UPS Battery Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 5.93 Billion |
| Market Size (2030) | USD 7.97 Billion |
| Growth Rate (2025 - 2030) | 6.11% CAGR |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
UPS Battery Market Analysis by Mordor Intelligence
The UPS battery market size reached a value of USD 5.93 billion in 2025 and is projected to expand to USD 7.97 billion by 2030, reflecting a 6.11% CAGR. Robust growth stems from accelerating digital transformation, the shift toward distributed computing, and a clear industry pivot from valve-regulated lead-acid (VRLA) toward lithium-ion chemistries. Demand is strongest in data centers, 5G infrastructure, and industrial automation, where uninterrupted power has become mission-critical. The proliferation of edge computing, 5G macro- and micro-cell rollouts, and a rising frequency of grid outages are simultaneously widening the addressable base for compact, high-density battery systems. Competitive intensity is increasing as incumbents partner vertically across battery supply chains to hedge raw-material risks and improve lifecycle economics.
Key Report Takeaways
- By battery chemistry, VRLA retained 60.30% of UPS battery market share in 2024, while lithium-ion is advancing at a 11.50% CAGR through 2030.
- By power rating, 10-100 kVA systems led with 30.3% revenue share in 2024; ≥250 kVA systems are forecast to grow at 8.55% CAGR to 2030.
- By end-user industry, data centers captured 30.2% of the UPS battery market size in 2024; data centers are projected to climb at an 8.45% CAGR.
- By sales channel, the aftermarket/ replacement captured 62.2% of the UPS battery market size in 2024; the OEM segment is projected to grow at an 8.35% CAGR.
- By geography, the Asia-Pacific region held 36.5% of global revenue in 2024 and is expected to post a 7.01% CAGR through 2030.
Global UPS Battery Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising edge-data-center deployments driving compact Li-ion UPS adoption | +2.1% | North America and Europe | Medium term (2-4 years) |
| 5G macro- and micro-cell rollout accelerating telecom tower back-up demand | +1.8% | Global with APAC leading | Short term (≤2 years) |
| Grid-outage frequency and hurricane-resilience programs boosting installations | +1.5% | North America and Caribbean | Medium term (2-4 years) |
| Hyperscale colocation shift from VRLA to lithium-ion to cut TCO | +1.3% | Global | Long term (≥4 years) |
| Stricter uptime mandates for BFSI and critical healthcare facilities | +1.1% | APAC core, spill-over to MEA | Medium term (2-4 years) |
| Industrial IoT retrofits requiring uninterrupted PLC power | +0.9% | Europe and North America | Long term (≥4 years) |
| Source: Mordor Intelligence | |||
Rising Edge-Data-Center Deployments Driving Compact Li-ion UPS Adoption in North America and Europe
Edge facilities favour 100 kVA-class systems that occupy 70% less floor area than VRLA alternatives, lowering real-estate costs and simplifying retrofit work. Lithium-ion’s longer 8–10-year service life reduces truck-roll maintenance, an advantage where sites operate unmanned. The chemistry tolerates higher ambient temperatures, trimming HVAC loads and helping operators meet sustainability targets. As telecom carriers and content delivery networks extend latency-sensitive services, procurement frameworks now specify Li-ion UPS by default for new edge builds.[1]Mitsubishi Electric, “Edge Data Center Critical Power – UPS for Edge Computing,” mitsubishicritical.com
5G Macro- and Micro-Cell Rollout Accelerating Telecom Tower Back-Up Demand Across Asia
Small-cell density needed for 5G mid-band spectrum multiplies site counts, while each radio head draws 3–4 times more power than 4G equipment. Ruggedized UPS enclosures with high-efficiency rectifiers fill the gap left when grid service is interrupted, especially in rural zones with unstable supply. Operators in China and India increasingly bundle hybrid solar-plus-battery cabinets to trim diesel runtime and hit emissions targets.[2]Huawei Digital Power, “Operators' Energy Transition | Top 10 Trends of Site Power 2024,” digitalpower.huawei.com
Grid-Outage Frequency and Hurricane-Resilience Programs Boosting Installations in the US and Caribbean
Federal resilience grants now subsidize large-scale storage at data centers and critical facilities. Microgrid projects such as Chub Cay in The Bahamas pair 4 MW solar with 10 MWh batteries, cutting diesel dependence to single-digit percentages while delivering ride-through capability during multi-day outages. Battery systems that once sat idle now participate in peak-shaving and frequency regulation markets, creating new value streams beyond backup.[3]Microgrid Knowledge, “Building a Microgrid that Stands its Ground in the Storm-tossed Caribbean,” microgridknowledge.com
Hyperscale Colocation Shift from VRLA to Lithium-ion to Cut TCO and Rack Weight
