Transformerless UPS Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 2.46 Billion |
| Market Size (2030) | USD 4.24 Billion |
| Growth Rate (2025 - 2030) | 11.46% CAGR |
| Fastest Growing Market | South America |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Transformerless UPS Market Analysis by Mordor Intelligence
The transformerless UPS market size reached USD 2.46 billion in 2025 and is forecast to reach USD 4.24 billion by 2030, translating into an 11.46% CAGR over the period. Market expansion reflects the technology’s 98% operational efficiency, 30-40% weight reduction versus legacy transformer-based systems, and compatibility with data-center racks exceeding 130 kW power densities. A 42.83% regional share in Asia-Pacific underscores vigorous construction under China’s East Data West Computing initiative, while three-phase products dominate 65.71% of global deployments because commercial electrical infrastructure already supports balanced, high-density distribution. Demand will accelerate further as hyperscale operators implement 800 V DC architectures, insurers escalate downtime penalties, and modular data-center builds shorten construction cycles. Competitive intensity remains moderate: diversified power-electronics leaders leverage acquisitions and factory investments to secure the supply of wide-bandgap devices, lithium-ion batteries, and cybersecurity-hardened firmware. Supply-chain volatility for silicon-carbide wafers, coupled with up-front cost premiums, stands out as the main adoption risk alongside emerging DSP-level cyber threats.
Key Report Takeaways
- By power rating, the 10–100 kVA segment captured 43.78% of the transformerless UPS market share in 2024; units less than 10 kVA are forecast to grow at a 12.33% CAGR through 2030.
- By phase, three-phase systems commanded 65.71% revenue in 2024; single-phase units are projected to expand at a 12.87% CAGR to 2030.
- By end-use industry, data centers accounted for 36.92% of the transformerless UPS market size in 2024; telecom applications will record the fastest 11.64% CAGR between 2025 and 2030.
- By form factor, tower configurations led with 39.77% revenue share in 2024; modular systems are expected to post a 12.41% CAGR through 2030.
- By geography, the Asia-Pacific contributed 42.83% revenue in 2024; South America is projected to chart the highest 11.79% CAGR to 2030.
Global Transformerless UPS Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Accelerated data-center construction | +3.2% | Asia-Pacific, North America | Short term (≤ 2 years) |
| Growth of edge-computing micro-sites | +2.8% | North America, EU, expanding to Asia-Pacific | Medium term (2-4 years) |
| Grid instability in emerging markets | +2.1% | Asia-Pacific core; spill-over to MEA, South America | Long term (≥ 4 years) |
| Expansion of modular facilities (prefab) | +1.9% | Global with early uptake in North America | Medium term (2-4 years) |
| AI-optimized energy-efficiency mandates | +1.6% | EU and North America, expanding globally | Long term (≥ 4 years) |
| Insurance-driven downtime penalties | +1.0% | Global, concentrated in developed markets | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Accelerated Datacenter Construction
Hyperscale operators now commission 50 MW-plus campuses and specify 130 kW racks, forcing a shift from transformer-based UPS toward transformerless platforms that free up floor space and raise conversion efficiency to 98%. [1]SemiAnalysis, “Datacenter Anatomy Part 1: Electrical Systems,” SEMIANALYSIS.SUBSTACK.COM Tesla’s USD 556 million grid-scale storage plant in Shanghai illustrates capital investment levels supporting uninterrupted power free of fossil-fuel peaker plants. Widespread migration to 800 V HVDC buses further boosts preference for transformerless UPS that couple efficiently with solid-state transformers. Huawei’s FusionPower9000 modules integrate battery strings and achieve end-to-end 98% efficiency, proving that integrated designs can meet scale and sustainability demands.
Growth of Edge-Computing Micro-Sites
5G and IoT require low-latency nodes sited near users, typically safeguarded by 10–100 kVA power ratings, where transformerless UPS offer superior volumetric efficiency. Microsoft pioneered Local Energy Storage embedded in server trays, eliminating centralized UPS rooms and reclaiming 150,000 sq ft in a 25 MW facility. [2]Data Center Knowledge, “How Microsoft Got Rid of the Big Data Center UPS,” DATACENTERKNOWLEDGE.COM The Open Compute Project ratified this concept, accelerating standardization. Vendors now focus on rack-mountable modules with hot-swap power converters, enabling seamless expansion as traffic grows.
Grid Instability in Emerging Markets
China’s datacenter electricity use reached about 140 billion kWh in 2024, a 31% jump that strains provincial grids. Western provinces rich in renewable generation still suffer voltage swings, so operators require UPS that tolerate 90-300 VAC and 40-70 Hz windows. Transformerless designs provide such resilience while delivering active power-factor correction above 0.99. Similar instability across Southeast Asia and parts of MEA underpins steady demand as governments push digital-economy agendas without equivalent grid-upgrading budgets.
