Key Market Overview:
Uninterruptible Power Supply Market was valued at USD 9.85 Billion in 2022 and is anticipated to grow at a CAGR of 7.10% and is expected to reach USD 17.06 Billion by 2030
An uninterruptible power supply (UPS) is an electrical apparatus that provides emergency power to a load when the input power source, especially the utility power, fails. UPS systems are designed to provide short-term power when the primary power source fails and offers protection from power interruptions, voltage fluctuations, and other power-related problems. UPS systems consist of a battery backup, an inverter that converts the DC power from the battery to AC power, and a charger that keeps the battery charged when the power is available. UPS systems also include surge protection and power conditioning features to protect the load from voltage spikes and other electrical disturbances.
The increasing use of cloud computing, rising demand for data centers, and the increasing adoption of IoT devices are driving the growth of the UPS market. Additionally, the need for backup power solutions in the IT sector to protect critical information and data from power outages is fueling the demand for UPS systems. For instance, in April 2023, Panduit Corp. launched SmartZone Uninterruptible Power Supply (UPS) to deliver highly efficient and reliable power protection for IT equipment such as servers, switches, and routers. The device is equipped with advanced features, such as a high-efficiency online double-conversion topology, intelligent battery management, and a graphical LCD that provide users with real-time monitoring and control of the UPS system.
Market Dynamics:
Driver:
The increasing demand for data centers is the major driver for the growth of uninterruptible power supply (UPS) systems. Data centers are an essential part of the functioning of many industries including finance and retail and require a constant and reliable power supply to ensure that the data stored is always available. In addition to providing backup power, UPS systems also help to regulate voltage fluctuations that damage sensitive electronic equipment. UPS system regulates that data centers are protected from power-related problems such as a heavy voltage that results in data loss, revenue, and other negative consequences. For instance, in June 2022, Vertiv launched new energy-efficient and space-saving power backup solutions for edge and mid-size data centers. The power backup solutions include the Liebert EXM2 UPS and the Vertiv Rack Power Distribution Unit (PDU). The Liebert EXM2 UPS is a highly efficient, double-conversion UPS system that provides up to 97% efficiency in double-conversion mode and up to 98.5% efficiency in Eco mode.
Restraints:
The high manufacturing cost of CAPEX and OPEX of uninterruptible power supply systems required to support modular architecture and maintenance respectively is hampering the growth of the market. Additionally, the limited runtime of batteries used in the UPS system propels the businesses to invest in alternative backup power solutions, such as generators which in turn hinders the growth of the UPS market. Moreover, the disposal of UPS batteries results in environmental concerns as the batteries contain hazardous material such as lead-acid and nickel-cadmium that harms the environment if not disposed of properly.
Opportunities:
The rising adoption of cloud computing by organizations is expected to create future opportunities for UPS vendors as organizations relying on cloud-based applications and services. Cloud computing allows organizations to store and access data and applications over the internet, rather than on local servers. However, cloud computing also requires reliable power protection, as outages have a significant financial impact on organizations. UPS systems are projected to provide backup power in the event of a power outage, ensuring that data and applications remain available which in turn is expected to create opportunities for the UPS market.
Uninterruptible Power Supply Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | USD 17.06 Billion |
| CAGR (2023-2030) | 7.10% |
| By Product Type | Double Conversion/Online, Delta conversion/Online, Line-interactive, Off-line/Standby, and Others |
| By Capacity | 1-50 kVA, 51-200 kVA, and Above 200 kVA |
| By End-User | Residential, Industrial, and Commercial |
| By Geography | North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
| Key Players | Baykee New Energy Technology Incorporated Co. Ltd., Cyber Power Systems Inc., Panduit Corp., Vertiv Group Corp., Natural Battery Technologies LLP, HIOKI E.E. CORPORATION, Eaton Corporation plc, AEG Power Solutions, Mitsubishi Electric Corporation, Huawei Technologies Co., Ltd. |
Market Segmentation:
By Product Type
The product type segment is categorized into double-conversion/online, delta conversion/online, line-interactive, off-line/standby, and others. The online/double conversion sector dominates the market as the system provides the highest level of power protection compared to other UPS types. Double conversion UPS systems are highly efficient with efficiency levels in the range of 90-95% as the system is always online and the inverter provides power that reduces the need to switch between power sources. Additionally, double conversion systems are equipped with advanced features, such as remote management, hot-swappable batteries, and modular designs driving the growth of the market. For instance, in December 2021, Vertiv launched the Liebert GXT MT+ CX4 1K SB, a double conversion online uninterruptible power supply (UPS) system with an inbuilt battery designed to offer a capacity of 1 kVA. The system provides complete protection of the load from the mains aberrations, along with an inbuilt battery and a compact design that makes the system ideal to support work-from-home, small data centers, data networks, and VOIP applications.
The offline/standby system is anticipated to witness the fastest CAGR as offline UPS systems are simple to operate, inexpensive, and highly efficient as the charger is not constantly on. An offline/standby UPS system protects home or small office computers from power outages and voltage fluctuations. The offline UPS systems are small and inexpensive and provide backup power to allow users to save the work and shut down the computer safely. Additionally, security systems, such as alarms and surveillance cameras, require continuous power to function properly. An offline/standby UPS system is used to provide backup power to ensure that the security systems continue to operate even during a power outage.
