Energy Power Supplies Market

Market Definition

The market refers to the industry involved in the production, distribution, and sale of devices that convert electrical energy into a usable form. The market encompasses DC-DC converters, AC-DC converters, battery-based systems and uninterruptible power supplies (UPS). 

The report presents an overview of the primary growth drivers, supported by regional analysis and regulatory frameworks expected to impact market development over the forecast period.

Energy Power Supplies Market Overview

The global energy power supplies market size was valued at USD 39.58 billion in 2023 and is projected to grow from USD 41.93 billion in 2024 to USD 68.02 billion by 2031, exhibiting a CAGR of 7.16% during the forecast period. 

The market growth is attributed to the rising demand for energy-efficient and reliable power conversion solutions across key sectors such as industrial automation, consumer electronics, telecommunications, and healthcare.

Major companies operating in the energy power supplies industry are ABB, AMETEK Power Instruments, Siemens Energy, Aggreko, Schneider Electric, Atlas Copco AB, Eaton, Enercon Technologies, Ltd., GE Vernova, RENOGY, General Electric Company, Custom Manufacturing & Engineering, Inc., Caterpillar Energy Solutions GmbH, Kohler Co, and Wacker Neuson SE.

The increasing integration of renewable energy sources, coupled with advancements in smart grid infrastructure and energy storage technologies, is further accelerating market expansion. Moreover, ongoing digitalization and the proliferation of electronic devices are reinforcing the need for high-performance power supplies capable of supporting complex and mission-critical applications.

• In September 2023, Advanced Energy introduced the NCF150 series, the world’s first off-the-shelf convection-cooled, CF-rated standard power supplies. Designed for high performance and reliability, the NCF150 series offers a compact solution ideal for demanding medical and industrial applications.

Key Highlights

1. The energy power supplies industry size was valued at USD 39.58 billion in 2023.
2. The market is projected to grow at a CAGR of 7.16% from 2024 to 2031.
3. North America held a market share of 33.24% in 2023, with a valuation of USD 13.16 billion.
4. The single segment garnered USD 26.87 billion in revenue in 2023.
5. The AC-DC segment is expected to reach USD 39.47 billion by 2031.
6. The gasoline generators segment is anticipated to witness the fastest CAGR of 7.68% during the forecast period.
7. The industrial segment garnered USD 17.19 billion in revenue in 2023.
8. The market in Asia Pacific is anticipated to grow at a CAGR of 8.15% during the forecast period.

Market Driver

Growth of Renewable Energy Integration

The increasing adoption of renewable energy sources such as solar and wind is a significant driver for the market. There is an increasing need for advanced power supply systems that can provide stable energy conversion, efficient storage, and reliable distribution due to the intermittent and variable output of renewable energy sources. 

These systems are required to enhance grid reliability, enable bidirectional power flow, and integrate effectively with energy storage technologies.

• In November 2024, STMicroelectronics announced a 21-year Power Purchase Agreement (PPA) with BKH Solar Sdn Bhd, a joint venture between ENGIE Renewable SEA and Conextone Energy. Under Malaysia’s Corporate Green Power Program, the agreement will supply approximately 50 GWh of renewable energy annually from a new solar farm in Kedah, Malaysia.

Market Challenge

Supply Disruptions

A key challenge in the energy power supplies market is the disruption of supply chains, caused by natural disasters, geopolitical instability, labor shortages, and supply chain constraints. These disruptions can damage critical infrastructure, delay production, and cause instability in energy resources. 

The integration of intermittent renewable energy sources into existing grids further hinders market growth. To address these challenges, key players are investing in advanced risk management systems, enhancing supply chain visibility, and adopting flexible infrastructure solutions to mitigate the impact of disruptions. 

Additionally, many are focusing on diversification of energy sources and strengthening global partnerships to ensure a more stable and reliable energy supply.

Market Trend

Smart Grids and Digitalization

Smart grids and digitalization are key trends transforming the market by enabling more efficient, reliable, and flexible energy distribution. Smart grids utilize advanced technologies like sensors, communication systems, and data analytics to monitor and manage the flow of electricity in real time. 

This allows for better demand forecasting, grid optimization, and the seamless integration of renewable energy sources. Digital tools like the Internet of Things (IoT), artificial intelligence (AI), and blockchain are enhancing grid resilience and security by detecting faults, optimizing energy consumption, and preventing cyber threats. 

Energy providers can lower operational costs, enhance grid stability, and offer more customized services to consumers, including dynamic pricing and demand-response initiatives.

• In February 2025, South Bihar Power Distribution Company Limited (SBPDCL) signed an agreement with REC  LIMITED and Bidgely to support Bihar’s digital energy transformation using AI-powered power management solutions. The collaboration aims to enhance grid efficiency, improve consumer engagement, and optimize energy usage through advanced analytics and data-driven insights.

