Uninterruptible Power Supply (UPS) Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, India, Japan, Russia - Size and Forecast 2024-2028

Uninterruptible Power Supply Market Size 2024-2028

The uninterruptible power supply (UPS) market size is forecast to increase by USD 3964.6 billion at a CAGR of 4.05% between 2023 and 2028. Key drivers of market growth comprise the expansion of data center infrastructure, heightened demand from the telecom sector, and the growing preference for online shopping among residential consumers. Market challenges encompass the potential for UPS failure, the increasing adoption of distributed power generation, and limitations associated with batteries. The market serves a vital function in protecting essential operations across various sectors like telecommunications, banking, healthcare, and e-commerce. The increasing adoption of digital services, data storage, and cloud computing has led to a heightened demand for these solutions. They guarantee a continuous power supply, safeguarding sensitive electronic devices and data centers from disruptions like outages, voltage fluctuations, and frequency distortions.

Market Forecasting and Size

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Market Dynamic

The market is pivotal in safeguarding critical operations across various sectors, such as telecommunications, banking, healthcare, e-commerce, and more. With the exponential growth of digital services, data storage, and cloud computing, the demand for UPS solutions has surged. These systems ensure continuous power supply, protecting sensitive electronic devices and data centers from power outages, voltage drops, and frequency distortions. Catering to diverse needs, UPS solutions come in various ratings, from <5KVA to >200KVA, and different types, including Off-Line/Standby, Line Interactive, and Online/Double Conversion. Industries such as telecommunications networks, oil and gas facilities, renewable energy installations, and marine sectors rely on UPS to mitigate risks associated with power surges and natural catastrophes, adhering to stringent SLAs (Service Level Agreements) for uninterrupted digital infrastructure operations. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.  

Key Market Driver

The rapid expansion of digital services, data storage, and cloud computing is driving the market. UPS plays a crucial role in safeguarding critical operations across diverse sectors such as telecommunications, banking, healthcare, e-commerce, and more. With the rapid expansion of digital services, data storage, and cloud computing, the demand for these solutions has surged.

Furthermore, these systems ensure uninterrupted power supply, shielding sensitive electronic devices and data centers from power outages, voltage drops, and frequency distortions. Available in various ratings, from <5KVA to >200KVA, and types including Off-Line/Standby, Line Interactive, and Online/Double Conversion, UPS solutions cater to diverse needs. Industries like telecommunications networks, oil and gas facilities, renewable energy installations, and marine sectors rely on UPS to mitigate risks associated with power surges and natural catastrophes, adhering to stringent SLAs for uninterrupted digital infrastructure operations.

Significant Market Trends

The growing use of lithium-ion batteries in UPS systems is a major trend in the 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 these 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.

Major Market Challenge

The rise in distributed power generation is a major factor hindering the growth of the 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 market during the forecast period.

Market Segmentation

By End-user 

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 systems.

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The non-residential segment showed a gradual increase in the market share of USD 14.51 billion in 2018. 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 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.

By Type 

Online or double-conversion 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 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.

By Region

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APAC is estimated to contribute 35% to the growth during the forecast year.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional market growth and trends influencing the market's trajectory throughout 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.

Key Companies & Market Insights

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 UPS, such as DPA UPScale ST, DPA 500, PowerLine DPA, and MegaFlex DPA.

We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:

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., RTX Corp., Schneider Electric SE, Siemens AG, Toshiba Corp., and Vertiv Holdings Co. 

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.  

Segment Overview

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.

• End-user Outlook 
  • Non-residential
  • Residential
• Type Outlook 
  • Online or double conversion
  • Line-interactive
  • Off-line or standby
• 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

You may also interested in below market reports:

• Uninterruptible Power Supply (UPS) Battery Market: Uninterruptible Power Supply (UPS) Battery Market, Application, and Geography - Forecast and Analysis

• Data Center UPS Market: Data Center UPS Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Germany, China, UK, Japan - Size and Forecast 

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

Market Analyst Overview

The market is experiencing robust growth driven by various factors. With the escalating demand for reliable power backup solutions, fueled by the expansion of data storage, processing capabilities, and digital services, UPS systems play a pivotal role in ensuring uninterrupted operations. Sectors such as telecommunications, healthcare, and e-commerce heavily rely on UPS solutions to safeguard critical infrastructure and maintain operational continuity. Challenges such as power surges, voltage drops, and frequency distortions underscore the necessity for UPS systems in mitigating risks. Technological advancements like battery technology and modular UPS designs are enhancing power quality and resilience against grid malfunctions and natural catastrophes. As the world transitions towards 5G technology and embraces edge computing, UPS solutions become indispensable for ensuring continuous power to data-driven businesses and healthcare facilities, thereby driving the UPS market forward.

Moreover, the market is experiencing significant growth driven by various factors, such as the expansion of data center infrastructure and the rising demand from telecommunications networks. Key regions like the United States and the United Kingdom are witnessing substantial adoption. UPS systems cater to diverse sectors, including oil and gas facilities, renewable energy installations, and telecommunication and medical sectors. They come in various ratings, from <5KVA to >200KVA, and types include Off-Line/Standby, Line Interactive, and Online/Double Conversion. Service Level Agreements (SLAs) play a crucial role in ensuring performance. Technological advancements such as big data analytics and intelligent monitoring systems enhance efficiency and reliability, addressing concerns like voltage sags and frequency changes. With a focus on energy efficiency and patient safety in sectors like hospitals and clinics, UPS systems contribute to robust power infrastructure bolstered by governmental efforts.

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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 market growth and forecasting of the market between 2024 and 2028
• 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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