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UPS Market Returns to Double-Digit Growth in Q3

Dec 13, 2010 3:02 PM

After nearly two years of lackluster performance, the recovery of the global market for uninterruptible power supplies (UPS) is picking up steam, posting a 12.9% increase in the third quarter this year as compared to Q3 of last year. Data from IMS Research’s continuing analysis of the market revealed strong UPS sales in Asia and the Americas, while the debt crisis in Europe is hampering its fledgling revival.

UPS sales in Asia are driving the global recovery. Year-to-date, UPS revenues are up more than 20% from 2009 and well on their way to reaching pre-recessionary demand levels. According to Senior Research Analyst Jason dePreaux, China and India remain the engines of growth in Asia. Additionally, he says that Japan, a market previously decimated by the recession, is beginning to again invest in high-power UPS systems for enterprise data centers. “Without question, Asia is now a major focus of supplier attention,” he says. “In the span of five years, Asia has grown its share of the global market from 25% to 33%.”

In North America, the small and medium business segment has bounced back the strongest thus far, reports IMS Research. Single-phase UPS, which typically backs up server rooms and closets, is on pace to end the year up close to 15% higher than in 2009. On the other hand, three-phase orders for large computing facilities have only recently shown signs of a turnaround. “After seeing eight consecutive quarters of decline in >100kVA sales in the Americas because of stalled or cancelled projects, sales not only reversed course in Q3, but had a record quarter,” adds dePreaux.

The market in Europe, Middle East and Africa has not improved to the degree of those in Asia and the Americas. UPS revenues remain roughly the same as in 2009, though changes in exchange rate have hit the market to some extent. Globally, IMS Research projects double-digit growth will continue into 2011.

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