UPS market set for growth

A new report from Frost & Sullivan suggests that insufficient power infrastructure and growing loads on energy utilities are driving the end user market to uninterruptible power supply (UPS) systems.

Insufficient power infrastructure and the growing load on energy utilities are driving the end user market to uninterruptible power supply (UPS) systems. In the absence of clean and consistent power, UPS systems are needed to decrease downtime and protect sensitive equipment.

New market analysis from Frost & Sullivan reveals that this industry generated revenues totalling $5.29 billion in 2001. Total market revenues are expected to reach $6.29 billion in 2007.

‘The slightest downtime in mission-critical applications such as servers in an organisation can result in fiscal and material damages,’ said Frost & Sullivan Industry Analyst Farah Saeed. ‘Aware that the current utility system is insufficient and corporations are dependent on sensitive electronic equipment, end users will be more willing to invest in power quality products and services alike.’

The growth in data storage loads is increasing the demand for smaller, energy-efficient servers. The subsequent server replacements are likely to create sales of smaller UPS systems.

Many Asian countries are in the process of building infrastructure to support the growing number of Internet users and data centres for various sectors. Companies are investing in microprocessor equipment and this will increase the demand for UPS systems.

‘Transition economies offer tremendous growth opportunities in this market. Countries including Malaysia, South Korea, and Taiwan have a low saturation level of UPS systems and appear unaffected by the global economic slowdown,’ notes Saeed.

Further, expanding network systems and the high square-foot cost of office space will make space-saving units more attractive to end users. Modular units are likely to be preferred since the failure of a single module will not prevent the UPS system from continuing its mission, thereby significantly reducing downtime.

Emerging technologies such as high-definition television, third-generation (3G) wireless technologies, high-speed Internet, and wireless land area networks, will have a positive impact on sales.

An overall upturn is expected in the market as industries stabilise after having undergone cost reductions and new spending cycles begin. Demand to upgrade servers and other network hardware will rise as companies integrate enterprise software systems and e-business initiatives to lower costs and increase competitiveness. Along with the continuing growth of the Internet, this will reinforce the need for 24/7 power availability.

To see the full report go to: <A HREF=>World UPS Market</A>

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