United States Backup Power Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The United States backup power systems market is expected to register a CAGR of greater than 2% during the forecast period. The COVID-19 pandemic has led to a reduction in electricity consumption, impeded economic growth in major part of the country, and large-scale disruptions in the supply chain. Factors such as power outages that are prevalent in the United States and increasing demand for standby power sources are expected to be the biggest driver for the backup power systems market. Moreover, rising awareness among customers about the features and benefits of backup power, as well as the best suited equipment combination for personal use, is driving the growth of generator sets and UPS markets, especially in the residential and commercial sectors, is likely to dominate the market. However, with the rapid integration of renewable energy sources and distributed technologies onto the grid, the backup power systems market growth is expected to be hampered in the coming years.

Key Highlights

• Uninterrupted Power Supply (UPS) technology segment is expected to witness significant growth during the forecast period, owing to the increasing number of data centers in the country (provides critical protection for data centers equipment in critical applications, serving as a source of backup power in the event of a power outage).
• The emerging commercial and industrial sector of the country along with the development in the residential area is likely to create immense opportunities for the United States backup power systems market in the coming years.
• Increasing infrastructure for data centers is expected to drive the backup power systems market, owing to the increasing demand for connectivity and the significant growth of the commercial sector in the United States.

Key Market Trends

Uninterrupted Power Supply (UPS) Technology to Witness Significant Growth

• An uninterruptible power supply (UPS), also known as a battery backup, provides backup power when the regular power source fails or voltage drops to an unacceptable level. A UPS allows for the safe, orderly shutdown of a computer and connected equipment. The size and design of a UPS determine how long it will supply power.
• Different UPS topologies (such as standby, line interactive, and double-conversion) provide specific levels of power protection. Standby UPS is the most basic UPS topology. A standby UPS resorts to battery backup power in the event of common power problems such as a blackout, voltage sag, or voltage surge.
• Moreover, a line interactive UPS models are typically used for consumer electronics, PCs, gaming systems, home theater electronics, network equipment, and entry-to-mid-range servers. They provide power during such events as a blackout, voltage sag, voltage surge, or over-voltage. Also, double-conversion UPS systems are designed to protect mission-critical IT equipment, data center installations, high-end servers, large telecom installations and storage applications, and advanced network equipment from damage caused by a power blackout, voltage sag, voltage surge, over voltage, voltage spike, frequency noise, frequency variation, or harmonic distortion.
• Uninterruptible Power Supply (UPS) systems provides critical protection for data centers and telecommunication equipment in mission critical applications, serving as a source of backup power in the event of a power outage.
• Moreover, companies such as Amazon, Microsoft, and Google have committed to building new data centers in the country, which are highly sensitive loads, and have a high risk of economic losses from downtime. This has translated into higher demand for UPS backup systems from the commercial sector.​
• Therefore, based on the above-mentioned factors, UPS technology segment is expected to witness significant demand for the backup power systems market in the country during the forecast period.

Increasing Infrastructure for Data Centers to Drive the Market

• Data centers are one of the key developing markets in the commercial space of the United States. With 2704, as of July 2021, United States is the largest market with data centers, which indicates a substantial demand potential for backup power systems in the country.
• As of 2020, the United States is one of the largest countries for data centers in the world. Major markets include the financial hubs of New York and Chicago, the tech hubs of San Francisco, Seattle, and Portland, and the population hubs of Dallas, Los Angeles, and the center of Government in Washington DC. With the country's total data center numbers outweighing its nearest market (the United Kingdom) by five times, the United States is also the undisputed "home of the internet, "which has increased the demand for backup power systems over the forecast period.
• The requirement for data centers in the country is growing at a rapid pace due to increasing demand for connectivity, when compared to other factors i.e., roughly 600 zettabytes of new data were created every year (that is 600 trillion gigabytes). To keep up this pace with the growing data, there is a requirement of building new facilities, in order to handle the increasing internet traffic during the forecast period.
• Companies such as Amazon, Microsoft, and Google have committed to build new data centers in the country, which are highly sensitive loads, and have a high risk of economic losses from downtime. This has translated into higher demand for UPS backup systems from the commercial sector.
• Overall, the demand for backup power systems in the country is expected to increase significantly owing to the growth of the commercial sector which is driven from the data centers in the country.
• Therefore, based on the above-mentioned factors, increasing infrastructure for data centers is expected to drive the backup power systems market in the United States during the forecast period.

Competitive Landscape

The United States backup power systems market is fragmented. Some of the major players include Emerson Electric Co., General Electric Co., Briggs & Stratton Corporation, Eaton Corporation plc, and Generac Holdings Inc.

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