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The UPS and Inverter market was valued at valued at US$ 86.15 billion in 2024 and is expected to reach US$ 174.04 billion by 2031. The UPS and Inverter market is estimated to record a CAGR of 11.1% from 2025 to 2031. The use of IoT and AI for better monitoring and remote administration of UPS systems is likely to continue to be a key trend in the market.
UPS and Inverter Market Analysis
The rising adoption of modular UPS systems, owing to their ability to aid in the adaptation to changing power requirements, is expected to create an opportunity for the growth of the market for UPS in the coming years. Further, the demand for renewable energy and innovations in inverter technology are expected to benefit the market for inverters during the forecast period. Moreover, the growing use of IoT and AI for better monitoring and remote administration is expected to emerge as a key trend in the UPS and inverter market in the coming years. Data centers account for a considerable amount of global energy usage, and this figure is only anticipated to rise as data demand rises. As per the 2023 AFL data, globally, data centers utilize ~3% of total energy output, with hyperscale data centers accounting for 20% of global data center electricity demand, which increased to 50% in 2020. Microsoft's 700,000-square-foot data center in Chicago, Illinois, is one of the world's largest facilities, capable of consuming 198 MW of power.
UPS and Inverter Market Overview
A UPS provides backup power and prevents equipment damage in the case of a grid power outage. UPS systems are extensively used in data servers, computer systems, industrial environments, and laboratories. As a UPS safeguards different types of connected equipment in a plant, it is particularly suitable for facilities located in terrains susceptible to power outages or other power quality issues. For example, UPS systems are often used to back computers and servers since sudden power outages can result in data loss. An inverter converts electrical power from direct current (DC) to alternating current (AC). These systems are utilized in a wide range of applications, including small automobile adapters, household or office applications, and large grid systems. During a power outage, it converts DC electricity stored in a battery, solar panel, or rectifier into AC power, which can subsequently be used by different household equipment such as a refrigerator or television. Solar power systems transform the DC electricity supplied using solar panels into AC power for residential or other large-scale usage.
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UPS and Inverter Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
UPS and Inverter Market: Strategic Insights
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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UPS and Inverter Market Drivers and Opportunities
Increase in Requirement for UPS and Smart Inverters in Smart Buildings Favors Market
Smart buildings use modern building automation technologies to optimize energy usage. A UPS provides supplemental power during high-demand periods, lowering the overall energy consumption of buildings. Moreover, its use reduces energy expenses and leads to sustainable and eco-friendly construction. Moreover, UPS can contribute to the overall reliability of a building's electrical system. It can function as a buffer between the electrical system and external power sources, reducing voltage fluctuations and improving power quality. Its role also ensures that this system runs more efficiently, reducing wear and tear on equipment and increasing its lifespan.
Focus on Energy Efficiency in Data Centers to Generate Growth Opportunities in Market
Higher power loads in data centers necessitate the installation of larger UPS systems to support them. Energy-efficient UPS systems may include an "eco-mode," which is characterized by their ability to reduce electricity losses. Running UPS systems in eco-mode can lower their energy expenses by up to 2%. An ENERGY STAR-certified UPS can help cut financial losses associated with energy consumption by 30–55% compared to a standard UPS system. For example, a 1,000 kVA UPS used in a large data center could help save US$ 18,000 annually. In addition, as per the Department of Energy (DOE), a 15,000-square-foot data center operating at 100 watts per square foot requires 13,140 megawatt hours of energy yearly for IT equipment. Extending the efficiency of UPS systems supplying this much power by 90–95% would result in the 768,421 kWh energy reduction annually, cutting down the energy cost by almost US$ 90,000 at a rate of US$ 0.12 per kWh. Thus, the focus on energy efficiency in data centers is expected to bolster the UPS and inverter market during the forecast period.
UPS and Inverter Market Report Segmentation Analysis
Key segments that contributed to the derivation of the UPS and Inverter market analysis are type, UPS type, inverter rating, and application.
