Uninterruptible Power Supply (UPS) Battery Market, Application, and Geography - Forecast and Analysis 2023-2027

Uninterruptible Power Supply (UPS) Battery Market Forecast 2023-2027 

The global uninterruptible power supply (UPS) battery market size is estimated to grow by USD 439.47 million between 2022 and 2027, accelerating at a CAGR of 8.15%. Market expansion is driven by several key factors, notably the uptick in data center construction to meet escalating digital demands. Concurrently, the emergence of green telecom towers contributes significantly, aligning with sustainability initiatives in the telecommunications sector. Furthermore, the surge in factory automation plays a pivotal role, enhancing operational efficiency and driving technological advancements in manufacturing processes. These factors collectively stimulate market growth, fostering innovation and driving investment in infrastructure development. As industries strive for greater efficiency and sustainability, the market is poised for further expansion, propelled by ongoing efforts to modernize and optimize operations through data centers, green telecom solutions, and advanced automation technologies.

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 product (lead-acid, li-ion, and NiCd), application (commercial and residential), 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.

Market Dynamics and Customer Landscape

The market is driven by the rapid adoption of cloud computing technologies and network services, fueling the need for uninterrupted power supply in business continuity strategies. As digitalization and automation reshape industries, electrical devices such as computers and connected devices demand reliable UPS batteries. Trends include the rise of modular UPS systems in collocation facilities across residential, commercial, and industrial sectors. However, challenges persist, including the demand for smaller lithium-ion batteries for portable devices and ensuring the secure functioning of critical infrastructure and operations. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increase in data center construction is notably driving the market growth. The growth in the construction of data centers is facilitated by the increased demand for cloud-based service offerings and the need to increase digitalization in many countries. This increased demand will continue throughout the forecast period. The market is already experiencing good growth in developed nations such as the UK and the US. It is also experiencing significant growth in developing regions such as Latin America and APAC.

Moreover, the demand for cloud-based services is encouraging Communication service providers (CSP) such as Google, Microsoft, and AWS to increase their data center footprint through the establishment of hyper-scale data center facilities. The growth of data centers by colocation and telecommunication service providers is also rising. In most of the countries of Eastern Europe, Africa, and Southeast Asia, government agencies are also establishing data centers. UPS is a mandatory infrastructure in a data center, thus driving the uninterruptible power supply (UPS) market during the forecast period.

Significant Market Trends

The growing use of lithium-ion UPS systems is the key trend in the market. Batteries play an important role in data centers, providing instant power to prevent downtime during grid failure. Lead-acid cells are the most commonly used cells for UPS systems in data centers, providing backup power during outages.  

Moreover, the maintenance of lead-acid cells is considered a major challenge for data center operators because of the need for regular monitoring and replacement. On the other hand, over the years, advances in lithium-ion batteries have reduced their cost and made them a preferred option for data center operators. Lithium-ion batteries provide a long backup time and require minimal maintenance and less space in the data center compared to lead-acid. The lifetime of lithium-ion batteries is almost twice the life of lead-acid batteries. Many companies in the market, namely, Vertiv Holdings Co. and Schneider Electric SE, are involved in offering UPS systems that use Lithium-ion cells, thereby increasing the adoption of lithium-ion UPS systems among modern data center facilities during the forecast period.

Major Market Challenge

UPS battery failure is the major challenge impeding the market growth. UPS batteries are installed by end-users to improve the reliability and resiliency of their power systems. These systems, however, are prone to system failures due to the non-performance of components such as batteries and fans. The life expectancy of batteries can be affected by several factors, such as incorrect UPS placement, cycling frequency, ambient temperature, and the absence of regular maintenance. Fans cool the UPS to maintain its operating temperature.

Moreover, the life expectancy of fans can get affected by high load, ambient temperature, and the duration and frequency of use. The failure of UPS is not always critical for residential end-users. However, for non-residential customers such as data centers, even a single occurrence can lead to significant damage and losses ranging from thousands of dollars to millions. Therefore, the risks of UPS battery failures can significantly affect the adoption of UPS batteries and restrict the growth of the uninterruptible power supply market during the forecast period. 

Market Segmentation by Product, Application, Geography

The market segmentation is experiencing profound shifts driven by technological advancements and evolving industry needs. Cloud computing technologies and network services have catalyzed a surge in demand for UPS batteries, essential for ensuring business continuity in an era of digitalization and automation. Electrical devices, including computers and connected devices, rely heavily on modular UPS systems in collocation facilities across residential, commercial, and industrial sectors. Sectors such as chemical manufacturing, power generation, recreation equipment, marine, and agricultural machinery & equipment all depend on UPS batteries for uninterrupted power supply to maintain the secure functioning of critical infrastructure and operations. The advent of small-sized lithium-ion batteries has revolutionized the Market, powering portable devices and ensuring industries and businesses have reliable backup power solutions. As the market continues to expand, the focus remains on delivering secure functioning and business continuity across diverse industrial and commercial sectors reliant on UPS systems for critical operations.

