Backup Power Systems Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 3.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Backup Power Systems Market Analysis
The backup power systems market is expected to register a CAGR of more than 3.5% over the period.
The market was negatively impacted by the outbreak of COVID-19 due to regional lockdowns. Currently, the market has rebounded to pre-pandemic levels.
- Factors such as the power outages that are prevalent worldwide and the rising demand for standby power sources are expected to be the biggest drivers for the backup power systems market.
- However, the rapid adoption of renewable power sources and distributed technologies onto the grid is expected to hamper the market growth of backup power systems during the forecast period.
- The industrial sectors of emerging economies and the increasing need for power in defense operations are likely to create significant opportunities for market participants in the near future.
- North America is expected to be the largest market due to increased power outages in the United States, leading to financial losses and driving the demand for backup power systems.
Backup Power Systems Market Trends
The Commercial Sector is Expected to Dominate the Market
- In 2022, the commercial sector accounted for about 22% of the global consumption of electricity, making it one of the more significant segments. Moreover, power outages and unreliable grid electricity lead customers in the commercial sector to adopt backup power solutions to perform their business activities at the time of power outages, driving the market's growth.
- Additionally, there is also a significant increase in the development of data centers in Asia-Pacific. For instance, in May 2022, Cisco launched its first data center in India. The company aims to cater to rising customer demands for cyberdefense and data localization. Thus, Cisco's Duo has established its first data center in India. Furthermore, with this investment, Cisco aims to build a future-ready, data-compliant security infrastructure in India.
- Moreover, in April 2022, Google announced building a new data center in Nebraska, United States. The total investment is expected to be around USD 750 million. Furthermore, the company aims to invest more than USD 9.5 billion in the data center, particularly in the United States. Google has already invested more than USD 37 billion in offices and data centers in 26 states in the last five years.
- Similarly, several players entered into agreements to construct data centers in India. For example, in 2021, Iron Mountain and Web Werks, EdgeConneX and Adani, and Yondr and Everstone started joint ventures to develop data centers in India.
- Additionally, in January 2022, Adani Group announced that it was investing more than USD 560 million in two data center projects in Uttar Pradesh, India. Such a scenario is expected to propel the need for backup power systems like UPS during the forecast period.
- Hence, the commercial sector is increasingly moving toward power backup sources, which are expected to dominate the market during the forecast period.
North America is Expected to Dominate the Market
- Electricity is one of the essential parts of modern life and plays a vital role in North America's economy. Electricity is generated at power plants and delivered through a complex system of substations, transformers, and power lines that connect electricity producers and consumers. The power system may sometimes get interrupted, leaving catastrophic results for the customers.
- In the United States, Florida, New Hampshire, Maine, Georgia, and Vermont, on average, have the most prolonged total time power interruptions. The average customer interruption time in these five states ranged from 15 hours in Vermont to 42 hours in Maine. Power outages cost an average of about USD 18 billion to USD 33 billion per year in the country. Backup generators and UPS systems are considered the most viable options for ensuring that business operations continue without interruption.
- According to Cloudscene, as of March 2023, North America accounted for more than 51% of data centers across the globe, with the United States accounting for almost 43.5% of data centers and having about 3,207 data centers. In addition, the number of data centers is expected to increase in the region, as the United States is the fastest adopter of advanced technology such as big data, IoT, artificial intelligence, and expanded coverage of 5G services across the country.
- Therefore, power outages from blackouts and voltage disturbances can cause significant losses to businesses that are highly dependent on reliable power, hence the promotion of backup power solutions such as generators and UPS.
- Based on the factors mentioned above, North America is expected to be the dominant region for backup power systems during the forecast period.
Backup Power Systems Industry Overview
The backup power systems market is fragmented. Some of the key players are (in no particular order) Caterpillar Inc., Kohler Co., Atlas Copco AB, Generac Holdings Inc., and Eaton Corporation.
Backup Power Systems Market Leaders
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Kohler Co.
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Atlas Copco AB
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Generac Holdings Inc.
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Caterpillar Inc.
