The uninterruptible power supply (UPS) market is expected to register a CAGR of greater than 8% during the forecast period. The COVID-19 pandemic has already cast its shadow on various industries, with the uninterruptible power supply market being no exception. This outbreak has impacted the sales and operations of a good number of UPS manufacturers, with these manufacturers having shut down manufacturing plants. There has been a ban on exports by Asia-Pacific countries due to which a couple of market players across the world are facing disruptions in the supply chain. Factors such as rising trend of internet of things (IoT) and smart buildings, a growing number of data centers worldwide, the growing trend of virtualization and cloud computing, and growing adoption of multi-cloud & network upgrades, etc. are expected to drive the UPS market globally during the forecast period. Also, significant surge in demand for reliable power solutions that can support large-scale manufacturing facilitates is expected to drive the uninterrupted power supply system (UPS) market growth. However, high cost of online UPS and few limitations of UPS for protecting heavy appliances from power failure may negatively impact the market growth.
- Data Centers segment is expected to witness growth during the forecast period, owing to the increasing number of data centers globally and the exponential growth of data from the heavy use of technologies like 5G, artificial intelligence (AI), etc.
- Technological advancements in UPS battery systems, such as new Lithium-ion (Li-ion) batteries with high operating temperature is expected to create immense opportunities in traditional data centers soon. Besides, Li-ion batteries last two to three times longer than traditional Valve Regulated Lead Acid (VRLA) batteries.
- Asia-Pacific is expected to be the fastest growing market during the forecast period, with majority of the demand coming from countries like China, Japan, India, Australia, etc.
Key Market Trends
Data Centers Segment Expected to Witness Significant Growth
- With the advent of 5G and the growth of artificial intelligence (AI) and machine learning (ML), data center construction and deployment and upgrading efforts in existing data centers are booming. The global datasphere is expected to grow from 33 zettabytes in 2018 to more than 175 zettabytes of data by 2025.
- Asia-Pacific is one of the fastest growing datasphere regions across the world. Moreover, the datasphere of China is growing at a significant pace and is outpacing the global datasphere by 3% annually, on average. Adding to this, industry experts have also stated that the data center capacity in the region is expected to be doubled in the next three years. This, in turn, is expected to create a significant demand for UPS in the coming years.
- Major data corporations have massive data centers, globally. For instance, Google has 15 data centers across four continents and a massive cloud map of servers hosted elsewhere, and Facebook has nine data centers, with six of these in the United States.
- One of the biggest challenges in the data centers is processing high volumes of data at high speeds. Edge computing may be the next major technology trend after the cloud, which describes an environment where data processing takes place as close as possible to the data source. This is expected to ensure speed and low latency, which are likely to help in meeting 5G’s performance goals. However, there may still be a need for central data centers, in order to handle applications’ less latency-critical needs, thereby creating demand for power backup solutions in data centers.
- Additionally, in March 2021, NextDC announced that construction has started for the S3 data center in Sydney. The facility is likely to be 34,000 square meters over eight stories and is likely to deliver more than 20,000 sq m of data center floor space and 4,000 sq m of critical office space. This helps in creating positive growth for the data centers segment, which, in turn, increases the demand for UPS market in the country.
- Therefore, based on the above-mentioned factors, data centers segment is expected to witness significant growth for the uninterruptible power supply (UPS) market during the forecast period.
Asia-Pacific Expected to be the Fastest Growing Market
- The Asia-Pacific region has dominated the uninterruptible power supply (UPS) market in recent years, and it is likely to maintain its dominance during the forecast period. Factors such as the growing prominence of cloud computing and data centers is expected to drive the UPS system market in Asia-Pacific region.
- Moreover, Asia-Pacific is one of the fastest growing datasphere regions across the world. Also, the datasphere of China is growing at a significant pace and is outpacing the global datasphere by 3% annually, on average. Adding to this, industry experts have also stated that the data center capacity in the region is expected to be doubled in the next three years. This, in turn, is expected to create a significant demand for UPS especially in data centers segment soon.
- Power cuts and variable power supply causes significant damage to industries and business which rely heavily on good quality electricity for smooth operations, but in developing countries like India and China, maintaining good quality power is difficult task for the authorities.
- For instance, according to invest India, by 2026-27, all India power generation installed capacity is expected to be nearly 620 GW, 38% of which will be from coal and 44% from renewable energy. India's aim to diversify its energy sources and the target to provide 24x7 electricity supply to all, by making a large addition of renewable energy generation capacities, is estimated to be a significant driver for the market studied. Moreover, the growing electricity demand, increasing disposable income, and the need for a reliable power supply is expected to support the UPS market in India during the forecast period.
- As of 2020, Australia had around 272 data centers operating in the country. Moreover, the country is witnessing new investment in the data centers industry, which is likely to drive the demand for backup power systems such as generators and UPS in the industry. For instance, in January 2021, DCI Data Centers secured development approval for a new AU USD 400 million data center in Sydney’s Eastern Creek, which will deliver 36 megawatts (MW) to the region. The data center project, dubbed SYD02, is scheduled for service by the end of Q4 2022. The center is designed to meet the secure public and private cloud demand, with Zone 3-5 ready designation, Tier III resilience, and physical security capabilities in place. Such projects are likely to create postivie demand for the UPS market in the country during the forecast period.
- Therefore, based on the above-mentioned factors, Asia-Pacific is expected to be the fastest growing region in the uninterruptible power supply (UPS) market during the forecast period.
The global uninterruptible power supply (UPS) market is fragmented. Some of the major players include Riello Elettronica S.P.A., EATON Corporation plc, Emerson Electric Co., ABB Ltd, and Schneider Electric SE.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1.2 Market Definition
1.3 Study Assumptions
4.2 Market Size and Demand Forecast in USD million, till 2026
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
4.8 Assessment of COVID-19 Impact on the Industry
5.1.1 Less than 10 kVA
5.1.2 10-100 kVA
5.1.3 101-250 kVA
5.1.4 Above 250 kVA
5.2.1 Standby UPS System
5.2.2 On-line UPS System
5.2.3 Line-interactive UPS Systems
5.3.1 Data Centers
5.3.3 Healthcare (Hospitals, Clinics, etc.)
5.3.5 Other Applications
5.4.1 North America
5.4.4 South America
5.4.5 Middle-East and Africa
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Riello Elettronica S.P.A.
6.3.2 EATON Corporation plc
6.3.3 Emerson Electric Co.
6.3.4 Delta Electronics, Inc.
6.3.5 ABB Ltd
6.3.6 Schneider Electric SE
6.3.7 Hitachi, Ltd.
6.3.8 Mitsubishi Electric Corporation
6.3.9 General Electric Company
6.3.10 Power Solutions Sdn Bhd
6.3.11 Aspex Inc.
A selection of companies mentioned in this report includes:
- Riello Elettronica S.P.A.
- EATON Corporation plc
- Emerson Electric Co.
- Delta Electronics, Inc.
- ABB Ltd
- Schneider Electric SE
- Hitachi, Ltd.
- Mitsubishi Electric Corporation
- General Electric Company
- Power Solutions Sdn Bhd
- Aspex Inc.