Market Size of United States Backup Power Systems Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 3.49 Billion |
Market Size (2029) | USD 4.47 Billion |
CAGR (2024 - 2029) | 5.10 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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United States Backup Power Systems Market Analysis
The United States Backup Power Systems Market size is estimated at USD 3.49 billion in 2024, and is expected to reach USD 4.47 billion by 2029, growing at a CAGR of 5.10% during the forecast period (2024-2029).
- Over the medium term, increasing infrastructure for data centers is expected to drive the backup power systems market, owing to the increasing demand for connectivity and the significant growth of the commercial sector in the United States.
- On the other hand, with the rapid integration of renewable energy sources and distributed technologies onto the grid, the growth of the backup power systems market is expected to be hampered in the coming years.
- However, the country's emerging commercial and industrial sectors, along with the development in the residential area, are likely to create immense opportunities for the US backup power systems market in the coming years.
United States Backup Power Systems Industry Segmentation
Backup power systems refer to systems that provide electricity when the primary power source fails or is interrupted. These systems are also known as emergency power systems. During power outages, they are designed to provide reliable power to critical loads, such as medical equipment, data centers, and telecommunication systems.
The US backup power systems market is segmented by technology and end users. The market is segmented by technology into backup generators, uninterrupted power supplies (UPS), and other technologies (fuel cell backup power, etc.). By end users, the market is segmented into residential, commercial, and industrial. Market sizing and forecasts have been done for each segment based on revenue (USD).
Technology | |
Backup Generator | |
Uninterrupted Power Supply (UPS) | |
Other Technologies (Fuel Cell Backup Power, etc.) |
End User | |
Residential | |
Commercial & Industrial |
United States Backup Power Systems Market Size Summary
The United States backup power systems market is poised for growth, driven by the expanding infrastructure for data centers and the burgeoning commercial sector. As the largest market for data centers globally, the United States presents substantial demand potential for backup power systems, particularly uninterruptible power supply (UPS) systems. These systems are critical for ensuring the continuous operation of data centers and telecommunication equipment, which are increasingly sensitive to power disruptions. The rapid adoption of advanced technologies such as big data, IoT, and artificial intelligence, coupled with the expansion of 5G services, is further fueling the demand for reliable backup power solutions. Major tech companies like Amazon, Microsoft, and Google are investing heavily in new data centers, underscoring the need for robust backup systems to mitigate economic losses from potential downtime.
Despite the promising growth prospects, the market faces challenges from the integration of renewable energy sources and distributed technologies, which could potentially hinder the expansion of backup power systems. However, the ongoing development in the commercial, industrial, and residential sectors presents significant opportunities for market players. The oil and gas downstream sector, particularly refineries, also contributes to the demand for large-scale UPS systems to manage power variations in harsh conditions. The market is characterized by fragmentation, with key players such as Emerson Electric Co., General Electric Company, and Generac Holdings Inc. actively participating in the landscape. Innovations like Honda's stationary fuel cell power system and Caterpillar's hydrogen fuel cell project at Microsoft data centers highlight the industry's focus on sustainable and reliable backup energy solutions.
United States Backup Power Systems Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Market Size and Demand Forecast in USD billion, till 2029
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.1.1 Increasing Infrastructure for Data Centers
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1.5.2 Restraints
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1.5.2.1 Integration of Renewable Energy Sources and Distributed Technologies
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1.6 Supply Chain Analysis
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1.7 PESTLE Analysis
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1.8 Investment Analysis
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2. MARKET SEGMENTATION
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2.1 Technology
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2.1.1 Backup Generator
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2.1.2 Uninterrupted Power Supply (UPS)
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2.1.3 Other Technologies (Fuel Cell Backup Power, etc.)
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2.2 End User
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2.2.1 Residential
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2.2.2 Commercial & Industrial
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United States Backup Power Systems Market Size FAQs
How big is the United States Backup Power Systems Market?
The United States Backup Power Systems Market size is expected to reach USD 3.49 billion in 2024 and grow at a CAGR of 5.10% to reach USD 4.47 billion by 2029.
What is the current United States Backup Power Systems Market size?
In 2024, the United States Backup Power Systems Market size is expected to reach USD 3.49 billion.