Uninterruptible Power Supply (UPS) Market, By Component (Solution, Services), By End-Use (SME, Large Enterprise), By Application (BFSI, Data Center, Healthcare, IT & Telecom, Manufacturing, Media & Entertainment, Residential) & Forecast, 2024 – 2032

UPS Market Size

Uninterruptible Power Supply Market was valued at USD 11.6 billion in 2023 and is estimated to register a CAGR of over 5% between 2024 and 2032. The proliferation of data centers driven by the expansion of cloud computing, big data, and IoT applications is a major growth driver of the UPS market.
 

The rise of IoT devices and edge computing necessitates reliable power backup solutions. Technological advancements in UPS systems, such as improved battery technologies, remote monitoring capabilities, and higher efficiency, are propelling market growth. For instance, in February 2024, Delta Electronics introduced a next-generation UPS system featuring lithium-ion batteries and advanced remote monitoring capabilities, catering to the demand for more efficient and manageable power backup solutions.
 

Also, the expansion of infrastructure and industrialization in emerging markets is fueling the demand for UPS systems. Compliance with stringent regulations and standards related to power quality and reliability in various industries is driving the adoption of advanced UPS systems. The increasing frequency of power outages, particularly in regions with aging power infrastructure or in areas prone to natural disasters, is driving the demand for UPS systems. For instance, in October 2023, CyberPower introduced SL750U UPS system with information on how battery backup and surge protection can prevent damage to electronics from lightning storms and power outages.
 

Adherence to stringent environmental regulations can increase operational costs and necessitate investment in new technologies. The biggest challenge for UPS system manufacturers is the disposal and recycling of the batteries after use. Batteries contain hazardous material which needs to be handled carefully. New environmental regulations have made it complex to integrate the UPS systems with renewable energy sources. The increasing adoption of cloud computing technologies have reduced the need for physical infrastructure such as on-premises power backup solutions.
 

UPS Market Trends

The rise in the number of small and medium-sized enterprises (SME) globally, coupled with the expansion of IT facilities across various industries, has fueled the demand for UPS systems. Automation in the manufacturing sector, which relies heavily on computer-based control systems and PLC units, is driving the need for UPS systems. Standby UPS systems, which are cost-effective and provide essential features like battery backup and surge protection, are seeing growing demand. This trend is particularly noticeable in consumer electronics and gaming consoles, where power protection is critical due to frequent power fluctuations.
 

Companies have been diversifying their battery options for UPS systems; there as an increased usage of nickel-zinc batteries alongside traditional lithium-ion batteries and lead-acid batteries. There is a growing focus on achieving zero downtime for critical operations. New technologies such as remote monitoring, diagnostics, and even predictive maintenance are being integrated in the UPS systems. Also, advancements in semiconductor technology have been leading to the development of more compact power conversion UPS components.
 

UPS Market Analysis

Based on component, the market is divided into solution and service. In 2023, the solution segment was valued at over USD 7 billion in 2023. The integration of advanced technologies such as AI and machine learning in UPS systems enhances monitoring, predictive maintenance, and overall system efficiency. This technological advancement is driving the adoption of sophisticated UPS solutions across various industries.
 

Modular UPS systems are gaining popularity due to their scalability, flexibility, and reduced maintenance costs. These systems allow businesses to add or remove modules based on current power needs, making them cost-effective and adaptable to changing demands. For instance, in July 2023, ABB launched its MegaFlex DPA (Decentralized Parallel Architecture) UPS solutions in India. The MegaFlex line is designed to offer high availability and dependability with a compact footprint.
 

Based on application, the market is categorized into BFSI, healthcare, manufacturing, IT & telecom, data centers, media & entertainment, residential, and others. The data center segment is anticipated to register a CAGR of over 3% from 2024 to 2032. The rapid proliferation of data centers globally is significantly driving the demand for uninterrupted power supply (UPS) systems. As the digital economy expands, data centers have become critical infrastructure for supporting cloud computing, big data analytics, and IoT applications. With the exponential growth in data generation and the need for real-time data processing, the reliability of data centers is paramount. UPS systems are essential in ensuring that data centers maintain continuous operations, preventing data loss and downtime that could lead to substantial financial losses and reputational damage. As a result, investments in advanced UPS technologies that offer higher efficiency, scalability, and improved battery management are increasing.
 

