Demand for UPS systems continues to surge

Electromagnetic News Report, Jul/Aug 2001

The uninterruptible power supply (UPS) has been in existence for approximately 35 years. These devices were originally developed to provide protection against the loss of data in a computer because of a sudden power failure by effecting an orderly shutdown, saving data that would otherwise be lost. The scope of protection has grown at an unprecedented rate. The basic UPS market is no longer limited to the personal computer or groups of PCs in a business organization. The increase in the number of data centers, the rapid increases in the use of the Internet, and the rise in networking have changed the demands of power management. In addition, electronic instruments have largely replaced electro-mechanical devices in the factory and the laboratory, expanding the need for UPS systems.

According to a study released in May by Business Communications Co., Inc. (www.bccresearch.com) RE-050N Uninterruptible Power Supply: Continuous Data and Network Services, the worldwide value of UPS reached $6.1 billion in 2000. Growing at an AAGR (average annual growth rate) of 12.7%, this market is expected to cross $11 billion by 2005.

The value of traditional static or electronic UPS devices reached $5.1 billion in 2000 and that for dynamic, or rotary, flywheel UPS devices totaled $230 million in 2000. The total shipments for UPS equipment are forecast to grow 13% by 2005.

The value of replacement battery kits and packs reached $440.7 million by 2000 and is projected to grow at an AAGR of 10.4% to total $723.4 million by 2005. Accessory shipments were valued at $373.4 million in 2000 and they are forecast to grow at an AAGR of 11% to reach $629.4 million by 2005.

The computer industry continues to be the major driving force for the growth UPS systems. Communications services are the second largest user.