An uninterrupted power supply (UPS) can be described as an electrical gadget which supplies emergency power to another device or system connected to it when the main power line fails. UPS systems are critical for the functioning of many industries such as hospitals, banks, industrial units, living facilities, and many more. These emergency backup power systems not only keep the critical machinery running but also prevent data loss, reduce downtime, and protect the equipment from power surges and spikes.
Leading market research companies have painted a promising picture for the International UPS supplies market as well as the 3 phase UPS system market in the coming years.
What Is in Store for the UPS Global Market between 2017 and 2025?
Transparency Market Research predicts that the worldwide UPS market will gain a compound annual growth rate (CAGR) of 7.5 percent between 2017 and 2025 and will be worth $9,881.9 million by the end of the year 2025. If this prediction comes true, then it would be a significant growth from $5,201.9 million in 2016.
In terms of geographical area, back in 2016, Europe was the leading revenue generator of the UPS global market followed by North America. Transparency Market Research states that the trend will stay the same with the above-mentioned continents holding the fort between 2017 to 2025. Alongside the revenue growth, there will be stiff competition among some of the key players of the UPS market, such as Eaton Corporation, Mitsubishi Electric Corporation, Emerson Electric, and many more.
While the future seems bright for the UPS market worldwide, the same can also be said for the 3 phase UPS market.
What is a 3 Phase UPS?
The power circuit of the 3 phase UPS systems unites three types of alternating currents into one single phase by 120 degrees. Due to this unique combination, the power of the phase never declines down to zero and makes it possible for the UPS to handle more load. Thus, 3 phase UPS systems can be described as an electrical supply which merges together three separate sine waves that are generated from the National Grid.
Industries which require high kVA or kilo (Volt X Amp) generally use 3 phase UPS supplies. These specialized backup emergency supplies are used in sites which need to distribute a large amount of power over a great distance or area. Large buildings, industrial plants, data centers, healthcare, and its affiliated services are some of the common patrons of 3 phase UPS systems.
The Global 3 Phase UPS Market and Its Trends for 2018
The market research company Technavio in its market survey stated that the 3 phase UPS supply market will register a growth of 7 percent CAGR between the time period of 2017 and 2021. The primary influencing factor behind the revenue rise has been predicted to be the increase in the use of modular UPS systems. In terms of total accumulated revenue, Technavio predicts that the global market of 3 phase UPS will gain a total of $5.975 billion compared to 2016’s $4.294 billion. Thus, we can expect to see an incremental growth of $1.681 billion in the next four years.
Apart from revenue and growth predictions, the analysts at Technavio have also identified 3 emerging trends, which are going to dominate the 3 phase UPS global market between 2017 and 2021.
- Fall in Lithium-ion Battery Prices: The research analysts predict that the market price of lithium-ion battery will continue to fall during the above-mentioned forecast period. The prices had first started to go down a decade ago in 2007. In between 2007 and 2015, it was observed that the prices of the lithium-ion battery packs went down by 53 percent. Market analysts are predicting that there will be a further decline in the price by 50 percent between 2017 and 2021.
- Development of UPS Technology: Similar to all major technologies, the UPS supplies are also witnessing groundbreaking technical advancement and are assisting facilities and industries solve power-related issues. “End-users worldwide prefer smaller UPS systems because they require less space, leaving more space for core business activities”, says Thanikachalam Chandrasekaran, a market analyst by profession from Technavio.
- Rise in Demand for Energy Efficient UPS Systems: During the forecast period of 2017 and 2021, the market will see an increase in the green data centers all over the world. The high rate of carbon emissions as well as overall power consumption, especially in the U.S., will be fueling this growth in major developed countries. Analysts are predicting that the enterprises will become more aware as to how their actions are affecting the environment and will, in turn, focus on building energy efficient infrastructure and technologies. Green data centers true to their name employ renewable sources of energy and energy efficient emergency backup power for powering the facilities. The rise in green data centers will create a ripple effect on the economy and will boost the market of energy efficient UPS markets as well.
The Bottom Line:
In case the predictions hold true, a positive future lays ahead for the UPS global market and the 3 phase UPS market. Industries and major corporates are slowly and steadily becoming more ecologically conscious and are trying to incorporate energy efficient technologies to power and support them. So, UPS supplies will still play a major role in the companies’ productivity while using a different technology in the future.