Standby UPS System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented, By Capacity (Less than 10 kVA, 10-100 kVA, and Above 100 kVA), By Application (Data Centers, Telecommunications, Healthcare (Hospitals, Clinics, etc.), Industrial, and Other Applications), By Region, Competition 2018-2028
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Power | Format: Report available in PDF / Excel Format
View Details Download Sample Ask for Discount Request CustomizationStandby UPS System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented, By Capacity (Less than 10 kVA, 10-100 kVA, and Above 100 kVA), By Application (Data Centers, Telecommunications, Healthcare (Hospitals, Clinics, etc.), Industrial, and Other Applications), By Region, Competition 2018-2028
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 6.72 Billion |
| CAGR (2023-2028) | 11.28% |
| Fastest Growing Segment | Data Center |
| Largest Market | Asia Pacific |
Market Overview
Global Standby UPS System Market was valued at USD 6.72 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 11.28% through 2028, The growing demand for consumer electronics across the globe is one of the major drivers for standby UPS systems compared to other UPS systems, as the standby UPS system is the most preferred option for consumer electronics as it is the most economical option for devices with low power consumption. Nevertheless, technological advancements in UPS battery systems, such as new lithium-ion (Li-ion) batteries with high operating temperatures, are expected to create immense opportunities in traditional data centers. UPS systems can also be installed as a backup system when the electricity grid fails and are expected to provide growth opportunities in the forecast period.
Key Market Drivers
As a result of the increased pollution levels caused by diesel generators, many countries in the world are banning the use of diesel generators. Diesel generators are most commonly used for power backup in major industrial applications. During diesel burning, diesel generators emit carbon dioxide, carbon monoxide, nitrogen oxides (NOx), and particulates. In a diesel generator, for example, a liter of fuel produces 0.73 kg of pure carbon and 2.6 kg of carbon dioxide.
Stand By UPS for Short-Term Blackouts To Reduce Air Pollution
As a result, companies are using Standby UPS System for short-term blackouts to reduce air pollution in many industrial applications. Lead acid or lithium-ion batteries are often used to construct Standby UPS System. It is also important to note that generators do not provide an instant power supply, as they must be manually started. Computers and electronic equipment require instant backup power that isn't provided by generators.
The industrial revolution, known as Industry 4.0, has gained significant traction in the last couple of years. By mixing the Internet of Things (IoT), cloud computing, analytics, artificial intelligence, and machine learning into manufacturing facilities and operations, new technologies are revolutionizing manufacturing processes. As these operations are critical, many companies use an Standby UPS System to prevent data loss and production line downtime. They use an Standby UPS System to stabilize the power and streamline production during a power outage. Due to the factors mentioned above, the Standby UPS System market is expected to grow the fastest during the forecast period.
As manufacturing automation has evolved with computer-based control systems, programming logic controllers, and process control applications, UPS systems are increasingly necessary for industrial facilities. In addition to providing backup power during a power outage, UPS systems protect equipment from power glitches such as power sags, surges, under voltages, overvoltages, line noise, frequency variations, switching transients, and harmonic distortions. Therefore, such an advantage related to the UPS systems has enhanced the Standby UPS System market CAGR globally in recent years.
A number of technological advances in UPS battery systems, like lithium-ion (Li-ion) batteries that can operate at high temperatures, are expected to create immense opportunities for traditional data centers. UPS systems can also serve as backup systems when the electric grid fails, making them an excellent growth opportunity in the coming years, another factor driving the growth of the Standby UPS System market revenue.
Key Market Challenges
Rapid Technological AdvancementsOne of the central challenges in the UPS market is the relentless pace of technological change. As information technology and other power-dependent industries continue to evolve, the requirements for UPS systems become more demanding. Emerging technologies like cloud computing, 5G, and the Internet of Things (IoT) create new demands for power protection and energy efficiency. To stay competitive, UPS manufacturers must continually invest in research and development to keep pace with these evolving needs.
