Uninterruptible Power Supply (UPS) Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)
The Uninterruptible Power Supply (UPS) market is expected to register a CAGR of 4.44% during the forecast period, reaching the value of USD 13.42 billion in 2027 from USD 10 billion in 2020. The COVID Pandemic -19 has impacted various industries, including the uninterruptible power supply market.
New York, Aug. 02, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Uninterruptible Power Supply (UPS) Market – Growth, Trends, COVID-19 Impact, and Forecast (2022 – 2027)” – https://www.reportlinker.com/p06311683/?utm_source=GNW
The outbreak has impacted the sales and operations of many inverter manufacturers, forcing them to shut down their manufacturing plants. There has been an export ban by Asia-Pacific countries, due to which a few players in the global market are facing supply chain disruptions. The rising trend of IoT and smart buildings, an increasing number of data centers around the world, the growing trend of virtualization and cloud computing, and the growing adoption of multi-cloud and network upgrades are expected to drive the global inverter market over the forecast period. Additionally, a surge in demand for reliable power solutions that can support large-scale manufacturing facilities is expected to drive the UPS market. However, the high cost of online UPSs and few limitations of UPSs to protect heavy appliances from power failure may negatively impact the market growth.
The industrial segment is expected to dominate the market growth over 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. The UPS system can also be installed as a backup system in the event of a power grid failure, creating new opportunities in the future.
Asia-Pacific is expected to be the fastest growing market over the forecast period with majority of demand coming from China, Japan, India, Australia, etc.
Main market trends
The industrial segment is expected to dominate the market
In industry, uninterruptible power supplies are used in wide applications including nuclear power plants, oil rigs, petrochemical plants, pharmaceutical plants, food industry, etc. Industrial UPS systems are installed in harsh environments. As in any industrial environment, interruption of AC power can lead to dangerous process instability or cause costly damage to process systems. Additionally, these environments have higher ambient temperature and more contamination in the air, so UPS systems are expected to tolerate temperature extremes and moderate amounts of non-conductive dust.
Uninterruptible power supply is an essential support system to ensure the continued operation of industrial-grade infrastructure. Uninterruptible power supplies are commonly used to support critical infrastructure during a major outage. Additionally, in the event of a short-duration power outage, the industrial-grade UPS can power critical infrastructure with energy stored in its battery until utility power is restored. In the event of a major outage, the uninterruptible power supply could provide power to the critical infrastructure component until time to facilitate the connection of a secondary power generation source such as generators.
Diesel generators are most widely used for emergency power in major industrial applications. However, due to increasing levels of pollution caused by diesel generators, many countries around the world ban the use of diesel generators. Diesel generators burn diesel and emit carbon dioxide, carbon monoxide, nitrogen oxides (NOx) and particulates. For example, one liter of fuel burned in a diesel generator generates 0.73 kg of pure carbon and 2.6 kg of carbon dioxide. Therefore, to reduce air pollution in many industrial applications, companies use the UPS system for short duration outages. The UPS system is often based on lead-acid or lithium-ion battery technology. In addition, generators do not provide instantaneous power supply. It must be started manually. The computer systems and electronic equipment used require instantaneous backup power which cannot be provided by a generator.
Over the past two years, there has been a significant increase in the fourth industrial revolution, i.e. Industry 4.0. It is revolutionizing manufacturing processes by integrating new technologies, including the Internet of Things (IoT), cloud computing and analytics, AI and machine learning, into production facilities and operations. These operations are critical, and to protect data and production line downtime, many companies use an uninterruptible power supply to stabilize power and streamline production during the power outage.
Therefore, based on the factors mentioned above, the industrial segment is expected to dominate the growth of the uninterruptible power supply (UPS) market during the forecast period.
Asia-Pacific is expected to dominate the market
The Asia-Pacific region is a developing region, with frequent power outages and unstable power supply throughout the region, especially in countries like Malaysia, Cambodia, Philippines and several others in the region. Major end users of UPS systems in the region include the region’s booming industrial and manufacturing sector, the telecommunications sector, the commercial sector and the residential sector.
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 manufacturing hub. Japan, India, South Korea and Indonesia are also some of the major contributors from Asia-Pacific, while countries like Vietnam, Malaysia and Singapore are also expected to increase their share over the course of the forecast period. ?
Automation in the manufacturing sector involving computerized control systems, programmable logic control (PLC) units, and process control applications has created the need for UPS systems in industrial facilities.
UPS systems not only provide backup in the event of an electrical power failure, but they also protect equipment against power problems such as voltage sags, surges, undervoltage, overvoltage, noise from line, frequency variations, switching transients and harmonic distortions. Therefore, UPS systems have become an essential part of almost all industries such as telecommunications, engineering, manufacturing, R&D, education, medical, IT, BPO, aviation, bank and others.
The manufacturing sector covers a wide range of industries including automotive, food processing, semiconductors, steel fabrication and many more, all of which require power grade equipment such as UPS systems for their proper functioning, as fluctuating and disruptive power leads to significant monetary losses. to industrialists.
For example, in December 2021, China approved plans to build four mega data center clusters in its north and west to meet the data needs of Beijing and major coastal centers. The clusters will be built in the northern region of Inner Mongolia, the northwest region of Ningxia, the province of Gansu and the southwest province of Guizhou.
In 2021, several players have entered into agreements to build data centers in India. Digital Realty and Brookfield formed a joint venture to develop data centers, Iron Mountain and Web Werks, EdgeConneX and Adani, and Yondr and Everstone also formed joint ventures. In 2021, Google opened its second data center in India, while Microsoft started work on its fourth.
Power outages and fluctuating power supply cause significant damage to industries and businesses that are highly dependent on good quality electricity for their proper functioning. However, in developing countries like India and China, maintaining good quality electricity is difficult for the authorities.
For example, according to Invest India, by 2026-27, India’s installed power generation capacity will be almost 620 GW, of which 38% will come from coal and 44% from renewables. India’s aim to diversify its energy sources and the goal of providing 24/7 electricity supply by dramatically increasing renewable energy generation capacities are believed to be an important driver. for the market. Growing demand for electricity, increasing disposable income, and need for reliable power supply are expected to sustain the UPS market in India over the forecast period.
Therefore, based on the factors mentioned above, Asia Pacific is expected to become the fastest growing inverter market over the forecast period.
The uninterruptible power supply (UPS) market is fragmented. Major players include Riello Elettronica SpA, EATON Corporation PLC, Emerson Electric Co., ABB Ltd, and Schneider Electric SE.
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