|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD 6.72
Billion
|
|
CAGR
(2023-2028)
|
11.28%
|
|
Fastest
Growing Segment
|
Data
Center
|
|
Largest
Market
|
Asia
Pacific
|
Market Overview
Global Standby UPS System Market was valued at USD
6.72 Billion in 2022 and is anticipated to project robust growth in the
forecast period with a CAGR of 11.28%
through 2028, The growing demand for consumer electronics across the globe is
one of the major drivers for standby UPS systems compared to other UPS systems,
as the standby UPS system is the most preferred option for consumer electronics
as it is the most economical option for devices with low power consumption.
Nevertheless, 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 systems can
also be installed as a backup system when the electricity grid fails and are
expected to provide growth opportunities in the forecast period.
Key Market Drivers
As a result of the increased pollution levels
caused by diesel generators, many countries in the world are banning the use of
diesel generators. Diesel generators are most commonly used for power backup in
major industrial applications. During diesel burning, diesel generators emit
carbon dioxide, carbon monoxide, nitrogen oxides (NOx), and particulates. In a
diesel generator, for example, a liter of fuel produces 0.73 kg of pure carbon
and 2.6 kg of carbon dioxide.
Stand By UPS for Short-Term Blackouts To Reduce Air
Pollution
As a result, companies are using Standby UPS System
for short-term blackouts to reduce air pollution in many industrial
applications. Lead acid or lithium-ion batteries are often used to construct
Standby UPS System. It is also important to note that generators do not provide
an instant power supply, as they must be manually started. Computers and
electronic equipment require instant backup power that isn't provided by
generators.
The industrial revolution, known as Industry 4.0,
has gained significant traction in the last couple of years. By mixing the
Internet of Things (IoT), cloud computing, analytics, artificial intelligence,
and machine learning into manufacturing facilities and operations, new
technologies are revolutionizing manufacturing processes. As these operations
are critical, many companies use an Standby UPS System to prevent data loss and
production line downtime. They use an Standby UPS System to stabilize the power
and streamline production during a power outage. Due to the factors mentioned
above, the Standby UPS System market is expected to grow the fastest during the
forecast period.
As manufacturing automation has evolved with
computer-based control systems, programming logic controllers, and process
control applications, UPS systems are increasingly necessary for industrial
facilities. In addition to providing backup power during a power outage, UPS
systems protect equipment from power glitches such as power sags, surges, under
voltages, overvoltages, line noise, frequency variations, switching transients,
and harmonic distortions. Therefore, such an advantage related to the UPS systems
has enhanced the Standby UPS System market CAGR globally in recent years.
A number of technological advances in UPS battery
systems, like lithium-ion (Li-ion) batteries that can operate at high
temperatures, are expected to create immense opportunities for traditional data
centers. UPS systems can also serve as backup systems when the electric grid
fails, making them an excellent growth opportunity in the coming years, another
factor driving the growth of the Standby UPS System market revenue.
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Key Market Challenges
Rapid Technological Advancements: One of the
central challenges in the UPS market is the relentless pace of technological
change. As information technology and other power-dependent industries continue
to evolve, the requirements for UPS systems become more demanding. Emerging
technologies like cloud computing, 5G, and the Internet of Things (IoT) create
new demands for power protection and energy efficiency. To stay competitive,
UPS manufacturers must continually invest in research and development to keep pace
with these evolving needs.
Continuous research and innovation are key to
addressing this challenge. Manufacturers should foster partnerships with
research institutions and adapt agile development processes to swiftly
integrate new technologies into their products. Additionally, adopting modular
designs can facilitate upgrades and allow UPS systems to adapt to changing
requirements more easily. In a world increasingly concerned with environmental
sustainability, the energy efficiency of UPS systems is a critical concern.
Traditional UPS units can be inefficient, leading to wasted energy and
increased operational costs. Moreover, as data centers and other power-hungry
facilities expand, their carbon footprint grows, putting additional pressure on
businesses to adopt greener solutions.
UPS manufacturers need to focus on creating
energy-efficient products. This includes the development of high-efficiency UPS
systems and promoting sustainable practices in their manufacturing processes.
