Report Overview

The Indonesian UPS market is showing a positive growth rate. Growing investment in data centers, growth of IT-industry, booming e-commerce industry are some of the major factors supporting the growth of the Indonesia UPS market.

Indonesia UPS Market- Industry Trends & Forecast Report 2028

Indonesia UPS market is expected to grow at a CAGR of 7.04% during the forecast period, i.e., 2022-2028. The UPS market in Indonesia is expanding significantly due to increasing investments in renewable energy sources, investments in data centers, a booming e-commerce sector, and increasing digitalization. Moreover, the number of tech start-ups is growing across the country, which is expected to create ample opportunities for the growth of Indonesia UPS market during the forecast period.

UPS (Uninterrupted Power Supply) Overview:

UPS is the short-term used for Uninterrupted Power Supply devices. These devices are used to prevent disruption in the power supply during blackouts or power cut. UPS is generally used in computers to allow the user to save their data and shut down the computer during a sudden power cut. A UPS consists of a rectifier that converts incoming AC current into DC and charges a battery so it can provide power in case of an outage. The battery is connected to the inverter, which converts DC back to AC. UPS typically provides power supply support for 10-15 minutes and is used extensively in the IT industry, data centers to protect sensitive electronic devices.

Indonesia UPS Forecast and Trend

Growth Drivers

Growing investment in data centers driving the growth of Indonesia UPS market

Indonesia's IT industry is booming, and investments in data centers are on the rise. The growing penetration of the internet and smartphones has further fueled the demand for data centers. According to the Indonesian Internet Providers Association (APJII), the number of internet users was 196 million in 2019, an increase of 14.6% from 171 million in 2018. Indonesia is also one of the very few Asian countries outside China that permit Chinese cloud providers, which further contributes to the growing investment in data centers around the country. Alibaba, Google, Tencent already have their data centers in Indonesia and Microsoft has also announced its plans to build a data center in Indonesia in near future.

UPS are an essential part of data centers as they provide uninterrupted power to sensitive electronic devices and protect them during power outages. As a result, Indonesia's increasing investment in data centers will lead to increasing demand for UPS systems and drive the growth of the Indonesia UPS market.

Opportunities

Growing investment in renewables is expected to present opportunities for the growth of Indonesia UPS market during the forecast period

As countries and corporations seek to achieve carbon neutrality, reduce greenhouse gas emissions, and reduce their dependence on fossil fuels, investment in renewables is growing rapidly around the world. Accordingly, companies are increasingly pursuing alternative sources of energy. Under its new Electricity Procurement Plan (RUPTL), Indonesia plans to add 4.7 GW of solar capacity by 2030 and to generate at least 48% of its electricity from renewable sources.

In the future UPS systems will play an important role as renewable energy sources like solar and wind will have variable electricity generation and connecting them directly to the grid can affect the grid's stability. Companies are, therefore, looking to modify UPS for use as an energy storage system and connect it to the grid.  Modified UPS batteries are recharged during low electricity generation periods and power is supplied back to the grid during peak demand periods. Thus, with growing investment in renewables, demand for UPS from renewables is expected to rise, creating opportunities for growth for the Indonesia UPS market.

Impact of COVID-19 in Indonesia UPS Market

The COVID-19 created a number of issues for the Indonesia UPS market. Companies operating in Indonesia UPS market were affected by the announcement of lockdown, closing of borders, and decreased trade activity in combination with travel bans and low availability of labor. As a result of the lockdown, UPS demand from industrial and commercial segments declined, while UPS demand from residential segments increased owing to work from home and online classes from home during the lockdown.

Moreover, the recovery of the market towards the end of 2020 and beginning of 2021 was restricted by the severe second wave of the COVID-19 in the country when daily average cases reached around 50,000. The growing vaccination rate, reopening of markets, offices, and tourists activities are supporting the recovery of the Indonesia UPS market; however, the emergence of the Omicron variant of the COVID-19 is expected to dampen the recovery.

Indonesia UPS Market - By Type

Indonesia UPS market is categorized into online and offline segments, based on types. Online-type UPS systems dominated the market in 2021 owing to their high efficiency and performance compared to offline-type UPS systems. Moreover, unlike off-type UPS systems, there is no delay in power supply during power failure or blackout in online-type UPS systems, which contributes to its dominant share in the Indonesia UPS market.

Indonesia UPS Market - By Application

Based on applications, Indonesia UPS market is grouped into industrial, commercial, residential segments. In 2021, the commercial segment dominated the market owing to the growing demand for UPS systems from hospitality, retail, wholesale, offices, and others. The growth of the retail and e-commerce industry in Indonesia has also supported the dominant share of the segment in the Indonesia UPS market.

Indonesia UPS Market - By Region

Based on regions, the Indonesia UPS market is segmented into Java, Sumatra, Kalimantan, Sulawesi, and others. Java dominated the Indonesia UPS market in 2021 and held the largest share owing to the expansion of data centers in the region. For instance, in May 2021, DC Indonesia opened a new data center in West Java, Indonesia. Additionally, rapid development of IT-infrastructure, growing population, increasing urbanization, and growing manufacturing and process industries are  favoring the dominant share of the region in the Indonesia UPS market.

Indonesia UPS Market- Competitive landscape

Some of the dominant players operating in the Indonesia UPS market are ABB Ltd., General Electric, and Schneider Electric. Other players operating in the market are Eaton Corporation plc, Legrand SA, Vertiv Group Corp., Fuji Electric Co., Ltd., Huawei Technologies Co., Ltd., Tripp Lite, Riello Elettronica SpA and others prominent players.

New companies are battling with established players to gain a significant share in the market. Additionally, collaboration, merger & acquisitions, partnerships, and launch of new products are some of the strategies adopted by the players operating in the Indonesia UPS market to gain an advantage over their competitors.

Scope of the Report:

By Power Rating

• Less than 5KVA
• 5.1kVA-50kVA
• 50.1kVA-200kVA
• 200.1kVA - 500kVA
• 500.1kVA - 800kVA
• Above 800kVA

By Type

• Online
• Offline

By Application

• Industrial
• Commercial
• Residential

By Region

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others