North America dominated the global UPS market with a major share of over 40% in 2023. North America has a highly developed technological infrastructure, with a significant concentration of data centers, IT facilities, and telecommunication hubs. The rapid adoption of cloud computing services by businesses and government organizations has increased the demand for robust UPS systems. Despite its advanced infrastructure, North America experiences a significant number of power outages due to natural disasters such as hurricanes, storms, and wildfires. This makes UPS systems crucial for business continuity. For instance, in October 2023, ABB approved ZincFive as a supplier of nickel-zinc batteries for their UPS systems, highlighting the company's commitment to incorporating advanced and sustainable battery technologies in their products? in North America.
 

The European Union's stringent regulations on energy efficiency and carbon emissions have prompted businesses to invest in advanced UPS systems that are both reliable and energy efficient. Manufacturing giants in Germany and Italy are incorporating advanced UPS systems to ensure seamless operation of automated processes.
 

The rapid industrialization and urbanization in China, India, and Southeast Asia are major contributors to the increased demand for UPS systems. Many parts of Asia Pacific experience frequent power outages and unstable power supplies, making UPS systems essential for businesses to maintain continuous operations.
 

Uninterruptible Power Supply Market Share

Schneider Electric SE, ABB Ltd., and Vertiv held significant market share of over 30% market share in 2023. The major players are heavily investing in research and development to introduce innovative and technologically advanced UPS solutions. These companies are focusing on enhancing the efficiency, reliability, and scalability of their UPS systems. Innovations include the development of modular UPS systems that allow for flexible scaling according to the needs of the data center or facility. Additionally, there is a strong emphasis on integrating digital technologies such as IoT and AI for real-time monitoring, predictive maintenance, and optimizing power management, which helps in reducing downtime and operational costs.
 

Additionally, Companies such as ABB Ltd., Emerson Electric Co., and Mitsubishi Electric Corporation are engaging in strategic acquisitions and partnerships to strengthen their market position and expand their product portfolios. By acquiring smaller companies with specialized technologies or establishing partnerships with tech firms, these major players can quickly integrate new capabilities and enter new markets. For example, Emerson's acquisition of Vertiv has enabled it to offer comprehensive critical infrastructure and power management solutions. These strategic moves allow major players to provide a broader range of solutions, catering to diverse customer needs in different sectors such as data centers, healthcare, and industrial applications.
 

Uninterruptible Power Supply (UPS) Market Companies

Major players operating in the uninterruptible power supply industry are:

• ABB Ltd
• Delta Electronics, Inc.
• Eaton
• Emerson Networks
• Legrand
• Mitsubishi Electric Corporation
• Schneider Electric SE
• Siemens
• Toshiba Corporation
• Vertiv
   

Uninterruptible Power Supply Industry News

• In March 2024, Huawei announced a major contract to supply UPS systems to several new industrial parks in Southeast Asia, demonstrating the growing demand in emerging markets.
   
• In January 2024, 3E partnered with SynaptiQ and The Energy Act for Ukraine Foundation to enhance the effectiveness of uninterrupted power supply for schools and hospitals impacted by the conflict in Ukraine. This collaboration underscores the importance of reliable power solutions in critical applications.
   

The uninterruptible power supply (UPS) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn, Units) and shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Component

• Solution
  • Standby (Offline)
  • Line-interactive
  • Online UPS
• Service
  • Professional
  • Managed

Market, By End User

• SME
• Large Enterprise

Market, By Application

• BFSI
  • By Component
• Data centers
  • By Component
• Healthcare
  • By Component
• IT & telecom
  • By Component
• Manufacturing
  • By Component
• Media & entertainment
  • By Component
• Residential
  • By Component
• Others
  • By Component

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Colombia
  • Rest of Latin America
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA