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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%. The growth of the market depends on several factors, including the increase in data center construction, the rise of green telecom towers, and increasing factory automation.
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.
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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.
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.
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. As UPS is a mandatory infrastructure in a data center, thus driving the uninterruptible power supply (UPS) market during the forecast period.
The growing use of lithium-ion UPS systems is the key trend in the market.
Batteries play an important role in data centers in providing instant power to prevent downtime during grid failure. Lead-acid batteries are the most commonly used batteries for UPS systems in data centers for providing backup power during outages.
The maintenance of lead-acid batteries 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 vendors in the market, namely, Vertiv Holdings Co. and Schneider Electric SE, are involved in offering UPS systems that use Lithium-ion batteries, thereby increasing the adoption of lithium-ion UPS systems among modern data center facilities during the forecast period.
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.
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.
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.
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.
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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.
The outbreak of COVID-19 across the region negatively impacted the regional market owing to a temporary shutdown of commercial end-user facilities. However, the resumption of manufacturing of electrical components, including UPS batteries aided commercial end-user industries in resuming operations across APAC. As a consequence, such factors are expected to drive the expansion of the market during the forecast period in APAC.
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.
EaglePicher Technologies LLC - The company offers UPS batteries namely EaglePicher Carefree cells and lead acid batteries. The company offers 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 vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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 UPS Battery Market Customer Landscape
The 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. The market has been segmented 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).
UPS Battery 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 Vendors, Market Positioning of Vendors, 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 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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