China Uninterruptible Power Supply Market to Grow at a CAGR of 3.01% During the Forecast Period 2020-2025

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Jun 29, 2020 (The Expresswire) — China Uninterruptible Power Supply (UPS) Market size was valued at $926.42 million in 2019, and it is estimated to grow at a CAGR of 3.01% during 2020-2025. Rising demand for line-interactive UPS has been pushing the market owing to its increasing applications such as consumer electronics, gaming systems, home theatres, network equipment, and others. This technology also allows to correct minor power fluctuations without switching to battery. Adoption of rotary UPS in small sized industries owing to its improved efficiency, reduced size and weight further boost the demand for China uninterruptible power supply market.

Topology Type – Segment Analysis

Online segment held the major share 39.56% in 2019 of China UPS market. Online or double conversion UPS systems provide consistent clean, and near perfect power regardless of the condition of incoming power. Double conversion UPS systems are developed to protect various industrial infrastructure such as IT equipment, data center installations, high end servers, telecom installations, and storage applications. As China is the manufacturing hub for various industries, there has been high adoption of online UPS, thereby driving the China UPS market.

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Application – Segment Analysis

Data Centers is the fastest growing segment in China UPS market and estimated to grow at a CAGR of 2.38%. UPS plays a crucial role in data centers in order to provide continuous power supply without any interruptions. In data centers, power failure can have a negative impact on mission critical computers, communications and data, resulting in costly downtime. Renovating the data centers with advanced and modular UPS systems for reliability, adaptability and scalability have been providing opportunities for the China UPS industry. The renovation of data centers involve the enhancement of the infrastructure that supports the IT requirement load, developments in the available space and power. Modernization of data centers and investments on advanced infrastructure provide ample opportunities to the China UPS market during forecast period.

Drivers China UPS Market

Implementation of advanced technologies

Implementation of advanced technologies such as Internet of Things (IoT) and automation in industries has been pushing the UPS market in China. Adoption of digital UPS systems has become a major trend, as there is an automatic voltage regulator which helps to regulate the power shifting in case of a surge or deficiency. There has been growing demand for this UPS systems owing to increasing its applications in telecommunication devices, ATM Machines, medical equipment and others. UPS systems assist IoT setup in continuous power supply for remote monitoring applications in real time. Additionally development of super capacitor UPS systems for high density and critical applications is set to drive the UPS market in China.

Modernization of Aging Data Centers

The rise in data generation and the need for the performance improvement data centers have increased the need for renovating the old or traditional data centers in China. This has created huge demand of UPS systems. Increasing investment for 5G infrastructure has created huge demand for UPS systems. According to the China Academy of Information and Communications Technology, China Telecom and China Unicom have partnered together for 100,000 5G base stations in 47 cities with the investment of $ 169 billion. In 2019, Gaw Capital Partners had established a new joint venture with Centrin Data for new data center investment. But in early of 2020, due to global pandemic disease Covid-19, there is huge crisis on economic growth. In April 2020, Alibaba Company has planned to speed up Covid-19 recovery with $28 billion data center investment and this is poised to drive the market.

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Challenges China UPS Market

High capital cost and maintenance costs

One of the major challenge of China UPS market is high capital investment. The cost of single UPS even for residential application ranges from hundred dollars. Industries require high number of UPS systems for continuous power supply which involves huge investment. The major installations require an infrastructure setup cost of approximately $1,00,000. Additionally, UPS batteries do not last long and needs to be changed when required. This depends on the battery model. Therefore maintenance costs also become a major challenge. This restricts the adoption of high quality UPS systems in small and medium sized enterprises thereby restraining the market growth.

Market Landscape

Product Launches, acquisitions and RandD activities are key strategies adopted by players in the China UPS market. China Uninterruptible Power Supply top 10 companies include ABB Ltd, Eaton Corporation, Emerson Electric Co., Ltd, Huawei Technologies, Schneider Electric, Shenzhen KSTAR Science and Technology Co., Ltd, Xiamen Kehua Hengsheng Co., Ltd, Ningbo Kemapower Electronics Co., Ltd, Soyanpower and among others.

Acquisitions/Technology Launches

In April 2019, ABB had launched Power Value 11LI Up and the PowerValue 11LI Pro UPS devices for desktop and entry level network applications. Introduction of UPS systems and solutions is set to drive the China UPS market share.

In June 2018, Xiamen Kehua Hengsheng Co., Ltd had launched new lithium ion battery UPS systems. Adoption of lithium battery UPS systems owing to its high density and longer service life features have been attracting customers and thereby driving the China UPS industry.

Key Takeaways

Development of new and advanced UPS productions and solutions has been driving the China uninterruptible power supply industry. Development of Super capacitors UPS system for critical power applications and increasing adoption of this systems owing to its high energy efficiency and low running costs have been driving the market.

Increasing investments on 5G infrastructure and on modernization of data centers have been propelling the China uninterruptible power supply market.

Innovation in technologies and modernization of data centers have been pushing the China UPS market.

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