Report ID: SQMIG20D2302
Report ID: SQMIG20D2302
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Report ID:
SQMIG20D2302 |
Region:
Global |
Published Date: May, 2025
Pages:
196
|Tables:
91
|Figures:
71
Global UPS Battery Market size was valued at USD 13.14 Billion in 2024 and is poised to grow from USD 15.16 Billion in 2025 to USD 47.34 Billion by 2033, growing at a CAGR of 15.3% during the forecast period (2026–2033).
The demand for environmentally friendly UPS battery technology grows as the world is more focused on environmental sustainability. The future of UPS battery technology is determined by innovation in recyclable materials, energy-efficient manufacturing, and environmentally friendly end-of-life management. Furthermore, the use of renewable energy and increased electric vehicle infrastructure drive demand for UPS batteries. In most regions, a mature power grid combined with periodic natural calamities creates an unstable power supply, leading to a greater need for reliable UPS systems to avoid downtime.
Moreover, advances in production, economies of scale, and increased production capacity have lowered the cost of lithium-ion batteries over time. This price decrease has brought lithium-ion UPS systems to a level with traditional lead-acid systems, stimulating demand across a range of industries. Thus, driving the global UPS battery market growth.
How Is 5G Expansion Fueling UPS Battery Demand?
As a result of the dramatic growth of telecommunications infrastructure and global deployment of 5G, power backup units that are trusted and high performance are needed desperately. Relatively to standard lead-acid solutions, lithium-ion UPS batteries are becoming favored because of additional benefits such as longer lifespan, faster charging times, and easier maintenance. Over the next few years, it is expected that the demand for high-end lithium-ion UPS batteries will considerably increase in urban and rural networks. This is due to telecom companies upgrading their network to accommodate growing data demand and guaranteeing smooth provision of services.
Market snapshot - 2026-2033
Global Market Size
USD 11.4 billion
Largest Segment
Li-Ion
Fastest Growth
Lead Acid
Growth Rate
15.3% CAGR
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Global UPS Battery Market is segmented by Rating, Product Type, Battery Type, Application and region. Based on Rating, the market is segmented into 5KVA, 5-<50KVA, 50-200KVA and >200KVA. Based on Product Type, the market is segmented into Off-Line/Standby, Line-Interactive and Online/Double Conversion. Based on Battery Type, the market is segmented into Lithium-Ion UPS Batteries, Lead-Acid UPS Batteries, Nickel-Cadmium UPS Batteries and Others. Based on Application, the market is segmented into Telecommunications, Data Centers and IT Infrastructure, Healthcare, Manufacturing and Industrial Processes, Financial Institutions, Military and Defense and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
As per the 2024 global UPS battery market analysis, the lithium-ion battery is the highest and fastest-growing UPS battery with revenue available on the market with USD 5.07 billion share. Lithium-ion (Li-ion) battery growth in the market is primarily attributed by the performance benefits provided and compatibility with various applications. Li-ion batteries offer higher energy density, longer life, and lower maintenance requirement than the traditional lead-acid battery and are, therefore, the most sought-after solution for mission-critical applications such as data centers, telecommunication, and industrial usage. For instance, in data centers, where any outage of one second implies huge financial loss, Li-ion batteries are utilized as stable back-up power with faster recharge cycles and stable power supply. Their compact physical size and low weight save precious space in high-demand environments like communication base stations and data centers. Scalability by Li-ion systems also allows companies to adjust the capacity of power backup based on changing operational requirements, further accelerating the expansion of such applications in such industries.
The lead-acid segment is anticipated to lead the global UPS battery sector with its value in terms of cost and availability everywhere. The market share in terms of lead acid battery was approximately 35% in the year 2024. Batteries are highly preferred in such situations where money is of top priority. As they have low upfront costs, they are an increasingly attractive option for small- and medium-sized businesses and end-users who want reliable power backup systems without the heavy up-front capital investment. Lead-acid batteries are also heavily employed in industrial environments where cost efficiency is less of a concern than size and weight. Their ability to supply high surge currents also makes them highly appropriate for specific uses like heavy equipment and emergency power systems.