At multi-megawatt scale, operators report 39% lower ten-year total cost of ownership, driven by higher cycle life and reduced cooling expenses. Weight savings of 60-70% unlock greater server density per rack, maximizing revenue per square foot in space-constrained metro campuses. Declining Li-ion pack prices-down 97% since first data-center deployments-are tipping previously marginal ROIs solidly positive.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Lead price volatility inflating VRLA UPS TCO in emerging economies | −1.2% | Global with emerging markets most affected | Short term (≤2 years) |
| Thermal-runaway safety concerns delaying Li-ion UPS certifications | −0.8% | Global | Medium term (2-4 years) |
| Inadequate EU recycling streams for spent Li-ion UPS modules | −0.6% | Europe with global implications | Long term (≥4 years) |
| Limited OEM warranty cover for Li-ion retrofits in legacy UPS frames | −0.4% | Global | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Lead Price Volatility Inflating VRLA UPS TCO in Emerging Economies
Antimony costs spiked 368% between late-2023 and early-2025, pushing VRLA bill-of-materials pricing beyond initial budgets and eroding cost-advantage perceptions. This volatility complicates tender planning in Latin America, South-East Asia, and Africa, where project finance structures rely on predictable paybacks. Enterprises facing budget overruns are reassessing lithium-ion despite higher up-front capex.[4]RB Battery, “The Surge in Antimony Prices: Causes and Implications,” rbbattery.com
Thermal-Runaway Safety Concerns Delaying Li-ion UPS Certifications
UL 9540A propagation tests have become lengthier and more stringent, stretching product-launch cycles. Fire-code limits of 50 kWh per rack in many jurisdictions force integrators to add costly containment measures. Mid-tier vendors sometimes lack the capital to navigate multi-stage testing that can last six months and cost USD 15,000 per configuration, slowing portfolio refresh.[5]UL Solutions, “UL Solutions Debuts New Testing Protocol to Help Advance Safety of Residential Battery Energy Storage Systems,” ul.com
Segment Analysis
By Battery Chemistry: Lithium-Ion Adoption Accelerates Even as VRLA Retains Scale
VRLA maintained a 60.30% UPS battery market share in 2024, due to its entrenched cost structures and supply chains. The chemistry’s alignment with legacy charging topologies keeps it relevant in price-sensitive bids. Lithium-ion, however, is growing at a 11.50% CAGR as data-center and telecom users prioritize cycle life and reduced cooling loads. The UPS battery market size for lithium-ion deployments is forecast to expand steadily alongside falling cell prices and improving safety architectures. Flooded lead-acid remains a niche for deep-cycle industrial loads, and nickel-cadmium persists where extreme temperature tolerance outweighs environmental drawbacks. Sodium-ion and nickel-zinc systems are entering pilot phases, with Natron Energy launching high-power sodium-ion units rated for 50,000 cycles and ABB deploying nickel-zinc in MegaFlex platforms.
Second-generation chemistries offer attractive ESG profiles, avoiding critical minerals such as cobalt. They also promise simpler recycling, aligning with European Battery Regulation 2023/1542 that mandates 63% collection by 2027 and 73% by 2030. Integrators expect a gradual blend of chemistries across portfolios to hedge supply risks and tailor performance to application needs.
Note: Segment shares of all individual segments available upon report purchase
By Power Rating: Mid-Range Systems Dominate While ≥250 kVA Segment Surges
Systems rated 10-100 kVA generated 30.3% of the UPS battery market revenue in 2024, serving SMEs, branch offices, and small data centers where standard rack-mount designs are sufficient. Larger cloud campuses, AI training clusters, and semiconductor fabs are propelling 101-250 kVA units at 8.55% CAGR. The UPS battery market size for high-power nodes is increasing faster than the overall growth rate as hyperscale operators scale campuses of 100 MW or more. Vertiv’s USD 7.9 billion order backlog underscores sustained demand for modular blocks that combine multi-megawatt inverter shelves with containerized battery bays.
Smaller form factors now utilize lithium-ion technology to fit into shallow telecom racks, while multi-string configurations in the ≥250 kVA segment integrate advanced battery-management systems that support 4-quadrant grid-interactive functions. Modular topology enables N+1 redundancy without large space premiums, aligning capital expenditure with phased capacity additions.
By End-User Industry: Data Centers Anchor Demand While Edge Applications Climb
Data centers accounted for 30.2% of the UPS battery market size in 2024, reflecting hyperscale cloud build-outs and colocation expansion. Stringent service-level agreements prompt operators to adopt lithium-ion technology to minimize unscheduled maintenance. Data center installations are projected to grow at an 8.45% CAGR as low-latency applications increase. Telecommunications joins data centers as a key vertical, with 5G densification elevating back-up runtime requirements at rooftop and roadside cabinets. Industrial automation, petrochemical safety systems, and healthcare imaging suites round out high-criticality sectors.