Continuous research and innovation are key to addressing this challenge. Manufacturers should foster partnerships with research institutions and adapt agile development processes to swiftly integrate new technologies into their products. Additionally, adopting modular designs can facilitate upgrades and allow UPS systems to adapt to changing requirements more easily. In a world increasingly concerned with environmental sustainability, the energy efficiency of UPS systems is a critical concern. Traditional UPS units can be inefficient, leading to wasted energy and increased operational costs. Moreover, as data centers and other power-hungry facilities expand, their carbon footprint grows, putting additional pressure on businesses to adopt greener solutions.
UPS manufacturers need to focus on creating energy-efficient products. This includes the development of high-efficiency UPS systems and promoting sustainable practices in their manufacturing processes. Offering UPS solutions that integrate with renewable energy sources and supporting customers in optimizing their power infrastructure can help reduce the environmental impact. While the initial cost of a UPS system is a significant consideration, the TCO over the system's lifespan is equally important. Factors such as maintenance, battery replacement, and energy consumption all contribute to TCO. Businesses are increasingly focused on minimizing TCO to ensure cost-effectiveness in their operations. UPS manufacturers should provide solutions that balance initial cost and TCO. Developing systems with longer lifespans, efficient battery management, and predictive maintenance capabilities can help reduce TCO and improve the value proposition for customers.
Adaptation to Diverse Applications
The UPS market serves a wide range of applications, from small-scale residential usage to large-scale industrial and data center applications. Adapting UPS systems to the specific needs of different industries and use cases can be a considerable challenge.
SolutionDeveloping versatile UPS systems with customizable features can address this challenge. Modular designs, scalability, and the ability to provide tailored solutions for various industries enable manufacturers to cater to diverse customer needs effectively.
Global Supply Chain Disruptions
The COVID-19 pandemic has highlighted the vulnerabilities in global supply chains. Disruptions in the supply of components and raw materials have affected the production and delivery of UPS systems, leading to delays and increased costs.
SolutionBuilding resilient supply chains that rely on multiple sources of components and strategic inventory management can mitigate these risks. Manufacturers should also consider regional production to reduce dependence on a single global supply chain. Competitive Pricing and Margin PressureAs the demand for UPS systems increases, competition in the market intensifies. This can lead to price wars and margin pressure, making it challenging for manufacturers to maintain profitability.
SolutionDifferentiating products through innovation and value-added services can help manufacturers maintain price premiums. Establishing strong distribution networks and emphasizing the quality, reliability, and support of their products can also contribute to maintaining margins. The UPS market is heavily reliant on battery technology. The constant evolution of battery technology presents both opportunities and challenges. While advanced batteries can enhance UPS performance, they can also require manufacturers to adapt their systems and address issues related to compatibility, cost, and environmental impact.
Close collaboration with battery manufacturers and investment in research and development can help UPS companies stay ahead in battery technology integration. Additionally, emphasizing recyclability and sustainability in battery use can address environmental concerns.
Cybersecurity Concerns
As UPS systems become more integrated with digital infrastructure, they can become potential targets for cyberattacks. Ensuring the cybersecurity of UPS systems is essential to safeguard critical infrastructure.
SolutionDeveloping UPS systems with robust cybersecurity features, regular vulnerability assessments, and cybersecurity education for users can help mitigate these concerns. UPS systems must comply with various national and international regulations and standards, which can vary significantly. Adhering to these standards while ensuring product quality and performance can be a challenging task for manufacturers. Manufacturers should stay updated on the latest regulations and standards, and they can leverage certification and testing organizations to ensure compliance. Additionally, engaging in industry associations can help influence and streamline regulatory requirements.
Conclusion
The global UPS market faces various challenges driven by technological advancements, environmental concerns, cost considerations, and the ever-expanding array of applications. To thrive in this dynamic environment, UPS manufacturers must continuously innovate, focus on energy efficiency and sustainability, offer cost-effective solutions, and adapt to the diverse needs of different industries. Building resilient supply chains, ensuring cybersecurity, and complying with evolving regulations are also integral aspects of success in this market.
