by The global uninterruptible power supply (UPS) Market is estimated to be valued at US$ 8.23 Bn or Mn 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 refers to power systems that provide emergency power to connected electrical equipment when the primary power source fails. UPS systems help to protect hardware, data, and valuable equipment from damage caused by power disturbances. They find wide application in data centers, telecommunication industries, medical systems, industrial devices, and enterprise & private networks among others. Advantages of using UPS systems include power backup, voltage regulation, spike protection, AV stability, and power quality conditioning. They have become an essential infrastructure requirement for critical operations that cannot afford any downtime due to power issues.
Market key trends:
One of the key trends gaining traction in the global UPS market is the rising adoption of lithium-ion battery technology. Lithium-ion batteries are finding increasing preference over traditional lead-acid batteries used in UPS owing to their higher energy density, longer lifespan, reduced self-discharge, and no memory effect. Several leading UPS manufacturers are focusing on developing varieties with lithium-ion battery backup to deliver longer runtimes and higher efficiency. Furthermore, the market is witnessing growing demand for online UPS systems for constant power protection. Online UPS systems provide complete isolation from power disturbances by maintaining an uninterrupted flow of power from the inverter to the load. Their capabilities of delivering higher power quality and redundancy have increased their uptake across various critical load applications.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as significant capital investment is required to manufacture and distribute UPS systems. Established players hold major market share and have strong brand loyalty.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many established players providing similar UPS products. However, buyers have high bargaining power over smaller vendors.
Bargaining power of suppliers: The bargaining power of suppliers is low as raw materials required for manufacturing UPS systems such as batteries and electronic components are commoditized and available from numerous suppliers globally.
Threat of new substitutes: The threat of new substitutes is low as no direct substitute exists for UPS systems that provide backup power and ensure uninterrupted power supply.
Competitive rivalry: High as the UPS market has numerous international and domestic players competing on the basis of product innovation, pricing, and aftersales service.
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 2023 to 2030, due to increasing infrastructure development and industrialization. The market is valued at US$ 8.23 Bn in 2022.
North America dominates the global UPS market, with the US accounting for the major share. Growing adoption of renewable energy primarily drives the regional market. Asia Pacific is expected to exhibit the fastest growth owing to increasing investments in industrialization and infrastructure development across economies such as China and India.
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. Key players are focusing on strategic collaborations and product innovation to gain competitive advantage in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