Cloud operators emphasize rack weight and long cycle life, while telcos value temperature tolerance and outdoor-rated enclosures. Hospitals prioritize certification to NFPA 99, and manufacturers require seamless integration with PLC power rails. Vendors are segmenting portfolios accordingly, bundling remote monitoring and predictive analytics to optimize replacement cycles.
Note: Segment shares of all individual segments available upon report purchase
By Sales Channel: After-Market Replacements Outpace OEM Shipments
The maturing installed base, however, is tilting growth toward aftermarket replacements, which held a 62.2% revenue share in 2024. Lithium-ion’s longer eight-year refresh intervals reduce replacement frequency yet raise average ticket sizes when they occur. OEM shipments are projected to grow at an 8.45% CAGR, driven by new-build data center halls and greenfield 5G towers.
Service providers monetize value-added monitoring, leveraging IoT telemetry to flag capacity fade before it triggers alarms. Warranty-bundled service contracts and subscription models are gaining popularity, mirroring trends in the broader power-quality market.
Geography Analysis
The Asia-Pacific region commanded 36.5% of global revenue in 2024 and is expected to remain the largest region, with a 7.01% through 2030. China’s vertical integration across cathode materials, cells, and pack assembly solidifies its cost leadership, although export controls on antimony and graphite are prompting a supply-chain realignment. India is witnessing substantial data-center investment aided by tax incentives and energy-storage subsidies, while Japan channels funds into grid-resilience projects that pair lithium-ion UPS banks with renewable generation assets. South Korea’s semiconductor fabs rely on ultra-clean, high-availability power, boosting demand for containerized 2 MWh units. Diverse economic profiles mean VRLA still dominates smaller commercial installations, whereas Tier 3 and Tier 4 data halls specify lithium-ion as standard.
North America remains a volume heavyweight on the back of hyperscale cloud expansion. US operators face UL 9540A and NFPA 855 mandates that shape enclosure design and safe-shutdown circuitry. Tariffs elevating landed cost of Chinese lithium-ion cells to 58% are accelerating reshoring, evidenced by LG Energy Solution’s 16.5 GWh Michigan plant dedicated to energy-storage formats. Extreme-weather events, notably Gulf Coast hurricanes and West Coast wildfires, spur adoption of grid-interactive UPS arrays that provide both ride-through and demand-response services.
Europe’s transition is policy-led. The EU Battery Regulation demands life-cycle carbon footprint declarations, minimum recycled content thresholds, and 3-stage performance labeling, all of which favor chemistries with well-documented sourcing. Germany’s USD 160 million investment in 221 MW battery systems underscores how decarbonization policy drives storage demand. Nordic countries integrate UPS fleets into virtual-power-plant aggregates that capitalize on abundant renewable dispatch variability. Meanwhile, inadequate end-of-life pathways for lithium-ion in southern Europe remain a bottleneck, elevating total cost of ownership for early adopters.
Competitive Landscape
The supplier ecosystem is moderately fragmented. Schneider Electric, Eaton, ABB, and Vertiv leverage system-integration expertise and global service footprints to cross-sell lithium-ion upgrades to installed VRLA footprints. Battery specialists such as Saft, LG Energy Solution, and Panasonic focus on cell chemistry optimization and leverage economies of scale to supply pack integrators. Market concentration is rising as incumbents lock in vertical-integration strategies through mining stakes, cathode facility joint ventures, and recycling partnerships aimed at mitigating raw-material risks.
Strategic moves illustrate the shift toward service and alternative chemistries. ABB’s Battery-Energy-Storage-as-a-Service model removes capex hurdles for C&I customers, bundling performance guarantees with revenue-sharing from energy trading. Schneider Electric’s partnership with Liminal integrates ultrasound inspection into pack assembly lines to trim scrap rates and ensure consistent quality.
Natron Energy’s Michigan plant targets sodium-ion volumes tailored for data-center UPS racks, offering high-power density without conflict minerals. ZincFive’s nickel-zinc modules, now qualified inside ABB’s MegaFlex UPS, deliver 97.4% system efficiency and simplified recycling. Competitive pressure thus pivots on chemistry agility, life-cycle services, and supply-chain resilience.
UPS Battery Industry Leaders
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East Penn Manufacturing Inc.
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Eaton Corporation
-
Exide Industries Limited
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Schneider Electric Inc.
-
CSB Energy Technology Co., Ltd
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: LG Energy Solution began mass production of 16.5 GWh lithium iron phosphate cells for energy-storage applications at its Michigan plant, redirecting USD 1.4 billion capacity toward data-center and grid-scale projects.
- June 2025: Amita Technologies, Digi-Triumph Technology, and Smart Power System formed an alliance to reinforce Taiwan’s energy-storage supply chain and back behind-the-meter deployments.
