation PLC (Ireland), Huawei Technologies Co.

Ltd. (China), Schneider Electric SE (France), General Electric (U.S.), Delta Electronics Inc. (Taiwan), Gamatronic Electronic Industries Ltd. (Israel), Riello Electronica Group (Italy), Tripp Lite (U.S.), are attempting to increase market demand by investing in research and development operations.

General Electric (U.S.), GE’s diverse and committed workforce, operates with the utmost integrity and dedication to fulfill its mission and satisfy its clients. The Board and our leadership team are dedicated to achieving this goal. GE brings cutting-edge solutions to the market, providing vital infrastructure for the energy, healthcare, and transportation sectors. We strive to operate with the highest standards of integrity, compliance culture, and respect for human rights while minimizing our technology's negative environmental effects. In this unprecedented period, we still do everything possible to support our clients and staff.

We are extremely proud of how GE employees responded to the challenge globally. The General Electric Company (GE) is a global American corporation. GE has created the industrial future for more than 125 years. Today, GE is best known for its work in the healthcare, aviation, power, and renewable energy sectors.

Delta Electronic Inc (Taiwan), The global leader in power and thermal management solutions is Delta, established in 1971. Its mission statement, "To provide innovative, clean and energy-efficient solutions for a better tomorrow," focuses on important environmental issues like climate change. Power electronics, automation, and infrastructure are among Delta's business categories as a provider of energy-saving solutions, with these fields as its core competencies.

For example, switching power supplies from Delta has an efficiency of over 90%, telecom power from Delta has an efficiency of up to 98 percent, and PV inverters from Delta have an efficiency of up to 99-point two percent. We also created the first server power supply in the world to be certified as 80 Plus Titanium. We regularly invest over 8% of our yearly sales revenues in R&D and have global R&D capabilities.