- Based on type, the market is categorized into UPS and inverter. The proximity segment dominated the market in 2024.
- On the basis of UPS type, the market is divided into standby, line-interactive, and online. The online segment dominated the market in 2024.
- Based on inverter rating, the UPS and inverter market is segmented into less than 5 kW, 5KW to 100 kW, 100KW to 500 kW, and above 500 kW. The 5KW to 100 kW segment dominated the market in 2024.
- Based on application, the UPS and Inverter market is segmented into commercial, residential, and industrial. The industrial segment dominated the market in 2024.
UPS and Inverter Market Share Analysis by Geography
The geographic scope of the UPS and Inverter market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America. North America accounted for a significant market share in 2024. It is an industrially and economically advanced region owing to the presence of well-established data centers. In October 2024, Microsoft announced its plan to develop three data center campuses in Licking County, with US$ 1 billion of investment in the initial stage. The campuses will be developed in New Albany, Heath, and Hebron, with one building on each campus at first; nonetheless, it plans to accommodate several buildings at each site later. The campuses will help Microsoft expand its cloud infrastructure to support global growth in digital services. Apart from these developments, the rise in investment in smart grids in the region also contributes to the increased demand for UPS and inverters. In 2023, the DoE announced US$ 3.5 billion in grants to increase wind and solar power capacity, fortify power lines against extreme weather, integrate batteries and electric vehicles, and develop microgrids to keep lights operational during power outages.
UPS and Inverter Market Report Scope
UPS and Inverter Market News and Recent Developments
The UPS and Inverter market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the UPS and Inverter market are listed below:
- Su-Kam Power Systems Ltd., a leading player in the power backup and solar solutions industry, has set an ambitious target of achieving INR 6,000 crore in revenue over the next 5 years. Expecting to close the current financial year with a turnover of INR 700 crore, the company is positive to reach the targeted figure of revenue by 200% YoY (year-over-year) growth in turnover. (Source: Su-Kam Power Systems Ltd, Press Release, July 2024)
- Delta announced the launch of its latest innovation, the UZR Gen3 Series of UPS Li-ion Battery System. Designed specifically for the data center industry, this state-of-the-art lithium-ion battery rack solution is engineered for unmatched safety, reliability, and total cost of ownership (TCO) reduction. The UZR Gen3 Series represents a significant leap forward in critical power management, offering seamless integration with existing Delta solutions, including electrical power equipment, cooling systems, and other essential electrical hardware. (Source: Delta, Press Release, June 2024)
UPS and Inverter Market Report Coverage and Deliverables
The “UPS and Inverter Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- UPS and inverter market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- UPS and inverter market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- UPS and inverter market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the UPS and Inverter market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
Asia Pacific dominated the UPS and inverter market in 2024.
The increase in requirement for UPS and smart inverters in smart buildings, and the focus on energy efficiency in data centers are the major factors bolstering the market.
The use of IoT and AI for better monitoring and remote administration of UPS systems is likely to prevail as a key trend in the market.
Eaton, Cyber Power Systems, Schneider Electric, ABB Ltd, and Toshiba Corporation are among the leading players in the UPS and inverter market.
The UPS and Inverter market is expected to reach an estimated value of US$ 174.04 billion by 2031.
The market is expected to grow at a CAGR of 11.1% over the forecast period.
The List of Companies - UPS and Inverter Market
- Schneider Electric SE
- ABB Ltd
- TOSHIBA CORPORATION
- Cyber Power Systems (USA) Inc
- Eaton Corp Plc
- Emerson Electric Co
- Delta Electronics Inc
- Legrand SA
- Kirloskar Electric Company
- OMRON Corp
- Exide Industries Ltd
- Luminous Power Technologies Pvt Ltd
- Microtek
- Su-Kam Power Systems Ltd.
- Kehua Data Co Ltd
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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