$4550
The UPS battery market was valued at US$ 695.6 million in 2020 and is projected to reach US$ 1,475.7 million by 2028; it is expected to grow at a CAGR of 10.6% from 2021 to 2028.
The battery is one of a crucial component of an uninterruptible power supply (UPS). The UPS battery is accountable for long life span and good performance of UPS. Thus, regular maintenance of battery is must. Lithium-ion (Li-ion), Lead-acid, and nickel cadmium are the major types of UPS batteries available for community of end users including from commercial to industrial sector. With growing number of large data centers in corporate sector; electrical appliances, & gadgets like computers; critical infrastructure; or industrial processes, adoption of UPS is booming which is further stimulating the scope of UPS batteries. In addition to their, with a rise in mission-critical facilities and industries using data center, the demand for UPS battery solution offering reliability, safety, and superior performance is also expanding. The UPS depends on getting equip with right batteries, configuring properly, and keeping them carefully. The end user may require power server for the business; run an entire building; or safeguard sensitive medications which are being stored at highly precise temperatures. In the course of testing, the Battery Electric Storage System, a world’s largest UPS system, in Fairbanks, Alaska had generated 46 megawatts of energy that was sufficient to run entire city. Therefore, to support in such activities, the demand for UPS is booming. With a growth in UPS, the demand for UPS batteries will also rise. Grid storage, residential grid storage, and electric vehicles are some other applications using UPS which are expected to fuel the production and sales cycle of UPS batteries as well.
Factors such as high inclination towards using Li-ion batteries due to their 60-70% lighter weight, 5times faster recharge cycle, 30-50% total cost of ownership, and 2-3times of longer expectancy life over lead-acid batteries is encouraging the end user to use Li-ion batteries. Increasing number of large data centers in countries like the US and expanding scope of digitization backed by government support is further stimulating the use of advanced systems to ensure no disturbance is caused by power failures. Moreover, rising demand for power back solutions in Asian economies like India is another factor which will also play a positive role in influencing the market growth.
Critical raw materials are utilized during the manufacturing process of UPS batteries such as Li-ion, lead-acid, or nickel cadmium. For manufacturing Li-ion batteries, over 80% of lithium production at a global scale comes from Chile, Australia, and Argentina. The mentioned raw material is provided to UPS battery manufacturers for the manufacturing of UPS batteries to prevent anu stoppage of production during power failures. Some of the key market players/manufacturers in the global UPS battery market includes EATON Corporation, Exide Industries Ltd., Schneider Electric SE, and GS Yuasa International Ltd. among many others.
The major end-users of the UPS battery market include commercial, residential, and industrial sector. Food & beverage, pharmaceutical, power generation plants, and aerospace are some of the crucial industries surrounded with possibilities of power failures and very high ambient temperature. Owing to the fact that UPS batteries are a key component of the UPS; It is accountable for good performance and long-life span of UPS. In addition to their use, data centers, corporates, domestic appliances, and electrical gadgets are other applications of UPS. With growing penetration of UPS, the scope of UPS battery will enhance.
However, unfavorable growth conditions globally and disruptions in supply chain and manufacturing plants due to ongoing COVID-19 outbreak has affected the growth rate of UPS battery market in 2020 and it is expected to have some negative impact for coming few quarters. The outbreak has affected global supply chains and business revenues due to factory shutdowns, border closing, and trade bans across the globe. However, with an opening of several markets globally, vaccination development, and initiatives taken by various governments to support economic & industrial growth, the future demand of UPS and UPS batteries is anticipated to grow at a positive and steady pace in the coming years.
Lucrative Regions for UPS Battery Market
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Market Insights
Growing Applications of UPS Battery in Data Centers
Due to the rising data related services, there has been a huge increase in demand for data centers worldwide, which is driving the demand for UPS. Cloud-based services require to be online to provide services, which is surging the need for UPS systems. The growing trend of cloud computing and virtualization has led to a rise in data centers globally. As per the Energy Innovation 2020 facts, some of the largest data centers in the globe can contain several IT devices and need ~100 megawatts (MW) of power capacity, which is sufficient to power ~80,000 households in the US. In 2018, the worldwide data centers consumed ~205 terawatt-hours (TWh) or 1% of global electricity. At present, there are 4,738 colocation data centers from 127 countries.