Energy Power Supplies Market Report Snapshot

Segmentation	Details
By Phase	Single, Three
By Type	AC-DC, DC-DC
By Source	Diesel Generators, Gasoline Generators, Natural Gas Generators, Solar Generators, Wind Generators
By End-use	Residential, Commercial, Industrial
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Phase (Single, Three): The single segment earned USD 26.87 billion in 2023 due to its widespread use in residential and light commercial applications requiring lower power capacity.
• By Type (AC-DC, DC-DC): The AC-DC segment held 58.17% of the market in 2023, due to its broad applicability in powering a wide range of electronic devices and systems across industrial, consumer, and communication sectors.
• By Source (Diesel Generators, Gasoline Generators, Natural Gas Generators, Solar Generators, Wind Generators): The diesel generators segment is projected to reach USD 18.59 billion by 2031, owing to their high reliability, fuel efficiency, and widespread use in backup power applications across industrial and commercial settings.
• By End-use (Residential, Commercial, Industrial): The commercial segment is anticipated to grow at a CAGR of 7.27% during the forecast period, driven by increasing demand for uninterrupted power supply in sectors such as retail, healthcare, data centers, and hospitality.

Energy Power Supplies Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America energy power supplies market share stood around 33.24% in 2023, with a valuation of USD 13.16 billion. This dominance is attributed to the region's advanced infrastructure, high demand for energy-efficient solutions, and significant investments in renewable energy projects. The presence of leading power supply manufacturers and technological advancements in energy storage and smart grid systems further boost the region's growth.

• In February 2025, the World Bank and the Government of Belize launched a new energy project aimed at improving power reliability and expanding renewable energy integration. The initiative focuses on strengthening the electricity grid and supporting Belize’s transition to a more sustainable and resilient energy system.

The energy power supplies industry in Asia-Pacific is poised for significant growth at a robust CAGR of 8.15% over the forecast period. This rapid growth is facilitated by the region’s accelerated industrialization, expanding urban population, and increasing demand for reliable electricity in emerging markets like China and India. 

Moreover, significant investments in renewable energy projects and the growing adoption of energy-efficient technologies are further propelling market expansion. Government initiatives aimed at promoting clean energy and enhancing infrastructure, combined with the rising need for consistent power supply across sectors such as manufacturing, telecommunications, and IT, are contributing to the positive growth trajectory of the market in Asia-Pacific.

• In February 2024, India’s Ministry of Power announced that over 156 GW of power capacity is currently under construction, with a projected addition of 469 GW by 2031–2032. This expansion is part of the government’s strategy to meet rising electricity demand and transition from a power-deficient to a power-sufficient nation through significant investments in thermal, hydro, nuclear, and renewable energy infrastructure.

Regulatory Frameworks

• In the United States, the Federal Power Act regulates the interstate transmission and wholesale sale of electricity. It grants authority to the Federal Energy Regulatory Commission (FERC) to oversee electric utilities, ensure grid reliability, and promote fair pricing in the market.
• In the European Union, the Energy Efficiency Directive (EED) regulates energy efficiency across sectors, with binding national energy efficiency targets. It mandates EU countries to adopt measures to improve energy use, focusing on areas like building renovation, industrial efficiency, and transport.
• In India, the Central Electricity Regulatory Commission (CERC) Regulations govern electricity transmission, trading, and tariff determination. These regulations promote transparency, efficiency, and fair pricing in the electricity market, ensuring reliable grid operations and competition.

Competitive Landscape

The energy power supplies market is highly competitive with leading companies focusing on expanding their product portfolios, enhancing energy efficiency, and developing sustainable power supply systems to cater to the growing demand across various industries. 

Strategic partnerships, mergers, and acquisitions are common strategies employed by key players to strengthen their market position and diversify their offerings. Companies are focusing on innovation by incorporating smart grids, energy storage, and renewable energy capabilities into their offerings. 

This strategic emphasis on advanced technologies is shaping competition in the market, as players aim to deliver more efficient and sustainable energy solutions.

• In February 2023, Hitachi Energy Ltd opened a state-of-the-art power system factory in Chennai, India, to support the country’s expanding electricity needs. The facility will manufacture advanced grid automation and control solutions, reinforcing India’s energy infrastructure and accelerating its transition to a more sustainable power system.

List of Key Companies in Energy Power Supplies Market:

• ABB
• AMETEK Power Instruments
• Siemens Energy
• Aggreko
• Schneider Electric
• Atlas Copco AB
• Eaton
• Enercon Technologies, Ltd.
• GE Vernova
• RENOGY
• General Electric Company
• Custom Manufacturing & Engineering, Inc.
• Caterpillar Energy Solutions GmbH
• Kohler Co
• Wacker Neuson SE

Recent Developments (Partnerships/New Product Launch)

• In May 2024, ITOCHU Corporation launched virtual Power Purchase Agreement (PPA) services to provide Google with renewable energy in Japan. This initiative, facilitated through ITOCHU’s subsidiary Clean Energy Connect Co., Ltd. (CEC), will involve the development of approximately 72 MW of dedicated solar power capacity by 2026, including around 800 solar installations.
• In January 2023, CORE Electric Cooperative and Invenergy announced a transformative power supply partnership to advance Colorado's energy transition. The agreement will deliver over 1.2 terawatt-hours of renewable energy annually, including 400 MW of new solar and wind power, 100 MW of battery storage, and 300 MW of existing natural gas capacity, starting in 2026.