Rack Mount UPS Market - Share Analysis (2024–2032)

Rack Mount UPS Market Synopsis:

Rack Mount UPS Market Size Was Valued at USD 2.8 Billion in 2023, and is Projected to Reach USD 5.37 Billion by 2032, Growing at a CAGR of 7.5% From 2024-2032.

Rack Mount UPS is best defined as a sub-sector of the power supply industry specialized in the delivery of efficient, reliable, and space-efficient backup power solutions targeted at equipment crucial to operations in data centers, telecommunications, IT services, and industries. Rack Mount UPS systems are particularly developed to be mounted in standard server racks with little need for space while powering and protecting the devices connected to it consistently. Prise control systems prevent power variations, deviations and outage and/or disturbances that may interfere with the smooth operation and reliability of the electromechanical systems and data Johnson, 2015. According to the enhancements in the technology aspects where more concern is given to the electronic utilization, more and more industries require small-sized and compact solution, especially Rack Mount UPS system for their essential business operations.

The growth in Rack Mount UPS market is evident due to rising need for power protection in the data centers IT communication networks and crucial business zones. This is because as organization adopt the digital era there is compound increase in the handling and storing of data hence the need for UPS. Rack Mount UPS units are becoming increasingly popular since they are small, relatively easy to install, and deliver high efficiency in small refurbished areas for contemporary IT structures. The growing incorporation of cloud computing, the IoT, and edge computing adds to the need for solid backup power arrangements to protect the functions.

Besides, the growing popularity of SMEs and large enterprises and the improvements in IT systems and Telecommunication networks also contributing to the Rack Mount UPS systems market. These systems solve problems related to limited space and yet offer the advantages of modular capacity, true power scaling and power protection energy efficiency. There is increasing development in the IT and telecommunication sectors in emerging economies leading to the need for stable power sources. Global Rack Mount UPS market is further anticipated to have stable growth due to increasing rate of urbanization, industrialization, and implementation of digital technologies.

Rack Mount UPS Market Trend Analysis:

Technological Advancements

• Substantial integration of technical features such as Lithium-ion batteries, Energy Management Systems, and integrated smart monitoring systems is trending in the Rack Mount UPS market. The SLI or starting light industrial lead-acid batteries are gradually being substituted by lithium-ion batteries because of their longer life cycle, reduced need for maintenance, and higher energy-to-weight ratio. At the same time, Rack Mount UPS systems are being connected with IoT and smart analytics to provide immediate monitoring, prognostic as well as condition assessment. The smart UPS systems enjoy high functionality as they provide detailed visibility as well as control of the power consumption and performance of these units, thus taken on energy management and, therefore, resource optimization as well as cost savings to businesses. This technology advancement corresponds to the increased need for utilizing renewable and efficient power in different sectors.

Rising Opportunities in the Data Center Industry

• The increasing popularity of these units in data centers across the international market is a major boon to the Rack Mount UPS market. Due to the advance requirement of data storages, computing, and cloud, data centers are expanding across the regions and they need more efficient, compact and scalable power backup solutions. Rack Mount UPS systems specifically targets the modular data centres which need small-scale, maximum efficient backup power systems for continued operation. The continuing evolution to edge computing, which entails the placing of mini data centers closer to users, adds to the utility of Rack Mount UPS units. It is making enough opportunities for manufacturers to deliver technologically superior energy saving solutions which are quite relevant in today’s data center requirements.

Rack Mount UPS Market Segment Analysis:

Rack Mount UPS Market Segmented on the basis of Type, Capacity, End User and Region.

By Type, Online/Double-Conversion segment is expected to dominate the market during the forecast period

• The latest market research finds that the Online/Double-Conversion segment will continue to lead the Rack Mount UPS market through the forecast period. Online UPS systems are actually considered since they afford zero transfer time and unbroken power supply that is very important for protecting delicate and crucial loads. Double-conversion technology brings out the best in eliminating power spikes and blackouts as the devices powering are protected from the main power source. This feature is very important especially for IT, health and telecommunication sectors, where companies can suffer huge losses in case their systems are unavailable for a few hours.
• Also, enhanced requirement for the online UPS systems in data center and IT areas is keeping the segment afloat. Standalone UPS system can be best suited for environment where there are frequent fluctuations in the voltage to enable supply a power that is steady and efficient. While organizations continue to embrace enhanced technologies and automated power systems, Online/Double-Conversion UPS systems that offer reliable back up powers as required by the businesses will continue to increase.

By Capacity, Less than 5 kVA segment expected to held the largest share

• The Less than 5 kVA segment is estimated to dominate the Rack Mount UPS market because it is used by SMEs, small offices, and branch locations. UPs below 5kVA are standby UPS, portable, small sized, and very economic for use with critical IT and communication appliances. These units are especially famous where there is limited space and low power demand to serve a backup power to devices of importance.
• Due to the development of IT structures and increased usage of Information Technologies in small and medium companies the need in smaller UPSs increases. These systems are ideal since they have adopted scalability and installation making them a lasting investment for businesses that require affordable and efficient power system. Also, the use of edge computing as well as modular data centers is set to expand LT 5 kVA segment in the future.

Rack Mount UPS Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• North America had the highest market share of Rack Mount UPS in 2023, owing to the increased number of data centers, enhanced IT infrastructure investment, as well as growing investment in digital technologies. Given that a large number of technology companies and telecommunication services providers are based in Asia, there is vast demand for a reliable and efficient source of power backup. The increasing trends of cloud computing, IoT and AI in North America have compounded the demand for Rack Mount UPS systems to support sensitive operations. Based on analysis, North America had predicted to account for 35%-40% in global market size in 2023 with growth in modular and edge data centers, integrate digitalization, and regulatory norms for power quality and efficiency.

Active Key Players in the Rack Mount UPS Market:

• ABB Ltd. (Switzerland)
• AMETEK, Inc. (USA)
• CyberPower Systems (USA)
• Delta Electronics, Inc. (Taiwan)
• Eaton Corporation (Ireland)
• Emerson Electric Co. (USA)
• General Electric (USA)
• Huawei Technologies Co., Ltd. (China)
• Mitsubishi Electric Corporation (Japan)
• Piller Power Systems (Germany)
• Rittal GmbH & Co. KG (Germany)
• Schneider Electric (France)
• Socomec Group (France)
• Toshiba Corporation (Japan)
• Vertiv Group Corporation (USA)
• Other Active Players

Key Industry Developments in the Rack Mount UPS Market:

• In December 2024, ABB announced that it had signed an agreement to acquire the power electronics business of Gamesa Electric in Spain from Siemens Gamesa. The acquisition aimed to strengthen ABB’s position in the growing market for high-powered renewable power conversion technology. The deal was expected to significantly expand ABB’s existing power conversion product and service offerings for renewable OEMs and end users, adding new portfolio and engineering assets to support the profitable growth strategy of ABB’s Motion business area.