Power Electronics

Stable Growth Expected in European UPS Market

Marketing research firm Frost & Sullivan (www.power.frost.com) forecasts that earned revenues for the Central and Eastern European UPS market will rise from €106.0 million in 2005 to an estimated €164.0 million in 2012. According to the firm, this growth reflects a growing interest in power protection as European Union member states from central and eastern Europe strive to harmonize their economies, national infrastructures, commercial activities and technology with their western counterparts.

“Investment has been a key driver to the growth of the central and eastern European countries in recent years and it will continue to be so in the near future,” notes Frost & Sullivan. “As national governments and local companies harness links with the west, foreign and domestic investment is expected to increase, thereby providing opportunities for many businesses, including the UPS market.”

Penetration into the central and eastern European UPS market will require identification of the sales channels best suited to the different types of UPS that can be offered, says the firm. Understanding local markets and locating the most advantageous distribution method will be key to entering most markets. However, within country markets that have low public awareness about power quality issues, seeking out the most efficient sales channel will determine the success of market participants.

At the same time, intensifying competition over the long term will require additional strategic planning by UPS manufacturers. They will need to effectively position not only their products, but their companies within the market.

“Striking a balance between direct company representations and installing a comprehensive sales network will help toward further stabilizing a company’s position in the market,” adds Frost & Sullivan. “A strong presence will also help toward raising awareness of power security problems which, in turn, will lead to augmented business opportunities.”

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