Global Uninterruptible Power Supply (UPS) Systems Market to Reach US$14 Billion by 2017, According to a New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Uninterruptible Power Supply (UPS) Systems market. The global market for UPS Systems is projected to reach US$14 billion by 2017, primarily driven by the digital economy that runs on clean, abundant, and reliable source of power and subsequent need for efficient power management technologies; growing enterprise adoption of virtualization; and growing complexity of information and communications infrastructure and subsequent risks to enterprise IT systems. Robust demand from developing regions, particularly Asia-Pacific, also augurs well for the market.

Uninterruptible Power Supply (UPS) Systems: A Global Strategic Business Report

Follow us on LinkedIn - Technologies that accentuate the conservation, cleaning up, and generation of reliable electricity would sustain the future of modern digital economies. Demand for power across the globe is growing at a robust pace annually, riding on thriving economies. The insatiable demand for clean and reliable power supply is growing with each passing day and positions itself as a market to tap for the UPS industry. More than half of the electricity demand is accounted by the information technology market, making it a force to reckon with. In the US alone, about 8% of the electricity is consumed by the use of Internet, ranking it higher than the steel and chemical industries. The global consumption of electrical power is projected to leap to 20 trillion kilowatt-hours by 2015. Power problems such as outages, brownouts, and blackouts therefore result in colossal loss to an economy. Power management technologies are portended to rule high in the coming years. There exists huge opportunity for manufacturers who specialize in meeting the evolving demands in the electricity market. The old line of utility management sufficiently stands to lose away their hold in face of newer technologies.

The financial crisis led world economic recession during the period 2007-2009, not surprisingly left the global UPS market hurting. The level of impact wielded by the recession can be thrown into sharp relief by the fact that market distortions, such as, fall in the business confidence index, bleeding corporate balance sheets, enterprise skepticism over infrastructure investments, tight liquidity/financial constraints, lack of credit availability, high borrowing rates and capital shortages to fund new investments in telecommunications, IT infrastructure, plants and equipment, together resulted in hurting erosion in market value in the year 2009. Corporate clamp down on IT budgets, for instance, resulted in declines in new purchases of computing and technology products and delays in data center expansions, which in turn exerted pressure on UPS systems, which are used to provide instantaneous protection to electronic devices/equipments/products against abrupt power failures and interruptions and voltage fluctuations i.e. voltage sags, spikes and surge. Computer and technology products for home users additionally was severely impacted as a result of falling incomes, reducing household wealth, lower discretionary spends, rising unemployment, and crumbling consumer confidence, thus impacting sales of UPS systems in the consumer market.

Downturn in the semiconductor industry resulted in decline in UPS demand from the semiconductor wafer fabrication sector, wherein wafer fab plants are the largest end-users. Diminished manufacturing and commercial activity and the resulting declines in manufacturing output and industrial production reduced demand for electrical machinery, in the process weakening demand for industrial UPS systems. With the recession turning most end-use customers price sensitive, volatility in raw material prices forced manufacturers to absorb increases in production costs thus thinning profit margins further.

A part of the power quality industry, UPS systems although flayed by the recent recession, witnessed smart recovery in the year 2010, largely as a result of the growing ubiquity of power electronic devices and the continued steady resurgence in networking, telecommunication functions and continuous data and network services. Growing population, introduction of power grids and rise in number of electrification projects, resurgence in manufacturing activities, have all swung back to action spurring the recovery in demand for industrial UPS systems. Also, with the increasing adoption of a digitally-based lifestyle by majority of consumers, computing and storage requirements will continue to surge creating demand for reliable power management tools. The improving economy will result in the establishment of new datacenters thus wielding a positive impact on orders from the datacenters, which are the key revenue generators for the market.

Going forwards, the market will be primarily driven by growing enterprise adoption of ‘virtualization’ as a technology for enhancing data center operations, as a strategy for complying with green IT agenda. As virtualization causes densities to surge and existing power protection solutions may not necessarily handle the new set-up, it offers a good proposition for resellers selling UPS. Growing complexity of ICT infrastructures and widespread deployment of high density computing infrastructures, which have reduced the tolerance of business processes and systems to power outages also serve as a business case for increased adoption of UPS systems in the upcoming years. With the potential risk of power failures being IT system breakdown, loss of critical data, inability to provide customer services and business losses, among others, demand for sophisticated power management solutions will continue to remain strong thus benefiting the UPS systems market.

As stated by the new market research report on Uninterruptible Power Supply (UPS) Systems, Asia-Pacific represents the fastest growing regional market for UPS systems with revenue from the region waxing at a CAGR of about 15.8% over the analysis period. Continuous investments in industry and infrastructure by governments in the region are particularly driving robust growth in the Asia-Pacific market. Less than 5 KVA UPS Systems represents the largest product segment.

Major players in the marketplace include Active Power Inc., Eaton Corporation, Schneider Electric, Piller Power Systems, Riello UPS Ltd., Tripp Lite, among others.

The research report titled “Uninterruptible Power Supply (UPS) Systems: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of current market trends, key growth drivers, recent industry activity, and profiles major companies worldwide. The report provides market estimates and projections for routers across all major geographic markets including US, Canada, Japan, Europe, Asia-Pacific Latin America, and Rest of World. The report analyses the market by product segments Above 500 KVA; 200.1 to 500 KVA; 100.1 to 200 KVA; 50.1 to 100 KVA; 20.1 to 50 KVA; 5.1 to 20 KVA; and Less than 5 KVA.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
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