Product Type-Based Market Insights
Based on product type, the UPS battery market is segmented into lead-acid, Li-ion, and other product type. Lead-acid batteries have showed a record of better reliability when deployed in uninterruptible power supply systems. In case of large power applications where the weight is not a prime concern, lead-acid batteries act as the most economical choice. This cost-effectiveness, combined with high tolerance, low internal impedance, and other performance qualities, is making them ideal for small-scale power storage like UPS systems; large & grid-scale power systems; and starting, lighting, and ignition power sources for automobiles.
Application Based- Market Insights
In terms of application, the UPS battery market has been segmented into commercial, residential, and others. UPS batteries are used in a wide range of applications including workstation, server room, network closet, large data center, computer room, financial or bank systems, industrial processing, internet hosting sites, and medical & emergency applications. The commercial segment of UPS battery includes offices, telecommunication, data centers, and other commercial buildings.
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UPS Battery Market: Strategic Insights
Market Size Value in US$ 695.6 Million in 2020 Market Size Value by US$ 1,475.7 Million by 2028 Growth rate CAGR of 10.6% from 2021-2028 Forecast Period 2021-2028 Base Year 2021
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UPS Battery Market: Strategic Insights
| Market Size Value in | US$ 695.6 Million in 2020 |
| Market Size Value by | US$ 1,475.7 Million by 2028 |
| Growth rate | CAGR of 10.6% from 2021-2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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Product development is the commonly adopted strategy by companies to expand their product portfolio. GS Yuasa., Schneider Electric, Vertiv Group, Exide Industries, and CSB Battery Co., among others are the key players implementing strategies to enlarge the customer base and gain significant share in the global UPS Battery Market, which in turn permits them to maintain their brand name. A few of the recent key developments are:
- In 2021, GS Yuasa has expanded its range of SWL batteries with two new ones for UPS applications.
- In 2020, FIAMM Energy Technology S.p.A. had attended the Middle East Energy event held from 5 to 7 March. At the event, the company showcased the FLB and FHT ranges, both with AGM technology, suitable for security systems, UPS, and telecommunications.
UPS Battery Market Segmentation:
By Product Type
- Lead-acid
- Lithium-Ion
- Other Product Types
By Application
- Commercial
- Residential
- Other Applications
Company Profiles
- CSB Energy Technology Co., Ltd.
- East Penn Manufacturing Company
- EATON Corporation
- Exide Industries Ltd.
- FIAMM Energy Technology S.p.A.
- GS Yuasa International Ltd.
- Leoch International Technology Limited
- Northstar
- Schneider Electric SE
- Vertiv Group Corp
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product Type and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Presently, the Li-ion battery—which is highly used for energy storage and power supply—is being heavily adopted for various industrial applications. Several benefits of Li-ion batteries such as higher energy efficiency and extended battery life provided are leading to wider adoptions in commercial and residential applications. Use of Li-ion battery for UPS provides better operating parameters, safer chemistries, strong materials, and less stressed user environments. Li-ion batteries are extensively used across all the regions in order to introduce economical and energy-efficient battery technology. In Europe, the continuously surging cost of real estate is positively influencing the adoption of Li-ion battery in the region. Besides, the growing investments in industrial material-handling operations, especially in Germany, the UK, and the Netherlands, are boosting the adoption of Li-ion batteries in Europe. There is an increase in adoption of Li-ion battery in UPS in emerging economies of Africa and the Middle East.
The lead acid segment led the market in 2019 with highest share and is expected to continue its dominance during the forecast period. Lead-acid batteries have showed a record of better reliability when deployed in uninterruptible power supply systems. In case of large power applications where the weight is not a prime concern, lead-acid batteries act as the most economical choice. This cost-effectiveness, combined with high tolerance, low internal impedance, and other performance qualities, is making them ideal for small-scale power storage like UPS systems; large & grid-scale power systems; and starting, lighting, and ignition power sources for automobiles.
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.
The List of Companies - UPS Battery Market
- CSB Battery Co., Ltd.
- East Penn Manufacturing Company
- Eaton Corporation plc
- Exide Industries Limited
- FIAMM Energy Technology S.p.A
- GS Yuasa International Ltd.
- leoch International Technology Limited Inc.
- NorthStar Group Services, Inc.
- Schneider Electric SE
- Vertiv Group Corporation
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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