UPS Market – Snapshot

The global UPS market is currently driven by growing frequency of power fluctuations and growth in number of data centers and cloud storage utilization. Demand for power backup solutions in small and large scale industries is increasing considerably to protect sensitive equipment from the adverse effects of grid power fluctuations. Need for UPS systems in hospitals and factories are also growing, where power failures lead to critical situations. Advancements in UPS systems such as lithium-ion technology, transformer-less UPS, and modular UPS are likely to have strong influence on market growth over the forecast period. In 2017, the global UPS market was valued at US$ 5,539.2 Mn and is anticipated to reach US$ 10,745.9 Mn by 2026, expanding at a CAGR of 7.8%during the forecast period from 2018 to 2026.

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These days, there are many reasons for power failures such as natural causes, short circuits, and other causes including man-made outages because of which power cuts are becoming more and more frequent. Electrical equipment faces potential danger from both severe weather and poor voltage quality that can cause slow equipment degradation or instantaneous loss of data stored on the equipment. The most frequent blackouts occur in emerging economies including South Asia, due to underinvestment on energy infrastructures. To cope with electricity failures and fluctuations, adoption of UPS has increased in order to protect various electronic equipment. Data centers require continuous power supply to protect the operational data & IT equipment and to keep cooling systems running.

Global expansion of wireless internet connectivity and penetration of affordable smartphones have resulted in rapidly-increasing data traffic. Hence, data centers are being constructed across emerging countries such as China and India at lower costs. To efficiently manage IT equipment and avoid any data or equipment loss due to power failures or disruptions, data centers are expected to be highest adopters of Uninterruptible Power Sources (UPS) solutions during the forecast period.

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However, the high installation and maintenance cost is likely to be a limiting factor for the UPS market growth. Installing Uninterruptible Power Supplies (UPS) requires major initial capital investment which varies as per application and kVA range. Attaching many UPS batteries to an existing wiring system will give an efficient power supply to the system. Nonetheless, market players are making efforts toward providing flexible, energy efficient, and high load capacity features in UPS. Further, growth of smart home technology creates huge growth opportunity for the UPS market

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Many players are increasing their share through strategic mergers & acquisitions and partnerships with several industries, paying attention to expand their market and necessary requirement. In June 2017, Schneider Electric expanded its Galaxy V-Series Uninterruptible Power Supply (UPS) product portfolio for data center and industrial applications in order to achieve high density and efficient power protection. Some of the prominent players identified in the UPS market includes – Schneider Electric SE, Eaton Corporation Plc., Emerson Electric Company, Uninterruptible Power Supplies Ltd., Legrand, Vertiv Co., ABB Ltd.,Luminous Power Technologies, Mitsubishi Electric Corporation, and Delta Power Solutions.

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