Market Overview

The domestic UPS (Uninterruptible Power Supply) market had seen slowdown in demand in FY2020, as upgrading of and new investment in facilities had postponed due to the COVID-19 pandemic. The market for FY2021 picked up due to relaxation of activity limitations, increase in IT traffics stemming from working at home, and expansion in demand geared to medical equipment. On the other hand, product prices were partly raised, because of supply chain disruptions causing semiconductor shortages and delivery delays, and because of rise in costs for raw materials, energy, and transportation.

The UPS market size based on the shipment value at manufacturers for FY2022 is expected to increase to 86,800 million yen, 110.8% on a YoY basis.

When observing the market by capacity range, UPS with minimal capacities (3kVA or less) shows steady growth due to robust demand expected not only from PCs and servers, but also from industrial appliances such as FA (factory automation) equipment and medical instruments. UPS with large-scale capacities (100kVA or more) is also expected to expand, because demand for expansion in capacity per UPS and for projects of new constructions and extensions of data centers became obvious.

Noteworthy Topics

Trend of Market-Entered Companies by Capacity Range

There is no change in the market structure of UPS with the capacity sizes 3kVA or less geared for IT, where Japanese and foreign manufacturers continuing to be the big two. Though depending on the social situations, while the issue of product shortage stemming from semiconductor shortages is likely to be solved, the product prices are on the rise, including re-raising of the prices.

The market of UPS with the capacity sizes 100kVA or more consists mainly of several heavy electrical equipment manufacturers and foreign manufacturers (distributors), and continues targeting UPS for datacenters for the time being. While competitions among enterprises will intensify in new data center projects, it is difficult to distinguish between manufacturers in terms of product performance, making the competitive edge being in the proposals on total user benefits, not only in the product itself but also from installation works to maintenance.

Future Outlook

The UPS market size is expected to retain a certain level of demand in all capacity sizes until FY2025. In addition, as the demand for 100kVA or more of UPS drive the favorable market, the UPS market in FY2025 is projected to expand to 93,100 million yen. For UPS of three capacity ranges under 100kVA, despite replacement demand exists, little signs for new promising demand is expected.

Research Outline