by Backup power systems ensure continuous supply of electricity from generators that kick into action automatically once the main power supply fails. These systems range from uninterruptible power supplies (UPS) for individual desktop computers and servers to large diesel generators for telecom towers, data centers, hospitals, and industrial facilities. UPS systems provide power backup for few minutes to an hour by using sealed maintenance-free lead-acid batteries. Larger backup power systems include diesel generators which can run for extended periods until the utility power is restored. Backup power solutions guarantee uptime for businesses and prevent data/revenue loss during power outages.
The Global Backup Power Market is estimated to be valued at US$ 3.07 Bn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period from 2024 to 2030.
Key Takeaways
Key players operating in the backup power market include 3M Company, Amphenol Corporation, Sumitomo Electric Industries, Ltd., Molex LLC, TE Connectivity Ltd., Prysmian Group, W. L. Gore & Associates, Inc., Axon’ Cable, E.I. du Pont de Nemours and Company (DuPont), BizLink Technology, Yamaichi Electronics Co., Ltd., Omron Corporation, Hitachi, Ltd., Samtec, Inc., and Furukawa Electric Co., Ltd. 3M Company and TE Connectivity Ltd. capture a significant share of the global backup power cabling market.
The growing demand for uninterrupted power supply from data centers, telecom towers, banking infrastructure and hospitals is driving the need for battery backups and diesel generators. Large power outage especially in developing countries is also raising dependence on backup power systems for residential and commercial facilities.
The backup power market is expanding globally with growing infrastructure development in the telecommunications and data center industry. The increasing penetration of telecom towers, developing 4G/5G networks and construction of hyperscale data centers worldwide will boost the adoption of backup power solutions in the coming years. The Asian markets are expected to witness highest growth attributed to ongoing digitalization and infrastructure investments.
Market Drivers
Frequent power disruptions due to infrastructure issues, natural calamities and increasing energy demand is a major factor pushing growth of the backup power market. According to surveys, Indian households and businesses experience 5-6 hours of power cuts on a weekly basis. This has increased dependency on backup systems. Furthermore, stringent business continuity rules for industries such as banking and healthcare have amplified the requirement for emergency power backups. Strict regulations regarding data uptime and downtimes are also favoring market growth. With increasing power outage incidents, the demand for backup power solutions is expected to grow substantially over the forecast period.
The current geopolitical situation is impacting the growth of the Backup Power Market Size . With rising tensions between nations and greater political instability across several regions, reliability of grid power supply has reduced. This has increased concerns over business continuity and emergency preparedness. Dependence on centralized grids alone is no longer considered secure or sustainable. Many companies are now proactively investing in backup power sources like diesel generators and battery energy storage systems to insulate themselves from disruptions to commercial power supply. However, supply chain constraints due to trade restrictions and sanctions have impacted the availability of key components. Rising fuel costs have also increased operating expenses of diesel gensets which are widely used as backup power currently. To sustain growth, market players must seek new partnerships, optimize inventory management and expand local manufacturing capacity. They also need to incentivize adoption of green backup solutions like solar plus storage that enhance energy security while reducing dependence on global fuel markets.
The backup power market in terms of value is currently concentrated in regions with high industrial activity and developed infrastructure. North America accounts for more than 30% share due to robust demand from financial centers, healthcare facilities and data centers. Countries like the US and Canada have stringent grid reliability standards boosting backup power installations. Europe is another major regional market supported by regulations mandating power backup for critical services. However, the Asia Pacific region is poised to be the fastest growing market during the forecast period owing to increasing investments in industrialization and urbanization across developing economies of China, India and Southeast Asia. Reliance on backup power will only rise as these nations strive to ensure uninterrupted electricity access for heavy industries, transportation, communication networks and their expanding cities.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
