UPS Market Size is set to surpass USD 15 billion by 2028, according to a new research report by Global Market Insights Inc.
Enterprises across all industries are witnessing an increase in demand for hyper-scale data centers and large colocation facilities. The construction of hyperscale data centers is increasing, driving the demand for high-end modular UPS systems.
The COVID-19 pandemic had a negative impact the UPS market in FY2020. To prevent the COVID-19 outbreak, government organizations across the globe imposed stringent lockdowns and travel restrictions in the first half of 2020. The temporary shutdown of manufacturing plants resulted in lower production rates of UPS in the market. This resulted in delayed investment decisions by companies, impacting order intakes. The market gained traction in the second half of 2020 due to an increasing number of COVID-19 cases across the globe. This has boosted the demand for innovative UPS solutions in the healthcare industry to minimize interruptions in the delivery of medical services.
Growing number of UPS manufacturers offering professional & managed services will enhance reliability
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Professional service packages combine the advantages of preventive maintenance and emergency services. Market players offer solutions that are tailored according to operating constraints, business activity, and the unique level of criticality associated with specific applications. Managed power services help in remote monitoring and management of UPS & physical infrastructure. It enables the use of data collection and analytics to improve the asset's dependability and cost-effectiveness. Customers can choose from the various services provided by market leaders to ensure optimal performance and long-term dependability.
Globally expanding IT & telecom industry is driving the market for UPS solutions
Government initiatives targeted at strengthening the IT & telecom infrastructure will support the UPS market expansion. For instance, in March 2021, the UK government announced ‘Project Gigabit’ with an investment of USD 5.67 billion in the broadband sector. The rollout and expansion of the telecom network & infrastructure offer many business opportunities for market participants. Telecom operators are focused on efficient power saving to offer uninterrupted communication and internet services. Market players offer tailored UPS solutions, specifically designed for the IT & telecom sector.
Browse key industry insights spread across 300 pages with 321 market data tables and 33 figures & charts from the report, “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 Enterprise), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028”, in detail along with the table of contents:
Rising demand for advanced UPS solutions from large enterprises will support the market demand
The UPS market is observing a significant surge in demand for reliable power solutions that can support large-scale manufacturing facilities. This factor is, in turn, fostering the demand for high-end modular UPS systems that are scalable and provide reliable power backup. Consistent voltage supply is critical in large enterprises as various machinery operate for an extended period. Market participants including ABB Ltd. and Eaton Corporation, Inc. offer high-efficiency designs that allow quickstep/transient load response while avoiding single points of failure. As a result, it is suited for use in large enterprise data networks. The companies provide a package of power management solutions that enable large-scale enterprises to effectively monitor and regulate their power infrastructure.
Increasing number of power surges and failures in North America to offer strong growth opportunities to the market
North America UPS market is projected to showcasing 6% growth rate through 2028 owing to the growing volume of data center downtime due to equipment failure influences hardware platforms, resulting in higher capital expenses and costs. Several incidents of power surges in data centers have occurred in North America, disrupting business operations. For instance, in December 2021, Amazon Web Services, Inc. registered data center power loss in the East coast cloud region, impacting several customers and users.
The growing need for edge computing is encouraging market leaders to construct data centers closer to the end-users. The aim is to efficiently manage 5G, artificial intelligence, blockchain technology, and media content flow. Technological improvements in the region are boosting the market adoption of innovative UPS systems in North America.
Strategic mergers and acquisitions form a key strategy amongst the market players
Prominent companies operating in the UPS market include ABB Ltd., Ablerex Electronics Co. Ltd., Arabian Power Electronics Company, Delta Power Solutions Pvt., Ltd., Eaton Corporation, Inc., Emerson Electric Co., ENERSYS, Huawei Technologies Co., Ltd., Kstar New Energy, Co., Ltd., Legrand S.A., Microtek International Pvt. Ltd., Mitsubishi Electric Corporation, Riello Elettronica Group, Schneider Electric SE, Siemens AG, SOCOMEC Group S.A., SolarEdge Solution (Gamatronic), Techser Power Solutions Pvt., Ltd., Toshiba Corporation, and Vertiv Co. Strategic mergers and acquisitions are undertaken by market leaders to expand their single-phase UPS business.