Backup Power Market is estimated to Witness Growth Owing to Rising Power Outages
The backup power market comprises products such as generators, UPS systems, and batteries that provide emergency power supply during power outage situations. Backup power ensures uninterrupted operations of critical infrastructure and prevents revenue losses for businesses. The market experienced higher demand during the pandemic due to growing dependence on healthcare facilities and internet connectivity. The Global Backup Power Market is estimated to be valued at US$ 20.52 Billion in 2024 and is expected to exhibit a CAGR of 3.1% over the forecast period 2024 to 2031.
Key players operating in the backup power market are HP Inc. (United States), Epson Corporation (Japan), Canon Inc. (Japan), Roland DG Corporation (Japan), Mimaki Engineering Co., Ltd. (Japan), Seiko Epson Corporation (Japan), DuPont de Nemours, Inc. (United States), Agfa-Gevaert N.V. (Belgium), Fujifilm Holdings Corporation (Japan), Sun Chemical Corporation (United States). Backup power solutions enable uninterrupted operations of data centers, healthcare facilities, telecom infrastructure and ensure zero downtime. The global market is witnessing increased demand from sectors such as manufacturing, IT & telecom, and utilities.
Key Takeaways
Key players: Key players HP Inc., Epson Corporation, Canon Inc., and Roland DG Corporation dominate the global market with wide service coverage and new product innovations.
Growing demand:
The demand is growing due to increasing power outages and a focus on reducing economic losses. Critical industries rely on Backup power market share systems to maintain operations during power failures.
Global expansion: Leading market players are expanding globally through strategic acquisitions and partnerships to cater to the growing need for reliable backup power worldwide. Internationalization of operations helps achieving scale.
Market Key Trends
The backup power market is driven by the trend of increasing reliance on continuous electricity supply. Critical infrastructure and businesses experience substantial losses during power outages prompting increased investments to ensure zero downtime. Adoption of solar generators and lithium-ion batteries is rising to provide eco-friendly and efficient backup solutions. Manufacturers are focusing on developing smart and digitally-enabled products with remote monitoring capabilities and longer run times.
Porter's Analysis
Threat of new entrants: The backup power market has a moderate threat of new entrants as it requires high initial investment in manufacturing and R&D. Existing brands have strong customer loyalty which creates barriers.
Bargaining power of buyers: Buyers have moderate bargaining power in this market due to availability of substitutes. However, demand for reliable backup power increases bargaining power.
Bargaining power of suppliers: Components suppliers have low to moderate bargaining power due to availability of substitute components and inputs. Suppliers are dependent on a few large buyers.
Threat of new substitutes: The threat of substitutes is low to medium as alternative sources of emergency power, like generators, have limitations. Backup Power Market challenges and opportunities is emerging as a substitute in the backup power market.
Competitive rivalry: The market has high competitive rivalry due to presence of multiple global and regional players competing on technology, quality and pricing.
Geographical Regions
North America currently holds the largest share of the global backup power market in terms of value due to high demand from industrial, commercial and residential sectors. The growth can be attributed to power outages caused by natural disasters in the region.
Asia Pacific backup power market is expected to grow at the fastest rate during the forecast period owing to increasing investments in industrialization and infrastructure development. Economic development in countries like China and India is driving demand.
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