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As Energy Costs Rise, End Users Examine Existing Power Infrastructure - As energy costs rise with gloomy economic forecast, end users continue to make power a priority and take a closer look at existing power infrastructures, including uninterruptible power supplies (UPS) systems
As Energy Costs Rise, End Users Examine Existing Power Infrastructure

 

NewswireToday - /newswire/ - Palo Alto, CA, United States, 2008/06/30 - As energy costs rise with gloomy economic forecast, end users continue to make power a priority and take a closer look at existing power infrastructures, including uninterruptible power supplies (UPS) systems.

   
 
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This in return creates opportunities for UPS upgrades and unit shipments. UPS manufacturers must also be aware that the affects of a depreciating dollar currency, rising commodity prices for steel and iron, and general inflation all shape market dynamics for UPS systems.

Frost & Sullivan estimates the first quarter of 2008 generated approximately $1.81 billion in UPS sales, indicating a 10.5 percent growth over the first quarter of 2007. Factors contributing to this strong performance include an 18.3 percent growth rate in European UPS revenues, along with positive demand for three-phase products ranging from 50 kVA and above. This estimate was completed using Frost & Sullivan's Quarterly UPS Tracker, which produces a global deliverable to track UPS revenues, unit shipments, and prices for six different kVA ranges by geographic region.

In the same period, North America UPS market grew 8.2 percent, influenced by strong UPS shipment performance in the 5.1 to 20 kVA and above 200 kVA ranges. Lower power ranges particularly below 1 kVA did not fare well. Shrinking market for desktop computers in favor of laptops and transition towards centralized power shifted demand for higher power ranges.

"Positive demand for three-phase UPS units is driven by data center developments within co-location, internet hosting and financial services," notes Frost & Sullivan Senior Consultant Farah Saeed. "Furthermore, concerns regarding power consumption and energy inefficiencies encourage end users to re-evaluate existing power infrastructure."

Increase in commodity prices combined with inflation grew average selling price 5.3 percent during the first quarter. Vertical markets, including healthcare (medical imaging equipment) and data center construction, drove sales for UPS systems in early 2008.

Continued focus on addressing energy efficiency and lowering operational cost led to products with improved power factor, which in return stimulated demand for power upgrades.

Frost & Sullivan's Quarterly UPS Tracker covers the following kVA ranges for North America, Europe, Asia and rest of world:

• Below 1 kVA
• 1 to 5 kVA
• 5.1 to 20 kVA
• 20.1 to 50 kVA
• 50.1 to 200 kVA
• Above 200 kVA

The next quarterly UPS tracker update will be available August 2008.

If you are interested in additional information regarding this quarterly UPS tracker, send an email to Johanna Haynes, Corporate Communications, at johanna.haynes[.]frost.com with the following information: your full name, company name, title, company telephone number, company email address, city, state, and country. We will send you the information via email upon receipt of the above information.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting, and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 30 offices on six continents.

 
 
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Written by / Agency / Source: Frost & Sullivan

 
 

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As Energy Costs Rise, End Users Examine Existing Power Infrastructure

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Frost & Sullivan |
Publisher Contact: Johanna Haynes 
210.247.3870 johanna.haynes[.]frost.com
 
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