Based on the 2024 global UPS battery market forecast, UPS battery applications in data centers generated a market revenue of USD 5.52 billion. Growth in demand for the UPS battery in data centers is driven by several factors, as the need for stable power backup becomes more essential in the more digitalized world. One of the primary contributors to this growth is the growing data creation, storage, and consumption driven by emerging technologies such as 5G, edge computing, IoT, and AI. Data centers are critical infrastructure for holding these technologies together, and their operations require uninterrupted power supply for uptime and prevention of costly downtime. As hyperscale data centers boom everywhere globally, particularly among the likes of Asia Pacific and North America, there has been a buildup of demand for sophisticated UPS systems that will handle increased workloads
UPS battery industrial usage will rise at a CAGR of 13.2% from 2025 to 2032. Industrial operations require uninterrupted power supply in order to maintain production and prevent costly downtime. Standby power in the event of outages or voltage fluctuation on the grid is provided by UPS systems, ensuring that critical equipment and machinery keep operating. This is crucial in manufacturing, among others, where power loss even for a short period can lead to enormous losses.
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The economic, technological, and infrastructural drivers of North America are primarily responsible for driving the demand for UPS batteries. The expansion of big data analytics, IoT (Internet of Things), and cloud computing has resulted in a boom of data centre construction on the continent. As data centres require uninterrupted power to prevent costly outages, UPS systems are now indispensable. As edge computing and 5G networks grow in popularity, the added demand for storing and processing information highlights the necessity for dependable UPS batteries.
The U.S. UPS battery market is anticipated to grow beyond USD 2.26 billion by 2032. Regulatory and sustainability initiatives have a strong impact on increasing the UPS battery market share. Sustainability and energy efficiency become growing issues in the U.S., encouraging the adoption of new UPS technologies. This includes integrating renewable energy and developing more eco-friendly battery products. For instance, government initiatives like the Federal Energy Management Program set standards for power storage technology to foster innovation within the industry. With corporations targeting sustainability along with operational effectiveness, investment in lithium-ion-based UPS systems continues to rise. Targeting lower carbon footprints and the reduced environmental impact also complements the advantages of lithium-ion batteries, fueling their applications in the U.S.
The Canadian UPS battery industry is expanding as the country becomes more reliant on critical industries like the healthcare and telecom sectors. With the growth of data centers in Ontario and British Columbia, there is a growing need for uninterruptible power supply (UPS) systems that are both efficient and reliable. To 2024, Canadian data centers are predicted to experience a demand for energy-saving UPS systems that focus particularly on lithium-ion batteries since their lifespan is greater, and recharge rates are faster.
The Asia Pacific UPS battery market accounted for the highest share in the market with revenue share of 36.51% in 2024. Urbanization and industrialization in countries like China, India, Japan, and South Korea are fueling growth at a fast pace. They are experiencing an increased demand for uninterruptible power supplies to support their economic growth. Its infrastructure expansion, whether data centers or colocation centers, is another major contributor. The BFSI sector encompassing insurance firms, commercial banks, and non-banking finance institutions relies heavily upon UPS systems for delivering round-the-clock operations to critical services such as ATMs, monetary transactions, and online payments.
The increase in 5G infrastructure development and data center construction in South Korea is the most prominent force driving the expansion in demand for UPS batteries across the country. South Korea was predicted to experience an annualized 10% increase in the construction of data centers in the year 2024, notably in Seoul city and Busan city. The demand for premium UPS systems would increase as a result. Amidst fast-paced technological advancements like artificial intelligence and the internet of things, lithium-ion batteries are becoming increasingly popular due to their energy efficiency and the fact that they reduce the cost of their maintenance.
