UPS Market Size By Component (Solution [Standby (Offline), Line-Interactive, Online UPS], Services [Managed, Professional]), By Application (BFSI, Data Centers, Healthcare, IT & Telecom, Manufacturing, Media & Entertainment, Residential), By End-Use (SMEs, Large Enterprises), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Industry Trends

UPS Market size exceeded USD 11 billion in 2019 and is anticipated to grow at a CAGR of 5.5% between 2020 and 2026. The market growth is due to increased demand from new businesses in Tier 2 & Tier 3 cities, growing trend of IoT, smart buildings, and rising number of data centers globally.
 

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The rising trend of cloud computing and virtualization has led to a subsequent increase in the number of data centers globally. Tech giants such as Google, Amazon, Microsoft, and Facebook are constructing new data centers, driving the need for a secure & clean power supply that is critical for the smooth operation of the infrastructure. It was estimated that in 2019, data centers consumed around 2% of the total global electricity. The system offers these infrastructure facilities with secure & continuous power supply and protects them against power disruptions.
 

The coronavirus (COVID-19) pandemic has impacted the operations and sales of several UPS manufacturers. UPS manufacturers have shut down their manufacturing plants. Exports have been banned by several Asia Pacific countries owing to which several market players globally are struggling with a disruption in the supply chain.
 

Surging demand for continuous power supply is augmenting the market growth of online UPS

In 2019, online systems accounted for over 65% of the global UPS market share. These systems provide continuous power supply as their inverters are always on, protecting the infrastructure from all power disturbances such as spikes, blackouts, and brownouts. The online UPS with its dual conversion design confirms a high degree of load isolation from irregularities on the main supply. During the rectification stage, the input power is converted twice, eliminating load disturbances.
 

Growing demand for the systems from edge and micro data centers has encouraged manufacturers to develop advanced online systems. In April 2019, Legrand launched a new line of online UPS called the LU-Series for supporting network installations in network closets, data centers, retail applications, and commercial environments.
 

Increasing adoption of the systems by SMEs in the U.S. market

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The U.S.-based SMEs generated around USD 2 billion market revenue in 2019. SMEs are the backbone of the U.S. economy and key contributors to economic growth. According to the U.S. Small Business Administration (SBA), in April 2018, there were around 30 million small businesses accounting for two-thirds of the net new private-sector jobs in the U.S.
 

These businesses have a low budget, encouraging them to incorporate economic or affordable technologies. Several manufacturers are developing cost-effective and high-quality power technologies to help small facilities in managing their business operations. In addition, the demand for systems from SMEs is increasing in modular and micro data center facilities, encouraging manufacturers to develop compact size and lightweight systems.
 

Increasing UPS market demand from the global BFSI sector

The BFSI sector has witnessed a transition, with organizations switching from the use of physical documents to digitization. With the high market adoption of internet and mobile banking, banks need to store massive amounts of consumer data. A power surge or sudden loss of power can damage computers, resulting in the loss of critical business data.
 

Financial services rely heavily on infrastructure as their operation backbone. The need to improve customer turnover and provide optimal customer experience with minimal downtime has resulted in an increased demand for energy-efficient technologies. The need for continuous reliable services and enormous power capabilities for servers will boost the market revenue.
 

Power surges and failures in Europe are driving the need for UPS from data center applications

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The Europe UPS market size is predicted to expand at over 5% CAGR during the forecast period. The increasing data center downtime due to equipment failure impacts hardware systems, leading to additional capital costs & charges. Europe is witnessing several instances of power surges in data centers, affecting business operations. For instance, in May 2017, a power outage brought down the operations of British Airways’ data center facility, managed by CBRE. Due to the failure of the systems, the business witnessed a three-day outage that stranded thousands of passengers.
 

Technological advancements in the region are driving the market adoption of innovative solutions in the Europe data center industry. Several manufacturers are developing modern solutions that offer high-end features to the end-users. For instance, in March 2019, Schneider Electric SE launched the Galaxy VS lithium-ion UPS with 10-100kW of load designed for edge computing and small data centers. The modular design allows fast deployment, saving time, and cost.
 

Mergers & acquisitions and partnership activities are being adopted by industry players

UPS industry is highly competitive with the top five players accounting for around 35% of the market share. Key players are focusing on mergers, acquisitions, and partnership activities to create new market avenues for profitability and to gain a competitive edge. For instance, ABB Ltd. acquired General Electric's Industrial Solutions business for USD 2.6 billion in 2018 and the move increased ABB’s market share in 2019.
 

Key market players include ABB Ltd., Delta Power Solutions Pvt., Ltd., Eaton Corporation, Inc., Toshiba Corporation, Huawei Technologies Co., Ltd., Microtek International Pvt. Ltd., Legrand S.A., Mitsubishi Electric Corporation, Emerson Electric Co., Siemens AG, SolarEdge Solution (Gamatronic), Schneider Electric SE, Techser Power Solutions Pvt., Ltd, and Vertiv Co.
 

The market research report on UPS includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:
 

Market by Component

• Solution
  • Standby (Offline)
  • Line-interactive
  • Online
• Services
  • Professional
  • Managed

Market by Application

• BFSI
• Data Centers
• Healthcare
• IT & Telecom
• Manufacturing
• Media & Entertainment
• Residential
• Others

Market by End-Use

• SMEs
• Large Enterprise

The above information is provided on a regional and country basis for the following:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Poland
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Singapore
  • Australia
• South America
  • Brazil
  • Argentina
  • Chile
  • Colombia
• MEA
  • UAE
  • Saudi Arabia
  • South Africa