Offering UPS solutions that integrate with renewable energy sources and
supporting customers in optimizing their power infrastructure can help reduce
the environmental impact. While the initial cost of a UPS system is a
significant consideration, the TCO over the system's lifespan is equally
important. Factors such as maintenance, battery replacement, and energy
consumption all contribute to TCO. Businesses are increasingly focused on
minimizing TCO to ensure cost-effectiveness in their operations. UPS
manufacturers should provide solutions that balance initial cost and TCO.
Developing systems with longer lifespans, efficient battery management, and
predictive maintenance capabilities can help reduce TCO and improve the value
proposition for customers.
Adaptation to Diverse Applications
The UPS market serves a wide range of applications,
from small-scale residential usage to large-scale industrial and data center
applications. Adapting UPS systems to the specific needs of different
industries and use cases can be a considerable challenge.
Solution: Developing versatile UPS systems with
customizable features can address this challenge. Modular designs, scalability,
and the ability to provide tailored solutions for various industries enable
manufacturers to cater to diverse customer needs effectively.
Global Supply Chain Disruptions
The COVID-19 pandemic has highlighted the
vulnerabilities in global supply chains. Disruptions in the supply of
components and raw materials have affected the production and delivery of UPS
systems, leading to delays and increased costs.
Solution: Building resilient supply chains that
rely on multiple sources of components and strategic inventory management can
mitigate these risks. Manufacturers should also consider regional production to
reduce dependence on a single global supply chain. Competitive Pricing and
Margin Pressure: As the demand for UPS systems increases, competition in the
market intensifies. This can lead to price wars and margin pressure, making it
challenging for manufacturers to maintain profitability.
Solution: Differentiating products through
innovation and value-added services can help manufacturers maintain price
premiums. Establishing strong distribution networks and emphasizing the
quality, reliability, and support of their products can also contribute to
maintaining margins. The UPS market is heavily reliant on battery technology.
The constant evolution of battery technology presents both opportunities and
challenges. While advanced batteries can enhance UPS performance, they can also
require manufacturers to adapt their systems and address issues related to
compatibility, cost, and environmental impact.
Close collaboration with battery manufacturers and
investment in research and development can help UPS companies stay ahead in
battery technology integration. Additionally, emphasizing recyclability and
sustainability in battery use can address environmental concerns.
Cybersecurity Concerns
As UPS systems become more integrated with digital
infrastructure, they can become potential targets for cyberattacks. Ensuring
the cybersecurity of UPS systems is essential to safeguard critical
infrastructure.
Solution: Developing UPS systems with robust
cybersecurity features, regular vulnerability assessments, and cybersecurity
education for users can help mitigate these concerns. UPS systems must comply
with various national and international regulations and standards, which can
vary significantly. Adhering to these standards while ensuring product quality
and performance can be a challenging task for manufacturers. Manufacturers
should stay updated on the latest regulations and standards, and they can leverage
certification and testing organizations to ensure compliance. Additionally,
engaging in industry associations can help influence and streamline regulatory
requirements.
Conclusion
The global UPS market faces various challenges
driven by technological advancements, environmental concerns, cost
considerations, and the ever-expanding array of applications. To thrive in this
dynamic environment, UPS manufacturers must continuously innovate, focus on
energy efficiency and sustainability, offer cost-effective solutions, and adapt
to the diverse needs of different industries. Building resilient supply chains,
ensuring cybersecurity, and complying with evolving regulations are also integral
aspects of success in this market.
While these challenges are indeed significant, they
also present opportunities for UPS manufacturers to differentiate themselves,
provide value to their customers, and contribute to a more sustainable and
resilient power infrastructure worldwide. By addressing these challenges with
creativity, adaptability, and a customer-centric approach, the global UPS
market can continue to thrive in an ever-evolving landscape.
Key Market Trends
The Global Standby UPS System market has been
witnessing significant growth and transformation over the past several years.
Several trends and factors have been shaping the UPS market on a global scale.
Here are some of the prominent trends in the global UPS market:
Rising Demand for Data Centers
With the growth of cloud computing, IoT, and
digital services, data centers have become a critical component of modern
infrastructure. This has led to a substantial increase in the demand for UPS
systems to ensure Standby UPS System for data centers.
Increasing Energy Efficiency: Energy efficiency is
a top priority for businesses and organizations to reduce operational costs and
environmental impact. Manufacturers are developing UPS systems with higher
efficiency ratings, advanced battery management, and energy-saving features.
