by An uninterruptible power supply (UPS) is an electrical equipment that provides emergency power to loads when the input power source fails. The major applications of UPS systems include data centers, telecommunication equipment, medical equipment, industrial processes that require continuous operation, and other critical business equipment that cannot be interrupted. UPS systems deliver backup power through batteries until power is restored or the emergency generator starts providing power. They provide protection from utility power disturbances and complete power failure.
The global Uninterruptible Power Supply Market is estimated to be valued at US$ 8.63 Mn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing Demand from Data Centers: Data centers require continuous and stable power supplies to ensure uninterrupted operations. With growing digitalization and cloud computing, the demand for data storage is also increasing, which is driving the need for data centers worldwide. The increasing construction of hyperscale and large data centers is boosting the demand for UPS systems to provide backup power during outages. This acts as a major driver for the growth of the uninterruptible power supply market.
Data centers require continuous and stable power supplies to ensure uninterrupted operations. With growing digitalization and cloud computing, the demand for data storage is also increasing, which is driving the need for data centers worldwide. The increasing construction of hyperscale and large data centers is boosting the demand for UPS systems to provide backup power during outages. This acts as a major driver for the growth of the uninterruptible power supply market.
Stringent Government Regulations: Governments across the globe are imposing stringent regulations regarding power quality and reliability to support critical infrastructures and ensure continuity of operations. For instance, the Electric Reliability Council of Texas (ERCOT) imposes a set of regulations and standards related to grid reliability for data centers located in Texas. Compliance with such regulations is propelling the demand for advanced UPS systems in various applications.
Segment Analysis:
The global Uninterruptible Power Supply Market is dominated by offline/standby UPS segment. This segment accounted for around 65% of the total market share in 2023 due to high reliability and demand for uninterrupted power supply in critical operations & functions. The other sub-segments include line-interactive and online/double-conversion UPS. Among these, online/double-conversion UPS segment is expected to witness fastest growth during the forecast period due to growing preference for near perfect protection from power issues.
PEST Analysis:
- Political: Supportive government policies and initiatives towards adoption of UPS systems in healthcare, telecom and data center applications will positively influence the market growth.
- Economic: Growing industrialization and digitalization trends especially in developing nations will drive investments in critical power infrastructure and thereby increase demand for UPS systems.
- Social: Increasing power outages due to aging electricity grids and growing load management needs will accentuate the social need for adoption of UPS systems across various verticals.
- Technological: Advancements in lithium-ion battery technologies, digital monitoring and remote management capabilities will improve the performance and enable efficient utilization of UPS systems.
Key Takeaways:
The Global Uninterruptible Power Supply Market Size is expected to witness high growth at a CAGR of 21% during the forecast period of 2023 to 2030. Regional analysis – North America dominated the market with around 30% share in 2023 due to strategic investments by key industrial players and well-established critical power infrastructure in the region. Asia Pacific is expected to be the fastest growing region owing to ongoing industrialization and infrastructure development activities in major economies like China and India.
Key players analysis – Key players operating in the Uninterruptible Power Supply Market are Aspex Inc., Riello Elettronica SpA, Cyber Power Systems Inc., EATON Corporation PLC, General Electric Company, Emerson Electric Co., Mitsubishi Electric Corporation, Delta Electronics Inc., Hitachi Ltd., ABB Ltd., and Schneider Electric SE. Aspex Inc. leads the market with their wide range of online and standby UPS solutions catering to diverse industries.
The global Uninterruptible Power Supply market is expected to witness high growth during the forecast period due to factors such as rapid industrialization, increasing demand for reliable power infrastructure from healthcare, telecom and data center verticals and technological advancements. North America dominated the market while Asia Pacific is identified as the most lucrative region. Key players are focusing on new product launches and geographical expansions to strengthen their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
