Market Overview

The global Battery Backup market was valued at USD 16.34 billion in 2022 and expected to grow at a CAGR of 3.5% during the forecast period. Battery backup, also known as an uninterruptible power supply (UPS), is a device that provides backup power to critical electrical devices and systems in the event of a power outage. It essentially functions as a power reservoir, storing electrical energy in a battery and supplying it to devices as needed.

Battery backup systems typically consist of a battery bank, a charging system, and an inverter that converts the DC power stored in the battery into AC power that can be used to power devices. When the primary power source is interrupted, the battery backup system automatically switches over to the stored battery power, providing uninterrupted power to the connected devices.

Battery backup systems are commonly used to provide backup power to critical devices and systems in a variety of industries, including healthcare, telecommunications, finance, and data centers. They are also used in homes and small businesses to protect computer systems, home entertainment systems, and other critical electronics from power outages.

Battery backup systems are available in a range of sizes and capacities, from small portable units designed for laptops and other mobile devices, to large-scale systems that can provide backup power to entire buildings or campuses. The choice of system depends on the specific needs of the application, including the power requirements of the devices being protected, the expected duration of the power outage, and the budget available for the system.

The battery backup market is a rapidly growing industry, driven by the increasing demand for uninterrupted power supply in various applications. Battery backup systems are used extensively in industries such as healthcare, telecommunications, finance, and data centers, where uninterrupted power is critical to business operations.

The COVID-19 pandemic has further accelerated the growth of the battery backup market, with the increase in remote work and reliance on digital technologies leading to an increased demand for reliable power supply solutions.

The market for battery backup systems is segmented by type, application, and geography. By type, the market is segmented into offline/standby, line-interactive, and online/double-conversion systems. By application, the market is segmented into data centers, telecommunication, healthcare, residential, and commercial.

North America is the largest market for battery backup systems, driven by the high demand for uninterrupted power supply in industries such as telecommunications and data centers. Asia Pacific is the fastest-growing market, driven by the rapid growth of the IT and telecommunications industries in the region.

The major players in the battery backup market include APC by Schneider Electric, Eaton, Emerson Electric, General Electric, Legrand SA, and Tripp Lite. These companies are investing heavily in research and development to develop new and innovative battery backup solutions to meet the growing demand for reliable power supply in various industries.

Report Scope

Impact of COVID

The COVID-19 pandemic has had a significant impact on the battery backup market. The pandemic has resulted in a surge in demand for reliable power supply solutions, particularly in the healthcare and telecommunications industries, which has led to an increase in demand for battery backup systems.

With the increase in remote work and reliance on digital technologies, there has been a growing need for uninterrupted power supply solutions, leading to an increased demand for battery backup systems in residential and commercial applications as well.

However, the pandemic has also resulted in disruptions to supply chains, production processes, and logistics, leading to delays in the delivery of products and increased costs for manufacturers. The uncertainty caused by the pandemic has also led to a slowdown in investment in new projects and delayed decision-making by customers.

Despite these challenges, the battery backup market has shown resilience and is expected to continue growing in the coming years. The pandemic has highlighted the importance of reliable power supply solutions, and the growing demand for battery backup systems is expected to drive innovation and new product development in the market.

Storage System Type Insights

The BTM segment holds the larger market share in the battery backup market. Behind-the-meter systems are installed on the customer side of the utility meter and are primarily used to store excess energy generated by renewable energy sources such as solar panels, for later use. The growing adoption of renewable energy sources and the need to reduce energy costs are driving the growth of the BTM segment in the battery backup market.

The FTM segment, which includes utility-scale battery storage systems, is also expected to witness significant growth in the coming years. These systems are used to store energy generated by power plants, wind farms, and other large-scale energy sources, and can be used to provide backup power during peak demand periods or in the event of a power outage. The increasing demand for grid stabilization and the integration of renewable energy sources into the grid are driving the growth of the FTM segment in the battery backup market.

Element Type Insights

The battery segment holds the larger market share in the battery backup market. The increasing demand for batteries in various applications, including residential, commercial, and industrial sectors, is driving the growth of the battery segment in the battery backup market.

Other components such as power conditioning systems, inverters, and controllers are also essential elements of battery backup systems. These components are used to convert the stored energy into usable power and provide a stable supply of power to the connected devices. The growing demand for uninterrupted power supply solutions and the increasing adoption of renewable energy sources are driving the growth of the other components segment in the battery backup market.

Battery Type Insights

The lithium-ion batteries segment holds the largest market share in the battery backup market. The increasing demand for lithium-ion batteries in various applications, including residential, commercial, and industrial sectors, is driving the growth of the lithium-ion batteries segment in the battery backup market. Lithium-ion batteries are widely used in portable electronic devices, electric vehicles, and renewable energy storage systems due to their high energy density, low self-discharge rate, and longer lifespan.

The advanced lead-acid batteries segment is also expected to witness significant growth in the coming years. These batteries offer a cost-effective solution for energy storage applications and are widely used in backup power systems, telecommunications, and uninterruptible power supply (UPS) systems.

