Less Than 5 kVA UPS Demand Remains Strong in North America and Europe
3/21/2003 - In the recently released multi-volume study entitled "The 2002 Power Protection Market Intelligence Program," Venture Development Corporation (VDC) concluded that the combined consumption of North American and European less than 5 kVA battery powered Uninterruptible Power Supplies (UPS) will increase from $1.53 billion in 2001 to $1.85 billion by 2006, or approximately 3.9% per year. Specifically, this growth will be driven by:
- Increasing awareness among end-users of the need for power protection in an ever growing set of vertical market applications.
- Greater functionality and more features being included in communications equipment of all types worldwide. As voice and data networks converge and the quantity and sensitivity of information being passed through electronic media increases, the consequences of potential failures from lack of power protection will become too costly to ignore.
- Deregulation, grid reliability, and power quality issues are beginning to affect the bottom line of companies in a variety of industries worldwide. As these companies realize the benefits and opportunity costs of power protection and slowly recover from a recessed economy, they will create demand for the battery powered UPS market.
- Better understanding on the part of both consulting engineers and end users, through both vendors and the media, of the advantages of facility-wide power protection.
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 in both North America and Europe should produce a spike in both the number and power of personal and home computer purchases, thus causing a necessity for and 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 consumption of low-power units, which reflects growing consumer education, and advances hardware and engineering design, should result in more operationally efficient, yet electronically sensitive loads. Demand within this segment of the market has, and for the duration of 2002, benefited from eroding price points as suppliers in these regions seek market share. Thus, the lower power segments of the market should drive a top-heavy amount of North American and European UPS consumption and growth 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:
- Forecasts by product categories, major applications, major industries, country, channels of distribution, product features, etc.
- Major issues, technology trends, and end-user needs that affect the future of this market
- Discussion of the industry structure and the influences generated by the various types of participants
- North American, European, Asia-Pacific, and Latin American vendor shipment levels and market share data by product categories
- Detailed profiles on the leading Global suppliers of battery powered UPS systems
- Recommendations providing insight into current and future market opportunities in this highly competitive marketplace
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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