Expansion of Modular Facilities (Prefab)
Prefab data halls cut on-site labor by 70% and trim delivery times to 18 weeks when paired with lightweight, transformerless UPS. Huawei’s PowerPOD ships 2.4 MW inside a single 40-ft container, while Piller’s UB-V modules scale from 1.0 MW to 3.24 MW with 1.7-percentage-point efficiency gains at full load. [3]Piller, “NEW UB-V SERIES UPS FOR ALL LARGE SCALE DATA CENTRES,” PILLER.COM Operators phase-in capacity by slotting extra modules into busbars rather than rewiring whole rooms, dovetailing with cloud providers’ pay-as-you-grow economics.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Higher up-front CAPEX vs transformer-based | -2.4% | Global, strongest in cost-sensitive regions | Short term (≤ 2 years) |
| Limited short-circuit withstand capability | -1.8% | Global, acute in heavy-industry sites | Medium term (2-4 years) |
| Cyber-vulnerability of DSP-based controls | -1.3% | Global, critical infrastructure | Long term (≥ 4 years) |
| Wide-bandgap semiconductor supply shortages | -1.1% | Global, supply chain centered in Asia | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Higher Up-Front CAPEX vs Transformer-Based UPS
Silicon-carbide MOSFETs, DSP controllers, and lithium-ion battery packs raise bill-of-materials cost, widening price gaps versus transformer-centric products-particularly at smaller kVA ratings where fixed electronics dominate unit pricing. Chinese datacenter investors leverage subsidized electricity rates near 0.36 yuan/kWh to offset operating expenses instead of paying premium CAPEX. Vendors respond with TCO calculators and leasing schemes that demonstrate 3-5-year payback as energy savings accumulate.
Cyber-Vulnerability of DSP-Based Controls
Networked UPS monitoring unlocks predictive maintenance but exposes firmware to threats exemplified by TLStorm exploits. Critical-infrastructure sites must meet the EU NIS2 directive and comparable U.S. frameworks, compelling suppliers to issue signed updates, zero-trust authentication, and hardware root-of-trust chips. Security engineering inflates R&D budgets and may lengthen certification cycles under IEC 62040-1:2013 amendments.
Segment Analysis
By Power Rating: Mid-Range Dominance Drives Market
The 10–100 kVA band captured 43.78% share, aligning precisely with single-rack loads in colocation suites. At this scale, silicon-carbide switches and digital control add modest cost while cutting heat rejection, a benefit magnified when cooling energy equals 30% of facility usage. Below 10 kVA, volumes surge with edge nodes; forecast 12.33% CAGR rests on micro-data-center kits that bundle 2–3 kVA transformerless UPS offering 88% efficiency and LiFePO₄ battery options. The >100 kVA tier now rides AI training clusters, where Piller UB-V modules reach 3.24 MW and boost system efficiency roughly 1.7 points over static UPS, protecting GPU bays drawing over 130 kW each. Compliance with IEC short-circuit rules motivates vendors to integrate fast electronic current-limiters, narrowing historical performance gaps with transformer-based rivals.
Note: Segment shares of all individual segments available upon report purchase
By Phase: Three-Phase Systems Lead Commercial Adoption
Three-phase accounts for 65.71% because most commercial switchgear already distributes balanced loads at 400/480 V. Such systems meet ENERGY STAR V2.0 VFI class thresholds more easily, posting >96% double-conversion efficiency at half-load. Single-phase units nevertheless grow 12.87% CAGR as retail chains, branch offices, and IoT hubs proliferate. Wide-bandgap devices help single-phase skids achieve 97% at 50% load and <2% total harmonic distortion, closing historical efficiency gaps. Regulatory relaxation allowing lithium-ion cabinets inside occupied spaces further stimulates adoption in healthcare and campus micro-grids.
By End-Use Industry: Data Centers Drive Transformation
Data centers supplied 36.92% of the transformerless UPS market size in 2024 due to relentless PUE optimization pressure. Cloud giants swap 2‐step AC-DC-AC topologies for 48 VDC server rails buffered by rack-level batteries. Telecom rises fastest at 11.64% CAGR through proliferation of 5G macro-sites transmitting up to 20 Gbps; compact 30 kVA transformerless racks sit inside outdoor enclosures, surviving -40 °C to +55 °C. Industrial manufacturing specifies transformerless UPS for fully automated lines because sub-cycle voltage sags trip motion controllers, costing hours of downtime. Healthcare uptakes units certified under IEC 62040 for medical environs, where compact footprints free corridor space and digital logging aids accreditation audits.
Note: Segment shares of all individual segments available upon report purchase
By Form Factor: Tower Configuration Maintains Leadership
Tower frames retain 39.77% share owing to technician familiarity and easy front-access maintenance. Yet modular cabinets rise 12.41% CAGR as prefab campuses adopt pay-as-you-grow schemes: Huawei UPS5000-H drawers add 100 kW increments, reaching 1.2 MW within one frame at 97.5% efficiency. Rack-mount models win at the edge; Microsoft’s LES board-level batteries negate the need for 10-ton traditional UPS rooms, and Open Compute acceptance drives ODM supply chains, accelerating adoption among hyperscalers building regional zones.
