April 23, 2024

The Global Backup Power Market Will Grow At Highest Pace Owing To Increasing Power Outages

Generators use Diesel or natural gas to produce electricity and are widely used by industrial facilities, telecom towers, data centers and SMEs to ensure business continuity during grid failures. Inverters convert DC power from batteries or solar panels into AC power for usage. UPS systems have rechargeable batteries that instantly power critical equipment when power is lost, allowing sufficient time for safe and graceful shutdown. They are commonly used by businesses, hospitals and homes to prevent data loss, equipment damage and ensure uninterrupted operations.

The Global Backup Power Market is estimated to be valued at US$ 3.07 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the backup power market are 3M Company, Amphenol Corporation, Sumitomo Electric Industries, Ltd., Molex LLC, TE Connectivity Ltd., Prysmian Group, W. L. Gore & Associates, Inc., Axon’ Cable, E.I. du Pont de Nemours and Company (DuPont), BizLink Technology, Yamaichi Electronics Co., Ltd., Omron Corporation, Hitachi, Ltd., Samtec, Inc., Furukawa Electric Co., Ltd. The increasing power outages around the world have been boosting demand for backup power solutions in industries, businesses and homes. Technological advancements are leading to the development of more efficient, compact and environment friendly backup power products.

Market Trends

Lithium-ion battery technology is growing in popularity for backup power due to high energy density, longer lifecycle and lower maintenance needs compared to lead acid batteries. Many backup power product manufacturers are introducing lithium-ion based generators, inverters and UPS systems. Adoption of renewable energy integrated backup power solutions is also a major trend, with products featuring solar panels, fuel cells or wind turbines to provide clean backup electricity.

Market Opportunities

Growing demand from industries in developing countries due to increasing industrialization will create significant growth opportunities. Promoting hybrid generators and inverters that can run on both diesel and renewable energy can further boost the emerging market. Development of smart automated backup power control systems also presents an opportunity to improve efficiency, safety and reduce downtimes.

Impact of Covid-19 on Backup Power Market

The COVID-19 pandemic heavily impacted the Backup Power Market Size in the initial months of 2020. Countries imposed strict lockdowns and movement restrictions during the first two quarters to curb the spread of the virus. This led to a sharp decline in manufacturing activities and construction projects across major regions. Supply chain disruptions and labor shortages were witnessed which hampered the production and installation of backup power systems globally. However, certain end use verticals such as data centers, healthcare facilities, grocery stores and pharmacies remained operational during the pandemic. This helped in restricting the decline of the backup market to some extent in 2020.

Post pandemic, the backup power market is anticipated to recover strongly driven by growing demand from various end use sectors. With growing importance of continuous power supply, data centers are expected to majorly contribute to the market growth during the forecast period. Furthermore, the pandemic highlighted the significance of uninterrupted electricity especially in healthcare facilities. This is likely to boost the adoption of generators and UPS systems in hospitals going forward. Rising power outages due to extreme weather conditions will also support the market expansion. On the other hand, implementation of social distancing at construction sites and fluctuating raw material prices continue to challenge the industry. Overall, government investments in critical infrastructure projects are expected to aid the healthy recovery of the backup power market in the coming years.

Geographically, Asia Pacific is the fastest growing region for the backup power market. Increasing investments in industrial automation, renewable energy integration and infrastructure development are driving the regional market. Rapid urbanization and growing population are placing heavy demand for reliable power supply in Asia Pacific countries. This has raised the requirement of backup power systems such as diesel generators and UPS systems in the region. Furthermore, China and India are emerging as data center hubs with rising digitalization. This is pushing the data center operators to adopt backup power solutions for maintaining business continuity. The strong economic growth along with supportive government policies will continue to propel the Asia Pacific backup power market during the forecast period.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it