Uninterruptible Power Supply (UPS) Market Size, Share & Trends Analysis Report 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 Component (Rectifier, Batteries, Inverter, Static Bypass switch, Capacitors, Fans, Others), By Application (Data centers, Industrial, Medical, IT and telecom, Residential, Commercial, Marine, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global uninterruptible power supply (ups) market size was valued at USD 12.39 billion in 2023. It is projected to reach USD 22.42 billion by 2032, growing with a CAGR of 7.7% during the forecast period (2024-2032).

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.

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.

Segmental Analysis

By Type

As far as market share is concerned, the online UPS segment holds the largest share. As a result of its two conversion stages, which are AC-DC and DC-AC, Online UPS is significantly utilized across a variety of different industrial verticals. They are utilized extensively in critical power applications, which include low-power information technology buildings, automated teller machines, vending machines, closed-circuit television, small offices, power protection, edge data centers, and server rooms that are small to medium in size. When compared to line-interactive UPS, online UPS provides absolutely no transfer time and a higher power density when switching to battery mode.

By Form Factor

Rack-mounted devices have a limited battery life that lasts between two and three years, whereas freestanding devices have a longer battery life that can last up to five to six years. This is the reason why the freestanding segment dominates the market. Additionally, freestanding offers higher efficiency and scalability up to 10 KW and above, which further drives its adoption among small-scale businesses.

It is anticipated that the rack-mounted segment will expand at a significant compound annual growth rate (CAGR) due to the growing number of hyper-scale data centers and the growing demand for edge computing data centers by businesses in order to provide effective content and services. As an additional factor, the growing demand for a decrease in network latency, in conjunction with an increase in network bandwidth, serves as a driving force behind the expansion of segments. The information technology companies are placing a strong emphasis on the establishment of small-scale edge data centers in developing economies such as India, Indonesia, and the Philippines, which is further driving the growth of the segment.

By Power Rating

Currently, the segment with a market share of 60.1–200 KVA is the most dominant. One of the most important factors driving this market segment is the growing popularity of modular UPS systems in the industrial sector and in small-scale small businesses. Protecting critical equipment in a variety of physical environments, such as power outages, surges, and spikes, is the responsibility of the 60–200KVA UPS devices. As a result of its increased convenience in installation and maintenance, it contributes to the continuity of business operations over the long term.

By Application

A significant portion of the market is controlled by the industrial sector. In the industrial sector, uninterruptible power supplies are utilized in a variety of applications, including nuclear power plants, oil rigs, petrochemical plants, pharmaceutical factories, the food and beverage industry, and other similar establishments. For the purpose of ensuring that the infrastructure of industrial quality continues to function without interruption, an uninterruptible power supply is an essential support system. Further, in the event that there is a brief interruption in the supply of electricity, the industrial-grade uninterruptible power supply has the capability to continue providing power to the essential infrastructure until the mains power supply is restored. The essential infrastructure component could be powered by the uninterruptible power supply in the event of a significant power outage. This would be the case until a secondary power generating source, such as generators, could eventually be connected.

Impact of covid-19

The coronavirus pandemic is estimated to reduce the smart lock installations due to decelerating export activities. The lockdown imposed across the globe has disrupted the supply chain, further hampering the market growth. However, the demand for smart locks is projected to witness significant growth on account of its rising demand across various industrial verticals, especially the commercial sector. The hospitality industry is extensively using smart locks to help the customers unlock the door without touching the surface.

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.