By Capacity
The capacity segment is divided into 1-50 kVA, 51-200 kVA, and above 200 kVA. The 1-50kVA capacity dominates the market as 1kVA to 50kVA capacity systems are suitable for small to medium sized applications such as home offices, small businesses, and data centers. The low-capacity UPS systems provide sufficient power to support critical equipment and systems, without the need for larger, more expensive UPS systems. Additionally, low-capacity UPS systems are highly efficient, with most systems operating at 90% or higher efficiency levels that lead to less energy wastage resulting in cost savings and reduced environmental impact. For instance, in June 2022, Natural Battery Technologies introduced lithium-ion-based inverter batteries that store high volumes of power with steady output that ranges from 1kVA to 50kVA. The batteries are ideal to be used as UPS in small businesses and small-medium enterprises.
The 200 kVA capacity sector is projected to register the fastest CAGR during the forecast period owing to the growing demand for data centers. A 200kVA capacity UPS is ideal for large-sized data centers to support critical IT equipment is driving the growth of the market. Additionally, as cloud computing becomes more prevalent, businesses are increasingly relying on third-party data centers to store and manage data. The data centers require high-capacity UPS systems to ensure an uninterruptible power supply to the servers that are expected to drive the demand for larger UPS capacities such as 200kVA. For instance, in October 2020, HIOKI introduced HIOKI Power Quality Analyzer PQ3198, a 200 kVA UPS that is used in data centers and the various failure modes. The analyzer PQ3198 is used by the data center to ensure continuous critical application and data support in the event of a power outage.
By End-User
The end-user segment is trifurcated into residential, industrial, and commercial. The industrial segment dominates the market as industrial applications involve critical equipment and processes that require reliable and uninterrupted power. Any power disruptions result in significant financial losses due to downtime, product damage, or safety risks. Furthermore, industrial applications require high power to run machines that necessitate larger and more powerful UPS systems. The industries such as manufacturing, petrochemicals, and utilities require UPS systems with capacities of 500kVA and higher to provide different levels of power protection. For instance, in February 2023, Eaton Corporation introduced DIN rail industrial uninterruptible power supply (UPS) to provide reliable and flexible power protection for connected devices in industrial environments. The new UPS offers reliable battery backup for Internet of Things (IoT) devices across warehouses, factories edge, locations, and other industrial facilities.
The commercial sector is anticipated to register the fastest CAGR owing to the rapidly growing e-commerce industry. Businesses require reliable power protection for IT equipment, and UPS systems provide the necessary backup power to prevent downtime and ensure uninterrupted online operations. Additionally, the commercial sector is rapidly adopting cloud computing technology to store and manage data that requires a reliable and consistent power supply. The trend is expected to continue during the forecast period, driving demand for UPS systems in the commercial sector. For instance, in January 2020, AEG Power Solutions launched a new generation of Protect C and Protect D 1-phase uninterruptible power supply (UPS) systems to deliver reliable and efficient power protection in the commercial sector. The UPS systems are designed to provide high levels of power protection, with advanced features such as automatic voltage regulation (AVR), hot-swappable batteries, and remote monitoring and management capabilities.
By Region
North America dominates the uninterruptible power supply market owing to the increasing adoption of cloud-based services that require reliable power protection as outages lead to heavy loss of data. Also, the presence of key players in the region including Vertiv Group Corp., Tripp Lite, and Cyber Power Systems Inc. invest heavily in research and development to launch innovative products in the market. Furthermore, the growing IT sector in the region that demands backup power solutions to prevent the loss of sensitive data is also fueling the growth of the UPS market.
Asia-Pacific is predicted to witness the fastest CAGR due to the rising number of collaborative data centers in developing nations such as India and China. Data centers are essential for the growth of businesses in Asia-Pacific countries and downtime results in significant financial losses. UPS systems ensure that data center operations continue uninterrupted in the event of a power outage, helping to maintain business continuity. For instance, in December 2021, China approved plans to build four mega clusters of data centers in its north and west to support the data needs of Beijing and major coastal centers.
Uninterruptible Power Supply Market Competitive Landscape:
The uninterruptible power supply (UPS) market is highly competitive, with several key players operating in the industry. To remain competitive, players in the UPS market are focused on developing innovative products and services, expanding product portfolios, and improving manufacturing and distribution capabilities. Players are also focused on developing strong partnerships and collaborations with other players in the industry to gain a competitive edge and better serve the customers. Crucial players are:-
- Baykee New Energy Technology Incorporated Co. Ltd.
- Cyber Power Systems Inc.
- Panduit Corp.
- Vertiv Group Corp.
- Natural Battery Technologies LLP
- HIOKI E.E. CORPORATION
- Eaton Corporation plc
- AEG Power Solutions
- Mitsubishi Electric Corporation
- Huawei Technologies Co., Ltd.
Recent Developments:
- In February 2022, Mitsubishi Electric announced the acquisition of Computer Protection Technology Inc. (CPT). The acquisition is a part of Mitsubishi Electric’s strategy to expand its presence in the North American market for UPS systems and strengthen its position as a leading provider of power protection solutions.
- In February 2020, Huawei launched its all-new UPS power module globally. The product enables the power density of a single module to reach 100 kW/3U to improve data center operations. It is predicted that the uninterruptible power supply module will reduce the operational costs of data centers worldwide.
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