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Eaton Corporation
*Disclaimer: Major Players sorted in no particular order
Backup Power Systems Market News
- March 2022: Mitsubishi Heavy Industries Engine & Turbocharger Ltd. launched the MGS-R Series of diesel generator sets. The new series is developed to primarily target data centers across the Asian and Middle Eastern markets. In addition, the new series also serves as a reliable backup power solution for commercial facilities such as shopping malls and office buildings.
- June 2022: Oil Engines Ltd. launched a new variant of its fuel-efficient power generators. The R550 series of engines that power the iGreen Version 2.0 provide compactness, fuel efficiency, and high power quality.
Backup Power Systems Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Technology
5.1.1 Backup Generator
5.1.2 Uninterrupted Power Supply (UPS)
5.2 End-User
5.2.1 Residential
5.2.2 Commercial
5.2.3 Industrial
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Atlas Copco AB
6.3.2 Caterpillar Inc.
6.3.3 Eaton Corporation PLC
6.3.4 Emerson Electric Co.
6.3.5 Generac Holdings Inc.
6.3.6 General Electric Co.
6.3.7 Kohler Co.
6.3.8 Mitsubishi Electric Corporation
6.3.9 Schneider Electric SE
6.3.10 Toshiba Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Backup Power Systems Industry Segmentation
When the main source of energy fails, a backup power system is employed to supply electricity. This system is essential since every operation depends on an uninterruptible power source. Batteries and gasoline-, diesel-, or propane-powered generators are currently used as backup systems.
The backup power systems market is segmented by technology, end-user, and geography. By technology, the market is segmented into backup generators and uninterrupted power supplies (UPS). By end-users, the market is segmented into residential, commercial, and industrial. The report also covers the market size and forecasts for the backup power systems market across the major regions. For each segment, market sizing and forecasts have been done based on revenue (USD billion).
| Technology | |
| Backup Generator | |
| Uninterrupted Power Supply (UPS) |
| End-User | |
| Residential | |
| Commercial | |
| Industrial |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle-East and Africa |
Backup Power Systems Market Research FAQs
What is the current Backup Power Systems Market size?
The Backup Power Systems Market is projected to register a CAGR of greater than 3.5% during the forecast period (2024-2029)
Who are the key players in Backup Power Systems Market?
Kohler Co., Atlas Copco AB, Generac Holdings Inc., Caterpillar Inc. and Eaton Corporation are the major companies operating in the Backup Power Systems Market.
Which is the fastest growing region in Backup Power Systems Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Backup Power Systems Market?
In 2024, the North America accounts for the largest market share in Backup Power Systems Market.
What years does this Backup Power Systems Market cover?
The report covers the Backup Power Systems Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Backup Power Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Backup Power Industry Report
The global industrial backup generator industry is segmented by technology, including backup generators and uninterruptible power supplies (UPS), end users such as residential, commercial, and industrial, and geography, covering North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. The market size and forecasts for the backup power systems market are provided in terms of revenue for all the above segments.
Industry reports indicate that the market share and market size are significant, driven by various market trends and market growth. The industry analysis and market research highlight the importance of backup power systems in maintaining operational continuity across different sectors.
The market forecast suggests a positive industry outlook, with industry leaders playing a crucial role in shaping market dynamics. The industry overview provides a comprehensive understanding of the market segmentation and market value, while the market analysis and market review offer insights into the industry's current state and future predictions.
Industry information and industry statistics reveal that the market data supports a robust growth rate, driven by increasing demand across various regions. The market outlook and industry trends indicate a steady rise in industry sales and industry size, supported by detailed industry research and market predictions.
The report example and report PDF serve as valuable resources for research companies and stakeholders seeking in-depth knowledge of the market. The market forecast and market leaders are pivotal in understanding the competitive landscape and market segmentation. The industry reports and industry research provide a detailed market overview, highlighting the industry's potential and market value.
Overall, the industry outlook and market review emphasize the significance of backup power systems in ensuring uninterrupted power supply, which is crucial for various end users. The industry statistics and market data further underscore the market's potential for growth, making it a key area of interest for market leaders and research companies.
