by The Uninterruptible Power Supply (UPS) Market is estimated to be valued at US$ 8.23 Bn 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:
The uninterruptible power supply (UPS) market caters to various critical infrastructure industries including healthcare, telecommunications, data centers, and manufacturing where uninterrupted power is crucial. UPS systems ensure a continuous power supply to critical loads in the event of a power failure or voltage sag by using a battery system. Backup power technologies such as lithium-ion batteries are gaining popularity in use cases requiring higher capacity and longer backup durations.
Market Dynamics:
Growing investments in data center infrastructure across the globe is a major driver of the UPS market growth. According to a report, global data center IP traffic will represent over 20% of global consumer internet traffic by 2022. Increasing digitalization efforts in critical industries such as healthcare requiring monitoring equipment, control systems and medical devices to operate continuously is also fueling demand for premium UPS systems. Rising adoption of lithium-ion battery technology enables UPS systems to provide backup for longer durations on a single charge. Lithium-ion batteries are more efficient, lighter and have a higher recharge rate than conventional lead-acid batteries traditionally used in UPS.
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Market Key Trends:
The uninterruptible power supply (UPS) market has been witnessing rise in demand for lithium-ion batteries which provide higher density and longer runtime compared to traditional valve-regulated lead-acid (VRLA) batteries. Lithium-ion batteries are more energy efficient and have a longer lifespan of 5-10 years compared to 3-5 years for VRLA batteries. Moreover, they perform better at extreme temperatures and require less maintenance. Many UPS manufacturers have been replacing VRLA batteries with lithium-ion variants to gain competitive advantage in terms of features and performance.
SWOT Analysis
Strengths: Lithium-ion technology offers improved battery performance, longer lifespan, high energy density.
Weaknesses: Higher upfront cost of lithium-ion batteries compared to traditional VRLA batteries.
Opportunities: Growing demand for UPS systems from data centers and telecom industries. Increasing power outages driving adoption of backup power solutions.
Threats: Presence of low-cost alternatives and fluctuating raw material prices. Intense competition among existing players.
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, due to increasing investments in data center construction. The market valued US$ 8.23 Bn in 2022.
Regional analysis: North America held the largest share of over 35% in the global UPS market in 2022. However, Asia Pacific is expected to witness the highest growth owing to rapid industrialization and increasing demand from SMEs in countries such as China and India.
Key players: 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. These players are focusing on development of technologically advanced lithium-ion battery-based UPS systems to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
