Uninterruptible Power Supplies, Key to India's IT Revolution, According to Market Analysis by Frost & Sullivan

Business Wire, Oct 9, 2000

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 9, 2000

India's drive to be an information technology (IT) giant is now highly dependent on Uninterruptible Power Supplies (UPS).

Many grid-based power projects fail to meet the demand for good and clean power from large companies in IT and IT-enabled services. Other industries such as telecommunications, financial services and manufacturing firms are now functioning in networked environments that require very high levels of protection against power outages. Additionally, small and medium enterprises (SMEs) and small office-home offices (SOHOs) are increasing computing power to grow, thereby adding more pressure on the weak power infrastructure. UPS vendors cannot afford to miss such opportunities.

According to new strategic research by Frost & Sullivan (www.frost.com), "Indian Uninterruptible Power Supply (UPS) Markets," this market will grow significantly because most companies cannot afford to wait until power transmissions improve. The study forecasts this dynamic market will reach $590.2 million in revenues over the forecast period.

"IT usage in India is expanding so rapidly that current power supply and transmission facilities in most regions will soon be unable to support the needs of most companies," says Frost & Sullivan industry expert Manoj John.

Among all technology segments, online UPS is typically favored by large companies and currently dominates the Indian market in revenue. While it will continue to prosper over the forecast period, the report predicts the most dominant product will be line-interactive UPS. Companies operating in networked environments, but need less than 3 KVA of power, could shift to this technology from micropower online units because of its relatively low price. In addition, as line-interactive prices drop, SME/SOHO segments increasingly prefer them to offline (standby) units for their superior power conditioning abilities.

Since companies are targeting several segments simultaneously, competitive stakes are rising. Competition is the only way companies can sustain profit margins and retain market share. However, customers in all the segments are increasingly aware of brand-name products, which could benefit global players more than local suppliers.

"With players from outside the industry expected to enter the scene, deciding on the correct strategy for each segment will be the key to dominating this market," says John.

Frost & Sullivan, which is headquartered in San Jose, Calif., is a global leader in international strategic market consulting and training. Frost & Sullivan's industry experts monitor the power supplies and batteries industry for market trends, market measurements and strategies. This ongoing research is used to complement the Batteries & Power Supply Custom Subscription, which includes studies on the U.S. Lead Acid Batteries and the Southeast Asia UPS Market. Executive summaries and interviews are available to the press.

Along with publishing in-depth strategic market consulting research, Frost & Sullivan also provides custom consulting needs to variety of national and international companies.

Indian Uninterruptible Power Supply (UPS) Markets

Report: 4241-27 Date: October 2000