by Brianna Crandall — May 11, 2015—End-user industries are increasingly investing in industrial uninterruptible power supply (UPS) systems to minimize productivity losses and threats to plant safety due to power interruption, according to a new report from global growth partnership company Frost & Sullivan.
Annual productivity losses on account of power quality issues are costing end-user industries in Europe 150 billion and those in the USA $188 billion. The need for industrial UPS systems in these regions is on the rise. By 2018, the mature U.S. and European markets will contribute to 45 percent of market revenues, while Asia-Pacific will hold 26 percent of the revenue share, says Frost & Sullivan.
The new analysis finds that the market earned revenues of $1.13 billion in 2014, and estimates this will reach $1.38 billion in 2018. The study covers single- and three-phase industrial UPS systems.
“The growth in niche industrial applications is pushing end users to employ high-end industrial UPS systems,” explains Frost & Sullivan Energy and Environmental Senior Industry Analyst Gautham Gnanajothi. “As niche segments have specific requirements, customized and specialized UPS systems will account for a large proportion of investments made in this space.”
However, the low replacement rate of industrial UPS systems, which are built to deal with dust and extreme conditions, will decrease market revenues. As the average life expectancy of industrial-grade UPS systems is around 20 to 30 years, nearly twice the lifetime of a standard commercial UPS system, replacement demand will remain low globally.
Further, the limited scope for product or technology innovation due to the maturity of UPS technology will hamper market progress. Nevertheless, with industrial end users showing interest in modular UPS systems, developing such products will catalyze demand.
“Manufacturers need to introduce energy-efficient UPS systems with additional features,” advises Gnanajothi. “They should also enhance their customization capabilities to strengthen their appeal to customers in various market segments.”
Global Industrial UPS Market is part of the firm’s Power Supplies and Batteries Growth Partnership Service program. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
