European UPS Services Markets

Published by: Frost & Sullivan

Published: Oct. 24, 2005

Table of Contents

1. Executive Summary

        1. Overview and Summary of the European UPS Services Market

                1. Abstract

                2. Project Scope

                3. Opportunities and Forecasts

                4. Conclusion

2. Market Challenges

        1. Market Challenges in the European UPS Service Market

                1. Key Market Challenges

                2. Time Frame Analysis of Challenges

3. Market Drivers and Restraints

        1. Key Factors Driving and Restraining the Market

                1. Market Forces Analysis

                2. Market Drivers

                a. Limited In-house Service and Maintenance Capabilities Increase 

                    Need for External Help

                b. Increased Awareness of Problems Associated with Power Quality

                c. Price Margin Significantly Higher on Services than on Equipment

                d. Increasing UPS Sales give Boost for Servicing and Maintenance Contracts

                e. Low Level Replacement Cycle Increases Servicing Needs

                f.  Battery Management Increases Need for Regular Servicing

                g. Range of Services Offered Boosts the Market

                h. Complexity of UPS Units Force Customers to Consult Manufacturers

                i.  Presence of Independent Service Providers Highlights Growth of Market

                j.  Rising Level of Installed UPS Base

                3. Market Restraints

                a. Lack of Customer Awareness

                b. Relationship Between Manufacturer and End-user is Often Limited

                c. Network of Servicing Capabilities Still Very Much Restricted

                d. Focus on Price and Not on Expertise

4. Total European UPS Service Market

        1. Market Overview

                1. Introduction

                2. Product and Market Definition

        2. Total European UPS Service Market

                1. Market Engineering Measurements

                2. Total UPS Service Market Revenue Forecast

                3. Total UPS Service Market Revenue by Country

                4. Total UPS Services Market by Service Type

                5. Total UPS Services Market by UPS Type

5. Forecast Analysis By Country or Region

        1. French UPS Services Market

                1. Total French UPS Services Market Revenues

                2. Total French UPS Services Market by Service Type

        2. German UPS Services Market

                1. Total German UPS Services Market Revenues

                2. Total German UPS Services Market by Service Type

        3. UK UPS Services Market

                1. Total UK UPS Services Market Revenues

                2. Total UK UPS Services Market by Service Type

        4. Italian UPS Services Market

                1. Total Italian UPS Services Market Revenues

                2. Total Italian UPS Services Market by Service Type

        5. Spanish UPS Services Market

                1. Total Spanish UPS Services Market Revenues

                2. Total Spanish UPS Services Market by Service Type

        6. The Benelux UPS Services Market

                1. Total Benelux UPS Services Market Revenues

                2. Total Benelux UPS Services Market by Service Type

        7. Scandinavian UPS Services Market

                1. Total Scandinavian UPS Services Market Revenues

                2. Total Scandinavian UPS Services Market by Service Type

        8. The Baltic Region UPS Services Market

                1. Total Baltic UPS Services Market Revenues

                2. Total Baltic UPS Services Market by Service Type

        9. Central and Eastern European UPS Services Market

                1. Total CEE UPS Services Market Revenues

                2. Total CEE UPS Services Market by Service Type

        10. The Rest of Europe Services Market

                1. Total Rest of Europe UPS Services Market Revenues

                2. Total Rest of Europe UPS Services Market by Service Type

6. Competitive Analysis

        1. Competitive Structure

                1. European UPS Services Market - Competitive Structure

                2. Demand Analysis

        2. Competitive Forces

                1. Competitive Forces Analysis

        3. Market Shares

                1. Key Industry Players

                2. Market Shares of Key Industry Players

7. Market and Technology Trends

        1. Key Trends in the UPS Services Industry

                1. The Market

                2. The Technology

8. Frost & Sullivan Awards in the European UPS Services Market 2005

        1. Frost & Sullivan Awards

                1. Award Category: Market Leadership

                2. Award: Customer Service Innovation

Abstract

Arrival of Independent Service Providers Sees Growth in Competition

The steady growth of the European uninterruptible power supply (UPS) services market is enabling the entry of independent service providers in countries such as the United Kingdom, Germany and parts of southern Europe, thus increasing the competition in this field. In an increasingly price-conscious market, these providers are undercutting manufacturers in price and the potential in the eastern European markets is likely to entice these smaller participants to establish operations there before the manufacturers. While the European UPS services market is expected to witness unabated growth, increasing competition could reduce margins and only the service-astute companies are likely to continue commanding higher prices.

This Frost & Sullivan research service analyses the European UPS services market. It provides a comprehensive discussion on the drivers and restraints observed in the market and identify key participants and their market share. It also offers in-depth coverage of market trends and forecasts across the various European regions and highlights markets that promise good growth opportunities.

Greater Demand for Servicing and Maintenance Contracts

Cutting costs is critical in today’s business and in-house maintenance capabilities have suffered as a result. In view of the changing complexities of the UPS systems, customers are relying heavily on qualified engineers to identify current and potential problems. End users are increasingly entering into service and maintenance contracts with external maintenance providers and this has greatly driven the European UPS services market, with the trend expected to further strengthen growth in the near future.

However, the use of UPS as part of a company's electrical hardware is often neglected. While a large proportion of end users realise the need for regular servicing, they still fail to include these systems in their overall budget. Hence, manufacturers need to educate users of the benefits of UPS servicing. "Also, as customers become more price conscious in their UPS selection, there is a possibility of them owning several brands of UPS systems," says the analyst of this research service. "In addressing this challenge, service providers must accommodate the servicing of different brands of UPS systems in the service packages they offer."

Increasing UPS Sales Set to Drive Future Growth

The European UPS systems market has shown a healthy recovery from the downturn during the IT/Telecom crash in the early 2000s. Unit revenues for medium to large UPS have risen since 2003 and considering the power demands of the larger UPS systems, servicing has become a key offering along with the sale of these systems. This boost in quality and the assured assistance from manufacturers is fuelling the market and strengthening the service and maintenance proposition. While the increased sale of UPS systems with different kilovolt ampere (kVA) ratings is likely to enhance growth in the European UPS services market, expansion of the European Union (EU) furthers opportunities for service providers to expand their operations.

As power quality becomes a key issue among end users, the heightened awareness is resulting in a need for access to regular and quality servicing and maintenance. "The European UPS services market has helped sustain the UPS market during troubled times and with the positive uptrend returning, business is expected to continue growing," says the analyst. "However, with mounting competition, addressing customer needs and building valuable client relationships must assume top priority for the manufacturers."

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