Flow batteries, which are used for large-scale energy storage applications, are also expected to witness significant growth in the coming years. These batteries offer a longer lifespan and higher efficiency than traditional batteries, making them an ideal solution for large-scale energy storage applications.

Overall, the lithium-ion batteries segment is expected to continue to hold the largest market share in the battery backup market, driven by the increasing demand for portable electronic devices, electric vehicles, and renewable energy storage systems. However, the advanced lead-acid batteries and flow batteries segments are also expected to witness significant growth in the coming years, driven by the growing demand for cost-effective and efficient energy storage solutions.

Connection Type Insights

The on-grid battery backup segment holds a larger market share compared to the off-grid segment. The on-grid connection type is widely used in residential, commercial, and industrial sectors to manage electricity demand, reduce energy costs, and improve grid stability. On-grid battery backup systems are integrated with the grid and can provide backup power during power outages or peak demand periods. These systems can also be used to store excess energy generated by renewable energy sources such as solar and wind power.

The off-grid connection type is also expected to witness significant growth in the coming years, driven by the growing demand for reliable and independent power sources in remote areas and off-grid communities. Off-grid battery backup systems are not connected to the grid and are designed to provide reliable and independent power to households, businesses, and communities in remote or rural areas.

The on-grid battery backup segment is expected to continue to hold the largest market share in the battery backup market, driven by the increasing demand for energy management and grid stability solutions. However, the off-grid battery backup segment is also expected to witness significant growth in the coming years, driven by the growing demand for reliable and independent power sources in remote areas and off-grid communities.

Regional Insights

North America is the largest market for battery backup systems, accounting for a significant share of the market. The high demand for uninterrupted power supply in industries such as telecommunications and data centers is driving the growth of the market in this region.

The Asia Pacific region is the fastest-growing market for battery backup systems, driven by the rapid growth of the IT and telecommunications industries in the region. The increasing demand for reliable power supply solutions in residential and commercial applications is also contributing to the growth of the market in this region.

Europe is also a significant market for battery backup systems, driven by the increasing adoption of renewable energy sources and the growing demand for reliable power supply solutions in industries such as healthcare and data centers.

Latin America and the Middle East and Africa regions are also expected to witness significant growth in the battery backup market in the coming years, driven by increasing investments in the IT and telecommunications industries and the growing demand for reliable power supply solutions in these regions.

Competitive Analysis

Some of the major companies operating within the market are BYD Company Limited (China), General Electric (US), Hitachi, Ltd. (Japan), Honeywell Corporation (US), LG Energy Solutions CO., Ltd. (South Korea), Panasonic Corporation (Japan), SAMSUNG SDI Co., Ltd. (South Korea), Siemens AG (Germany), Tesla, Inc. (US), Toshiba Corporation (Japan), ABB (US), and Others. These players are focusing on product innovation, expansion, and partnerships to strengthen their market position and meet the growing demand for Battery Backup globally.

Recent News

·         In March 2022, Retriev Technologies, the most comprehensive lithium battery recycler in North America and the pioneer in end-of-life battery management, has acquired Battery Solutions, the North American leader in sustainable, end-to-end management solutions for end-of-life batteries and consumer electronics.

Why to buy this Report?

The report provides quantitative and qualitative aspect for the market in terms of value and volume, along with supporting market trends, challenges, restraints.

The report provides an in depth analysis from both production and consumption point of view at the regional and country level. Key Factors considered within the report scope are Production capacity by countries/regions, average price, consumption ratio, revenue earned and gross margin.

The report provides competitive analysis of around 30-50 companies operated in the market, these companies are bifurcated into niche players, the leaders and major contenders. The companies are analyzed in terms of following factors such as:

§  Business Model

§  Production Capacity, Revenue, Sales, Gross Margin

§  Key Business Strategy

§  SWOT Analysis

In terms of competitive landscape, the report provides distinctive factors that would help the end user in taking a key decision within the business:

§  Company Share Analysis from 2018-2022

§  Company Analysis by Revenue and Sales

§  Company Production Capacity, Gross Margin

§  Company Share Analysis by Application/End Use

§  Company Share Analysis by Product/Specification

Frequently Asked Questions

·         What is the market size and growth projections?

·         What is the market size and growth projection for each of the market segments and sub-segments across Countries & Regions?

·         What are the top performing segments, and countries / regions of each of the markets?

·         What is the market size and growth rate across key countries / regions?

·         How big is the global & regional market in terms of revenue and volume?

·         How far market will grow in forecast period in terms of revenue and volume?

·         What factors will influence demand and supply trends across each markets during the forecast period?

·         What are the technology trends shaping various markets?

·         Which country / region has more opportunities?

·         What is the COVID-19 impact on the market and how long will it take to recover?

·         Who are the key competitors of market Players?

·         What are the market share (%) of Key Players?

·         What are the Merger & Acquisition, New Product Launch, Recent Development within each of the Markets?

·         What are PEST analysis, Ecosystem Analysis, Porter's Five Forecast Analysis, Ansoff Matrix, and SWOT Analysis among other analyses for diverse markets?