Technavio analysts forecast the global industrial uninterruptible power supply (UPS) market to grow at a CAGR of more than 6% during 2017-2021, according to their latest report.
The analysts highlight the following four factors that are contributing to the growth of the global industrial UPS market:
- Growing demand for power backup solutions: The demand for power backup has increased significantly in several industry verticals. UPS systems are being recognized by countless organizations as an essential power backup to ensure continuous operations across businesses. Many manufacturing industries, especially the oil and gas, petrochemical and refining, and automobile design facilities, are using UPS systems for power backup to prevent loss of data and productivity. Thanikachalam Chandrasekaran, a research analyst at Technavio, says, “The demand for power backup from the manufacturing industry is on the rise in APAC. This is because of the growing industrialization, growth in economy, and rising demand for electricity.”
- Government initiatives for industrial development: In March 2016, the European Commission initiated active efforts to preserve jobs and ensure growth in Europe by setting up a new policy that favors various industries such as steel, cement, automotive, and oil and gas among others. It has increased investments to incorporate new technologies across these industries to achieve process efficiency and cost-effectiveness. “In China, the government established cabinet-level programs in 2010 to help Chinese machinery manufacturers to compete globally. The government has taken several initiatives to encourage domestic manufacturers,” says Thanikachalam.
- Increasing factory automation systems: The increasing demand for products that are superior in quality due to globalization and population growth has propelled companies to undertake automation in manufacturing. Investment in global process automation is continuing to grow at 6% and is projected to reach USD 120 billion by 2019.
- Rising investments in railway and aerospace: Aerospace and railways continue to play a pivotal role in the global industrial UPS market. The railway industry in the developing countries is expected to grow rapidly because of infrastructure development, rising industrialization, growing population, development of tourism, and modernization of railway infrastructure. There is a lot of emphasis on safety, increasing the length of fast tracks or corridors that has led to the requirement of wagons and high-speed passenger coaches, along with the expansion of metro train network to several cities.