Product Analysis

The market share growth of the lead-acid segment will be significant during the forecast period. Sealed lead-acid batteries and Flooded lead acid (FLA) batteries are two major types of lead-acid batteries that are used in UPS systems. Lead-acid batteries are popular in UPS applications due to their advantages such as compatibility, high energy density, cost, and the ability to supply high voltage when compared with other rechargeable batteries.

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The lead-acid segment was valued at USD 486.77 million in 2017 and continued to grow until 2021. Sealed lead-acid or absorbent glass mat (AGM) batteries are mainly used in UPS applications below 500 kVA, as they reduce weight and improve reliability. These batteries comprise a fiberglass mat, which absorbs sulfuric acid and makes the battery spill-proof. Thus, these batteries will drive the growth of the VRLA batteries segment of the market.

Application Analysis

UPS batteries are crucial for the operations of end-users in the commercial segment, as any delay or failure in the power supply can negatively impact the value addition, reduce the output, and eventually lead to revenue loss. Factors such as the increased use of Internet services, online banking, digitization of services, the growing number of connected devices, and cloud computing are driving the demand for IT infrastructure such as data centers and subsequently fueling the demand for UPS batteries in the commercial segment, which is expected to propel the growth of the market in focus during the forecast period.  

Geographical Analysis

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APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

In APAC, the growth of the market is influenced by the increasing use of UPS in the railway, wind, power, and other sectors. The countries in the region that contribute significantly to the growth of the market include Japan, China, Australia, India, South Korea, Taiwan, and Singapore. In the manufacturing sector, companies from developed countries in Europe and North America are increasingly establishing operations in APAC to take advantage of the low-cost manufacturability in the region and to enable their reach in APAC. The increase in manufacturing activities is expected to propel the demand for general machinery and thereby drive the demand for UPS systems, which, in turn, will drive the market.

Who are the Major Market Players?

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.

EaglePicher Technologies LLC - The company offers UPS batteries namely EaglePicher Carefree cells and lead acid batteries. They offer various products such as thermal batteries, primary batteries, secondary batteries, energetic devices, custom packaging, and charging stations.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• CHILWEE GROUP Co.
• Delta Electronics Inc.
• East Penn Manufacturing Co. Inc.
• Eaton Corp. Plc
• EnerSys
• Exide Industries Ltd.
• GS Yuasa Corp.
• HBL Power Systems Ltd.
• Hitachi Ltd.
• Kokam Co. Ltd.
• Legrand SA
• Leoch International Technology Ltd.
• Panasonic Holdings Corp.
• Vertiv Holdings Co.
• Schneider Electric SE

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Key Market Customer Landscape

The market growth analysis 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.

Market Customer Landscape

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest trends and growth opportunities from 2017 to 2027.

• Product Outlook 
  • Lead-acid
  • Li-ion
  • NiCd

• Application Outlook 
  • Commercial
  • Residential

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

Market Analyst Overview

The market is witnessing significant growth, driven by a range of factors, including advances in data centers and the increasing reliance on cloud computing technologies. This demand is further fueled by the expansion of large data centers and collocation facilities, which require robust power backup solutions for business continuity. Large enterprises and commercial buildings are investing heavily in UPSs and energy storage systems to ensure uninterrupted power supply and secure functioning of critical infrastructure.

Additionally, the industrial and Information Technology sectors are adopting modular UPS systems and networking systems to enhance stability and reliable system operation. The recreation equipment and consumer electronics industries are also driving demand for small-sized lithium-ion batteries and portable devices with power backup capabilities. Equity capital dealers and private ventures are capitalizing on the Market's growth potential, recognizing it as a key component for the industry's advancement and socio-economic development. However, challenges such as trade bans and vaccination development impacts underline the need for storage resources and infrastructure setup resilience. As the market evolves, innovations in battery types like Nickel Cadmium and small-sized lithium-ion batteries are expected to further bolster market growth, ensuring a reliable and sustainable power backup solution for various sectors, including chemical manufacturing, marine, and offices with workstation setups.

Market Scope
Report Coverage	Details
Page number	171
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.15%
Market growth 2023-2027	USD 439.47 million
Market structure	Fragmented
YoY growth 2022-2023(%)	9.59
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 43%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	ABB Ltd., Accumulatorenwerke HOPPECKE Carl Zoellner and Sohn GmbH, Amara Raja Group, C and D Technologies Inc., CHILWEE GROUP Co., Delta Electronics Inc., EaglePicher Technologies LLC, East Penn Manufacturing Co. Inc., Eaton Corp. Plc, EnerSys, Exide Industries Ltd., GS Yuasa Corp., HBL Power Systems Ltd., Hitachi Ltd., Kokam Co. Ltd., Legrand SA, Leoch International Technology Ltd., Panasonic Holdings Corp., Vertiv Holdings Co., and Schneider Electric SE
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and 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 Report?

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

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