Uninterruptible Power Supply (UPS) Market

Market Overview

The global uninterruptible power supply (ups) market size was valued at USD 11.5 billion in 2022. It is projected to reach USD 22.14 billion by 2031, growing with a CAGR of 7.5% during the forecast period (2023–2031).

The Uninterruptible Power Supply (UPS) is a device that supplies uninterrupted and stable power to a vital system load. The device prevents any potential power quality concerns from the distribution system, such as interruptions, voltage sags, voltage spikes, harmonics, and noise that impairs the performance of sensitive electronic components and other electrical equipment. It safeguards equipment vulnerable to power quality fluctuations from interruptions and isolates the critical load from power quality problems in the incoming supply. The UPS systems are widely used in residential, industrial, and commercial sectors to provide uninterrupted data services. Globally, rapid digitalization and increasing adoption of connected infrastructure have compelled enterprises to increase their data center capacity. Rising incidences of network latency are subsequently increasing the adoption of Fiber to the Home (FTTH) services and hyperscale data centers.  

The rapid advancement of self-diagnostics features and the adoption of modular UPS in data centers drive market growth. Similarly, the emergence of flywheel technology as an alternative to power supply provides an impetus to market growth. On the other hand, high maintenance cost restricts market growth.

Market Dynamics

What are the Factors Driving the Market Growth?

Rapid Infrastructure Development

The continuous development of infrastructure across the globe affects the expansion of the global market for uninterruptible power supplies. Developed nations are investing more and more in developing smart cities, which are heavily reliant on uninterrupted power supply, which is projected to impact the growth of the market. The advancements in the industry, such as replacing lead-acid batteries with lithium-ion batteries to overcome the challenges posed by higher operating temperatures and rapid charging capacities, affect the overall market value of uninterruptible power supplies.

The Emergence of Fly-Wheel Technology 

Flywheel is an advanced technology developed to provide power sources to the manufacturing and oil and gas industries in harsh environments. The technology offers high power efficiency to protect equipment with constant voltage fluctuations and clean power sources without compromising the environment.

Segmental Analysis

The global uninterruptible power supply (UPS) market is segmented based on type, form factor, and power rating.

Based on type, the UPS market is segmented into online, line-interactive, and offline/standby.

The online UPS segment accounts for the largest market share. Online UPS is extensively used across several industrial verticals for its two conversion stages of AC-DC and DC-AC. They are significantly used in critical power applications that include low-power IT buildings, ATMs, vending machines, CCTV, small offices, power protection, edge data centers, and small to medium-sized server rooms. Online UPS offers zero transfer time and higher power density compared to line-interactive UPS when switching to battery mode.  

Based on form factor, the UPS market is segmented into freestanding/standalone and rack-mounted.

The freestanding segment dominates the market as it offers longer battery life, which lasts up to 5–6 years, compared to the limited battery life of rack-mounted, lasting 2–3 years. Freestanding also offers higher efficiency and scalability up to 10KW and above, further driving its adoption across small-scale businesses.

The rack-mounted segment is expected to grow with a significant CAGR on account of the rising number of hyper-scale data centers and increasing demand for edge computing data centers by enterprises to deliver efficient content and services. Additionally, the surging need to provide reduced network latency, coupled with high network bandwidth, provides an impetus to segment growth. The IT enterprises are emphasized on establishing small-scale edge data centers in emerging economies such as India, Indonesia, and the Philippines, further driving the segment growth.

Based on power rating, the UPS market is segmented into less than 5 KVA, 5.1 – 20 KVA, 20.1–60 KVA, 60.1–200 KVA, and greater than 200 KVA.

The 60.1–200 KVA segment holds the largest market share. The segment’s most prominent driver is the surging adoption of modular UPS in small-scale businesses and the industrial sector. The 60–200KVA UPS protects critical equipment in many physical environments, such as power outages, surges, and spikes. It offers greater convenience in installation and maintenance, helping in long-term business continuity. 

Based on application, the UPS market is segmented into data centers, industrial, medical, IT, and telecom. 

The industrial sector dominates the marketplace. In the industrial sector, uninterruptible power supplies are utilized in a variety of applications, such as nuclear power plants, oil rigs, petrochemical plants, pharmaceutical factories, the food, and beverage industry, etc.  Uninterruptible power supply is a crucial support system for ensuring the uninterrupted functioning of the infrastructure of industrial quality. In addition, in the event of a brief power outage, the industrial-grade uninterruptible power supply can continue to power the critical infrastructure until the mains power supply is restored. In a large power outage, the uninterruptible power supply might power the essential infrastructure component until a secondary power generating source, such as generators, could be connected.