- May 2025: BB launched Battery Energy Storage Systems-as-a-Service, bundling hardware, software, and lifecycle support under a zero-capex model.
- May 2025: Keppel partnered with Huawei to integrate solar PV and battery storage for ASEAN power grids and to design low-carbon data centers.
- April 2025: Toshiba introduced a new heat-dissipation SCiB lithium-ion module certified to UL 1973 for stationary storage.
- March 2025: TotalEnergies allocated USD 160 million to 221 MW of battery projects in Germany using Saft technology.
- February 2025: Natron Energy opened a 600 MW sodium-ion plant in Michigan to localize high-power stationary batteries.
Global UPS Battery Market Report Scope
The UPS (Uninterruptible Power Supply) battery system actsbridges the primary power source and its backup. Yet, even with robust battery backups or generators, switching from the main power to the alternate source typically takes several minutes. These fleeting minutes can be pivotal in high-stakes environments such as hospitals and banks. The UPS mitigates this delay, providing immediate power and smoothly shifting to the backup once it becomes active.
The study tracks the revenue accrued through the sale of types of UPS battery products by various players globally as the baseline for market estimations. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report's scope encompasses market sizing and forecasts for the various market segments.
The UPS battery market is segmented by type (lithium-ion, nickel-cadmium, lead-acid, and others), application (residential, commercial, industrial, power and utilities, and others), and geography (North America, Europe, Asia Pacific, Middle East and Africa, and Latin America). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Valve-Regulated Lead-Acid (VRLA) |
| Flooded Lead-Acid |
| Lithium-ion (LFP, NMC) |
| Nickel-Cadmium |
| Nickel-Zinc |
| Other Emerging Chemistries (Sodium-ion, Flow) |
| Less than 10 kVA |
| 10 - 100 kVA |
| 101 - 250 kVA |
| Above 250 kVA |
| Data Centers (Cloud, Colocation, Edge) |
| Telecommunications (5G RAN, Core, Edge) |
| Industrial Manufacturing |
| Oil, Gas and Petrochemicals |
| Commercial Buildings (Retail, Offices, Hospitality) |
| Healthcare Facilities |
| Residential and Small Office |
| Utilities and Power Infrastructure |
| BFSI and Mission-critical Services |
| Original Equipment Manufacturer (OEM) |
| After-market/Replacement |
| North America | United States | |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Nordics | ||
| Rest of Europe | ||
| South America | Brazil | |
| Rest of South America | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South-East Asia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Gulf Cooperation Council Countries |
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Rest of Africa | ||
| By Battery Chemistry | Valve-Regulated Lead-Acid (VRLA) | ||
| Flooded Lead-Acid | |||
| Lithium-ion (LFP, NMC) | |||
| Nickel-Cadmium | |||
| Nickel-Zinc | |||
| Other Emerging Chemistries (Sodium-ion, Flow) | |||
| By Power Rating | Less than 10 kVA | ||
| 10 - 100 kVA | |||
| 101 - 250 kVA | |||
| Above 250 kVA | |||
| By End-user Industry | Data Centers (Cloud, Colocation, Edge) | ||
| Telecommunications (5G RAN, Core, Edge) | |||
| Industrial Manufacturing | |||
| Oil, Gas and Petrochemicals | |||
| Commercial Buildings (Retail, Offices, Hospitality) | |||
| Healthcare Facilities | |||
| Residential and Small Office | |||
| Utilities and Power Infrastructure | |||
| BFSI and Mission-critical Services | |||
| By Sales Channel | Original Equipment Manufacturer (OEM) | ||
| After-market/Replacement | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Nordics | |||
| Rest of Europe | |||
| South America | Brazil | ||
| Rest of South America | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South-East Asia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Gulf Cooperation Council Countries | |
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current size of the UPS battery market and its growth outlook?
The UPS battery market stands at USD 5.93 billion in 2025 and is projected to reach USD 7.97 billion by 2030, reflecting a 6.11% CAGR.
Which battery chemistry is growing fastest?
Lithium-ion is expanding at a 11.50% CAGR as data-center and telecom operators shift from VRLA to improve total cost of ownership
Which region presents the highest growth potential?
Asia Pacific is forecast to grow at 7.01% CAGR through 2030, fueled by new data centers and grid-modernization projects.
How are tariffs and regulations influencing supply chains?
US tariffs lifting landed costs of Chinese lithium-ion cells to 58% are accelerating North American cell manufacturing, while EU Battery Regulation 2023/1542 is pushing recyclability and carbon-footprint standards.
What new chemistries could disrupt the UPS battery industry?
Sodium-ion and nickel-zinc batteries are entering commercial production, offering high cycle life and safer, more sustainable profiles for stationary backup applications
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