Market Challenges And Opportunities

Global Uninterruptible Power Supply (UPS) Market Drivers:

Frequent power outages to boost the market demand

Due to power outages from blackouts, brownouts, and disturbances in voltage, businesses that are highly dependent on constant and reliable power can face major losses. In some cases, owing to the lack of preparedness for unexpected incidences, end users suffer huge losses. This further creates the need for proactive measures to protect from interruptions in power supply, through adoption of uninterruptible power supply. Moreover, due to severe weather conditions resulting from winter storms and hurricanes also cause power interruptions for long duration. Due to abovementioned factors, the demand for uninterrupted power supply continues to grow, which is expected to fuel growth of the global uninterruptible power supply (UPS) market over the forecast period.

Rise in investment in data centers across the globe to boost the market pace

Data centers are important for organizations that support business applications and provide services such as data management and storage. Thus, the role of UPS systems is major in data centers to provide backup power and avoid data crashes, hardware damages, and data loss. The investments in data center continues to grow all over the world. For instance, in April 2022, Google announced the plans to make nearly US$ 9.5 billion investment in data centers and offices in the U.S. As per the company, this investment will focus on data centers in many states, including Virginia, Nebraska, and Nevada. Thus, with increasing number of data centers, the demand for UPS systems is also growing, which is likely to accelerate growth of the global uninterruptible power supply (UPS) market during the forecast period.

Global Uninterruptible Power Supply (UPS) Market Opportunities:

Increasing advancements in UPS technology is expected to bring growth opportunities in the global uninterruptible power supply (UPS) market over the forecast period. The demand for UPS systems is increasing significantly across end-use applications, due to which, the UPS systems are required to be cost-effective, highly efficient, and reliable in the long run. The advancements in the UPS technology is increasing for upgradation and innovation in the conventional UPS systems. This factor in turn is likely to create many growth opportunities in the global uninterruptible power supply (UPS) market.

Growing use of lithium-ion batteries to replace lead-acid batteries is also likely to offer business opportunities in the global uninterruptible power supply (UPS) market over the forecast period. Many UPS manufacturers are using lithium-ion batteries as a replacement for lead-acid batteries in order to tackle the challenges occurred due to higher operating temperatures and fast-charging capacities. This in turn is anticipated to create growth opportunities for the uninterruptible power supply (UPS) market over the forecast period.

Global Uninterruptible Power Supply (UPS) Market Restraints:

High cost and operational expenditure of UPS systems to limit the market growth

Uninterruptible power supply systems are highly reliable and responsive that guarantee immediate power supply in a power failure. However, the major concerns associated with these systems is the cost. The adoption of UPS systems requires high amount of initial investment. Moreover, the cost of installation of such infrastructure set up can go up to considerably high. Thus, these systems become expensive, due to which not all the users can afford them. This factor in turn is likely to hamper growth of the global uninterruptible power supply (UPS) market during the forecast period.

Disruption in logistics and supply chain due to COVID-19 to hamper the market growth

The pandemic of COVID-19 created several challenges across various business including real estate and construction, healthcare, IT, and manufacturing, as many countries imposed lockdown regulations during this period. The supply chains across several industries were disrupted due to the pandemic, which further impacted export and import activities. This factor also affected the global uninterruptible power supply (UPS) market adversely. However, as the pandemic situation has returned to normal, the market is likely to regain growth in the coming future.