Regional Analysis

Asia-Pacific accounts for the largest market share and is expected to dominate the market during the forecast period. The regional market is largely driven by the lack of robust grid infrastructure, causing frequent power cuts and voltage fluctuations. An increasing number of small and mid-size outsourcing companies, coupled with the rising number of small-scale data centers, drive regional market growth. Furthermore, the heavy use of electronic gadgets and appliances, such as mobile phones, laptops, smart TVs, and air conditioners, raises the demand for backup power to prevent appliances from damage. The COVID-19 outbreak has compelled the governments in the region to build advanced equipment, such as ventilators, further driving the demand for efficient UPS to prevent equipment failure during power outages.

Europe’s uninterruptible power supply market is projected to grow with the second-highest CAGR during the forecast period. The surging number of data centers and increasing adoption of connected technologies generating huge datasets drive regional market growth. As per the U.K.’s Office for National Statistics (ONS), in 2017, approximately 7.4% of autonomous machines were employed by several industrial verticals to enhance productivity, further driving the adoption of UPS to protect equipment during power outages. Innovative technologies such as the Internet of Things (IoT) and analytics platforms require high-speed and frequency data centers, further driving the market growth. In 2018, the Medical University of Gdansk(MUG), the largest medical university in Northern Poland, partnered with BORRI S.p.A. to install UPS with a capacity of 600KVA and 160 KVA in the university’s data center to protect equipment against power failure.  

The Uninterruptible Power supply (UPS) market in North America is anticipated to grow tremendously. The increasing demand for UPS in end-user applications such as industrial systems, telephone systems, healthcare, laboratories, small business offices, point-of-sale equipment, and internet service providers, among others, presents significant growth opportunities for the market. In addition, the growing development of hyperscale data centers in North America is driving the market for uninterruptible power supply.   These data centers require a substantial amount of electricity for various data-intensive activities, increasing the regional demand for uninterrupted power supplies (UPS). The rapid adoption of new and advanced technologies, the presence of the majority of key market giants, a well-established IT infrastructure, an increasing number of construction projects, the popularity of data centers, etc., are some of the major factors expected to contribute to the growth of the uninterruptible power supply (UPS) market in the region over the forecast period.

Due to growing industrialization, the LAMEA market is anticipated to gain momentum in the future years. Increasing infrastructure growth and urbanization are driving an increase in demand for power backup options. The rise in population and migration to urban areas is causing an increase in the demand for power, which in turn is fostering the growth of the market. In addition, the strengthening of the manufacturing and residential sectors, as well as the growing emphasis on the safety of household electrical appliances, contribute to the Market growth. This region's regular power outages are driving the majority of the growth in the UPS battery industry.

Emerging countries have not yet achieved their aim of becoming electricity-surplus nations despite several government initiatives; hence, UPS systems are an absolute necessity in the region. In addition, rising household disposable incomes in the LAMEA region drive sales of electrical appliances such as refrigerators, air conditioners, televisions, and microwaves. The inadequate power supply is anticipated to encourage consumers to acquire UPS batteries.

Recent Developments

• October 2022- Su-vastika, a solar company based in Gurugram, has introduced a lithium battery-based three-phase uninterruptible power supply (UPS) system that can be used as an alternative to polluting diesel generators (DGs) in a variety of settings, including residential and commercial buildings, schools, hospitals, and shopping malls. The UPS system has power ratings ranging from 10 kVA to 500 kVA and is equipped with bidirectional technology based on an insulated-gate bipolar transistor.
• May 2021- Vertiv, a global provider of critical digital infrastructure and continuity solutions, has introduced Vertiv Liebert EXM2, a three-phase monolithic uninterruptible power supply (UPS) with up to 97% double conversion efficiency, which climbs to 98.8% in dynamic online mode.

Uninterruptible Power Supply (UPS) Market Segmentation

By Type

• Online
• Line-interactive
• Offline/standby

By Form Factor

• Freestanding/standalone
• Rack-mounted

By Power Rating

• Less than 5 KVA
• 1 – 20KVA
• 1–60 KVA
• 1–200 KVA
• Greater than 200KVA

By Application

• Data Centers
• Industrial
• Medical
• IT and Telecom

By Region

• North America
• Europe
• Asia Pacific
• LAMEA