Residential Backup Power Market Analysis APAC,North America,Europe,Middle East and Africa,South America - US,China,Japan,Germany,UK - Size and Forecast 2023-2027

Residential Backup Power Market Forecast 2023-2027

The Residential Backup Power Market is estimated to increase by USD 3.97 billion, growing at a CAGR of 6.78% between 2022 and 2027. Market expansion relies on various factors, including heightened demand for backup power in emerging economies, increased battery usage, and the surge in blackouts and unreliable grid supply. These elements collectively shape the growth trajectory of the market, reflecting the evolving dynamics within the industry.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

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).

By Technology 

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 4.89 billion in 2017. 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.

Regional Analysis

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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. 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.

Market Customer Landscape

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 Market Customer Landscape

Market Dynamics and Customer Landscape

The market is witnessing a surge in demand due to frequent power cuts. Consumers seek reliable standby power sources to keep their electric-powered appliances running smoothly. With a growing focus on renewable energy, fuel cells are gaining popularity as sustainable backup solutions. Advanced technologies like UPS, IoT-based UPS, and connectivity options such as Bluetooth and Wi-Fi ensure seamless supply management. Innovations like ZunVolt and hybrid systems offer versatile solutions for residential needs. Fuel cell-powered power backup solutions are emerging as efficient alternatives in the quest for uninterrupted power supply. 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.   

Key Driver

The increasing demand from emerging economies is driving market growth. 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.

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.

Significant Trends

The rising adoption of fuel cells is a key trend in the market. 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.

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.

Major Challenge

Stringent environmental regulations against diesel generators may challenge market growth 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.

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.

Who are the Major Market Companies?

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.

ABB Ltd. - The company offers products such as Value 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 companies, including:

• 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.
• Toshiba Corp.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors 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.  

Segment Overview

The 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. 

• Technology Outlook
  • Generators 
  • Batteries 
  • Fuel cells

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Analyst Overview

The market is witnessing significant growth driven by the increasing demand for reliable power solutions in homes, especially in areas prone to power cuts and voltage disturbances. With the rise in reliance on electric-powered appliances and digital infrastructure, uninterrupted power supply (UPS) systems are becoming essential for ensuring continuous operation of household devices. The market is evolving with the advent of IoT-based UPS systems, hybrid power backup solutions, and renewable energy-powered backup systems. Technologies like Bluetooth and Wi-Fi enable remote monitoring and control of backup power systems, enhancing convenience and reliability for homeowners.

Additionally, renewable energy sources such as rooftop solar panels, wind turbines, and hydro power are gaining traction as sustainable alternatives to traditional diesel and gasoline-based generators. Lithium-ion batteries and energy storage systems play a crucial role in storing excess renewable electricity for use during power outages. Despite challenges such as high initial investment costs and limited run-time, residential backup power solutions offer peace of mind to homeowners, especially in the face of natural disasters and energy disruptions. With the integration of clean energy technologies and decentralized power generation, the market is poised for continued growth, providing reliable power solutions for households, campuses, and remote areas alike.

Moreover, the market is witnessing a surge in demand for reliable power backup solutions, driven by factors such as increasing digitalization, the growing reliance on uninterrupted power supply (UPS) systems, and the adoption of clean energy technologies. Hybrid power backup systems, including fuel cell-powered solutions, are gaining traction, offering enhanced efficiency and reduced reliance on fossil fuels. Further, initiatives by governmental bodies like the European Union (EU) and the Ministry of New and Renewable Energy (MNRE) are promoting the deployment of renewable energy sources such as solar power, wind power, and microgrids for backup power generation. These efforts align with the global shift towards clean energy and sustainability.

Furthermore, as the world moves towards distributed energy resources and decentralized power generation, the standby power market is witnessing significant growth in demand for clean energy backup solutions. Solar generators, battery systems, and fuel cell-powered solutions are increasingly being deployed in commercial buildings and critical infrastructure to mitigate the risks associated with power outages and fuel dependence. Moreover, advancements in big data analytics, artificial intelligence, and 5G services are revolutionizing the backup power systems market, enabling predictive maintenance, optimization of power usage, and faster response to grid fluctuations. With the increasing emphasis on standby power solutions for both residential and industrial applications, the market is poised for continued expansion, offering reliable backup power solutions for diverse needs ranging from standby power to prime power and peak shaving.

Market Scope
Report Coverage	Details
Page number	161
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.78%
Market growth 2023-2027	USD 3.97 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	5.9
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 48%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, 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 and trends, market forecasting, 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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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