Backup Power Market
Backup Power Market - Global Industry Assessment & Forecast
Segments Covered
- By Type Diesel generators, Gas generators , Solar generators , Others
- By Product Standby power, Prime power, Peak shaving
- By Application Residential , Commercial, Industrial
- By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Snapshot
Base Year: | 2022 |
Forecast Years: | 2023 - 2030 |
Historical Years: | 2017 - 2021 |
Revenue 2022: | USD 20.5 Billion |
Revenue 2030: | USD 33 Billion |
Revenue CAGR (2023 - 2030): | 6.1% |
Fastest Growing Region (2023 - 2030) | Asia Pacific |
Largest Region (2022): | North America |
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The global Backup Power Market is valued at USD 20.5 Billion in 2022 and is projected to reach a value of USD 33 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 6.1% between 2023 and 2030.
Premium Insights
The Backup Power market is driven by several factors wherein climate change is a major driver, as it leads to more frequent and severe extreme weather events, requiring reliable backup power solutions to minimize the impact of power outages on homes and businesses. Aging power infrastructure in developed areas is also a key driver, prompting investments in backup power systems to ensure a steady supply of electricity. The integration of renewable energy sources like solar and wind power presents grid management challenges, necessitating backup power solutions to maintain stability during times of high demand or low supply.
- Continuous technological advancements that improve the efficiency, reliability, and affordability of backup power solutions play a significant role in the ongoing growth of this market
- North America generated more than 35.8% of revenue share in 2022
- Asia Pacific is expected to grow at the quickest rate from 2023 to 2030
- Diesel generators segment accounted for the largest market growth of 40.5% in 2022
- Standby power segment accounts for the most significant market share of 42.2% in 2022
- Commercial segment dominated the market in 2022 with market share of 39.8%
Economic Insights
The Backup Power market is thriving and expanding due to various factors. This includes a rising demand for backup power solutions caused by more frequent extreme weather events and aging power infrastructure. Additionally, strict regulations and government initiatives focusing on business continuity and data protection also contribute to the market's economic dynamics, as businesses allocate resources to meet these standards. The backup power market's economic resilience is further enhanced by technological advancements, stimulating innovation and efficiency in energy storage solutions.
Backup Power Market Size, 2022 To 2030 (USD Billion)
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Top Market Trends
- Increasing demand for reliable power: The growth of the backup power market is being fueled by the rising need for dependable electricity, essential for various applications such as data centers, medical facilities, and critical infrastructure.
- Advances in battery technology: The efficiency and cost-effectiveness of backup power systems are being improved by technological advancements in battery technology, including the creation of lithium-ion batteries.
- Growing awareness of the need for disaster preparedness: The market is experiencing further growth due to businesses and organizations investing in backup power systems, which is a response to the increasing awareness of disaster preparedness.
- Rising adoption of renewable energy sources: The growing popularity of renewable energy sources, like solar and wind power, which frequently have fluctuations, is additionally fueling the need for backup power systems.
- Increasing demand for microgrids: The increasing backup power market is being fueled by the rising need for microgrids, which are small power grids capable of operating independently from the main power grid.
Market Segmentation
Backup Power The global Backup Power market can be categorized into Type , Product , Application , Region. The Backup Power market can be categorized into Diesel generators, Gas generators , Solar generators , Others based on Type . The Backup Power market can be categorized into Standby power, Prime power, Peak shaving based on Product . The Backup Power market can be categorized into Residential , Commercial, Industrial based on Application . The Backup Power market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.
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Based on Type
Diesel generators holds the largest share
Diesel generators plays a crucial role in the Backup Power market, holding the largest share due to their unmatched reliability, cost-effectiveness, versatility, and easy maintenance. They are widely recognized for their strong performance and ability to provide a steady power supply even in challenging conditions, making them essential in critical applications such as data centers, hospitals, and important infrastructure. They are adaptable for various applications, ranging from small portable units to large industrial generators. Moreover, the straightforward maintenance requirements of diesel generators make them a practical choice when regular maintenance may not be feasible.
Based on Product
Standby power accounts for largest market share
The standby power is expected to dominate the Backup Power market due to their affordability and user-friendly nature. Standby power is a backup power option utilized to maintain device functionality during power outages, as well as to power devices like laptops and smartphones that are not consistently in use.
