Frost & Sullivan: Public and Infrastructure Applications Set to Sustain the Demand for UPS Across Western Europe

LONDON - The lack of finances is affecting investment, paralleled by falling consumer spending, rising unemployment and declining industrial output. With many end-user sectors reeling, the demand for UPS equipment has also fallen and revenue growth is likely to be affected for the next two years, at least. However, spending in certain applications such as power generation, transportation and healthcare, among others, has been less affected. Public and infrastructure applications are set to sustain the UPS market across the region during this turbulent period.

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New analysis from Frost & Sullivan (www.powersupplies.frost.com) Growth Opportunities in the Western European UPS Market, finds that the market earned revenues of euro 1,361 million in 2007, with best-case scenario estimates pegged at euro 2,424.7 million for 2014 and worst-case scenario estimates at euro 1,906.8 million.

“Increasing demand from end-user applications, particularly datacentres has been driving the sales of UPS systems for the past few years,” notes Frost & Sullivan Research Manager Malavika Tohani. “The rise in data transfer and storage has led to an increase in datacentre space and construction, boosting demand for UPS systems.”

Datacentres require 24/7 power and even one-second downtime can lead to losses of millions of pounds. UPS systems provide reliable and quality power, protecting datacentres from sudden interruptions in power.

The past 2-3 years have seen a rapid increase in data being stored and exchanged. Initiatives such as e-healthcare and the EU Data Retention Directive have further added to this need. Datacentres provide infrastructure for IT operations and are crucial for business continuity. Hence, UPS and other forms of backup power are essential components.

However, the financial crisis and subsequent recession have dampened the demand for UPS systems from various applications such as datacentres, industries, offices and commercial buildings among others. Industrial output is on the decline; the automotive industry is experiencing severe losses and oil prices are falling, leading to job losses, plant closures, project cancellations and lower investment. With little or negative growth in the major end-user applications for UPS systems, the demand for the equipment is also anticipated to suffer.

“Following the economic downturn, the demand for UPS systems, especially from industrial and commercial applications, has taken a hit,” explains Tohani. “Moreover, orders from other applications such as telecommunications, banking and financial services are declining, due to cost cutting measures, negatively impacting the uptake of UPS equipment by these sectors.”

However, pockets of opportunity still exist in public and infrastructure applications, healthcare, renewable and alternative energy and even in certain segments within the datacentre space. Given the downturn, majority of the consumers are cutting their costs and this is expected to trigger datacentre outsourcing. Similarly, servicing side of the business should perform well as customers are interested to increase the lifespan of the equipment rather than purchase a new one.

The expansion of product portfolios, a focus on after-sales servicing activities, increasing the efficiency of processes, curbing operation and production costs and growing through mergers and acquisitions are some methods UPS manufacturers are pursuing to ensure stability in revenues.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Chiara Carella, Corporate Communications, at chiara.carella@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

Growth Opportunities in the Western European UPS Market is part of the Power Supplies Growth Partnership Services programme, which also includes research in the following markets: Central and Eastern European UPS Market, Strategic Analysis of the Chinese UPS Market and North American 3-phase UPS Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

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Growth Opportunities in the Western European UPS Market M381 Contact: Chiara Carella Corporate Communications - Europe P: +44(0)20-7343-8314 M: +44(0)753-3017689 E: chiara.carella@frost.com www.frost.com

Source: Frost & Sullivan

Chiara Carella, Corporate Communications - Europe of Frost & Sullivan, +44(0)20-7343-8314, mobile, +44(0)753-3017689, chiara.carella at frost.com / https://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO