Global UPS Consumption Increases At Measured Rate Through 2006

1/15/2003 - In the recently released multi-volume study entitled "The 2002 Power Protection Market Intelligence Program," Venture Development Corporation (VDC) concluded that the combined global consumption of battery powered Uninterruptible Power Supplies (UPS) will increase from $4.50 billion in 2001 to approximately $5.21 billion by 2006, a relatively modest compound annual growth rate (CAGR) of 2.95%. In general, growth will be driven by:

Over half of all dollar consumption in the global UPS market in 2001 was accounted for by products less than 5 kVA in power range, a figure that is expected to grow on through 2006. This segment’s disproportional share of unit consumption is aided by the low cost of these units relative to larger-scale UPS systems. Lower pricing and an increasingly converged technology landscape should produce a spike in both the number and power of personal and home computer purchases, thus causing a shift towards more sales of under 5.0 kVA UPS products over the next several years among small enterprises, SOHOs and home based end users.

The increasing consumption of low-power units, which reflects growing consumer education, and advances in hardware and engineering design, should result in more operationally efficient, yet electronically sensitive loads. Demand within this segment of the market has, and should continue for the duration of 2002, to benefit from eroding price points as suppliers seek market share. Meanwhile, prices for higher-powered systems are expected to climb slightly over the forecast period, making the large capital investments necessary with these products even more difficult as all geographic regions and markets struggle to rebound from past economic strife. Thus, the lower power segments of the UPS market should drive the most of the growth of global consumption of UPS products through 2006.

About the Study
The report, “The 2002 Power Protection Market Intelligence Program: Volumes I - VI” (North America (under and over 5 kVA), Europe (under and over 5 kVA), Asia-Pacific, and Latin America), is a multi-client study designed to provide subscribers with relevant and up-to-date market intelligence to support strategic marketing and product planning decisions. This report includes:

Venture Development Corporation, a technology market research and strategy firm, was founded in 1971 by graduates of Harvard Business School and MIT. Over the years, VDC has developed and fine-tuned a unique and highly successful methodology for forecasting and analyzing dynamic technology markets. VDC has extensive experience in providing analysis in electronic components markets. This includes both multi-client and customized consulting engagements in a broad spectrum of related topics including switching power supplies, surge suppressors, fuel cells, static transfer switches, and others.

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