Modular UPS Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Power Capacities (10 - 100 kVA, 101 - 250 kVA, 251 ‚ 500 kVA), End User (IT and Telecommunication, Healthcare, and Manufacturing), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.96 Billion
CAGR (2026-2031)	12.73%
Fastest Growing Segment	IT and Telecommunication
Largest Market	North America
Market Size (2031)	USD 16.34 Billion

Market Overview

The Global Modular UPS Market will grow from USD 7.96 Billion in 2025 to USD 16.34 Billion by 2031 at a 12.73% CAGR. A Modular Uninterruptible Power Supply (UPS) comprises independent, synchronized power modules that function collectively to provide scalable capacity and redundancy. This architecture allows facilities to incrementally expand power output by adding components rather than replacing the entire infrastructure, contrasting with rigid monolithic systems. The market is primarily driven by the escalating energy demands of hyperscale data centers and the critical requirement for operational continuity. According to the International Energy Agency, in 2024, global data center electricity consumption was estimated at 415 terawatt-hours, highlighting the immense pressure on infrastructure that necessitates flexible, high-efficiency backup solutions.

However, a significant challenge impeding market expansion is the higher initial capital expenditure associated with modular technology compared to traditional systems. Although the architecture reduces long-term operational costs through improved efficiency and easier maintenance, the substantial upfront investment can be prohibitive for small and medium-sized enterprises. This financial constraint limits broader adoption in cost-sensitive segments, causing some organizations to defer upgrades or opt for less adaptable legacy infrastructure until the return on investment becomes more immediate.

Key Market Drivers

The rapid expansion of hyperscale data centers and colocation facilities acts as the primary catalyst for the Global Modular UPS Market. As cloud service providers and AI developers race to deploy computational infrastructure, the demand for flexible, high-capacity power backup systems has intensified. Modular UPS architectures allow these facilities to match power protection directly with IT load, mitigating the risks of over-provisioning while ensuring business continuity for mission-critical operations. This surge is quantitatively supported by the aggressive scaling of digital infrastructure. According to Goldman Sachs, April 2024, in the 'Generational Growth: AI, data centers and the coming US power demand surge' report, global data center power demand is forecast to grow by 165% by 2030 compared to 2023 levels. This trajectory necessitates adaptable power solutions that can scale rapidly alongside unprecedented energy consumption rates.

Concurrently, the adoption of high-density power solutions for space-constrained environments is reshaping market requirements. Modern server racks, particularly those dedicated to generative AI workloads, require significantly higher power densities, rendering traditional monolithic UPS systems inefficient and spatially cumbersome. Modular units address this by offering high power density per footprint and the ability to implement N+1 redundancy without excessive space usage. According to the Uptime Institute, July 2024, in the 'Global Data Center Survey 2024', approximately one-third of data center operators are actively developing new capacity specifically designed to handle high-density cabinets. This shift toward denser infrastructure is further evidenced by broader investment trends. According to Cushman & Wakefield, in 2024, hyperscale capital expenditures surged by 58% year-over-year, reflecting the immense financial commitment to upgrading power architectures for next-generation computing needs.

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Key Market Challenges

The significant challenge impeding the expansion of the Global Modular UPS Market is the higher initial capital expenditure required for these systems compared to traditional monolithic alternatives. While modular architectures offer superior scalability and long-term redundancy, the upfront cost of purchasing the specialized chassis, intelligence modules, and redundant components often creates a substantial price premium. This financial barrier is particularly prohibitive for small and medium-sized enterprises (SMEs) and budget-constrained facilities that prioritize immediate affordability over total cost of ownership. Consequently, many organizations are forced to defer infrastructure modernization or default to rigid legacy systems that fit within tighter capital allocation limits, thereby slowing the broader adoption of modular technology in cost-sensitive market segments.

This hesitation to invest in premium infrastructure is reinforced by the broader economic strain currently affecting the sector. According to the Uptime Institute, in 2024, cost emerged as the primary concern for data center management, with 51% of surveyed vendors reporting higher-than-normal spending patterns driven by rising prices for equipment and facility upgrades. This acute sensitivity to capital outlays directly hampers the market, as decision-makers become increasingly reluctant to approve high-value procurement requests for modular UPS solutions, choosing instead to minimize immediate expenditures despite the potential for future operational efficiency.

