UPS systems for critical applications and batteries for transport sector are the demand drives for the back-up power sources.

The first thing that comes to mind, at home or at work, when the electricity mains fail is the UPS or uninterruptible power supply system. Today more than ever before in the history of mankind, the routine is heavily dependent on gadgets and systems that work on electric power – mains or batteries – and where the systems work on mains, on UPS systems.

Urban boost

According to a recent report, by Research and Markets, a leading worldwide research agency, the global market for UPS systems is estimated to reach a whopping US $ 9.85 billion by 2021. While the report itself is quite detailed and classified on several parameters like capacity range, geographical regions and end users, the fact is the requirement for power back-up for critical services is not just experienced by underdeveloped countries facing power outages, but is also felt by developed countries because certain equipment is so susceptible to even minor voltage variations that a back-up is always essential. Also over the last decade, increasing urbanisation has been boosting energy consumption, which has led to disruption in power supply to end consumers, especially in major developing economies.

This has widely augmented the scope for adoption of power storage technologies like uninterrupted power supply (UPS), which ensures smooth and continuous flow of power during power outages. According to the report, implementation of stringent government policies, increasing IT investments of small and medium enterprises (SMEs), rapid infrastructure development of various end-use segments like IT and telecom, retail and healthcare, and data centres, particularly in Asia-Pacific and North America, are the factors that are expected to positively influence demand for UPS systems in the coming years, globally.

Owing to widespread adoption of rapidly evolving innovations like cloud-based technologies and mobility solutions, UPS systems are being widely adopted in data centre applications such as telecom, IT/ITeS, retail, hospitality and BFSI sectors. Consequently, commercial end user segment accounts for the largest share in the global UPS market. Over the course of next five years, majority of the demand for UPS is expected to arise from Asia-Pacific, followed by North America, Europe, South America and Middle East and Africa.

The report also dwells at length on market trends and developments, and has listed a few important points:

* Modular UPS units replacing centralised UPS systems
* Increasing demand from SMEs and service sectors
* Increasing adoption of green UPS systems
* Negative impact of locally available low price products
* Offering complete power solutions at one point
* Increased focus on improving power reliability
* Increasing focus on development of green storage technologies, and
* Growing end user awareness about UPS systems.

Another research report, this one by MarketsandMarkets, the world’s No. 2 firm in terms of annually published premium market research reports, puts the global battery market’s worth at US $17.26 billion by 2021. The report titled “Global Battery Market by Transport and Transport Mode (Two Wheeler, Automotive, Marine and Aerospace), Automotive Battery by Type (Lead Acid, Lithium Ion and Nickel Metal Hydride), and by Geography – Industry Trends & Forecast to 2021”, says the global battery market is projected to grow at a CAGR of 4.15% from 2016 to 2021, to reach a market size of US $ 17.26 billion by 2021. The major factors behind the growth of the global battery market are new hybrid and electric automotive models from OEMs, fuel savings and government incentives for cleaner transportation, growing integration of electronics and growing demand for transportation.

Transportation: Key driver for battery market

The transportation industry across the globe has grown significantly since the past few years. Increasing population and subsequent change in demand for vehicle has increased. China is the leading carmaker in the world with a 26% share in worldwide production of cars. Sales for cars have risen from 23.5 million in 2014 to 24.6 million in 2015, in China. Countries like India and the US are also booming markets for vehicles. These are the main reasons behind the blooming market for batteries. Increasing population and economic growth are responsible for increasing automobile sales as well as sales of other ways of transportation such as marine, two wheelers and aviation. Increased traffic of international transportation has led to increased demand for marine and aviation transport, which has led to the growth of for the global battery market.

This growth can also be attributed to rapid urbanisation, increased per capita income, and technological advancements from established players in the industry. As a collective effect of the points mentioned above, there is an estimated growth in transportation activities around the globe, thus, resulting in the growth of the global battery market.

The use of electric power in vehicle as a fuel is new trend in last few years. Environmental changes and scarce oil resources are the driving force behind their increasing adoption. Electric power is cheaper and cleaner than conventional fuels, which helps in reduction of CO2 emissions, which are responsible for global warming. Technological advancements in the field of alternative fuelled vehicles such as electric vehicles is estimated to present an attractive opportunity for the market players. OEMs such as Tesla Motors and Toyota Motor Company have successfully launched vehicles with electric powertrains owing to an increasing demand for efficient transportation. Governments are also promoting the adoption of alternative fuel vehicles to reduce the dependence on oil imports. This is also a major driver for batteries used in these vehicles.