With the growing need for better power backup systems in industries such as manufacturing and telecommunications, the Japanese UPS battery market is expected to grow even further in 2024. All these activities are also fueling this growth, with 15% additional funds spent on backup power systems for key infrastructure in 2024. This growth is also being fueled through the government's efforts on resilience against disasters. Lithium-ion uninterruptible power supply (UPS) systems are becoming increasingly popular in Japan owing to their better performance during high-demand situations and capability to aid Japan's active disaster recovery efforts.
The growth in data center development and use of renewable energy sources are the key trends driving the UPS battery market in Europe to the year 2024. Due to the better energy density and eco-friendly benefits of lithium-ion UPS systems, more than forty percent of data centers in Europe are anticipated to switch to these systems by the year 2024. Moreover, the European Union's Green Deal supports the use of power backup solutions that are energy-efficient and therefore encourages enterprises to move towards more eco-friendly UPS battery systems for commercial and industrial use.
The drive for UPS batteries is being spurred by several major drivers in the UK, including the shift to renewable power and the increasing e-commerce surge. In 2024, the demand for a secure power supply is anticipated to drive a 25% growth in the deployment of uninterruptible power supply (UPS) in data centers and mission-critical facilities. Lithium-ion batteries are gaining favor because they are easily scalable and are very efficient. This is particularly true as businesses struggle to make a lighter touch on the environment while providing continuous service in an increasingly digital economy.
In France, the demand for uninterruptible power supply (UPS) batteries is increasing due to the need for secure power to healthcare and telecommunications sectors. In 2024, healthcare institutions will raise the level of investment in UPS batteries by a rate of 12%, and most of these developments will target lithium-ion technology. Additionally, the French government's support for green energy initiatives is propelling the transition to environmentally friendly UPS systems, particularly in commercial and industrial uses.
Germany's own various sectors such as the automotive, the manufacturing, and the telecommunication sector are driving the demand for UPS batteries in the German market. In 2024, it is expected that the automobile sector would make huge investments in UPS systems to ensure uninterrupted production. Lithium-ion batteries are anticipated to have a higher lifespan and efficiency when compared to traditional lead-acid batteries. For this reason, it is predicted that the demand for lithium-ion batteries will increase by 12% in these sectors.
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Rise in the Construction of Data Centers
Increasing Need for Power Round-the-Clock in the Medical Field
High Initial Investments in Lithium-Ion Systems
Concerns Regarding the Environment and Recycling
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Innovation, product variety, and strategic alliances are the hallmarks of the competitive UPS battery market. Players like Schneider Electric, Eaton, and Vertiv are major players in the industry that are placing a focus on modular UPS solutions and lithium-ion products. Cloud-based monitoring and artificial intelligence-based battery management solutions are being invested in by a high volume of companies. In 2024, Schneider collaborated with Microsoft to create smart energy solutions, and Eaton delivered energy-as-a-service offerings in an attempt to win commercial customers and data centers seeking out resilient infrastructure.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing digitization, the proliferation of hyperscale data centers, and the increasing emphasis on power reliability across industries are all factors expected to drive strong expansion in the global UPS battery market. As technical innovation for lithium-ion and future battery technology rewrites the competitive landscape, the market is expected to grow at a compound annual growth rate of 14%. The key drivers that inform purchasing decisions remain energy efficiency, scalability, and reduced maintenance. Moreover, efforts to minimize environmental impact and the need for longer battery life are two drivers that are driving innovation and startup activity. While the cost of infrastructure and safety issues with certain chemicals remain challenges, it is anticipated that these challenges will be addressed through ongoing research and development and wise investments. As per the UPS battery market regional forecast, the North American UPS battery market is the leading one. Overall, the industry is fast shifting towards UPS power storage systems that are more intelligent, cleaner, and more robust.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 13.14 Billion |
| Market size value in 2033 | USD 47.34 Billion |
| Growth Rate | 15.3% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
Top Player’s Company Profile
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the UPS Battery Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the UPS Battery Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the UPS Battery Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the UPS Battery Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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