Geography Analysis
Asia-Pacific controls a 42.83% share, anchored by China’s 300 EFLOPS East Data West Computing target. Provincial subsidies shift AI clusters westward, where wind-solar intermittency demands UPS capable of 40-70 Hz tolerance and 90-300 VAC windows. Japan and South Korea inject high-end demand thanks to semiconductor-fab cleanrooms requiring class 0.1 second ride-through. India’s Digital Public Infrastructure program generates smaller 10-50 kVA orders, favoring cost-optimized single-phase units.
Europe prioritizes efficiency: the Ecodesign Directive mandates a minimum 95% at 50% load for UPS above 10 kVA, naturally steering operators to transformerless platforms. Germany’s Industry 4.0 roll-outs depend on millisecond-stable power for robotics lines, while the UK’s sustainable data-center road map compels facilities to cap PUE at 1.3, feeding demand for 98% converter blocks.
North America expands via hyperscale and edge nodes. U.S. cloud majors erected 10 new 100 MW+ campuses in 2024; each relies on lithium-ion-ready transformerless UPS with embedded cybersecurity meeting UL 1778 and NEMA PE 1-2012. Canada’s cold climate offers free cooling but still leans on high-density racks, adopting three-phase modular converters. Mexico’s manufacturing corridors integrate 30 kVA single-phase packs to guard SMT lines against grid flicker.
Competitive Landscape
Market concentration is moderate. Eaton’s December 2024 tie-up with Tesla integrates Megapack storage with UPS controls, extending backup from minutes to multiple hours-crucial for AI inference clusters where orderly shutdown is impractical. Schneider Electric pumped USD 140 million into U.S. plants and rolled out Galaxy VXL, bundling lithium-ion strings and predictive analytics firmware. Vertiv’s 100 kW-per-rack-ready launch signaled a pivot to AI loads, layering immersive cooling coordination into UPS firmware. ABB positions nickel-zinc battery options under MegaFlex, addressing sustainability audits that penalize heavy-metal chemistries. Smaller specialists exploit white space in micro-module and industrial niches; Socomec embeds secure boot and signed updates after TLStorm, differentiating on cybersecurity.
Transformerless UPS Industry Leaders
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ABB Ltd.
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Eaton Corporation plc
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Schneider Electric SE
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Vertiv Holdings Co
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Delta Electronics, Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- December 2024: Schneider Electric released Galaxy VXL transformerless UPS and announced USD 140 million domestic manufacturing expansion
- December 2024: Eaton partnered with Tesla to pair Megapack storage with multi-MW transformerless UPS for hyperscale sites
- October 2024: Vertiv unveiled scalable high-density UPS supporting >100 kW racks, integrating liquid cooling loops
- October 2024: Huawei Digital Power won W.Media Asia-Pacific award for its FusionPower9000 integrated transformerless solution
Global Transformerless UPS Market Report Scope
| less than 10 kVA |
| 10–100 kVA |
| greater than 100 kVA |
| Single-Phase |
| Three-Phase |
| Data Centers |
| Industrial Manufacturing |
| Commercial Buildings |
| Healthcare Facilities |
| Telecom |
| Other End-use Industry |
| Rack-mounted |
| Tower |
| Modular |
| North America | United States | |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Egypt | ||
| Rest of Africa | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| By Power Rating | less than 10 kVA | ||
| 10–100 kVA | |||
| greater than 100 kVA | |||
| By Phase | Single-Phase | ||
| Three-Phase | |||
| By End-use Industry | Data Centers | ||
| Industrial Manufacturing | |||
| Commercial Buildings | |||
| Healthcare Facilities | |||
| Telecom | |||
| Other End-use Industry | |||
| By Form Factor | Rack-mounted | ||
| Tower | |||
| Modular | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Egypt | |||
| Rest of Africa | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
Key Questions Answered in the Report
How large is the transformerless UPS market in 2025?
The transformerless UPS market size reached USD 2.46 billion in 2025.
What CAGR is forecast for transformerless UPS between 2025 and 2030?
Revenue is projected to rise at an 11.46% CAGR through 2030.
Which power-rating segment leads today’s deployments?
Units rated 10–100 kVA hold 43.78% of global share, matching typical rack requirements.
Why are data centers adopting transformerless UPS over transformer-based models?
They deliver up to 98% efficiency, cut weight by around 30-40%, and fit high-density 130 kW racks while freeing floor space.
Which region contributes the largest share?
Asia-Pacific accounts for 42.83% of global revenue, underpinned by China’s East Data West Computing program.
What is the main risk keeping adoption rates in check?
Higher up-front capital cost relative to transformer-based UPS remains the primary short-term restraint despite favorable total cost of ownership.
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