Data Center UPS & Inverter Market to Hit $23.2 Billion by 2035 Driven by Lithium-Ion Battery Adoption

Data center UPS & inverter market was valued at $11.2 billion in 2025 and is projected to reach $23.2 billion by 2035, growing at a CAGR of 7.6% during the forecast period (2026-2035). The integration of lithium-ion battery technology is emerging as a significant advancement in the data center UPS and inverter market. Traditionally, uninterruptible power supply systems relied on valve-regulated lead-acid (VRLA) batteries for backup power, however operators are increasingly transitioning toward lithium-ion alternatives owing to their improved performance characteristics. Lithium-ion batteries offer higher energy density, enabling more compact power backup systems that require less physical space within data center facilities. In addition, these batteries provide longer operational lifecycles and reduced maintenance requirements compared with conventional battery technologies. Modern lithium-ion UPS batteries are capable of delivering more than 6,000 discharge cycles, which substantially exceeds the typical lifespan of lead-acid batteries used in earlier systems. The extended cycle life contributes to improved reliability and fewer battery replacements over time. These features support the operational needs of hyperscale and high-density data centers that require consistent and efficient backup power solutions. As a result, the adoption of lithium-ion battery-based UPS systems is gaining momentum as organizations look to enhance power resilience while optimizing long-term operational costs.

Browse the full report description of “Data Center UPS and Inverter Market Size, Share & Trends Analysis Report by Product Type (UPS, and Inverter), by Capacity (<100 kVA, 100–500 kVA, 500 kVA–1 MW and >1 MW), and by End-User Industry (IT & Telecom, BFSI, Healthcare, Government & Defense and Others), Forecast (2026-2035)” at https://www.omrglobal.com/industry-reports/data-center-ups-and-inverter-market

Recent product developments in the data center power infrastructure sector highlight continued efforts to modernize UPS systems through advanced battery integration. Industry participants are focusing on improving system reliability, operational efficiency, and deployment flexibility to address the increasing power demands of large-scale data centers. For instance, in January 2024, Delta Electronics introduced a new high-density lithium-ion UPS system designed for modern data centers. The system integrates lithium-ion battery modules that provide longer operational life, improved energy density, and faster recharge capability compared with conventional VRLA batteries. The solution also supports modular expansion and reduced physical footprint, allowing data center operators to optimize floor space while maintaining reliable backup power.

Developments and Innovations by Major Players in the Data Center UPS & Inverter Market

The major companies operating in the global data center UPS & Inverter market include ABB Ltd., Delta Electronics Inc., Eaton Corp., Schneider Electric SE, and Vertiv Holdings Co. among others. These key players are actively advancing UPS technologies and energy storage solutions to meet the increasing demand for reliable and efficient power backup. Innovations include the development of lithium-ion battery modules for longer cycle life and strategic deployments of high-capacity UPS systems in hyperscale data centers.

• In January 2025, LG Energy Solution launched an advanced lithium-ion battery module optimized for UPS applications in data centers. The module focuses on improved cycle life and enhanced safety features, supporting longer service intervals and reducing maintenance requirements. Such battery innovations enable operators to deploy more compact and high-capacity energy storage solutions for critical power backup infrastructure.

• In November 2024, Eaton Corporation secured a contract to supply lithium-ion UPS systems to a hyperscale data center operator in North America and Europe. The deployment highlights the growing industry shift toward lithium-ion technology to support high-density computing environments and improve power backup reliability in large-scale digital infrastructure.

Market Coverage

• The market number available for – 2025-2035
• Base year- 2025
• Forecast period- 2026-2035
• Segment Covered-  
• Component
• End-User Industry
• Competitive Landscape – ABB Ltd., Delta Electronics Inc., Eaton Corp., Schneider Electric SE, and Vertiv Holdings Co.

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

Global Data Center UPS & Inverter Market Report Segment

• Type
  • UPS
    • Standby
    • Line-Interactive
    • Online/Double-Conversion
  • Inverter
    • Rack-Mount Inverters
    • Modular Inverters

• Capacity
  • <100 kVA
  • 100–500 kVA
  • 500 kVA–1 MW
  • >1 MW

• End-User
  • IT & Telecom
  • Banking & Financial Services
  • Healthcare
  • Industrial / Manufacturing
  • Others

Global Data Center UPS & Inverter Market Report Segment by Region

North America

• United States
• Canada

Europe

• UK
• Germany
• Italy
• Spain
• France
• Russia
• Rest of Europe

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia and New Zealand
• ASEAN Economies
• Rest of Asia-Pacific

Rest of the World

• Latin America
• Middle East & Africa

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