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Services - The Most Lucrative Segment in the European UPS Market - Services have been identified as the most lucrative segment in the European uninterruptible power supplies (UPS) market
Services - The Most Lucrative Segment in the European UPS Market

 

NewswireToday - /newswire/ - London, United Kingdom, 2008/07/22 - Services have been identified as the most lucrative segment in the European uninterruptible power supplies (UPS) market.

   
 
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The major share of revenues is expected to come from preventative maintenance of three-phase systems in Western Europe. However, the extent to which manufacturers can leverage market potential will depend on their ability to establish new servicing networks and enhance servicing capabilities. Ultimately, manufacturers will need to become complete service solution providers. Branding and positioning to the effect of being one-stop shops for all power protection solutions will largely decide the growth trajectory of companies in the UPS services market.

New analysis from Frost & Sullivan (powersupplies.frost.com), European UPS Service Markets, finds that the market earned revenues of €480 million in 2007 and estimates this to reach €912.2 million in 2014.

"Maturity and increased consolidation in the sales market is prompting UPS manufacturers to look at the servicing arena for future growth and business expansion," notes Frost & Sullivan Research Analyst Chandni Raj. "The need for critical back-up power protection coupled with heightened awareness of the need for regular servicing and maintenance is spurring market growth."

The market for UPS systems in Western Europe is mature and developed. Accordingly, awareness levels about UPS systems and their benefits are high in comparison to smaller markets. Increase in the installation of UPS systems in medium to large power ranges is fuelling the growth of the services market.

Intense competition from third-party service providers who offer services at much lower prices is proving to be the most significant challenge facing UPS manufacturers today. An emphasis on price, rather than service quality, is further helping third-party providers. Encroachment by third-party service providers on original equipment manufacturers' (OEM) servicing business is affecting services revenues and the overall expansion of parent companies.

"Considerable potential in the services market remains largely untapped by manufacturers due to their limited servicing network and capabilities," adds Raj. "This situation has been leveraged by independent service providers, resulting in UPS manufacturers missing out on a substantial portion of revenues from their most profitable business segment."

Manufacturers in Europe need to boost their servicing capabilities by recruiting skilled manpower and establishing servicing networks across Europe. Moreover, they should develop rapport with end users through customer- oriented programmes and trade shows. These strategies, if judiciously implemented, can go a long way in defending market shares and revenues for OEMs in the services market.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the European UPS service markets, then send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

European UPS Service Markets is part of the Power Supplies & Batteries Growth Partnership Service Programme, which also includes research in the following markets: European Rotary UPS Markets, European Power Inverter Market, Western European Wind Power Markets, World PV Inverter Markets and European Inverter Market for Renewable Energy Systems. 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.

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.

European UPS Service Markets
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Services - The Most Lucrative Segment in the European UPS Market

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Frost & Sullivan |
Publisher Contact: Chiara Carella 
+44 (0) 20 7343 8314 chiara.carella[.]frost.com
 
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