UNINTERRUPTIBLE POWER SUPPLY MARKET ANALYSIS

The global uninterruptible power supply (UPS) market size was valued at US$ 8.23 Bn in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.2% from 2023 to 2030. Increasing demand for modular data centers and infrastructure development trends are driving the growth of the UPS market. Moreover, new technological advancements in UPS battery systems are expected to offer significant opportunities for the market. Manufacturers are continuously focusing on R&D to develop new and effective Uninterruptible Power Supply to meet consumer demands, which is also driving the market growth.

Global Uninterruptible Power Supply (UPS) Market: Regional Insights

North America is expected to gain considerable growth in the global uninterruptible power supply (UPS) market during the forecast period. This is owing to presence of various hospitals, data centers, and industries having major demand for UPS systems. Moreover, the region has the most number of data centers in the world, and this number is likely to increase in the coming future. For instance, as per Cloudscene, in May 2022, North America accounted for more than 51% of data centers in the world, with 43.5% of data centers being in the U.S. Thus, these factors are likely to drive growth of the market in the region over the forecast period.

Moreover, Asia Pacific is also anticipated to show robust growth in the global uninterruptible power supply (UPS) market over the forecast period due to presence of several developing countries in the region facing unstable power supply and frequent blackouts, such as Cambodia, Malaysia, and Philippines among others. Moreover, major demand for UPS systems in end user sector such as telecom, manufacturing, commercial, and residential sector of the region is also expected to drive the market growth in Asia Pacific.

Figure 1: Global Uninterruptible Power Supply (UPS) Market Share (%), By Region, 2022

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Global Uninterruptible Power Supply (UPS) Market Drivers:

Frequent power outages to boost the market demand

Due to power outages from blackouts, brownouts, and disturbances in voltage, businesses that are highly dependent on constant and reliable power can face major losses. In some cases, owing to the lack of preparedness for unexpected incidences, end users suffer huge losses. This further creates the need for proactive measures to protect from interruptions in power supply, through adoption of uninterruptible power supply. Moreover, due to severe weather conditions resulting from winter storms and hurricanes also cause power interruptions for long duration. Due to abovementioned factors, the demand for uninterrupted power supply continues to grow, which is expected to fuel growth of the global uninterruptible power supply (UPS) market over the forecast period.

Rise in investment in data centers across the globe to boost the market pace

Data centers are important for organizations that support business applications and provide services such as data management and storage. Thus, the role of UPS systems is major in data centers to provide backup power and avoid data crashes, hardware damages, and data loss. The investments in data center continues to grow all over the world. For instance, in April 2022, Google announced the plans to make nearly US$ 9.5 billion investment in data centers and offices in the U.S. As per the company, this investment will focus on data centers in many states, including Virginia, Nebraska, and Nevada. Thus, with increasing number of data centers, the demand for UPS systems is also growing, which is likely to accelerate growth of the global uninterruptible power supply (UPS) market during the forecast period.

Global Uninterruptible Power Supply (UPS) Market Opportunities:

Increasing advancements in UPS technology is expected to bring growth opportunities in the global uninterruptible power supply (UPS) market over the forecast period. The demand for UPS systems is increasing significantly across end-use applications, due to which, the UPS systems are required to be cost-effective, highly efficient, and reliable in the long run. The advancements in the UPS technology is increasing for upgradation and innovation in the conventional UPS systems. This factor in turn is likely to create many growth opportunities in the global uninterruptible power supply (UPS) market.

Growing use of lithium-ion batteries to replace lead-acid batteries is also likely to offer business opportunities in the global uninterruptible power supply (UPS) market over the forecast period. Many UPS manufacturers are using lithium-ion batteries as a replacement for lead-acid batteries in order to tackle the challenges occurred due to higher operating temperatures and fast-charging capacities. This in turn is anticipated to create growth opportunities for the uninterruptible power supply (UPS) market over the forecast period.

Global Uninterruptible Power Supply (UPS) Market Trends:

Market players launching advanced UPS technologies is a major trend

Some of the companies in the global uninterruptible power supply (UPS) market are focused on introduction of technologically advanced UPS systems, to gain a competitive edge in the market. For instance, in March 2021, Vertiv, a leading critical digital infrastructure provider launched Liebert EXM2. The new systems is a three-phase monolithic UPS that provides double conversion efficiency up to 97%, which can be further increased to 98.8% with the dynamic online mode. This novel UPS offers power capacity that ranges from 100 to 250 kVA and a flexible and compact footprint. Thus, launch of such advanced UPS technology by market players is likely to continue in the market over the forecast period.

Standby UPS system are gaining traction in the market

The rise in demand for consumer electronics around the world is driving the demand for standby UPS systems in comparison with other types of UPS systems. The standby UPS systems are highly preferred for consumer electronics, owing to their cost-efficiency for devices requiring low consumption of power. The demand for consumer electronics such as desktop computers has increased significantly because of the COVID-19 pandemic. This in turn is driving the demand for standby UPS systems, which is expected to augment growth of the global uninterruptible power supply (UPS) market over the forecast period.

Global Uninterruptible Power Supply (UPS) Market Restraints:

High cost and operational expenditure of UPS systems to limit the market growth

Uninterruptible power supply systems are highly reliable and responsive that guarantee immediate power supply in a power failure. However, the major concerns associated with these systems is the cost. The adoption of UPS systems requires high amount of initial investment. Moreover, the cost of installation of such infrastructure set up can go up to considerably high. Thus, these systems become expensive, due to which not all the users can afford them. This factor in turn is likely to hamper growth of the global uninterruptible power supply (UPS) market during the forecast period.

