The uninterruptible power supply (UPS) market is expected to register a CAGR of 4. 44% during the forecast period, reaching the value of USD USD 13. 42 billion in 2027 from USD 10 billion in 2020. The COVID-19 pandemic impacted various industries, including the uninterruptible power supply market.
The outbreak impacted the sales and operations of many UPS manufacturers, causing them to shut down their manufacturing plants. There has been a ban on exports by Asia-Pacific countries, due to which a few market players globally are facing disruptions in the supply chain. The rising trend of IoT and smart buildings, a growing number of data centers worldwide, the growing trend of virtualization and cloud computing, and the growing adoption of multi-cloud and network upgrades are expected to drive the UPS market globally during the forecast period. Also, a significant demand surge for reliable power solutions that can support large-scale manufacturing facilities is expected to drive the UPS market. However, the high cost of online UPS and a few limitations of UPS for protecting heavy appliances from power failure may negatively impact the market’s growth.
The industrial segment is expected to dominate the market growth during the forecast period.
Technological advancements in UPS battery systems, such as new lithium-ion (Li-ion) batteries with high operating temperatures, are expected to create immense opportunities in traditional data centers. UPS system can also be installed as a backup system when the electricity grid fails, thereby creating new opportunities in the future.
Asia-Pacific is expected to be the fastest-growing market during the forecast period, with a majority of the demand coming from China, Japan, India, Australia, etc.
Industrial Segment Expected to Dominate the Market
In Industry, the uninterruptible power supplies are used in vast applications, including nuclear power plants, oil rigs, petrochemicals plants, pharmaceutical plants, the food & beverage industry, etc. The industrial uninterruptible power supply systems are installed in rugged environments. As in any industrial setting, the interruption of AC power may cause dangerous process instability or cause expensive damage to processing systems. Furthermore, these environments have a higher ambient temperature and more contamination in the air, so uninterruptible power supply systems are meant to tolerate extreme temperatures and moderate amounts of non-conductive dust.
The uninterruptible power supply is a vital support system to ensure the continued operation of industrial-grade infrastructure. Uninterruptible power supply systems are commonly used to support critical infrastructure during a primary failure. Furthermore, in the case of a short-lived power failure, the industrial-grade uninterruptible power supply can supply the crucial infrastructure with power stored within its battery until the mains power supply is restored. In the event of a significant outage, the uninterruptible power supply could provide power to the critical infrastructure component till time to facilitate the connection of a secondary power generation source such as generators.
Diesel generators are most used for power backup in major industrial applications. However, due to the rise in pollution levels caused by diesel generators, many countries in the world are banning the use of diesel generators. Diesel generators burn diesel and emit carbon dioxide, carbon monoxide, nitrogen oxides (NOx), and particulate matter. For instance, a liter of fuel burned in a diesel generator generates 0.73 kg of pure carbon and 2.6 kg of carbon dioxide. Hence, to reduce air pollution in many industrial applications, companies are using the uninterruptible power supply system for short-term blackouts. The uninterruptible power supply system is often based on lead acid or lithium-ion battery technology. Further, generators don’t provide an instant power supply. It needs to be manually started. Computer systems and electronic equipment used need instant backup power which can’t be provided by a Genset.
In the last couple of years, there has been a significant rise in the fourth industrial revolution, i.e., industry 4.0. It is revolutionizing the manufacturing processes by integrating new technologies, including the Internet of Things (IoT), cloud computing and analytics, and AI and machine learning, into production facilities and operations. These operations are critical, and to protect the data and production line downtime, many companies use an uninterruptible power supply to stabilize the power and streamline production during the power outage.
Therefore, based on the above-mentioned factors, the industrial segment is expected to dominate the growth in the uninterruptible power supply (UPS) market during the forecast period.