While these challenges are indeed significant, they also present opportunities for UPS manufacturers to differentiate themselves, provide value to their customers, and contribute to a more sustainable and resilient power infrastructure worldwide. By addressing these challenges with creativity, adaptability, and a customer-centric approach, the global UPS market can continue to thrive in an ever-evolving landscape.
Key Market Trends
The Global Standby UPS System market has been witnessing significant growth and transformation over the past several years. Several trends and factors have been shaping the UPS market on a global scale. Here are some of the prominent trends in the global UPS market
Rising Demand for Data Centers
With the growth of cloud computing, IoT, and digital services, data centers have become a critical component of modern infrastructure. This has led to a substantial increase in the demand for UPS systems to ensure Standby UPS System for data centers.
Increasing Energy EfficiencyEnergy efficiency is a top priority for businesses and organizations to reduce operational costs and environmental impact. Manufacturers are developing UPS systems with higher efficiency ratings, advanced battery management, and energy-saving features.
Growth of Modular UPS SystemsModular UPS systems are gaining popularity due to their scalability and flexibility. They allow businesses to expand their power protection systems as needed, reducing upfront costs and making it easier to adapt to changing power requirements. Lithium-ion batteries are increasingly being adopted in UPS systems due to their longer lifespan, higher energy density, and reduced maintenance requirements compared to traditional lead-acid batteries.
Rise in Edge Computing
Edge computing, which involves processing data closer to the source (e.g., IoT devices), is gaining traction. This trend demands UPS solutions at the edge, contributing to market growth.
Focus on SustainabilityEnvironmental concerns are pushing companies to adopt sustainable practices, including the use of energy-efficient and eco-friendly UPS systems. Manufacturers are developing UPS units that can integrate with renewable energy sources.
Digitalization and Remote MonitoringThe integration of UPS systems with digital platforms and remote monitoring capabilities is becoming increasingly important. This allows for real-time monitoring, predictive maintenance, and swift issue resolution.
Increasing Adoption of Three-Phase UPSThree-phase UPS systems are in high demand, especially in industries with heavy power requirements, such as manufacturing, healthcare, and data centers. They provide better power protection and distribution.
E-commerce and Retail Sector DemandThe growth of e-commerce and the increasing reliance on online retail have driven the need for UPS systems to ensure continuous operation during power outages, preventing financial losses and maintaining customer satisfaction. The COVID-19 pandemic highlighted the vulnerability of global supply chains. The UPS market has experienced disruptions in the supply of components, leading to delays in production and delivery.
Evolving Regulations and Standards
Governments and industry bodies are continually updating regulations and standards related to power quality and reliability. Manufacturers must stay abreast of these changes to ensure compliance.
Resilience and Disaster RecoveryBusinesses are increasingly investing in UPS systems to ensure business continuity and disaster recovery capabilities. UPS solutions play a vital role in protecting critical infrastructure during natural disasters or power grid failures.
Electrification of TransportationThe shift toward electric vehicles and charging infrastructure requires UPS systems to ensure Standby UPS System charging, particularly in public charging stations.
Hybrid and Multi-Mode UPS
Hybrid and multi-mode UPS systems offer versatility by combining the benefits of online and line-interactive UPS. These systems provide excellent protection and efficiency, making them attractive options for various applications.
Increased Emphasis on CybersecurityAs UPS systems become more integrated with digital infrastructure, there is a growing focus on cybersecurity. Ensuring the protection of UPS systems from cyberattacks is crucial for safeguarding critical infrastructure. The integration of UPS systems with smart grids is on the horizon, enabling dynamic load management, demand response, and better alignment with renewable energy sources.
Demand for Long-Lasting Batteries
Manufacturers are investing in the development of UPS systems with long-lasting batteries, which are crucial for critical applications like healthcare and manufacturing.
These trends collectively indicate the growing importance of UPS systems in various industries and applications. Manufacturers need to adapt to these trends by embracing innovation, focusing on energy efficiency, and offering sustainable solutions to meet the evolving power protection needs of businesses and organizations worldwide. As technology continues to advance, the UPS market will likely see further developments in line with these trends.
