by The uninterruptible power supply or UPS systems are electronic devices that provide emergency power to critical loads during utility power outages or disruptions. The UPS ensures continuous supply of clean and regulated power to electronic devices such as servers, storage systems, industrial controllers, point of sale systems and medical equipment without any interruptions. The growing need for providing backup power solutions to data centers, telecom infrastructures and industrial facilities that require constant electricity has augmented the demand for UPS systems in the global market.
The global Uninterruptible Power Supply Market is estimated to be valued at US$ 8.63 Mn in 2023 and is expected to exhibit a CAGR of 21% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising incidences of power outages and fluctuations in utility voltages have significantly increased the risks for critical infrastructure and operations that heavily rely on continuous supply of electricity. This has accelerated the adoption of UPS systems across industries to ensure uninterrupted functioning. Additionally, the adoption of lithium-ion batteries in UPS systems instead of traditional lead-acid batteries is gaining traction. Lithium-ion batteries offer improved service life, higher energy density and reduced footprint compared to lead-acid batteries. The increasing deployment of lithium-ion based UPS systems is expected to propel the market growth over the coming years.
Porter’s Analysis:
- Threat of new entrants: The threat of new entrants in the uninterruptible power supply market is relatively low due to high capital requirements and established brand loyalty of existing players.
- Bargaining power of buyers: The bargaining power of buyers is moderate owing to the availability of multiple brands in the market. However, customization as per industrial needs increases switching costs.
- Bargaining power of suppliers: Suppliers have moderate bargaining power as raw materials used in manufacturing UPS systems such as batteries, transformers, and other electronic components are produced by a few specialized global players.
- Threat of new substitutes: Threat from substitutes is low as other backup power sources lack the plug-and-play functionality and instantaneous switchover provided by UPS systems.
- Competitive rivalry: The global uninterruptible power supply market is highly competitive due to presence of numerous international and domestic players.
Key Takeaways:
The Global Uninterruptible Power Supply Market Demand is expected to witness high growth at a CAGR of 21% during the forecast period. Rapid industrialization and growing need for power protection equipment in various industries drives the demand.
Regional analysis: Asia Pacific dominates the global market and is expected to grow at the fastest rate during the forecast period. This can be attributed to rapid industrial development and growing electronics manufacturing industry in China and India. North America holds a significant share owing to developed industrial sector and early technology adoptions.
Key players: Key players operating in the uninterruptible power supply 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 focused on new product launches and expansion strategies to gain competitive edge.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
