|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 15.83 billion
|
|
CAGR (2023-2028)
|
6.25%
|
|
Fastest Growing
Segment
|
Online UPS System
|
|
Largest Market
|
Asia-Pacific
|
Market Overview
The Global UPS Market reached a size of
USD 15.83 billion in 2022 and is projected to grow to USD 19.52 billion by
2028, with a CAGR of 6.25% from 2022 to 2028. The UPS market is projected to be
driven by the growing demand for electricity, rising disposable income, and the
need for a reliable power source. Industries and organizations heavily reliant
on consistent electricity for efficient operations face significant disruptions
and losses due to power outages and fluctuations. Developing nations face
challenges in maintaining high-quality power supply. Additionally, the fourth
industrial revolution has witnessed substantial growth in recent years,
transforming manufacturing processes through the integration of cutting-edge
technologies such as IoT, cloud computing, analytics, AI, and machine learning.
Given the criticality of these operations, many businesses employ UPS systems
to stabilize power and ensure uninterrupted data security and production line
efficiency during outages. Consequently, the UPS market is expected to witness
growth during the forecast period based on the aforementioned factor.
Key Market Drivers
Surge
in Industrial Automation and IoT Adoption
The proliferation of industrial
automation and the adoption of the Internet of Things (IoT) have emerged as
significant drivers of the global UPS market. The manufacturing,
transportation, logistics, and smart infrastructure industries have
wholeheartedly embraced automation and IoT technologies to optimize processes,
enhance productivity, and reduce human intervention. Automation heavily relies
on sensitive electronic devices and control systems, which are susceptible to
power disruptions. Even a momentary power interruption can result in costly
production losses and compromised safety. UPS systems act as a reliable buffer,
ensuring continuous power supply to automation controllers, sensors, and
actuators, thereby minimizing the risk of process disruption and equipment
damage. IoT devices, integrated into various applications, collect and transmit
real-time data, enabling intelligent decision-making and remote control. To
maintain the integrity and availability of IoT data streams, UPS systems serve
as a critical safeguard during power failures, keeping communication channels
open and preventing data loss.
Growing
Concerns about Power Quality and Reliability
Growing concerns regarding power quality
and reliability are driving the widespread adoption of UPS systems globally.
Utility power supply often encounters voltage fluctuations, sags, surges, or
blackouts, posing risks to electronic devices and sensitive equipment. Even
minor power disturbances can result in equipment malfunction, data corruption,
or system failure. UPS systems effectively tackle power quality issues by
delivering clean and stable power to connected equipment. They serve as a
protective barrier, shielding sensitive devices from utility power
irregularities and ensuring a consistent supply of regulated power. This not
only extends the lifespan of equipment but also enhances system performance and
efficiency. Businesses and organizations are increasingly cognizant of the
expenses associated with power-related disruptions, including equipment
repairs, data recovery, and productivity losses. Consequently, they invest in
UPS systems to mitigate these risks and maintain uninterrupted operations, particularly
in regions with unreliable utility power.
Need
for Business Continuity and Disaster Recovery
The demand for business continuity and
disaster recovery solutions is a significant driving force behind the global
UPS market. Organizations face a range of threats, including natural disasters,
equipment failures, cyber-attacks, and utility grid outages. The consequences
of such disruptions can be severe, resulting in financial losses and damage to
reputation. UPS systems play a crucial role in business continuity plans,
ensuring uninterrupted operations during power outages. By providing immediate
backup power, UPS systems enable businesses to execute orderly shutdowns or
smoothly transition to secondary power sources, mitigating data loss and
minimizing downtime. Comprehensive backup power solutions are essential for
disaster recovery planning, safeguarding critical infrastructure and ensuring
uninterrupted services for customers. UPS systems are an integral part of
effective disaster recovery strategies, protecting data centers, communication
networks, and vital equipment to facilitate swift recovery and restoration
efforts.