World Ups Market To Double, Top $7 Billion By 1999, Driven By Computer, Telecom Industries

Business Wire, April 29, 1995

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Paced by growth in sales to the computer and telecommunications industries, the worldwide uninterruptible power supply (UPS) market will more than double, growing from $3.3 billion in 1993 to $7.5 billion by 1999 at a nearly 15 percent compound annual rate, projects a new study just issued by Frost & Sullivan.

The share of UPS revenues deriving from the computer industry is forecast to rise from an already dominant 59 percent in 1993 to 61 percent by 1999 as the proliferation of computers and peripherals worldwide continues to both drive the market and push the technology envelope, making UPSs "smarter" in their functionality, forecasts the report, WORLD UNINTERRUPTIBLE POWER SUPPLY MARKETS: INCREASED AWARENESS OF DATA AND EQUIPMENT PROTECTION SUSTAINS GROWTH.

The share of UPS revenues from the telecommunications industry will rise from 15 percent in 1993 to 18 percent by 1999. The market has also seen significant recent growth in industrial and instrumentation as well as medical applications. In the sluggish military and government market, projected to dip from 8 percent of total UPS revenues to 5.5 percent by 1999, manufacturers will compensate by shifting toward more rapidly developing markets. Other major end-users include utilities, the petrochemical industry and other heavy industries.

Off-line power supplies will grow more rapidly than on-line, increasing their share of the total market from 31 percent in 1993 to 36 by 1999, while within the on-line segment, devices in lower power ranges will lead growth.

Vendors are increasingly going out into the worldwide market for new sales. 46 percent of 1993 sales took place in the U.S., 28 percent in Europe, 17 percent Japan and 9 percent other markets. Eastern Europe is expected to be the source of much new growth with a surge in demand for power protection systems. Taiwan and South Korea are both now producing power supplies for the world market at highly competitive rates. The multiplicity of international standards, meanwhile, is causing increased manufacturing costs.

Manufacturers are attempting to develop new products with improved power-handling capabilities along with user-friendly software to expand their customer base. Pressure from data processing and communications industries is forcing UPS vendors to develop more reliable and less noisy products. Price continues to play a major role in the market too, especially among vendors trying to establish themselves in the business. Innovations in the UPS industry have included power conditioning and systems able to shut down unattended program operations in case of blackout, switch to back-up systems in less than 5 milliseconds and show on-screen the amount of time remaining for saving data.

Frost & Sullivan is an international high-technology research firm. All Frost & Sullivan reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Frost & Sullivan is the leading publisher worldwide of high-technology research reports.

Code: 983-25 Publication Date: 1994 Price: $2195

Total Uninterruptible Power Supply Market:

Unit Shipment and Revenue Forecasts (World),

1989-19993-1 Total Uninterruptible Power Supply Market:

Unit Shipment and Revenue Forecasts (World),

1989-1999gures

Revenue

Units RevenuesGrowth Rate

Year (Million)($ Billion)(%)

1989 .523 1.82 ---

1990 .662 2.13 17.1

1991 .833 2.48 16.4

1992 1.04 2.87 15.8

1993 1.28 3.32 15.4

1994 1.56 3.82 15.1

1995 1.90 4.38 14.9

1996 2.32 5.03 14.7

1997 2.82 5.75 14.4

1998 3.42 6.56 14.1

1999 4.13 7.46 13.7

Compound Annual Growth Rate (1992-1999): 14.6%

Note: All figures are rounded. Source: Frost & Sullivan, Inc.

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