Uninterruptible Power Supply System Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Overall economic malaise has reduced investment activity among businesses across the board, thereby limiting the kind of expansion that uninterruptible power supplies (UPSs) seek to augment. At the same time, imports are a constant threat. The industry's saving grace has been a steady decrease in the cost of electronic components, which feature heavily in the large-scale UPS products that account for the majority of industry revenue. As businesses upgrade computing equipment, networks and systems, they also seek to protect their investments and avoid costly periods of downtime or service outage with increased investments into UPS. This trend and the anticipated continuation of ongoing economic recovery are forecast to drive industry revenue growth. For these reasons, industry research firm IBISWorld has added a report on the Uninterruptible Power Supply System Manufacturing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The industry's saving grace has been a steady decrease in electronic components costs

Revenue for the Uninterruptible Power Supply System Manufacturing industry has alternated between declines and gains since 2007. Overall economic malaise has reduced investment activity among businesses across the board, thereby limiting the kind of expansion that uninterruptible power supplies (UPSs) seek to augment. At the same time, imports are a constant threat, and their share of domestic demand consistently posts numbers in the 40.0% range. The industry's saving grace has been a steady decrease in the cost of electronic components, which feature heavily in the large-scale UPS products that account for the majority of industry revenue. According to IBISWorld industry analyst Josh McBee, “Lower input prices have allowed operators to increase their profit margins and compete more readily with cheaper imports.”

The overall recessionary atmosphere that stymied corporate expansion during the past five years masks industry-related growth in technological infrastructure. “Private investment in computers and software has increased steadily during the five years to 2012,” says McBee, “spurred by relatively low investment costs and the need for companies to upgrade and modernize their operations with the latest networking and data-keeping technology.” As a result, IBISWorld expects Uninterruptible Power Supply System Manufacturing industry revenue to grow 2.6% during 2012 to an estimated $1.2 billion. These positive conditions during the latter half of the past five years help offset some of the recessionary doldrums, thus bringing the industry's average five-year growth to an estimated 0.3% per year.

Computing and networking technology constantly changes. As it does, data infrastructure in businesses, government and organizations constantly play catch-up with their investments into the latest technologies. As they do, businesses also seek to protect their investments and avoid costly periods of downtime or service outage with increased investments into UPS. This trend and the anticipated continuation of ongoing economic recovery are forecast to drive industry revenue growth. Emerging trends in the industry include rapidly expanding need for data-center infrastructure that satisfies increasing emphasis on sustainability. Relatively new advancements in integrated flywheel technology, in which the rotation of a flywheel converts kinetic energy into electrical energy, are becoming increasingly preferred over battery-powered systems thanks to their enhanced environmental friendliness.

IBISWorld analysis reveals that the Uninterruptible Power Supply System Manufacturing industry exhibits a medium level of market share concentration. The leading companies, like major player Emerson Electric, leverage economies of scale and globalized supply chains that allow them to produce goods at a lower per-unit cost relative to competitors. Further, the research and development capabilities of larger companies allow them to differentiate their goods on the basis of performance, reliability and efficiency. Concentration has been increasing during the past five years, as underperforming companies have exited the industry. Concentration is expected to continue increasing as the largest firms pursue strategic mergers and acquisitions. For more information, visit IBISWorld’s Uninterruptible Power Supply System Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Firms in this industry primarily manufacture uninterruptible power supply (UPS) equipment or electrical apparatus that provide emergency power during unexpected outages or planned electrical blackouts. Installation, consultation and other services some manufacturers provide are excluded, and industrial, commercial and residential surge protectors are also excluded.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics

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Gavin Smith
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