UPS and Inverter Market Size Worth is Poised to Surpass Valuation of USD 174.04 Billion by 2031 | Exclusive Report by The Insight Partners

The global UPS and Inverter market is set for explosive growth with a CAGR of 11.1% during 2025–2031, it was valued at $86.15 billion in 2024, with projections indicating a surge to $174.04 billion by 2031. This remarkable expansion is driven with the rise of smart buildings.

/EIN News/ -- US & Canada, March 25, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, "UPS and Inverter Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type, UPS Type, Inverter Rating, Application, and Geography.", the global UPS and Inverter market is observing healthy growth owing to the increase in requirements for UPS and smart inverters in smart buildings and focus on energy efficiency in data centers.

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The UPS and Inverter market was valued at US$ 86.15 billion in 2024 and is projected to reach US$ 174.04 billion by 2031; it is expected to register a CAGR of 11.1% during 2025–2031. 

The report runs an in-depth analysis of market trends, key players, and future opportunities. The rise of IoT and AI for better monitoring and remote administration of UPS Systems are likely to bring new trends to the market.

Market Overview and Growth Trajectory:

Market Growth: The UPS and Inverter market is expected to reach US$ 174.04 billion by 2031 from US$ 86.15 billion in 2024; it is expected to record a CAGR of 11.1% during the forecast period. The growing adoption of smart building systems and dependence on technology result in the need for a continuous supply of power, raising the demand for UPS and smart inverters as they provide critical backup power for building automation, security, and communication applications. In addition, the rising number of data centers worldwide, coupled with the focus on energy efficiency in data centers, is driving the demand for UPS systems. Furthermore, the rising adoption of modular UPS systems, owing to their ability to aid in adaptation to changing power requirements, is expected to create an opportunity for the growth of the market for UPS in the coming years. The demand for renewable energy and innovations in inverter technology are also expected to benefit the market for inverters during the forecast period . Moreover, the growing use of IoT and AI for better monitoring and remote administration is expected to emerge as a key trend in the UPS and inverter market in the coming years.

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Increase in Requirement for UPS and Smart Inverters in Smart Buildings: Smart buildings use modern building automation technologies to optimize energy usage. A UPS provides supplemental power during high-demand periods, lowering the overall energy consumption of buildings. Moreover, its use reduces energy expenses and leads to a more sustainable and environmentally friendly construction. Moreover, UPS can contribute to the overall reliability of a building's electrical system. It can function as a buffer between the electrical system and external power sources, reducing voltage fluctuations and improving power quality. Its role also ensures that this system runs more efficiently, reducing wear and tear on equipment and increasing its lifespan. Moreover, smart inverters can maintain operation more efficiently during brief grid disturbances, particularly in areas where grid fluctuations are common. They provide real-time monitoring of system performance, power quality, and grid status, which can help both system owners and grid operators optimize performance and respond rapidly to any issues. Thus, the requirement for UPS and smart inverters is increasing in smart buildings, driving the growth of the market.

Focus on Energy Efficiency in Data Centers: Data centers' higher loads necessitate the installation of larger UPS systems to support them. Energy-efficient UPS systems reduce electricity losses and may include an "eco-mode." Running UPS systems in eco-mode can lower their energy expenses by up to 2%. An ENERGY STAR-certified UPS can help cut energy losses by 30–55% compared to a standard UPS system. For example, a 1000 kVA UPS used in a large data center could help save US$ 18,000 annually. In addition, as per the Department of Energy (DOE), a 15,000-square-foot data center operating at 100 watts per square foot requires 13,140 megawatt hours of energy yearly for IT equipment. Extending the efficiency of UPS systems supplying this much power by 90–95% would result in the 768,421 kWh energy reduction annually, cutting down the energy cost by almost US$ 90,000 at a rate of US$ 0.12 per kWh. Thus, the focus on energy efficiency in data centers is driving the demand for UPS and inverter systems.