Growth of Modular UPS Systems: Modular UPS systems
are gaining popularity due to their scalability and flexibility. They allow
businesses to expand their power protection systems as needed, reducing upfront
costs and making it easier to adapt to changing power requirements. Lithium-ion
batteries are increasingly being adopted in UPS systems due to their longer
lifespan, higher energy density, and reduced maintenance requirements compared
to traditional lead-acid batteries.
Rise in Edge Computing
Edge computing, which involves processing data
closer to the source (e.g., IoT devices), is gaining traction. This trend
demands UPS solutions at the edge, contributing to market growth.
Focus on Sustainability: Environmental concerns are
pushing companies to adopt sustainable practices, including the use of
energy-efficient and eco-friendly UPS systems. Manufacturers are developing UPS
units that can integrate with renewable energy sources.
Digitalization and Remote Monitoring: The
integration of UPS systems with digital platforms and remote monitoring
capabilities is becoming increasingly important. This allows for real-time
monitoring, predictive maintenance, and swift issue resolution.
Increasing Adoption of Three-Phase UPS: Three-phase
UPS systems are in high demand, especially in industries with heavy power
requirements, such as manufacturing, healthcare, and data centers. They provide
better power protection and distribution.
E-commerce and Retail Sector Demand: The growth of
e-commerce and the increasing reliance on online retail have driven the need
for UPS systems to ensure continuous operation during power outages, preventing
financial losses and maintaining customer satisfaction. The COVID-19 pandemic
highlighted the vulnerability of global supply chains. The UPS market has
experienced disruptions in the supply of components, leading to delays in
production and delivery.
Evolving Regulations and Standards
Governments and industry bodies are continually
updating regulations and standards related to power quality and reliability.
Manufacturers must stay abreast of these changes to ensure compliance.
Resilience and Disaster Recovery: Businesses are
increasingly investing in UPS systems to ensure business continuity and
disaster recovery capabilities. UPS solutions play a vital role in protecting
critical infrastructure during natural disasters or power grid failures.
Electrification of Transportation: The shift toward
electric vehicles and charging infrastructure requires UPS systems to ensure
Standby UPS System charging, particularly in public charging stations.
Hybrid and Multi-Mode UPS
Hybrid and multi-mode UPS systems offer versatility
by combining the benefits of online and line-interactive UPS. These systems
provide excellent protection and efficiency, making them attractive options for
various applications.
Increased Emphasis on Cybersecurity: As UPS systems
become more integrated with digital infrastructure, there is a growing focus on
cybersecurity. Ensuring the protection of UPS systems from cyberattacks is
crucial for safeguarding critical infrastructure. The integration of UPS
systems with smart grids is on the horizon, enabling dynamic load management,
demand response, and better alignment with renewable energy sources.
Demand for Long-Lasting Batteries
Manufacturers are investing in the development of
UPS systems with long-lasting batteries, which are crucial for critical
applications like healthcare and manufacturing.
These trends collectively indicate the growing
importance of UPS systems in various industries and applications. Manufacturers
need to adapt to these trends by embracing innovation, focusing on energy
efficiency, and offering sustainable solutions to meet the evolving power
protection needs of businesses and organizations worldwide. As technology
continues to advance, the UPS market will likely see further developments in
line with these trends.
Segmental Insights
Application Insights
Data Centres segment will
dominate the market in the forecast period. Standby UPS System systems secure
uptime of large data centers and provide facility-wide protection for sensitive
electronics. They have redundant configurations and dual bus capabilities to
make sure your critical systems will keep running during power disturbances
such as blackouts, brownouts, sags, surges or noise interference. These UPS
systems allow modular configuration of a completely redundant power and control
system, sized to match the capacity of the protected equipment. When power
requirements change, capacity is easily added without increasing the system
footprint.
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Regional Insights
The Asia-Pacific region is developing,
with frequent blackouts and unstable power supply across the region, especially
in countries like Malaysia, Cambodia, the Philippines, and several others.
Major end-users of UPS systems in the region include the region’s booming
industrial and manufacturing, telecom, commercial, and residential sectors.
In the
Asia-Pacific region, the manufacturing sector is one of the major contributors
to the economy of various countries, with China being the largest hub of the
manufacturing sector. Japan, India, South Korea, and Indonesia are a few major
contributors to Asia-Pacific. In contrast, countries like Vietnam, Malaysia,
and Singapore are expected to increase their share during the forecast period.
