UPS revenues top $7 billion in 2010

Austin, Tex. — The global market for uninterruptible power supplies (UPS) continues to recover from the economic downturn, as revenues in the fourth quarter of 2010 were 10.8 percent higher than the same period in 2009, according to IMS Research.

The UPS market grew twice as fast in the second half compared to the first half, driving total annual revenues to more than $7 billion. IMS Research predicts demand for UPS to return to pre-recessionary levels by 2012 in part due to developing markets in BRIC (Brazil, Russia, India and China) markets.

“Spending on critical power upgrades such as UPS has come back, notably in the small and medium business segment where power requirements are lower and projects are less capital intensive, said Jason dePreaux, senior analyst with IMS Research, in a statement. “Big data-center jobs also appear to be coming back; though this sector is highly dependent on the availability of credit to move forward with major upgrades or new construction.”

At its peak in 2008, sales of UPS earned suppliers over $8 billion, half of which went to industry heavyweights Schneider Electric, Eaton, and Emerson Network Power, said IMS Research.

However, De Preaux said suppliers will face several challenges this year including shortages of IGBTs, rising raw materials costs, and higher labor costs in Asia. All of which could impact UPS pricing.