Backup Power Market Analysis

Backup Power Market Overview:

Backup Power Market Size was valued at USD 16.5 Billion in 2022. The Backup Power market industry is projected to grow from USD 17.5 Billion in 2023 to USD 29.08 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.50% during the forecast period (2023 - 2032). Increased demand for uninterrupted power supply (UPS), the growth in power outages, and the rising need for reliable power backup solutions are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Backup Power Market Trends

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  Growing demand for uninterrupted power supply (UPS) is driving the market growth

  
  

Market CAGR for backup power is driven by the rising demand for uninterrupted power supply (UPS). There is an increasing need for reliable power supply across many industries due to society's increasing reliance on technology and digital infrastructure. The market is growing due to critical function backup power solutions like generators and UPS guaranteeing uninterrupted electricity during grid failure or power outages.

In recent years, power outages brought on by natural disasters, extreme weather, and deteriorating electrical infrastructure have increased in frequency. The disruption of vital services and considerable financial losses can result from these outages. Backup power systems are in high demand since they provide a dependable power supply during catastrophes. Data centers need a consistent and dependable power source to prevent data loss and sustain uninterrupted operations. The expansion of cloud computing and digital services has increased the number of data centers. For Instance: the International Data Centers (IDC) reports that the total number of desktops shipped worldwide in the fourth quarter of 2022 was around 17.98 million units., down from just over 23.37 million in the same period of the year before.

The rapid industrialization, urbanization, and infrastructural expansion in emerging economies also fuel the demand for backup power solutions. Industries, including manufacturing, healthcare, IT, and telecom, as well as oil and gas, depend on an uninterrupted power supply to run smoothly, which supports market expansion. As a result, it is anticipated that demand for backup power will increase throughout the projection period due to the rising demand for uninterrupted power supply. Thus driving the Backup Power market revenue.

Backup Power Market Segment Insights:

Backup Power Type Insights

The Backup Power Market segmentation, based on type, includes diesel generators, gas generators, solar generators, and others (such as wind turbines, battery systems, etc.). The diesel generator segment dominated the market, accounting for the maximum market revenue due to its popularity and easy-to-install feature. A diesel generator is frequently utilized to offer a dependable source of electricity during a power outage. Diesel generators are the best choice for backup power since they are dependable, efficient, and can supply a lot of power for a long time. It makes it possible for households and businesses to continue operating in the case of power loss. Moreover, diesel generators require less maintenance than other generator kinds, as well. Diesel generators are frequently used as backup power systems in mission-critical institutions like hospitals, telecommunications towers, and safety and security.

Backup Power Application Insights

The Backup Power Market segmentation, based on application, includes standby power, prime power, and peak shaving. The standby power generated the most revenue due to the rising demand for consumer electronics, for which standby power is the most cost-effective alternative given their low power consumption. Additionally, the competition from mobile devices like laptops and desktops and sales of desktop personal computers have generally decreased; however, this is anticipated to change as more professionals choose to work from home.

Figure 1: Backup Power Market by Application, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Backup Power End User Insights

The Backup Power Market segmentation, based on End User, includes residential, commercial, industrial, and others (such as healthcare, data centers, etc.). The commercial category generated the most income due to the worldwide electricity consumption. Commercial consumers choose backup power solutions to carry out their company operations during power outages due to power outages and unstable grid electricity, fuelling the market's expansion.

Backup Power Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Backup Power market will dominate this market, owing to residents' high adoption of power backup solutions. In addition, the growing investment and technology development will boost market growth in this region.

Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Backup Power Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Backup Power market accounts for the second-largest market share due to the increasing industrial development. Further, the German Backup Power market held the largest market share, and the UK Backup Power market was the fastest-growing market in the European region.

The Asia-Pacific Backup Power Market is expected to grow at the fastest CAGR from 2023 to 2032 due to rising urbanization, increasing industrialization and rising investment. Moreover, China's Backup Power market held the largest market share, and the Indian Backup Power market was the fastest-growing market in the Asia-Pacific region.

