UPS market recovery continues

Austin, Tex. — The global uninterruptible power supply (UPS) market continues on the road to recovery following cutbacks in IT expenditures and new project builds during the recession in 2009, according to a new report from IMS Research. The market grew revenues by 8.3 percent in 2010 over the pervious year and is on course to reach $10 billion by 2015.

According to IMS Research’s report, The World Market for Uninterruptible Supplies – 2011, most of the growth in 2010 can be attributed to developing BRIC countries, China and India, as well as Brazil to a lesser extent. UPS markets in Asia and Latin America are “forecast to grow faster than the world’s five-year annual average of 7.4 percent, and to play a major part in reaching the $10 billion dollar mark by 2015,” according to IMS analysts.

“Since China and India began leading the recovery in 2009, it is no wonder why 2010 was such a great year for Asia’s UPS revenues,” stated Lori Lewis, IMS Research market analyst. “Latin America has a lot of potential in the upcoming years. Even after seeing the tremendous upswing of over 20 percent revenues in 2010, the region will continue seeing high growth compared with the rest of the world. With the 2014 World Cup and the 2016 Summer Olympic Games to be held in Brazil, we should expect to see Latin America’s UPS market benefit from the need for additional infrastructure.”

IMS expects the North American and Western European UPS markets to meet or even exceed their pre-recessionary revenue levels by 2015, although companies currently remain cautious about IT spending.

“The recovery of the UPS market should continue progressively as long as financial markets remain stable,” stated Lewis. “Sales in the high power segments will soon grow faster, as capital frees up for large projects and the market shifts towards higher power needs in the future. The bigger the project, the bigger the UPS revenues.”