Latin America Data Center UPS Market - Industry Outlook and Forecast 2022-2027

Latin America Data Center UPS Market - Industry Outlook and Forecast 2022-2027

The Latin America Data Center UPS market is expected to grow at a CAGR of 9.75% during 2022-2027

The following factors are likely to contribute to the Latin America data center UPS market growth during the forecast period:

• Rising Data Center Investments
• Power Outages to Increase Redundant Ups Adoption
• Thriving Digital Economy in Latin America
• 5G to Drive Edge Data Center Investments
• Adoption of DC UPS Systems to Reduce Power Loss
• Software-Defined Power & Data Center Infrastructure Automation

KEY HIGHLIGHTS

• The Latin America data center UPS market growth is highly dependent on the efficiency of the systems. According to the Uptime Institute, power outages are caused by various factors, such as the failure of UPS systems which accounts for 53%.
• The adoption of VRLA UPS systems still dominates the Latin America data center UPS market. Companies such as Equinix, EdgeConneX, and Ascenty have adopted VRLA UPS systems.
• The market for lithium-ion batteries is growing in Latin America to improve the performance of the data centers. For instance, SONDA's Kudos Datacenter is equipped with UPS systems with lithium-ion batteries with 2N redundancy.
• Latin America is an emerging 5G market, which is creating demand for edge data centers. In an edge data center, lithium-ion can be beneficial as compared to VRLA batteries as it requires less space, less maintenance, and is more energy-efficient.
• According to the Uptime Institute data center survey, around 79% of power outages happen due to human errors, voltage fluctuation, physical damage to the power line, and incorrect installation, which will increase the procurement of highly effective UPS systems.

SEGMENTAL ANALYSIS

The adoption of innovative UPS battery technology is expected to drive the industry

• The average time taken for lithium-ion batteries to reach 80% of their maximum capacity is around 15 years compared to the five-year cycle for VRLA battery-based UPS systems.
• According to Active Power, compared to VRLA batteries, the cost of flywheel systems is high around 10%, which is around 675 kW. Compared to VRLA battery systems, the flywheel system can save around 15%-20% OPEX in five years.
• <=500 KVA UPS systems will grow due to edge deployments and prefabricated data center operators coming to Latin America. For instance, in September 2021, Amazon Web Services announced its plan to build a new edge facility in Fortaleza, Brazil.

Brazil will witness the highest growth during the forecast period, growing at a CAGR of around 11.37%.

• Brazil had the highest industry share of around 46% in Latin America, followed by Mexico and Colombia in 2021.
• Unstable power girds present significant opportunities in the Latin America UPS industry.
• Columbia is equipped with up to 500 kVA UPS systems powered mostly by VRLA batteries with N+1 redundant configuration. For instance, HostDime's Bogota data center facility in Colombia installed 20 UPS systems with a capacity of 500KW.

Segmentation by UPS Battery Technology

• Lithium-Ion
• Flywheel
• VRLA

Segmentation by UPS System

• <=500 kVA
• >500─1,000 kVA
• >1,000 kVA

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

Segmentation by Region

• Latin America
• Brazil
• Mexico
• Colombia
• Chile
• Rest of Latin America

VENDOR ANALYSIS

Vendors are continuously innovating by introducing advanced UPS systems to support facilities. ABB, Eaton, Huawei Technologies, Mitsubishi Electric, Schneider Electric, and Vertiv are the major vendors offering products and services for data center facilities.

The vendors are offering effective solutions to improve the performance of the facilities. In 2020, Saft announced Flex'ionTM Gen2 lithium-ion UPS systems that support up to 220 kW per cabinet, improving the performance of batteries by 40% compared to first-generation systems.

Key Vendors

• ABB
• Eaton
• Huawei Technologies
• Mitsubishi Electric
• Schneider Electric
• Vertiv

Other Prominent Vendors

• AEG Power Solutions
• AMETEK Powervar
• Aten
• Canovate
• Cyber Power Systems
• Delta Electronics
• Hitachi Hi-Rel Power Electronics
• KEHUA Data (KEHUA Tech)
• KOHLER
• Marathon Power
• Narada
• Panduit
• Piller Power Systems
• SolarEdge Technologies
• Toshiba

KEY QUESTIONS ANSWERED

1. How Big is the Latin America Data Center UPS Market?

2. What are the Major Drivers in the Latin America Data Center UPS Market?

3. What are the Latest Trends in the Latin America Data Center UPS Market?

4. Which Country Contributes the Largest Share in the Latin America Data Center UPS Market?

5. Who are the Major Players in the Latin America Data Center UPS Market?