Market Trends of Uninterruptible Power Supply (UPS) Industry
Standby UPS System is Expected to Dominate the Market
- A standby UPS system, also called the offline UPS system, provides the essential features of a UPS system. It provides battery backup and surge protection. Standby UPS systems switch to a battery fast enough to prevent power anomalies and ride out short outages, and a standby UPS system protects against most voltage spikes. Still, it does not maintain perfect power during sags and sages.
- The growing demand for consumer electronics worldwide is one of the major drivers for standby UPS systems compared to other UPS systems. Standby UPS systems are the most preferred option for consumer electronics as they are the most economical option for devices with low power consumption.
- For instance, according to the International Data Center (IDC), the global shipment of desktop computers increased to about 88.27 million units in 2021 compared to 79.8 million in 2020. Moreover, the International Data Center predicts that personal computer shipment is expected to increase by 13.1% by 2027, rising from 251.8 million units shipped in 2022 to 285 million units in 2027, growing annually by 3.1%.
- The demand for gaming consoles is expected to increase during the forecast period. Moreover, during the pandemic, there was a surge in demand for home entertainment. According to VGChartz, the cumulative sales of current-generation consoles increased from 13.12 million units to 36.1 million units in November 2023. A standby UPS is necessary for gaming consoles in areas with frequent power fluctuations, as unsafe levels of electricity can damage the system.
- Overall, the demand for standby UPS systems is primarily expected from consumer electronics, as offline UPS systems provide devices with power backup and protection. The demand is expected to increase during the forecast period due to the increasing demand for desktop PCs and gaming consoles.
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Asia-Pacific is Expected to Dominate the Market
- • Asia-Pacific witnesses frequent blackouts and unstable power supply, especially in countries like Malaysia, Cambodia, and the Philippines. Major end users of UPS systems in the region include its booming telecom, commercial, industrial, manufacturing, and residential sectors.
- • The region’s manufacturing sector is one of the major contributors to its economy, with China being the largest hub of the manufacturing sector. Japan, South Korea, India, and Indonesia are a few major contributors to Asia-Pacific. On the other hand, countries like Malaysia, Vietnam, and Singapore are expected to witness an increased share during the forecast period.
- • The need for UPS systems in industries has been prompted by automation in the manufacturing sector involving computer-based control systems, Programmable Logic Control (PLC) units, and process control applications.
- UPS systems offer backup during electric power failure and protect equipment from power glitches like surges, under voltage, power sags, over-voltage, line noise, frequency variations, and switching transient and harmonic distortions. Therefore, UPS systems have become essential to almost all industries like engineering, telecom, R&D, education, medicine, IT, BPO, aviation, manufacturing, and banking.
- The manufacturing sector encompasses industries like automotive, food processing, steel manufacturing, and semiconductors, all requiring power quality equipment like UPS systems for smooth operations as fluctuating and disruptive power causes monetary losses significantly.
- 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 is to diversify its energy sources and the target is to provide a 24x7 electricity supply by making a large addition of renewable energy generation capacities, which 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 above mentioned factors, Asia-Pacific is expected to become the fastest-growing UPS market during the forecast period.
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