Disruption in logistics and supply chain due to COVID-19 to hamper the market growth

The pandemic of COVID-19 created several challenges across various business including real estate and construction, healthcare, IT, and manufacturing, as many countries imposed lockdown regulations during this period. The supply chains across several industries were disrupted due to the pandemic, which further impacted export and import activities. This factor also affected the global uninterruptible power supply (UPS) market adversely. However, as the pandemic situation has returned to normal, the market is likely to regain growth in the coming future.      

Figure 2: Global Uninterruptible Power Supply (UPS) Market Share (%), By Capacity, 2022

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Global Uninterruptible Power Supply (UPS) Market Segmentation:

The global uninterruptible power supply (UPS) market report is segmented into Capacity, Type, and Application.

Based on Capacity, the market is segmented into Less than 10 kVA, 10-100 kVA, and Above 100kVA. Out of which, Less than 10 kVA is expected to dominate the global market over the forecast period and this is attributed to the rise in population and demand for better quality electronic equipment, and growing demand for less than 10kVA UPS. Consumer electronics or residential computer systems require lower power voltages, however, they need an uninterrupted supply of power for better functioning of the device.  Less than 10 kVA UPS are perfectly suitable for this applications, and with increasing adoption of such consumer electronics, demand for this segment continues to increase.

10-100 kVA segment is also expected to witness significant growth in the near future and this is owing to the increasing automation and technological developments in several industries. This in turn creates need for constant power protection, especially in the healthcare industry. Thus, the demand for UPS systems of 10-100 kVA capacity is growing, which is further driving growth of this segment.

Based on Type, the market is segmented into Standby UPS System, Online UPS System, and Line-interactive UPS System. Out of which, Standup UPS System is expected to dominate the global market over the forecast period and this is attributed to the increasing demand for consumer electronics. With increasing adoption of consumer electronics, the demand for standby UPS systems is also growing. This UPS system is also called, the offline UPS system, which offers the essential features providing surge protection and battery backup. These standby systems can turn to a battery quick enough that it can prevent power anomalies and protect against most of the spikes in voltage.

Online UPS System segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for cloud services and digital platforms further accelerating the development of data centers and online UPS systems related to it. The online UPS system provides constant power to the load from the supply source with no interruption using a combination off inverter and rectifier circuits. The growing demand for these online UPS systems is expected to drive growth of this segment in the near future.

Based on Application, the market is segmented into Data Centers, Telecommunications, Healthcare (Hospitals, Clinics, etc.), Industrial, and Other Applications. Out of which, Data Centers is expected to dominate the global market over the forecast period and this is attributed to the rise in investment and application of AI, machine learning, and Internet of Things (IoT) transforming several sectors such as financial technology, digital infrastructure, communications, global cities, and industry 4.0. This in turn driving the need for data centers that are required to be operational all the time, maintain safety of data and reduce downtime. Due to this, demand for UPS is high in this sector, which further drives growth of this segment.

Telecommunications segment is also expected to witness significant growth in the near future and this is owing to the demand for constant supply of power in telecommunications industry. The number of telecom towers has increased in past few years, due to increasing demand for wireless products such as tablets and smartphones. To provide continuous supply of power to these towers, the demand for uninterrupted power supply is increasing, which in turn is driving growth of this segment.

Global Uninterruptible Power Supply (UPS) Market: Key Developments

In November 2021, Emerson Electric Co., introduced Long-Life 240W and 480W SIN Rail Mounted Uninterrupted Power Suppliers. These systems help to improve the availability of mission-critical devices, and simplify commissioning, reduce maintenance, and drive down the overall cost of owning across various industries.

In August 2021, ABB Ltd. entered into partnership with Keppel Data Centers and Salim Group for providing the seven-hectare IndoKeppel Data Center 1 campus in Indonesia with an uninterruptible power supply. ABB and PT Vektordaya Mekatrik will be providing the PowerWave 33 UPS to the data center, which will constructed over three phases.

In January 2022, Delta Electronics Inc. and DATABOX – Informatica SA entered into partnership for providing various energy-efficient UPS and Data Center Infrastructure Solutions of Delta to IT resellers and system integrators across Portugal.

In June 2022, Schneider Electric SE, introduced the novel 24V DC Easy UPS, developed for commercial and industrial environments where power disruption risks productivity. The novel Easy UPS can minimize downtime and protect equipment, which results into reduction in maintenance of machine and improvement in control over the industrial infrastructure.

Global Uninterruptible Power Supply (UPS) Market: Key Companies Insights

The global uninterruptible power supply (UPS) market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global uninterruptible power supply (UPS) market are Aspex Inc., Riello Elettronica SpA, Cyber Power Systems Inc., EATON Corporation PLC, General Electric Company, Emerson Electric Co., Mitsubishi Electric Corporation, Delta Electronics Inc., Hitachi Ltd., ABB Ltd., and Schneider Electric SE.

*Definition: The Uninterruptible Power Supply, or UPS for short, is a critical component of computer setups and other hardware systems that may need to function for a period of time following a loss of mains power. When this happens, the UPS powers the system until utility power is restored and it resumes recharging its internal battery backup.