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The residential backup power market size is forecast to increase by USD 4.11 billion, at a CAGR of 6.66% between 2023 and 2028. Market growth analysis depends on several factors, notably the increased demand for backup power in emerging economies, the rise in battery usage, and the surge in blackouts and unreliable grid supply. These elements collectively influence the market's growth trajectory, reflecting the evolving dynamics within the industry. As emerging economies strive for development, the need for reliable backup power solutions becomes imperative, driving demand for related products and services. Simultaneously, the growing adoption of batteries across various sectors, coupled with the frequent occurrence of blackouts and grid instability, further amplifies the market's expansion. These factors underscore the importance of resilience and reliability in power supply systems, prompting stakeholders to innovate and adapt to meet evolving consumer needs. By addressing these challenges and opportunities, the market can navigate towards sustained growth and advancement in the ever-changing energy landscape. Our report examines historic data from 2018-2022, besides analyzing the current and forecasts market scenario.
Market Forecast 2024-2028
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In the market, homeowners seek sustainable solutions from legacy providers with proven track records and expertise like Egensys. Leveraging renewable energy sources such as solar panels and wind, these solutions ensure uninterrupted power during emergencies. With technological integration and smart technologies, dependable power is guaranteed, supported by interconnected infrastructures and grid compatibility. As the industry enters a transformative phase, continuous availability and cybersecurity are prioritized, driving regulation standardization to safeguard homes and communities. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The market is poised for significant growth, propelled by the increasing demand for standby power sources in emerging economies like China, India, Vietnam, and Indonesia. Factors such as rising disposable income, socioeconomic development, and the availability of easy financing options are driving the adoption of backup systems such as generators and battery backup systems UPS (uninterruptible power supply) in the residential sector.
Further, in countries like India and China, the market exhibits high growth potential due to the rising per capita income and escalating rates of urbanization. The surge in urban population will amplify the demand for hybrid power backup systems from both residential and public utility sectors. Consequently, economic growth and improved consumer income in emerging economies are fostering the demand for fuel cell-powered power backup solutions, thereby propelling the global market's growth in the forecast period.
Fuel cells convert chemical energy into electricity. These cells are commercially available for applications such as backup. 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.
Moreover, the growth of fuel cells as backup 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 is expected to have a positive impact on the growth of the global market during the forecast period.
Diesel generators are popular backup solutions for residential properties, especially in areas with frequent 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.
Additionally, governments of various countries are implementing regulations to restrict the use of diesel generators and promote cleaner backup solutions. The shift toward cleaner and more sustainable backup solutions is expected to increase the cost of backup systems and limit the options available to homeowners. Thus, stringent environmental regulations against diesel generators are expected to halt the growth of the global market during the forecast period.
In the realm of residential backup power, providers with a proven track record offer reassurance to homeowners. With a robust fleet and extensive depot network spanning regions like East Midlands and Yorkshire, they ensure swift response times during emergencies. Utilizing cutting-edge technology like silicon cell wafers and harnessing the photovoltaic effect, these solutions enable decentralized generation, empowering communities to maintain power continuity. In times of crisis, these systems provide vital support, reinforcing the role of emergency services in safeguarding residential areas.
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 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 5.08 billion in 2018. The generators are of two types, namely portable and standby generators. Portable generators are small and supply around 3-8 kilowatts (kW), which makes them ideal for individual homes. Standby generators usually supply of around 5-10 kW and are installed outside residential buildings. They can also provide for several days after a blackout. The rise in sales of generators has increased the demand, which is expected to drive the growth of the global market during the forecast period.
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APAC is estimated to contribute 49% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout 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. The growing adoption of smart cities and smart home technologies in countries such as China is stimulating the demand for backup. Such factors are expected to drive the growth of the market in APAC during the forecast period.
Companies 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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
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.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In the dynamic landscape of residential backup power, providers strive to meet multifaceted demands with efficient, visionary, and tailored solutions. Leveraging technical expertise and a transport fleet, they offer a diverse selection of top-tier products, including modern generators and hybrid units, ensuring supply reliability in the face of power interruptions. With a focus on sustainable practices, advancements in battery technology, such as lithium-ion batteries, enable grid independence and uninterrupted power supply. The rise of solar rooftops and battery energy storage systems reflects a shift towards a resilient energy future, driven by consumer behaviors and global urbanization. As major companies navigate competitive dynamics and regulatory barriers, the industry pioneers IoT integration and advanced manufacturing to realize a sustainable energy future for residential consumers.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.66% |
Market Growth 2024-2028 |
USD 4.11 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.13 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 49% |
Key countries |
China, US, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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. |
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 |
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 Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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