CRN Network, June 15, 2012, 1200 hrs
According to Front and Sullivan, several projects that were deferred
during the economic downturn are now getting off the ground, generating
demand for UPS systems. The market is expected to recover fully by 2015,
mainly due to governments' emphasis on cloud computing, green
technology and smart grids. New analysis from Frost & Sullivan, Asia-Pacific Uninterruptible Power Supplies Market, finds that the market earned revenues of $1.46 billion in 2011 and estimates this to reach $2.03 billion in 2017.
The popularity of data centers has raised the profile of cloud computing in Southeast Asia, Australia and Japan. Following this development, governments have been eager to adopt cloud computing to accelerate economic development, which, in turn, has accelerated the uptake of UPS systems.
"Several public and private companies are included in governments' programs to convert all government agencies' computing systems to a public cloud system, creating a cast market for UPS devices," said Avanthika Satheesh, Research Analyst, Frost & Sullivan.
With the existing power network becoming unreliable, the sales of single phase UPS soared. End users will also look to adopt UPS systems once companies provide better product services. Participants can gain a competitive advantage by offering a combination of a warranty on efficiency, after-sales service, 24/7 customer service and spare parts.
The mining, manufacturing and power utility industries will be the biggest contributors to market revenues. The introduction of smart grids all over the region is also creating considerable opportunities for the UPS market, as these grids require constant monitoring, intelligent control and communication.
However, end users in the mining and power utility sectors tend to be reluctant to adopt new technologies such green technology due to fears that the unproven technology could halt their production or cause accidents. Therefore, UPS products supplied to these sectors have to meet customized technical specifications.
"Customers' expectations could challenge UPS manufacturers since they generally lack expertise and industry knowledge in the mining, chemical, power and manufacturing sectors," noted Satheesh. "Manufacturers will be better equipped to meet end-user demand by participating in frequent development programs and training so they have skilled manpower."
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