Automation
in the manufacturing sector involving computer-based control systems,
Programmable Logic Control (PLC) units, and process control applications has
prompted the need for UPS systems in industrial facilities. UPS systems provide
backup in case of electric power failure and protect equipment from power
glitches like power sags, surges, under voltage, over-voltage, line noise,
frequency variations, and switching transient and harmonic distortions. Hence,
UPS systems have become essential to almost all industries like telecom,
engineering, manufacturing, R&D, education, medicine, IT, BPO, aviation,
banking, etc.
The
manufacturing sector covers a wide range of industries, including the
automotive industry, food processing industry, semiconductors, steel
manufacturing, and many more, all requiring power quality equipment like UPS
systems for smooth operations as fluctuating and disruptive power causes
significant monetary losses to the industries. Power cuts and variable power
supply cause significant damage to industries and businesses that rely heavily
on good quality electricity for smooth operations. However, maintaining good
quality power in developing countries like India and China is difficult for the
authorities.
For
instance, according to Invest India, by 2026-27, India’s power generation
installed capacity will likely be nearly 620 GW, 38% of which will be from coal
and 44% from renewable energy. India's aim to diversify its energy sources and
the target to provide a 24x7 electricity supply by making a large addition of
renewable energy generation capacities is estimated to be a significant driver
for the market. The growing electricity demand, increasing disposable income,
and the need for a reliable power supply are expected to support the UPS market
in India during the forecast period. Therefore, based on the abovementioned
factors, Asia-Pacific is expected to become the fastest-growing UPS market
during the forecast period.
Recent Developments
- July 2022: Schneider Electric announced the
enhanced EcoStruxure Service Plan for 10-40 kVA Three-Phase Uninterrupted Power
Supply (UPS) products. EcoStruxure Service Plan combined traditional onsite
services with digital capabilities powered by the IoT-enabled EcoStruxure
architecture and provided the customers with 24/7 remote and onsite expertise
& support. The enhanced service plan covered a range of Three-Phase
Uninterruptible Power Supplies (UPS) 10-40 kVA for IT or industrial
applications: Easy-UPS 3S, Galaxy VS, Symmetra PX (up to 48kVA), Smart-UPS VT,
and Galaxy 3500.
- February 2022: Mitsubishi Electric Corporation
announced that its United States subsidiary Mitsubishi Electric Power Products,
Inc. (MEPPI), acquired Computer Protection Technology, Inc. (CPT),
headquartered in California, aiming to expand its Standby UPS System business
in North America. With this acquisition, MEPPI and CPT were expected to
strengthen their respective business structures to provide highly reliable and
professional one-stop services from installation to maintenance for UPS systems
in the North American market.
Key Market Players
- Emerson Electric Co.
- ABB Ltd
- Schneider
Electric SE
- Riello
Elettronica SpA
- EATON
Corporation PLC
- Toshiba
Corporation
- Xiamen
Kehua Hengsheng Co. Ltd.
|
By Capacity
|
By
Application
|
By Region
|
- Less than 10
kVA
- 10-100 kVA
- Above 100
kVA
|
- Data Centers
- Telecommunications
- Healthcare
- Hospitals
- Clinics
- Industrial
- Other
Applications
|
- North
America
- Europe
- South America
- Middle East
& Africa
- Asia Pacific
|
|
Report Scope:
In this report, the Global Standby UPS System
Market has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Global
Standby UPS System Market, By Capacity:
o
Less than
10 kVA
o
10-100
kVA
o
Above 100
kVA
- Global Standby UPS System Market, By Application:
o Data Centers
o Telecommunications
o Healthcare
o Hospitals
o Clinics
o Industrial
o Other Applications
- Global Standby UPS System Market, By Type:
o Standby UPS System
o Online UPS System
o Line-Interactive UPS System
- Global Standby UPS System Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Asia-Pacific
§ China
§ India
§ Japan
§ South Korea
§ Indonesia
o Europe
§ Germany
§ United Kingdom
§ France
§ Russia
§ Spain
o South America
§ Brazil
§ Argentina
o Middle East & Africa
§ Saudi Arabia
§ South Africa
§ Egypt
§ UAE
§ Israel
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the Global
Standby UPS System Market.
Available Customizations:
Global Standby UPS System Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
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