Report Description

Indonesia UPS Market is anticipated to grow at a steady pace in the forecast period, 2024–2028, with market growth for different UPS systems being driven by the expansion of the renewable energy industry. Due to the growing demand for high-quality, effective systems that offer a constant power supply, UPS demand is expected to rise considerably in the forecast period. It has become more crucial than ever to comprehend the necessity of maintaining an uninterrupted power supply at peak times. Due to the tremendous demand for electricity, there is an expanding need for high-quality UPS systems.

Furthermore, natural calamities such as cyclones and heavy rainfall and human errors such as overload and operational accidents are some of the challenges in providing a continuous power supply, contributing to the demand for UPS products. To overcome these challenges, smaller uninterruptible power supply (UPS) devices are used as an interface between the primary power source and connected devices, which helps provide consistent power backup during inconsistent power supply. According to Indonesia Energy Information, the amount of electricity consumed has increased significantly (by about 6% per year from 2010 to 2019 and 5% in 2021), reaching 270 TWh. Households consume 41% of all goods, industry 36%, and services 22% in 2021. Additionally, the power protection and effective power storage capabilities offered by UPS are being recognized by the main manufacturing facilities, including retail, healthcare, telecom, and other commercial and residential sector end-users.

Acceptance of data centres and growing investment in the sector are fueling market growth

Indonesia is rapidly growing as a significant global provider of cloud computing and data center services, which is anticipated to drive demand for UPS in the upcoming years. Large data centres remain operational with the help of UPS systems, and delicate electronics are protected through an uninterruptible power supply. The demand for UPS is anticipated to increase throughout the forecast period due to rising investments in the development of data centres, which are driving the growth of the market. One of the most developed data centre locations in the world is estimated to be in Indonesia. The data centre market is expected to grow rapidly due to increased OTT participant migration to Indonesia, rising IT spending, and the rollout of 5G. For instance, Indonesia is Asia’s 3rd-largest country and a quite new market for digital services. Here, the market for data centres is expanding rapidly. Data centre investment in Indonesia has grown because of the growth of tech start-ups like Gojek, Tokopedia, and Traveloka, as well as interest from companies like STT GDC, Keppel DC, and Princeton Digital Group. For instance, one of Singapore's leading data centre operators, ST Telemedia, announced its entry into Indonesia in May 2021.

Data centres must have uninterrupted power supply systems since they guarantee the uptime of large data centres and offer comprehensive facility protection for sensitive equipment. In addition, UPS systems include multiple configurations and dual bus capabilities to make sure that important and delicate electronic devices continue to function properly even during power disturbances like surges, sags, or noise interference. Online payments are becoming more popular among retailers as a greater number of Indonesians go online. As a result, the country's adoption of cloud services is rising, along with the shift of industries towards online platforms. Thus, the country is investing more in data centres, which is fueling the growth of the Indonesia UPS market.

Increase in investments from commercial sectors

In the Indonesia UPS market, there is robust commercial potential growth for all participants that are propelling the market growth. For instance, ABB (original equipment manufacturer (OEM)) are investing in the Indonesia UPS Market. Commercial sectors such as retail, data centers industries, and others constantly need self-diagnostic UPS systems that prevent hardware from being damaged during power outages. Self-diagnostic UPS ensures adequate power supply for the appliances (or equipment) during downtime and helps them to remain functional even with an optimum range of input voltage. The self-diagnostic UPS includes different capabilities like battery management solutions, remote UPS monitoring solutions, and software and communication solutions.

Increasing Demand for Reliable Power Solutions

The market is anticipated to expand due to a significant increase in the requirement for dependable power solutions that can support large-scale production facilities. Under abrupt power surges/power loss scenarios, UPS enables profitable organizations to operate multiple facilities. The industrial sectors invest in extra power funds for various major data centres and the telecommunications industry. This is anticipated to have a favorable impact on the market expansion. Furthermore, the need for dependable power solutions is anticipated to fuel market expansion as the rising economy of Indonesia is a factor affecting industrial growth.

In recent years, there has been a considerable increase in the fourth industrial revolution, often known as Industry 4.0. It is transforming industrial processes by incorporating new technologies into production facilities and operations, such as Internet of Things (IoT), cloud computing and analytics, and AI and machine learning. These processes are vital, and many businesses employ an uninterruptible power supply to stabilize electricity and simplify production during a power loss to safeguard data and production line downtime.

High Technological Complexities & Lack of Standards

The high technological complexities and lack of standards related to UPS products have prompted national manufacturers to enter the market and provide low-quality products at low cost, which are moreover faulty or work for a short duration. Consequently, the market for official manufacturers has been affected negatively. Furthermore, technical complexities increase due to the detailed demands of each client. Energy storing, modularity, and scalability are the major technological advancements in UPS operations. Wherein, every end-use manufacturing company has its unique requirements. Hence, it becomes difficult for the manufacturers to fulfill such demands.

Recent Development

  • In August 2021, ABB firm and regional authorized distributor, PT Vektordaya Mekatrika, collaborated to effectively supply the Uninterruptible Power Supply (UPS) PowerWave 33 for IndoKeppel Data Centre 1 (IKDC1). Around 35 kilometers south of Jakarta, in Bogor, Indonesia, is the IndoKeppel Data Centre 1 (IKDC1) campus, which includes a colocation data center. A total of 105,300 square feet of prime server and cabinet space would be offered during the initial phase of the development, which will span three phases and a 7-hectare data center site.
  • According to the Indonesian Internet Providers Association (APJII), the number of internet users in Indonesia increased by 14.6% from 171 million in 2018 to 196 million in 2019, The fact that Indonesia is one of the few Asian nations outside of China that allow Chinese cloud providers further helps to the rising investment in data centres around the nation.
  • As a result, businesses are turning more and more to alternate energy sources. Indonesia intends to increase its solar capacity by 4.7 GW and produce at least 48% of its power from renewable sources by 2030, as part of its new power Procurement Plan (RUPTL).
  • In May 2021, DC Indonesia opened a new data centre in West Java, Indonesia, . Additionally, the region's significant market position in Indonesia UPS is being favoured by the quick growth of IT infrastructure, rising population, growing urbanisation, and expanding manufacturing and process sectors.