Backup Power Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Backup Power market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Backup Power industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Backup Power industry to benefit clients and increase the market sector. In recent years, the Backup Power industry has offered some of the most significant advantages to residential and non-residential sectors. Major players in the Backup Power market, including Caterpillar Inc., Cummins Inc., Generac Power Systems Inc., Kohler Co., MTU Onsite Energy Corporation, Himoinsa S.L., Atlas Copco AB, Mitsubishi Heavy Industries Ltd., Briggs & Stratton Corporation, Schneider Electric SE, Eaton Corporation, Aggreko Plc, Wärtsilä Corporation, Yanmar Co. Ltd., Doosan Corporation., and others, are attempting to increase market demand by investing in research and development operations.

Mitsubishi Group is a collection of independent, multinational Japanese businesses operating in many sectors. The Mitsubishi Group, established by Yataro Iwasaki in 1870, is historically descended from the Mitsubishi Zaibatsu. This united business operated from 1870 until 1946. During the occupation of Japan after World War II, the corporation was dissolved. The organization's former members still use the Mitsubishi name and trademark. Although the collection of businesses engages in sporadic business collaboration, most notably through monthly executive "Friday Conference" meetings, they are technically separate and do not share common management. The group's four principal enterprises are Mitsubishi Corporation, a general trade corporation, Mitsubishi Electric, and Mitsubishi Heavy Industries, engaged in diverse manufacturing. MUFG Bank is the largest bank in Japan. In March 2022, the MGS-R series of diesel generator sets was produced by Mitsubishi Heavy Industries Engine & Turbocharger Ltd. The new series was created with data centers in the Asian and Middle Eastern markets in mind. Additionally, the new series works well as a backup power source for commercial structures like office complexes and shopping malls.

The Kirloskar Group is an Indian corporation with its main office in Pune and a manufacturing facility in Kirloskarvadi. The group exports to more than 70 European, Southeast Asian, and African nations. The Kirloskar Group is India's largest manufacturer of pumps and valves. Kirloskar Brothers Ltd., the group's flagship and holding firm, was founded in Kirloskervadi in 1888. It was the company that produced the first iron plow in modern India. A key component supplier for the Indian Arihant Nuclear Submarine organization in the engineering sector was the Kirloskar Group of enterprises. The company makes electrical equipment such as electric motors, transformers, and generators, as well as centrifugal pumps, engines, compressors, screw & centrifugal chillers, lathes and other similar items. In June 2022, Oil Engines Ltd. debuted a new model of its fuel-efficient power generators. The IGreen Version 2.0's R550 engine family offers compactness, fuel efficiency, and power quality.

Key Companies in the Backup Power market include

• Caterpillar Inc.


• Cummins Inc.


• Genrac Power Systems Inc.


• Kohler Co.


• MTU Onsite Energy Corporation


• Himoinsa S.L.


• Atlas Copco AB


• Mitsubishi Heavy Industries Ltd.


• Briggs & Stratton Corporation


• Schneider Electric SE


• Eaton Corporation


• Aggreko Plc


• Wärtsilä Corporation


• Yanmar Co. Ltd.


• Doosan Corporation

Backup Power Industry Developments

May 2022:Cisco opened its first data center in India. The company wants to meet customers' growing needs in terms of data localization and cyber defense. As a result, India is now the location of Cisco's Duo's first data center.

July 2022:the upgraded EcoStruxure Service Plan for 10-40 Kva Three-Phase Uninterrupted Power Supply (UPS) devices was announced by Schneider Electric. The EcoStruxure Service Plan offered clients round-the-clock remote and onsite knowledge and support by fusing traditional onsite services with digital capabilities made possible by the EcoStruxure architecture enabled by the Internet of Things.

April 2022:Eaton, a leader in solutions for massive data centers and an intelligent power management firm, revealed plans to expand its current operations by constructing a new campus for its essential power systems in Vantaa, Finland.

Backup Power Market Segmentation

Backup Power Type Outlook

• Diesel Generators


• Gas Generators


• Solar Generators


• Others (Such as Wind Turbines, Battery Systems, etc.)

Backup Power Application Outlook

• Standby Power


• Prime Power


• Peak Shaving

Backup Power End User Outlook

• Residential


• Commercial


• Industrial


• Others (such as Healthcare, Data Centers, etc.)

Backup Power Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America