Residential Backup Power Market Size

Residential Backup Power Market size was valued at USD 11.96 billion in 2023 and is poised to grow from USD 12.87 billion in 2024 to USD 23.12 billion by 2032, growing at a CAGR of 7.6% during the forecast period (2025-2032).

The increasing dependence on electric-powered appliances in homes due to urbanization and a fast-paced lifestyle has made it necessary for homes to have a consistent supply of electric power. The rising power cuts due to various natural disasters have enhanced the adoption of residential backup power. Consumers use different technologies for standby power such as power generators. The growing adoption of renewable energy has enhanced the usage of battery energy storage and fuel cells in the past few years.

The rise in destructive events such as hurricanes, floods, and wildfires indicate that there is a need for dependable standby power supplies for homes and other properties. Such situations can lead to power outages whereby the electrical grid cannot supply electricity for a long time. Systems like generators and batteries built for residential use have provisions for standby power during the rescue phases of natural calamities and natural disasters. Demand for residential backup power systems in the global residential backup power market industry is also on the rise due to growing awareness of the significance of backup power during emergencies.

The expansion of the residential backup power market is increasingly being facilitated by the broader adoption of smart home technologies such as smart appliances, smart lighting, and home security systems. These systems can typically only operate with a stable power supply and can become disabled during a power outage. In turn, smart homes lose much of their convenience and safety-related advantages. Residential backup power ensures continuous operation of this technology, so homeowners would never be cut off from the services it provides.

In December 2023, the European Commission, together with the governments of Australia, the U.S., and Canada, supported a new initiative to promote battery storage in the global transition to low-emission electricity. This initiative underscores the growing need for advanced energy storage technologies to support the integration of renewable energy sources such as wind and solar into national grids. By fostering international cooperation, the initiative seeks to drive innovation, investment, and policy alignment to scale up battery storage infrastructure, ensuring a stable, efficient, and decarbonized energy future.

In April 2022, Eaton announced that it is constructing a new property for its critical power systems, such as energy storage and UPS, in Vantaa, Finland, incorporating all existing activities into a much larger location. The construction of the plant is expected to be completed by 2023. This new facility, designed to accommodate the company's expanding energy storage and uninterruptible power supply (UPS) operations, consolidates Eaton’s existing activities into a larger, technologically advanced location. The new site is expected to bolster the company’s production capacity, research & development (R&D) capabilities, and supply chain efficiency, ultimately enhancing its ability to cater to the growing demand for resilient energy solutions in Europe and beyond.

In March 2022, Mitsubishi Heavy Industries Engine & Turbocharger, Ltd. (MHIET), which is a subsidiary of the Mitsubishi Heavy Industries (MHI) Group, 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. The MGS-R Series is designed to offer high efficiency, durability, and rapid response capabilities, ensuring data centers can withstand power outages and fluctuations while minimizing operational disruptions. With this product launch, MHIET aims to strengthen its presence in the mission-critical power sector, addressing the evolving needs of digital infrastructure and energy resilience in high-growth markets.