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The Uninterruptible Power Supply System Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Jun 16, 2014, 13:00 ET

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New York, NY (PRWEB) June 16, 2014 -- Firms in the Uninterruptible Power Supply System Manufacturing industry produce units that condition incoming voltage and frequency fluctuations or provide temporary power to devices until utility power is restored or another source is found. This prevents critical technology from powering down in industries where constant activity is necessary.

Demand for UPS systems continues to rise with the development of emerging nations

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Over the past five years, stronger macroeconomic business conditions have benefited industry operators. According to IBISWorld Industry Analyst Jeremy Edwards, “Rising corporate profit has triggered investment in computers and software, which has helped the industry recover from the downturn it experienced during the recession.” Additionally, strong growth in the Asia-Pacific, Latin America and Middle East regions has helped the industry increase its export activity. Industry exports are expected to increase to 9.0% of total revenue in 2014, helping industry operators expand. However, increased international activity is also encouraging foreign manufacturing operations, which increase competition for domestic players. Industry imports are on the rise as Chinese and Mexican manufacturers possess a competitive advantage over local producers: lower wage and capital costs. This has mitigated growth over the five years to 2014, when industry revenue is forecast to grow at an average annual rate of 4.0% to $1.3 billion. Additionally, a stronger US dollar is expected to limit growth to 2.0% in 2014.

Over the next five years, the industry is expected to improve performance as investment in information and communication technology (ICT) improves. Businesses are expected to take advantage of the declining price of computers and other electronics, particularly while interest rates remain low and, therefore, the cost of borrowing is affordable. In addition, the industry is expected to face mixed conditions from international markets. Increasing demand in emerging regions is expected to boost growth, but it will also translate into greater competition for domestic manufacturers. As a result, the industry is expected to grow over the five years to 2019.

The Uninterruptible Power Supply System Manufacturing exhibits a high level of market share concentration. The industry is dominated by two major players: Emerson Electric Co. and Schneider Electric SA. Industry barriers to entry are high and product loyalty tends to occur as major data centers and financial institutions are likely to remain with the same provider for extended periods of time as product quality is proven. Additionally, larger industry operators leverage economies of scale and globalized supply chains, which 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.

For more information, visit IBISWorld’s Uninterruptible Power Supply System Manufacturing
in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Firms in the Uninterruptible Power Supply System Manufacturing 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
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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