Power Electronics

European UPS Market Rebounds Strongly

According to market research firm Frost & Sullivan (www.power.frost.com), the western European UPS market is making a strong comeback following the crash of the IT and telecom market in the early part of the decade. As economic confidence returns, especially among continental EU countries, investment in industry, infrastructure and also the IT and telecom sector is rising. This rise is triggering a positive spillover effect on the UPS market. Frost & Sullivan finds that the Western European UPS Market earned revenues of €958.0 million in 2005 and estimates this revenue will reach €1.5 billion in 2012.

“Renewed investment is driving the revival of the western European UPS market,” notes Frost & Sullivan. “Investment is starting to return to many countries in the region as economies begin to gain more stability after the recession and as a result increased spending is opening up opportunities for UPS manufacturers and giving the market the growth push it needs to take it through the coming years.”

The UPS market will also benefit from rising demand in the aftermath of power grid failures, which resulted in blackouts across major European countries including the United Kingdom, Switzerland, Italy and Greece in recent years. At the same time, growing concerns over data storage and security will boost investments in UPS solutions.

However, the market will continue to grapple with the twin challenges of competition and pricing. While competition has always been high, its intensity has increased in recent years due to price consciousness among customers. Multinational UPS manufacturers are not only facing heightened competition on the home front, but are also having to deal with an influx of cheaper products, which are exacerbating the steady decline in margins.

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