Key Market Trends

A widespread transition from Valve Regulated Lead Acid to Lithium-Ion battery technology is fundamentally altering the energy storage landscape of the market. Lithium-ion batteries offer significantly higher energy density and longer operational lifespans compared to legacy chemistry, which complements the scalable nature of modular UPS by reducing the physical footprint required for backup power. This shift is accelerated by falling production costs that are narrowing the price gap between these technologies, making the switch financially viable for a broader range of industrial facilities. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', the price of lithium-ion battery packs dropped to approximately 140 US dollars per kilowatt-hour in 2023, a cost reduction that is rapidly driving their integration into industrial power backup applications.

Concurrently, the development of compact modular systems is gaining momentum to address the specific requirements of edge computing environments. Unlike centralized hyperscale facilities, edge locations demand smaller and rack-integrated units that deliver reliable power in distributed and space-constrained settings without extensive on-site maintenance. This trend compels manufacturers to engineer systems that combine modular redundancy with reduced form factors to support decentralized network processing. According to Equinix, January 2024, in the 'Global Interconnection Index 2024', interconnection bandwidth at the edge is forecast to grow at a compound annual growth rate of 35 percent through 2026, highlighting the urgent market need for adaptable power solutions in dispersed locations.

Segmental Insights

The IT and Telecommunication segment is recognized as the fastest-growing category in the Global Modular UPS Market, primarily due to the accelerating construction of hyperscale data centers and the widespread rollout of 5G networks. As enterprises increasingly rely on cloud computing and virtualization, the demand for continuous, high-quality power has intensified. Modular UPS solutions are uniquely suited for this sector because they offer scalability, enabling operators to align power infrastructure investment with actual growth. Additionally, the push for energy efficiency in large-scale telecom facilities further drives the adoption of these flexible power protection systems.

Regional Insights

North America holds a dominant position in the Global Modular UPS Market, primarily driven by the high concentration of hyperscale data centers and colocation facilities within the United States. The region's widespread adoption of cloud computing, artificial intelligence, and edge infrastructure creates a critical need for scalable, energy-efficient power protection systems. Furthermore, the established presence of major technology enterprises and a mature telecommunications sector necessitates high-availability solutions to prevent costly downtime. This leadership is sustained by continuous investments in upgrading aging grid infrastructure and strict adherence to energy efficiency standards across industrial operations.

Recent Developments

• In May 2025, ABB expanded its portfolio with the launch of two new single-phase uninterruptible power supply products, the PowerValue 11RT G3 and the PowerValue 11/31/33T G2. These solutions were developed to provide reliable power protection for small and medium-sized enterprises and critical IT networks. The new models utilize a modular design that enhances safety, intelligence, and operational efficiency, ensuring data integrity across various applications. This release targets enterprise data centers and industrial automation sectors, incorporating advanced battery technologies to improve resilience and sustainability for operations that require consistent and uninterrupted energy availability.
• In December 2024, Schneider Electric launched the Galaxy VXL, a modular three-phase uninterruptible power supply designed for high-density environments such as hyperscale data centers and AI applications. This system features a compact footprint of 1.2 square meters and supports a power density of up to 1042 kilowatts per square meter. The scalable architecture allows for N+1 redundancy and enables users to expand capacity by purchasing power modules as needed. It supports scaling up to 1.25 megawatts in a single frame and up to 5 megawatts in parallel configurations, delivering up to 99% efficiency in eConversion mode to minimize the total cost of ownership.
• In October 2024, Vertiv introduced the Liebert APM2, a modular and scalable online three-phase uninterruptible power supply system in North America. The solution addresses the power requirements of high-density computing and AI applications, with scalable capacities ranging from 10 kVA to 600 kVA depending on the voltage model. Its architecture supports seamless expansion and redundancy, allowing parallel operation for a total system capacity of up to 2.4 megawatts. The system includes compatibility with lithium-ion battery solutions and liquid cooling distribution units, designed to enhance operational efficiency and flexibility in enterprise and edge data center environments.
• In October 2024, Eaton announced enhancements to its 93PM G2 modular uninterruptible power supply, enabling the system to participate in frequency regulation markets across several European countries. The updated EnergyAware capability allows data centers to support grid stability by managing variable loads and integrating with renewable energy sources. This modular system, known for its compact footprint and scalability, can now generate revenue for operators through ancillary service markets while maintaining critical load protection. The initiative aligns with broader industry goals to optimize energy management and reduce carbon footprints in edge and colocation facilities.

Key Market Players

• ABB Ltd
• Emerson Network Power
• Huawei Technologies Co. Ltd
• Schneider Electric SE
• General Electric
• Delta Electronics Inc.
• AEG Power Solutions
• Riello Elettronica Group
• Eaton Corporation

By Region

North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Modular UPS Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Modular UPS Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE