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The uninterruptible power supply (UPS) market is estimated to grow at a CAGR of 4.5% between 2022 and 2027. The size of the market is forecasted to increase by USD 4.28 billion. Factors driving the market growth include the growth in data center infrastructure, the rise in demand from the telecom industry, and the increasing prominence of online shopping among residential end-users.
This uninterruptible power supply (UPS) market research report extensively covers market segmentation by end-user (non-residential and residential), type (online or double conversion, line-interactive, and off-line or standby), and geography (North America, Europe, APAC, South America, and Middle East & Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global UPS Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The rise in demand from the telecom industry is the major driving factor in the UPS market. The telecom industry has grown tremendously over the past decade, supported by advanced technologies. Telecom companies are now managing their voice networks along with data, broadband, mobile, and TV-related services. The industry has become highly disruptive, and customer expectations continue to rise. This has emphasized the need for maintaining smooth operations and efficient management of assets for telecom operators. Power is the basic requirement for all the equipment and components in the telecom industry; therefore, the industry is highly reliant on UPS systems to protect the assets from power outages as very minor power outages can also lead to huge revenue losses for telecom companies.
The telecom industry is growing because of factors such as a rise in mobile subscriptions, a result of network expansions by operators, and the declining cost of smartphones. Thus, mobile subscriptions are becoming affordable for all income groups. In addition, the growing use of the IoT in the telecom ecosystem and the introduction of 4G and 5G technologies have increased the demand for power demand from the industry. Hence, with the growth of the telecom industry, the demand for UPS will increase significantly and boost the global UPS market during the forecast period.
The growing use of lithium-ion batteries in UPS systems is a major trend in the UPS market. Lithium-ion batteries offer several advantages over lead-acid batteries, such as higher energy density, higher depth of discharge, higher charge rate, longer power-holding capacity, and longer shelf life. Owing to the higher energy density, lithium-ion batteries are significantly smaller in size than lead-acid batteries of similar capacity. Lithium-ion batteries are preferred to lead-acid batteries for use in UPS systems because of their advantages.
Other than superior performance, cost is a critical differentiating factor between lithium-ion batteries and other battery technologies. Lithium-ion batteries are priced significantly higher than lead-acid batteries. This drawback of lithium-ion batteries is slowly being eliminated as the cost of lithium-ion batteries continues to decline, making them more competitive than lead-acid batteries. Therefore, the increasing use of lithium-ion batteries in UPS systems, owing to increased performance and reduction in the total cost of ownership of UPS systems, is driving their adoption among end-users and will drive the growth of the market during the forecast period.
The rise in distributed power generation is a major factor hindering the growth of the UPS market. Distributed power generation refers to power generation by utilizing a variety of power and storage systems for the purpose of consumption at or near the site of generation. For residential use, these systems may be a few kilowatts (kW), while for commercial and industrial use, they may be tens of megawatts (MW). Distributed power generation offers several benefits such as low-cost electricity, improved reliability, and lower environmental consequences compared with traditional power generation technologies.
Distributed power generation systems reduce the dependency on T and D grids and thereby eliminate the need for UPS systems. Therefore, a rise in distributed power generation will continue to limit the demand for UPS and will act as a barrier to the growth of the global UPS market 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.
ABB - The company offers UPS such as DPA UPScale ST, DPA 500, PowerLine DPA, and MegaFlex DPA.
Huawei Technologies Co. Ltd.- The company offers coconut water under the brand, VAIVAI SAS.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides 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 share growth by the non-residential segment will be significant during the forecast period. This segment primarily includes UPS used in commercial and industrial applications, as well as in public infrastructure. Companies are focusing on their non-residential UPS offerings to improve performance and efficiency and increase the adoption of these systems. The growth of the non-residential segment is attributed to the rapid rise in demand from data centers. Moreover, the increased use of Internet services, online banking, digitization of services, the growing number of connected devices, and cloud computing are also driving the demand for IT infrastructure such as data centers and, in turn, fueling the demand for UPS systems.
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The non-residential segment showed a gradual increase in the market share of USD 14.26 billion in 2017 and continued to grow by 2021. With increasing urbanization and changing lifestyles, the demand for energy is increasing, especially in developing economies. In the industrial sector, growth in automation and control processes has led to a significant rise in power consumption and dependence on power. Therefore, the demand for UPS for smooth, continuous operations is expected to increase significantly during the forecast period. In addition, factors such as accelerating growth momentum and infrastructural developments in emerging economies will drive the growth of the segment during the forecast period.
Online or double-conversion UPS modules offer a continuous supply of power to critical loads by filtering and converting incoming utility power to DC power, which is subsequently converted to a perfect AC output from the inverter. A complete double-online conversion UPS protects the important load from any transient or voltage anomaly, including surges, sags, swells, and line drops, through this procedure. The double conversion UPS modules are necessary for companies that require uninterrupted power supply since the AC-DC/DC-AC construction guarantees a higher degree of isolation of the load from main supply irregularities.
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APAC is estimated to contribute 37% 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.
UPS plays a key role in critical industrial and commercial operations. Many countries in the region are centers of such critical commercial and industrial activities. The market in the region is dominated by China, India, and Japan. Other countries in the region are also witnessing an increase in the demand for UPS, owing to increased affordability and per capita income, and economic development. In addition, the rise in the number of data centers in the region is driving the growth of the market in the region. Various Companies are engaging in partnerships to create growth opportunities, which will increase access to new markets, enhance their product ranges and sales capabilities, and increase their competitiveness across supply chains and production operations in APAC. Therefore, such partnerships are expected to drive the growth of the uninterruptible power supply market in APAC during the forecast period.
The UPS 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.
UPS Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2023-2027 |
USD 4.28 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.74 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, India, Japan, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Ablerex Electronics Co. Ltd., AMETEK Inc., Delta Electronics Inc, East Penn Manufacturing Co. Inc., Eaton Corp. Plc, EnerSys, Exide Industries Ltd., Friedhelm Loh Stiftung and Co. KG, Hitachi Ltd., Huawei Technologies Co. Ltd., Legrand SA, Metartec Ltd., Mitsubishi Electric Corp., Power Innovations International Inc., Raytheon Technologies Corp., Schneider Electric SE, Siemens AG, TOSHIBA CORP, and Vertiv Holdings Co. |
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 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 End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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