The backup power market comprises backup batteries, power banks, portable chargers and solar chargers that provide uninterrupted power supply during power outages. There has been a rise in demand for these products as power outages have become more frequent due to aging electrical infrastructure and extreme weather conditions in many parts of the world. Backup batteries ensure critical operations continue and data/ valuables remain protected during outages. Being portable and able to fully charge multiple electronic devices on-the-go, power banks and solar chargers are seeing wider adoption.
The Global Backup Power Market is estimated to be valued at US$ 2.66 billion in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the backup power market are 3M Company, Amphenol Corporation, Sumitomo Electric Industries, Ltd., Molex LLC, TE Connectivity Ltd., Prysmian Group, W. L. Gore & Associates, Inc., Axon' Cable, E.I. du Pont de Nemours and Company (DuPont), BizLink Technology, Yamaichi Electronics Co., Ltd., Omron Corporation, Hitachi, Ltd., Samtec, Inc. and Furukawa Electric Co., Ltd. These players are focusing on developing high-capacity batteries, smart power banks and weather-resistant solar chargers to meet the diverse needs of customers and gain more market share.
The growing Backup Power Market Demand for uninterrupted power across industries and sectors presents significant growth opportunities for players. Moreover, the rising trend of remote working and emphasis on business continuity is prompting more organizations to invest in backup solutions. Market players are also eyeing emerging economies in Asia, Latin America and Middle East for expansion as these regions continue to experience infrastructure issues and see a rise in discretionary income.
Market Drivers:
Rising instances of power outages across both developed and developing nations due to aging electrical grid infrastructure and extreme weather conditions is a key Backup Power Market Growth driver. According to data, weather-related outages in the US increased by over 60% from 2000 to 2020.
2. Growing reliance of individuals, industries and critical services on electricity and constant power supply is prompting more users to invest in battery backups and portable power devices for backup during grid failures. Remote work setups, healthcare equipment, data centers all require continuous uptime.
Market Restraints:
High initial costs of lead-acid backup batteries, inverters and generators remains a major constraint for widespread adoption, especially in price-sensitive developing markets. Cheaper Chinese imports also pose pricing challenges.
2. Stringent regulations around the manufacturing, transportation and disposal of lead-acid batteries increase operating expenses for players. Rules around shipping and storing lithium-ion batteries also add to compliance cost.
Segment Analysis
The Backup Power Market Regional Analysis can be segmented based on the power type, by end-user, and by battery type. Based on power type, the diesel generator segment dominates the market and is expected to continue dominating during the forecast period. Diesel generator provides long runtime support with high power density and are widely adopted for critical applications in the commercial and industrial sector. By end-user, the industrial sector holds the largest share in the backup power market owing to the growing requirement of uninterrupted power supply across industries like IT/telecom, oil & gas, healthcare, etc. The commercial sector is expected to witness the fastest growth due to increasing adoption of backup diesel generators to support critical data centers and telecom towers. By battery type, VRLA batteries dominates the market and are expected to continue dominating owing to the benefits like maintenance-free operation and higher storage capacity.
Global Analysis
Asia Pacific dominates the global backup power market and is expected to witness the fastest growth during the forecast period. The growth in the region can be attributed to the increasing investment in renewable energy integration and rising focus on grid reliability in developing countries like China and India. Countries like China, India, and Japan are witnessing significant uptake of backup power to support critical infrastructure and industrial establishments. North America holds the second largest share in the global market majorly driven by frequent power outages in the US and replacement demand for aging backup power infrastructure. Growing data center construction activities and increasing exploration & production of oil and gas are driving the backup power adoption in the region. Europe is another prominent region owing to stringent power reliability regulations and increasing investments to improve grid resilience.
Get more insights: Backup Power Market
For More Insights Discover the Report In language that Resonates with you
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
