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Checking Production Costs Crucial to Arresting Falling Margins in the Malaysian UPS Market - New analysis from Frost & Sullivan, Malaysian UPS Market, reveals that this market earned revenues of $33.9 million in 2006 and estimates this to reach $70.9 million in 2013
Checking Production Costs Crucial to Arresting Falling Margins in the Malaysian UPS Market

 

NewswireToday - /newswire/ - Singapore, Singapore, 2007/07/04 - New analysis from Frost & Sullivan, Malaysian UPS Market, reveals that this market earned revenues of $33.9 million in 2006 and estimates this to reach $70.9 million in 2013.

   
 
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The Malaysian UPS market has enjoyed rapid growth in recent times, in the process drawing an increasing number of new market participants to this fast developing market. The consequent increase in competition levels is, however, having a detrimental impact on profit margins, warranting urgent attention to controlling production costs in order to arrest the falling profit margins.

New analysis from Frost & Sullivan (powersupplies.frost.com), Malaysian UPS Market, reveals that this market earned revenues of $33.9 million in 2006 and estimates this to reach $70.9 million in 2013.

"The Malaysian UPS market is still in the growth phase, displaying untapped potential in certain market segments such as low and medium range kilovolt-ampere (kVA) systems," notes Frost & Sullivan Research Analyst John Ong." Key factors expected to drive the market forward include an increasing awareness about the necessity for quality power, the surge in renewal rates for existing UPS systems due to the increasing popularity of modular UPS, and also the impressive growth of the country’s telecommunication, semi-conductor, and banking sectors."

With regard to the market segments, the 1 to 5 kVA segment is presently the largest revenue generating segment in the overall Malaysian UPS market. Important drivers for this segment include healthy uptake among small and medium businesses and also increasing demand from specialized applications such as telecommunications and medical devices. While this segment constituted approximately 24.3 percent of the total Malaysian UPS Markets, the below 1 kVa segment was second largest with a share of about 18.5 percent, followed by the 5 to 20 kVa segment.

However, as mentioned earlier, declining margins are likely to be a major challenge for participants in the Malaysian UPS markets. Primary factors contributing to this trend include rising raw material prices as well as increasing competition from new market entrants leading to market fragmentation and price wars among manufacturers and distributors to tap into specific market segments.

"Competitors in the Malaysian UPS markets are aggressively battling for market shares at the current stage so as to maintain positions in the long run after the market matures," says Ong. "Indicative of this is the heightened emphasis on marketing and market penetration strategies by manufacturers and distributors that has subsequently led to a sharp increase in promotions and campaigns targeted at businesses and consumers."

Going forward, the Malaysian UPS market is expected to witness high and stable growth in the next six years. While this makes for immense market potential, it will be particularly critical for market participants to arrest falling profit margins through better control over production costs, develop market presence in niche market segments, and adopt new technologies to accommodate changing end-user preferences.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Malaysian UPS Market, then send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.co, with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.

Malaysian UPS Market is part of the Power Supplies & Batteries Growth Partnership Service, which also includes research in the following: Australia and New Zealand UPS Markets, Chinese UPS Markets, World UPS Report. 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.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics and demographics.

 
 
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Checking Production Costs Crucial to Arresting Falling Margins in the Malaysian UPS Market

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Publisher Contact: Donna Jeremiah 
+603 6304 5832 djeremiah[.]frost.com
 
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