by Shane Henson — October 7, 2013—Frost & Sullivan recently published new information on the uninterruptible power supplies (UPS) market in its Analysis of the Global Uninterruptible Power Supplies Market report.
According to the research, the shortage of reliable power has given a boost to the uninterruptible power supplies (UPS) market worldwide, propelling it toward stable year-over-year growth. The market earned $8.52 billion in 2012 and it is estimated that revenues will reach $12.34 billion in 2019. The above-20 kilovolt-amps segment is displaying consistently higher growth rates while lower power ranges are specializing for niche markets such as the medical, military, and industry.
“Long years of weathering, including expansion in the heat and contraction in the cold, reduce the effective functioning of transmission and distribution systems, resulting in unreliable power output,” said Frost & Sullivan Energy and Environmental Senior Industry Analyst Anu Elizabeth Cherian. “Quality power remains the priority for businesses—fueling investment in UPS systems since data losses can be more expensive than the capital expenditure required for backup power equipment.”
For now, the UPS systems market will continue on a steady growth path despite factors such as the intense pricing pressures, the oligopolistic nature of competition, increased consolidation, and lack of product differentiation. Threat from new technology competitors including direct current suppliers will affect the market towards the end of the forecast period, according to the report.
The report also discusses how one-stop-shop manufacturers will have a definite edge over competition. Building relationships with local vendors, who sustain their market share by offering greater customization, will allow established suppliers to grow their customer base and bring greater legitimacy to local products. The penetration of alternative energy storage technologies, such as flywheels, will present a green value proposition to UPS systems.
“A focus on mega trends revolving around economic growth, infrastructure build outs, and urbanization will be key to building sustainable future strategies to gain higher traction in this highly mature market,” noted Cherian.
