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UPS revenues return to pre-recession levels in 2012

Posted: 31 Mar 2011     Print Version  Bookmark and Share

Keywords:uninterruptible power supplies  UPS  market report 

IMS Research has released data from its continuing research on the global uninterruptible power supplies (UPS) market. According to the analyst, the market is quickly recovering from the economic downturn, and Q4 2010 revenues were 10.8 per cent higher than Q4 2009 revenues. Also, 2H 2010 grew twice as fast as 1H 2010, and the total annual value was more than Rs.31,836.63 crore ($7 billion). Thus, IMS Research predicts that demand for UPS will return to pre-recessionary levels by 2012.

Jason dePreaux, senior analyst, IMS Research, notes that "Spending on critical power upgrades such as UPS has come back, notably in the small and medium business segment where power requirements are lower and projects are less capital intensive." dePreaux adds, "big data-centre jobs also appear to be coming back; though this sector is highly dependent on the availability of credit to move forward with major upgrades or new construction."

Power protection is big business because digital information has become ubiquitous and sensitive for business operations. In 2008, sales of UPS peaked at over Rs.36,384.72 crore ($8 billion), half of which went to Schneider Electric, Eaton, and Emerson Network Power.

IMS Research's projections for key markets suggest that the industry will be back to a 2008-like clip by 2012, in part because of the developing markets in the "BRIC" nations of Brazil, Russia, India and China.

However, dePreaux notes that the industry will still face challenges: "UPS vendors will have to skilfully manage shortages of critical components like IGBTs. In addition, rising raw material and labour costs in Asia are squeezing margins and forcing price hikes to be made, though suppliers so far are reluctant to introduce steep increases on a still wary market."

IMS Research's recent study of the market has also revealed that revenues are growing fastest in Asia, at an annualized rate of 15-20 per cent; sales of large three-phase UPS for enterprise datacentres spiked in Q4 2010; and after-sales UPS service was worth an additional Rs.11,370.23 crore ($2.5 billion) in 2010.

For more statistics and forecasts, click here.





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