The use of UPS systems also accounts for controlling improper surges in power for data centers. Owing to which the hardware systems can be damaged which can lead to further capital cost and charges.

- Incidents such as the recent power surges in British Airways led to the damage of the data center which has led to delay and cancellation of hundreds of flights which have led to hundreds of passengers at the London Heathrow airport.

- US national security agency’s data center in Utah has also been subjected to the power surges in 2016. Owing to such effects machinery of high capital investment has been rendered useless and led to costs of about USD 1.53 billion.

- Cloud computing services are spending about 4.5 times the rate of IT spending. The primary growth of the cloud is due to its availability of about 99% and ease of access. Cloud services need to be online to deliver services which increase the need for UPS systems.

- Many UPS facilities also have service level agreements(SLA) with the consumers they provide services to. These SLAs have clauses for fine and penalty in case of loss of data, or unavailability of resources for a prolonged period of time which further necessitates the need for better UPS systems.

- Another significant development in the data center is the growing importance of mega data centers service providers, which are the primary server location for large UPS and cloud service providers. These mega Data Centers require state of the art UPS systems to be efficient.

Key Market Trends

Media And Entertainment Industry Account for Significant Market Share

- The media and entertainment industry is typically involved in the creation, accumulation, and distribution of content, news and information, advertising, and entertainment, through numerous media channels and platforms which is of prime importance for the data centers which lead to growth of demand for UPS .

- Millennials in today’s modern landscape spend more time streaming content than typical television watching, and over 20% of such population has been found to watch shows on mobile devices. Streaming services are increasing in popularity, with about 60% of consumers using them monthly.

- Video-on-demand is currently the largest service in the media & entertainment industry. This paradigm shift is driving distributors to come up with different ways to distribute and circulate content, create various new revenue models, and introduce all kinds of opportunities to push the market for content creation which necessitates the need for UPS systems to deliver uninterrupted services .

- The way in which news and entertainment are being consumed has changed drastically over the past decade, creating both challenges and opportunities for traditional broadcasters.

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United States Account for Significant Market Share

- The United States has continued its growth in data center infrastructure solutions. Modular data center investments in tier-2 city data center facilities have continued to rise, especially for local users which are driving the growth of data center UPS market.

- The United States is a disaster-prone area and the chances for power outages have been fairly a seasonal affair. About 342 disasters were recorded in 2016, this number has been below the average for the United States which is about 376.4 but above average for a number of countries.

- Such natural disasters further fuel the market for UPS systems which are required in times of natural disasters to keep the systems running. But these systems are also necessary for regulating the power surges in the area.

- A population of over 321.42 million and an internet penetration rate of 75% (241.06 million internet users). The republic covers nine different time zones creating its own unique challenges to the technology sector which emphasizes the potential for growth of data centers which drives the need for UPS systems.

Competitive Landscape

The Data Center UPS Market Is Highly Concentrated due to Highly Initial Investments. Some key players in the market are Emerson, ABB, Seimens. Some key recent developments in the market include:

- ABB launched new lithium-ion battery systems for ABB UPS solutions. These newly introduced high-reliability and high-availability lithium-ion battery solution provide efficient operations for applications of UPSs in data centers, hospitals, and medical centers, offices, banks, education centers, transportation, and manufacturing.

- ABB has introduced ABB Ability for data center automation and management along with Intel DCM.

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