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Demand for Modular UPS Systems: Modular UPS systems have transformed the way businesses approach power supply solutions. These systems provide the ease of expansion and adaptation to meet changing power requirements. Modular UPS systems are built with many power modules that may be swapped, modified, or added to meet the customers’ needs. This inherent flexibility allows enterprises to adjust their power supply machinery to their own needs. Modular UPS systems serve as a cost-effective option and offer high system availability and reliability. Furthermore, they are often more energy efficient than standard centralized UPS systems, resulting in lower carbon emissions. Owing to the abovementioned benefits, their demand is on the rise in various industries, including IT, telecom, and manufacturing. In April 2023, Schneider Electric, a global leader in the digital transformation of energy management and automation, introduced Easy UPS 3-Phase Modular UPS. This robust system is designed to protect critical loads while offering third-party verified Live Swap functionality. Easy UPS 3-Phase Modular is available in 50–250 kW capacity with N+1 scalable configuration, and it supports the EcoStruxure architecture, which offers remote monitoring services.

Geographical Insights: In 2024, Asia Pacific led the market with a substantial revenue share, followed by North America and Europe, respectively. Asia Pacific is expected to register the highest CAGR during the forecast period.

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UPS and Inverter Market Segmentation, Applications, Geographical Insights:

• Based on type, the ups and inverter market is bifurcated into UPS and Inverter. The inverter segment held the largest share in the ups and inverter market in 2024.
• The market for ups and inverter is further segmented into standby, line-interactive, and online. The online segment held the largest share in the ups and inverter market in 2024.
• The market for ups and inverter is divided into less than 5 KW, 5–100 KW, 100–500 KW, and above 500 KW. The 5kw to 100 kw segment held the largest share in the ups and inverter market in 2024.
• On the basis of application, the UPS and inverter market is segmented into commercial, residential, and industrial. The industrial segment held the largest share in the ups and inverter market in 2024.

Key Players and Competitive Landscape:

The UPS and Inverter Market is characterized by the presence of several major players, including:

• Schneider Electric SE
• ABB Ltd
• TOSHIBA CORPORATION
• Cyber Power Systems (USA) Inc
• Eaton Corp Plc
• Emerson Electric Co
• Delta Electronics Inc
• Legrand SA
• Kirloskar Electric Company
• OMRON Corp
• Exide Industries Ltd
• Luminous Power Technologies Pvt Ltd
• Microtek
• Su-Kam Power Systems Ltd.
• Kehua Data Co Ltd
  
  

These companies are adopting strategies such as new product launches, joint ventures, and geographical expansion to maintain their competitive edge in the market.

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UPS and Inverter Market Recent Developments and Innovations:

• Schneider Electric announced the launch of its new Galaxy VXL – a highly efficient, compact, modular, scalable, and redundant 500-1250 kW (400V) 3-phase uninterruptible power supply (UPS), complete with enhanced cybersecurity, software, and safety features. At just 1.2m2 with a power density of up to 1042 kW/m2, Galaxy VXL UPS sets a new benchmark in efficient, sustainable, and advanced UPS technologies. Available immediately in all 400V IEC regions worldwide, Galaxy VXL delivers the highest levels of power performance for AI, collocation, and hyperscale data center environments, as well as large-scale critical infrastructure and electrical systems within commercial buildings and industrial facilities.
• Schneider Electric introduced the Easy UPS 3-Phase Modular. This robust uninterruptible power supply (UPS) was designed to protect critical loads while offering third-party verified Live Swap functionality. Easy UPS 3-Phase Modular is available in 50-250 kW capacity with N+1 scalable configuration and supports the EcoStruxure architecture, which offers remote monitoring services.

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Conclusion:

Asia Pacific represents the largest market for UPS and Inverter globally. In recent years, the region has witnessed a surge in the need for UPS as a source of backup power, especially to avoid downtime resulting from faults in production lines or disruptions in IT equipment operations. Several countries in the region are witnessing growth in the demand for UPS and inverters, fueled by rapid urbanization, industrialization, and data center expansion, propelling the demand for reliable power solutions. The region's diverse economic landscape, ranging from advanced economies such as South Korea and Japan to emerging markets such as India and Southeast Asia, presents valuable growth opportunities for UPS and inverter manufacturers present in this region. For instance, the "Make in India" initiative has driven the establishment of new manufacturing hubs in India, which depend on UPS systems to maintain uninterrupted productivity during power fluctuations.

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