Based on Application
Commercial Held largest market share
In 2022, the commercial sector dominated the Backup Power market, with the largest market share. The increasing demand for uninterrupted power due to businesses' reliance on digital technologies and real-time operations, making them vulnerable to power outages. The significant cost of downtime also motivates businesses to invest heavily in backup power systems. Additionally, ongoing technological advancements improve the efficiency, reliability, and cost-effectiveness of backup power solutions, making them more appealing to businesses seeking reliable energy backup solutions.
Based on Region
North America will lead the market
The Backup Power market in the North America region is set to dominate because of the increase in extreme weather events caused by climate change, such as hurricanes, tornadoes, and wildfires, has led to a growing demand for reliable backup power solutions from both residential and commercial sectors. The rising adoption of distributed energy resources, like solar and wind power, also presents challenges in managing the power grid, making backup power systems essential for integrating these resources and maintaining stability during periods of high demand or low supply. Stricter government regulations regarding power reliability and business continuity in North America are also pushing businesses to invest in backup power solutions for compliance and to protect their operations. Furthermore, advancements in technology have improved the efficiency, reliability, and cost-effectiveness of backup power solutions, making them more accessible and appealing to a wider range of customers.
Competitive Landscape
The Backup Power market is highly competitive, with key players like Generac Power Systems, Eaton Corporation, and Schneider Electric dominating the industry. These established companies offer a wide range of backup power solutions for different sectors, utilizing their extensive product portfolios, global presence, and technological expertise to stay ahead. Tesla and Enphase Energy are emerging players that are making significant advancements in the residential and renewable energy sectors, introducing innovative energy storage solutions. With the growing focus on sustainable and efficient power solutions, competition is fierce, leading companies to invest in research and development to introduce cutting-edge technologies that meet the changing needs of businesses and consumers.
The players in the global Backup Power market include Atlas Copco, Aggreko, LG Chem, Ballard Power Systems, Bloom Energy, APR Energy, East Penn Manufacturing, Cummins, AISIN SEIKI, Alpine Power Systems, Briggs & Stratton, Eaton, Caterpillar, Doosan Fuel Cell America. among others.
Recent Market Developments
- March 2022: Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), which is a subsidiary of the Mitsubishi Heavy Industries (MHI) Group, has introduced the MGS-R Series of diesel generator sets. This new series has been designed to meet the increasing demands of the digital economy and is specifically aimed at data centers in Asian and Middle Eastern markets. Additionally, these generator sets can serve as a dependable backup power option for various commercial establishments like shopping malls and office buildings.
- June 2022: The introduction of the iGreen Version 2.0 has brought forth a new range of fuel-efficient power generators by Oil Engines Ltd. With the R550 series engines, these generators offer a combination of compactness, efficient fuel consumption, and excellent power quality.
Segmentation of the Global Backup Power Market
Parameter | Details |
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Segments Covered |
By Type
By Product
By Application
By Region
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Regions & Countries Covered |
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Companies Covered |
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Report Coverage | Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis |
Pricing and purchase options | Avail of customized purchase options to meet your exact research needs. Explore purchase options |
FAQ
Frequently Asked Question
What is the global demand for Backup Power in terms of revenue?
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The global Backup Power valued at USD 20.5 Billion in 2022 and is expected to reach USD 33 Billion in 2030 growing at a CAGR of 6.1%.
Which are the prominent players in the market?
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The prominent players in the market are Atlas Copco, Aggreko, LG Chem, Ballard Power Systems, Bloom Energy, APR Energy, East Penn Manufacturing, Cummins, AISIN SEIKI, Alpine Power Systems, Briggs & Stratton, Eaton, Caterpillar, Doosan Fuel Cell America..
At what CAGR is the market projected to grow within the forecast period?
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The market is project to grow at a CAGR of 6.1% between 2023 and 2030.
What are the driving factors fueling the growth of the market.
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The driving factors of the Backup Power include
- Rising Frequency of Power Outages
Which region accounted for the largest share in the market?
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North America was the leading regional segment of the Backup Power in 2022.