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The Residential Backup Power Market is estimated to grow at a CAGR of 6.78% between 2022 and 2027, and the size of the market is forecasted to increase by USD 3,966.63 million. The growth of the market depends on several factors, such as the increasing demand for backup power from emerging economies, the growing use of batteries for backup power sources, and the rising number of blackouts and unreliable grid power supply.
This report extensively covers market segmentation by technology (generators, batteries, and fuel cells) and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Residential Backup Power Market Customer Landscape
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand for backup power from emerging economies is driving market growth. The market is expected to grow significantly due to the rise in demand for supplement power from emerging economies such as China, India, Vietnam, and Indonesia. Factors such as rising disposable income, socioeconomic growth, and the availability of easy financing options are fueling the adoption of backup power systems such as generators and battery backup systems (UPS) in the residential sector.
In developing countries such as India and China, the residential backup power market has high growth potential owing to the growing per capita income. In addition, the increasing rate of urbanization is expected to fuel the demand for backup power from residential customers. The growth in urban population will increase the demand for power from public utilities, which will generate the need for power backup sources. Therefore, factors such as economic growth and increased income of consumers in emerging economies are boosting the demand for backup power systems, which, in turn, will drive the growth of the global residential backup power market during the forecast period.
The rising adoption of fuel cells for power backup is a key trend in the market. Fuel cells convert chemical energy into electricity. These cells are commercially available for applications such as backup power. They offer longer continuous runtime and are more durable in harsh environments and temperature ranges when compared to batteries. Moreover, fuel cells require less maintenance than batteries and generators and can be monitored remotely, which helps in reducing the actual maintenance time. In addition, they are more environmentally friendly than generators, as they are quieter and emit zero emissions.
The growth of fuel cells as backup power is driven by the rapid adoption of residential micro-CHP systems, especially in Europe. The adoption of fuel cell micro-CHP trials has led to an increase in the deployment of fuel cell micro-CHP systems, thereby stimulating cost reduction of the micro-CHP technology. In 2020, the French Hydrogen Plan finished a demonstration trial for 50 fuel cell micro-CHP units in the country. This project is expected to create public awareness and boost the confidence of residential and energy sector professionals in fuel cell micro-CHP technology. Thus, the adoption of fuel cells for residential backup power is expected to have a positive impact on the growth of the global residential backup power market during the forecast period.
Stringent environmental regulations against diesel generators may challenge market growth during the forecast period. Diesel generators are popular backup power solutions for residential properties, especially in areas with frequent power outages. However, their use has come under scrutiny due to their negative environmental impact. The use of diesel generators leads to emissions of nitrogen oxides (NOx) and particulate matter (PM), which further lead to environmental issues such as smog and acid rain. Such emissions can also cause issues such as asthma, heart attacks, respiratory failure, and premature deaths among humans.
Governments of various countries are implementing regulations to restrict the use of diesel generators and promote cleaner backup power solutions. The shift toward cleaner and more sustainable backup power solutions is expected to increase the cost of backup power systems and limit the options available to homeowners. Thus, stringent environmental regulations against diesel generators are expected to halt the growth of the global residential backup power market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd. - The company offers residential backup power such as PowerValue 11LI Pro. Under the electrification segment, the company offers electrification and building management solutions, products, and services for utilities, industry, transport, and infrastructure.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The generators segment will account for a significant share of market growth during the forecast period. Generators are the main sources of electricity in the event of power disruption from utility services. They generally operate through the combustion of a fuel source, converting mechanical energy into electrical energy. The fuel sources for generators include diesel, propane, and gasoline.
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The generators segment was valued at USD 4,892.57 million in 2017 and continued to grow until 2021. Residential backup power generators are of two types, namely portable and standby generators. Portable generators are small and supply around 3-8 kilowatts (kW) of power, which makes them ideal for individual homes. Standby generators usually supply power of around 5-10 kW and are installed outside residential buildings. They can also provide power for several days after a blackout. The rise in sales of generators has increased the demand for residential backup power, which is expected to drive the growth of the global residential backup power market during the forecast period.
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APAC is estimated to contribute 48% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
APAC has some of the fastest-growing economies in the world, such as China, India, Thailand, and Indonesia. The per capita income has significantly increased over the last decade, with rapid economic growth in these countries. Economic growth is leading to rapid infrastructure development. Moreover, APAC is witnessing a rise in the rate of urbanization, with increasing employment opportunities in urban areas. The population in the region is shifting toward urban areas, which is creating a significant demand for consumer goods and residential complexes. These factors are creating a strong demand for electricity and backup power. The growing adoption of smart cities and smart home technologies in countries such as China is stimulating the demand for backup power. Such factors are expected to drive the growth of the market in APAC during the forecast period.
In 2020, the COVID-19 pandemic had a mixed impact on the global residential backup power market due to the significant rise in residential power load and demand. In addition, the economic uncertainty caused by the pandemic led many consumers to delay or cancel their plans of purchasing residential backup power systems. Moreover, the pandemic increased the demand for reliable power supply owing to the adoption of the remote working model. This encouraged many consumers to invest in residential backup power systems to ensure an uninterrupted power supply. However, in Q1 2021, lockdown restrictions were lifted due to the initiation of large-scale vaccination drives, which led to the resumption of operations. In addition, the shift toward renewable energy led to a rise in investment in solar panels and battery storage systems, which created opportunities for residential backup power system manufacturers to offer integrated solutions. These factors will drive the growth of the market during the forecast period.
The residential backup power market report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Residential Backup Power Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
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Market growth 2023-2027 |
USD 3,966.63 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.9 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 48% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Briggs and Stratton LLC, C and D Technologies Inc., Caterpillar Inc., Champion Power Equipment Inc., Cummins Inc., Eaton Corp. Plc, Emerson Electric Co., EnerSys, Exide Industries Ltd., Generac Holdings Inc., Honda Motor Co. Ltd., Huawei Technologies Co. Ltd., Kohler Co., NeoVolta Inc., Panasonic Holdings Corp., Schneider Electric SE, SMA Solar Technology AG, Tesla Inc., and Toshiba Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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