by Backup power systems consist of generators and batteries that help supply electricity during power outages to ensure continuous operations. They provide an alternative source of electricity for homes, industries, and other establishments during unexpected utility power outages caused by events such as natural calamities.
The global Backup Power Market is estimated to be valued at US$ 2.66 billion in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The frequency and duration of power outages have been increasing significantly across the globe due to factors such as aging electric infrastructure and extreme weather events associated with climate change. This has propelled demand for backup power solutions from various end-use industries to ensure uninterrupted operations during power disruptions. Additionally, supportive government policies and regulations pertaining to backup power especially in developing countries will continue driving market growth over the forecast period.
SWOT Analysis
Strength: The backup power market offers reliable solutions to ensure continuous power supply during power outages. It provides uninterrupted power for critical operations and equipment.
Weakness: High initial installation and maintenance costs of backup power systems can restrain its adoption. Battery backup solutions also have limitations in terms of backup duration.
Opportunity: Increasing power outages due to extreme weather events and aging power infrastructure are driving the need for robust backup power solutions. Growing industrialization and urbanization also offer expansion opportunities.
Threats: Development of low-cost renewable and energy storage solutions can pose a threat. Rising raw material costs and supply chain disruptions also impact the market.
Key Takeaways
The Global Backup Power Market Size is expected to witness high growth driven by risks of power outages. The global Backup Power Market is estimated to be valued at US$ 2.66 billion in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030.
Rapid industrialization and infrastructure growth across Asia Pacific economies make it the fastest growing as well as dominating regional market. The Asia Pacific backup power market held the largest share in 2023, aided by rapid infrastructure development and industrialization in major economies like China and India.
Key players operating in the backup power market are 3M Compan, Atlas Copco, Caterpillar Inc, Cummins Inc, Aggreko, KOHLER, Schneider Electric, Ingersoll-Rand, Wartsila Corporation, and Rolls-Royce Power Systems. Key players are expanding through strategic acquisitions and new product launches to strengthen their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
