May 28, 2024
Uninterruptible Power Supply Market

Cloud Computing Opens New Avenues for Growth in the Uninterruptible Power Supply (UPS) Market

The uninterruptible power supply (UPS) market is estimated to be valued at US$ 8.23 Bn in 2022 and is expected to exhibit a CAGR of 4.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Uninterruptible power supply or UPS systems offer backup power to critical equipment and systems during power outages or fluctuations. They are widely used in data centers, telecommunications, financial institutions, hospitals and other facilities where power disruptions can cause damage or affect operations. UPS systems allow orderly shutdown of systems to avoid data loss or damage, ensuring business continuity. Lithium-ion batteries are increasingly replacing lead-acid batteries in UPS systems due to higher energy density, longer lifespan and reduced maintenance needs.

Market Dynamics:
Rising adoption of UPS systems in cloud computing facilities is expected to be a key driver of market growth over the forecast period. As more businesses migrate critical functions and data storage to the cloud, the demand for reliable and high quality backup power from UPS systems is surging. According to estimates, nearly 75% of all server workloads will be cloud-based by 2022. This rapid growth of cloud infrastructure is boosting procurement of large capacity UPS systems by hyperscale data center operators. Additionally, miniaturization of electronic devices is propelling demand for compact and portable UPS systems from industries like telecommunications and healthcare. Growing deployments of 5G networks and IoT devices also require robust backup power solutions like UPS systems to ensure continuous operation.

Segment Analysis
The uninterruptible power supply (UPS) market is dominated by online UPS segment. This segment accounted for more than 60% share of the overall market in 2022. Online UPS systems deliver maximum protection and provide continuous conditioned power to critical loads with zero interruption during transfer from battery to mains power. Their advantages include higher transfer time, complete isolation of critical load from utility power issues, and simultaneous charging of batteries while supplying power. This has resulted in their widespread adoption across industries for continuous power backup needs.

PEST Analysis
Political: Governments across regions are introducing initiatives to promote adoption of clean and green energy technologies. This is encouraging increased investment in solar and wind power projects, driving demand for UPS systems for seamless power supply.
Economic: Growth of industries such as IT/ITES, healthcare, manufacturing is propelling the requirement of continuous power supply systems. In addition, rising awareness about energy efficiency is positively impacting the UPS market.
Social: Emphasis on access to reliable and uninterrupted power for critical operations and facilities such as data centers and hospitals is fueling market expansion.
Technological: Advancements in voltage regulation technologies, lithium-ion batteries and integration of renewable energy solutions with UPS are helping improve efficiency and safety. Digitization of grid infrastructure is also augmenting the UPS installation.

Key Takeaways
The global Uninterruptible Power Supply (UPS) Market Size is expected to witness high growth, exhibiting CAGR of 4.2% over the forecast period, due to increasing demand for reliable power infrastructure from industries. The United States accounted for largest share of over 25% in the UPS market in 2022 owing to robust IT infrastructure and rising adoption of edge computing and data centers in the country.

Regional analysis
The Asia Pacific region is projected to witness fastest growth in the UPS market during the analysis period. This can be attributed to ongoing expansions in manufacturing and IT sectors across developing economies like China and India. Rapid industrialization and growing demand for continuous power supply in telecom and healthcare verticals are fueling the UPS installation in the region.

Key players analysis
Key players operating in the uninterruptible power supply (UPS) 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. These players are focusing on new product launches and partnerships to cater to the rising power backup requirements globally.

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