Report : UPS Battery Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Product Type (Lead-Acid, Lithium-Ion, and Other Product Types) and Application (Commercial, Residential, and Other Applications)
According to the new research report titled “UPS Battery Market Forecast to 2027 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 1,475.7 million by 2028, registering a CAGR of 10.6% from 2020 to 2027.
The UPS industry in developing countries is likely to grow slowly but steadily. Due to power shortage in various countries, the UPS battery market is indisputably growing with advanced technologies and methodologies being integrated and implemented. Despite implementation of several government policies, emerging economies are still not able to meet the target to become electricity-surplus nations. Thus, deployment of UPS systems is inevitable. India, for instance, is implementing various policies to introduce UPS systems for strong power back-up solutions. For instance, the National Solar Mission, a government initiative, has driven the solar-based backup power solutions. Due to such initiatives, there is an increase in demand for power in semi-urban and rural areas, which contributes considerably to the growth of the UPS industry in India. This, in turn, is throttling the growth of the UPS battery market.
Presently, offices, businesses, and institutions are IT-driven. No one can work without mobile phones and computers since these devices have become a part of daily lives; thus, the UPS systems too have become a part of it. Owing to rising disposable incomes of households in developing countries of APAC, MEA, and SAM, the sales of electrical equipment such as refrigerators, ACs, televisions, and microwaves is anticipated to surge, and inadequate power supply will propel consumers to opt for UPS systems in coming years. Power shortage; growth of IT, banking, and small and medium enterprise; and rise in income levels of consumers are surging UPS applications in residential and commercial sectors of emerging economies. For the overall development of the UPS industry in developing countries and for the regional players to increase the profitability, it has become vital for the businesses to invest in research & development (R&D) activities. Making UPS available in smaller sizes would ensure greater revenue, especially from the small and medium enterprises, is one of the key factors for the growth of the UPS battery market. The growing consumption of power with rising automation and digitization is demanding UPS for several business operations. Government across the world are implementing initiative to computerize and digitize offices and departments, for which seamless supply of energy is needed. The government initiatives such REACH 2025 and Smart City projects have generated massive demand for security hardware such as storage and closed-circuit television cameras. Residential security is the next growth destination in various countries; thus, the growth in the use of UPS systems in residential applications are mounting since homeowners want to protect their sensitive electronic equipment from power outages. Broadcast stations is one of the major applications for UPS systems.
Several verticals have experienced a transition, with companies switching from physical documents to digitalization. With the huge market adoption of internet, sectors are investing to manage humungous amounts of data. Sudden loss of power may damage computers, resulting in the loss of critical business data. Thus, to avoid any data loss, the adoption of UPS is surging across all the verticals. However, there are some major causes that might lead to UPS battery failure. Mechanical and electrical limitations can result in fan failures and subsequent UPS overheating. As per the Ponemon Institute 2016 report study, the UPS system failure ranked first as a cause of unplanned data center outages. Other batteries, such as telecom and switchgear batteries, are built for high period, usually 4–8 hours. But, if a user operates a UPS battery for telecom application, it will force the battery to operate for longer time than its intended purpose, which might cause the battery’s plates to overheat and fail. Therefore, the risk of failures associated with UPS batteries is restraining the growth of the UPS battery market.
Key Findings of Study:
The global UPS battery market is segmented into five major regions—North America, Asia Pacific (APAC), Europe, the Middle East & Africa (MEA), and South America (SAM). APAC is anticipated to be the fastest-growing region during 2021–2028, owing to the presence of numerous developing economies such as China, India, and several southeast countries, and developed economies such as Japan and South Korea. In developing nations, commercial and industrial sectors are thriving at an impressive pace, which is anticipated to offer growth opportunities for the UPS battery market players in the region. Moreover, initiatives taken by the governments of developed countries and developing economies are likely to boost the market growth during the forecast period. Increasing investments in infrastructure development, energy & power industry, and commercial industries projects in developing regions such as the MEA and SAM are expected to grow steadily during the forecast period. During 2021–2028, the growth outlook of the UPS battery market in all the major regions is estimated to be quite positive. However, due to the COVID-19 pandemic, all the major countries in North America, APAC, and Europe have imposed strict restrictions on business activities and the movement of people and goods. All these factors adversely affected the supply of and demand for UPS batteries in 2020.
Significant strategic initiatives by several industry players are observed in the UPS battery market. For instance, in 2020, Schneider Electric announced a new short-depth smart-UPS with Lithium-ion. The company claimed that it will bring critical power to Europe's IoT and edge computing markets. In 2019, Eaton Corporation plc introduced its 5P rackmount Lithium-ion UPS. The UPS provides a dependable and integrated solution with enhanced network security, extended battery life, and remote management capabilities that make it the ideal solution for distributed IT and edge computing environments.