UPS Battery Market size was over USD 1.1 billion in 2024 and is estimated to reach USD 3.9 billion by the end of 2037, expanding at a CAGR of 11.2% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of UPS battery is assessed at USD 1.2 billion. The increasing electricity consumption is raising the demand for energy supply to be used in the absence of continuous power flow. According to an IEA report published in July 2024, the global electricity demand grew by 4% in the same year. The inflated usage of AI and other data computing technologies is raising the need for an uninterrupted power supply for continuous operations.
The integration with systems to utilize stored energy has also influenced the UPS battery market. The storage and supply systems are capable of empowering equipment during power outages or low production. Reliance on sensitive electronics such as computers, servers, and medical equipment has propelled the need for UPS batteries. These systems help to prevent data loss and system failure due to electricity disruptions. In addition, energy-efficient UPS batteries can reduce the cost of overall power management in businesses. For instance, in May 2023, C&D Technologies launched Pure Lead Max UPS VRLA battery with an 8-year warranty. These energy storage tools can lower the maintenance and ownership costs of data centers.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
11.2% |
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Base Year Market Size (2024) |
USD 1.1 billion |
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Forecast Year Market Size (2037) |
USD 3.9 billion |
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Regional Scope |
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Organization Size (Small and Medium Enterprises (SMEs), Large Enterprises)
In terms of organization size, the small and medium enterprises (SMEs) segment is expected to capture around 79.4% UPS battery market share by the end of 2037, due to the need for continuous power supply for uninterrupted operations. The diverse applications in sectors including IT, retail, healthcare, and manufacturing facilities have driven the demand for reliable power-generating devices. As SMEs seek cost-effective and scalable solutions, the UPS systems fit perfectly with their current needs. The segment is growing with the enlarging consumer base due to growing awareness about the importance of power protection. Thus, they are adopting these batteries to safeguard their sensitive equipment such as servers, point-of-sale systems, networking devices, and industrial machinery.
Battery Type (Lead Acid, Nickel Cadmium, Li-ion)
Based on battery type, the li-ion segment is poised to generate remarkable revenue in the UPS battery market. Industries including data centers, telecom, and healthcare have driven the demand for these energy storage systems to empower their critical operations. Such energy-efficient solutions are securing a leading position in the usage of emergency power backup. Companies are curating innovative technologies and eco-friendly materials to optimize the performance and sustainability of these batteries. For instance, in June 2023, AEG launched Protect D Li-Ion for various IT applications. The compact UPS consists of cutting-edge lithium-ion technology to offer unmatched data and equipment protection while ensuring smooth operations.
Our in-depth analysis of the global market includes the following segments:
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Organization Size |
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Battery Type |
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Application |
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North America Market Analysis
In UPS battery market, North America region is expected to hold more than 53.8% share by 2037. Significant expansion of data centers due to technological advancement through digitalization has positioned the region on top of this sector. The institutions require large-scale UPS systems to run their computing devices and servers uninterruptedly, preventing service disruptions. The government is now focusing on promoting energy-efficient UPS power sources. For instance, in December 2022, the U.S. government issued the Federal Energy Management Program, setting standards for power storage technology. This acts as a guide for UPS product application in residential and commercial fields, propelling innovation in this region.
The growth in the U.S. UPS battery market is majorly driven by innovation in power storage and supply technology. Global leaders situated in this country are focusing on introducing power sources, suitable for emphasized commercial usage. For instance, in July 2024, Numeric launched its new monolithic UPS system, Keor MP. The three-level IGBT-based converter and lithium battery technology of this compact 3-phase online double conversion device features 96% efficiency with 43% lesser footprint. Such innovative products are inflating demand for more sustainable power supply.
Canada is also diving deeper into the UPS battery market through technological development, creating lucrative opportunities for companies. With the target of achieving energy security and resilience, the country has ensured the optimum adoption of UPS systems to withstand power cuts, especially during natural disasters. This has further enlarged the industry through improved battery performance and extensive features. Many global leaders have shown interest in investing to introduce their high-performance UPS batteries to meet the enlarging demand.
APAC Market Statistics
The Asia Pacific landscape of the UPS battery market has presented great opportunities due to rapid urbanization. Developing countries including Japan, China, India, and South Korea are demanding uninterrupted power supplies to retain their progress. Many domestic companies are launching a series of batteries with attractive features, offering smart power management in large-scale data processing organizations. For instance, in June 2024, Delta launched the UZR Gen3 Series UPS Li-ion Battery System, designed for the data center industry. The innovative engineering of the power supplier can be seamlessly integrated with electrical equipment, cooling systems, and hardware, reducing the TOC of these businesses.
India is emerging to be one of the fastest-growing countries in the UPS battery market. Many large-scale industries are seeking efficient power backup solutions for continued production and distribution flow. Thus, companies are targeting these consumers by introducing revolutionary technologies, delivering as per need. For instance, in October 2022, Su-vastika launched Heavy Duty UPS 3P-3P for industrial power supply with a reduced switching time of ≤ 2milli seconds, preventing sensitive equipment from resetting. The long-lasting UPS batteries are capable of offering a wide range of outputs from 10 KVA to 500 KVA.
China is also gaining traction in the global UPS battery market through its large consumer base. The large manufacturing facilities, population, and reservoir of key components have made this country a good trading space for domestic and global leaders. The expansion of data management institutions and the adoption of advanced technologies have influenced global leaders to invest in this landscape. Integration of these power sources for remote and on-premises healthcare facilities is driving the demand for smart UPS solutions. This is further emphasizing the need for future developments in this sector.
As the UPS battery market shifts toward sustainable options, the leading companies are changing the dynamics by introducing revolutionary technologies to meet the need for cost and emission reduction. They are evolving the process of production through eco-friendly materials and advanced manufacturing methods. Many are focusing on expanding product utility for optimum adoption. While some are focusing on attaining certification for building stronger consumer trust upon newly launched products, increasing their reach. For instance, in September 2024, CSB achieved UL 1973:2022 certification for their selected battery products for safe deployment in data center UPS. Such key players include:
Author Credits: Dhruv Bhatia
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