Segmental Insights
Application Insights
Data Centres segment will dominate the market in the forecast period. Standby UPS System systems secure uptime of large data centers and provide facility-wide protection for sensitive electronics. They have redundant configurations and dual bus capabilities to make sure your critical systems will keep running during power disturbances such as blackouts, brownouts, sags, surges or noise interference. These UPS systems allow modular configuration of a completely redundant power and control system, sized to match the capacity of the protected equipment. When power requirements change, capacity is easily added without increasing the system footprint.
Regional Insights
The Asia-Pacific region is developing, with frequent blackouts and unstable power supply across the region, especially in countries like Malaysia, Cambodia, the Philippines, and several others. Major end-users of UPS systems in the region include the region’s booming industrial and manufacturing, telecom, commercial, and residential sectors.
In the Asia-Pacific region, the manufacturing sector is one of the major contributors to the economy of various countries, with China being the largest hub of the manufacturing sector. Japan, India, South Korea, and Indonesia are a few major contributors to Asia-Pacific. In contrast, countries like Vietnam, Malaysia, and Singapore are expected to increase their share during the forecast period.
Automation in the manufacturing sector involving computer-based control systems, Programmable Logic Control (PLC) units, and process control applications has prompted the need for UPS systems in industrial facilities. UPS systems provide backup in case of electric power failure and protect equipment from power glitches like power sags, surges, under voltage, over-voltage, line noise, frequency variations, and switching transient and harmonic distortions. Hence, UPS systems have become essential to almost all industries like telecom, engineering, manufacturing, R&D, education, medicine, IT, BPO, aviation, banking, etc.
The manufacturing sector covers a wide range of industries, including the automotive industry, food processing industry, semiconductors, steel manufacturing, and many more, all requiring power quality equipment like UPS systems for smooth operations as fluctuating and disruptive power causes significant monetary losses to the industries. Power cuts and variable power supply cause significant damage to industries and businesses that rely heavily on good quality electricity for smooth operations. However, maintaining good quality power in developing countries like India and China is difficult for the authorities.
For instance, according to Invest India, by 2026-27, India’s power generation installed capacity will likely be nearly 620 GW, 38% of which will be from coal and 44% from renewable energy. India's aim to diversify its energy sources and the target to provide a 24x7 electricity supply by making a large addition of renewable energy generation capacities is estimated to be a significant driver for the market. The growing electricity demand, increasing disposable income, and the need for a reliable power supply are expected to support the UPS market in India during the forecast period. Therefore, based on the abovementioned factors, Asia-Pacific is expected to become the fastest-growing UPS market during the forecast period.
Recent Developments
- July 2022Schneider Electric announced the
enhanced EcoStruxure Service Plan for 10-40 kVA Three-Phase Uninterrupted Power
Supply (UPS) products. EcoStruxure Service Plan combined traditional onsite
services with digital capabilities powered by the IoT-enabled EcoStruxure
architecture and provided the customers with 24/7 remote and onsite expertise
& support. The enhanced service plan covered a range of Three-Phase
Uninterruptible Power Supplies (UPS) 10-40 kVA for IT or industrial
applicationsEasy-UPS 3S, Galaxy VS, Symmetra PX (up to 48kVA), Smart-UPS VT,
and Galaxy 3500.
- February 2022Mitsubishi Electric Corporation
announced that its United States subsidiary Mitsubishi Electric Power Products,
Inc. (MEPPI), acquired Computer Protection Technology, Inc. (CPT),
headquartered in California, aiming to expand its Standby UPS System business
in North America. With this acquisition, MEPPI and CPT were expected to
strengthen their respective business structures to provide highly reliable and
professional one-stop services from installation to maintenance for UPS systems
in the North American market.
Key Market Players
- Emerson Electric Co.
- ABB Ltd
- Schneider
Electric SE
- Riello
Elettronica SpA
- EATON
Corporation PLC
- Toshiba
Corporation
- Xiamen
Kehua Hengsheng Co. Ltd.
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