European Small and Medium UPS Markets - Distribution Channel

Published by: Frost & Sullivan

Published: Jun. 28, 2007 - 74 Pages

Table of Contents

1. Executive Summary

1. Market Overview

1. Abstract

2. Content and Segmentation

3. Future Opportunities

2. Summary of the Findings and Conclusion

1. Research Findings

2. Conclusion

2. Industry Challenges

1. Key Challenges

1. Major Challenges

2. Strategic Recommendations

1. Important Recommendations

3. End-user Views

1. Distributors' Speak

1. Introduction

2. Discounts

3. Optional Hardware

4. Decision Making - Price or Technical Driven

5. Expansion or Contraction of Distribution Channels

6. Brand Loyalty

7. Distributor Expectations

8. Europe-wide or Local Contracts

9. UPS Brands Sold

10. One-stop Shop Solution

11. Top Five Essential UPS Features

12. Cross-selling Potential

4. European Small and Medium UPS Market - Distribution Channel Analysis

1. Definitions and Methodology

1. Distribution Channel Definitions

2. Segmentation

2. Drivers and Restraints

1. Market Drivers

a. Timely Availability and Support to Customers Necessitates the Presence of Distribution Channels

b. Cost Advantages for the End-user Drives Sales Channel Expansion

c. Near Impossibility of the UPS Manufacturer Approaching Every Customer Directly Demands the Existence of Sales Channels

d. Emergence of New UPS Technologies and Products Requires a Well-established Distribution Network

e. Increasing Sales of Complete Solutions Promotes the Need for Distribution Channels

f. Rising Demand for Small UPS Systems from Upcoming Countries in Europe Improves Growth Prospects for IT Distributors

g. Existence of Competitive Advantage Drives the Market

2. Market Restraints

a. Growing Market for Large UPS Systems Promotes Direct Sales

b. Increasing Cost Leads to Contraction of Distribution Channels

c. Merging Activities and Increasing Competition Erodes Margins for Distributors

d. Increasing Commoditisation of Small and Medium UPS Affects Revenue Generation

3. Market Trends

1. Price Trend

2. Technology Trends

4. Revenue Forecasts

1. Total Market Forecasts

2. Revenue Forecasts by UPS Size

3. Revenue Forecasts by End-user Application

4. Revenues by Region

5. Competitive Analysis

1. Market Share Analysis

2. Company Distribution Strategy

5. Forecasts by End-user Applications

1. Revenue Forecasts by Application Type

1. Introduction

2. Healthcare Applications

3. Public and Government Applications

4. Applications in Financial Services and Datacentres

5. Commercial Applications

6. Industrial Applications

7. Telecommunications Applications

8. Other Applications

6. Forecasts by Power Range

1. Revenue Forecasts by UPS Size

1. Systems below 3 kVA

2. Systems from 3.1 to 10 kVA

3. Systems from 10.1 to 20 kVA

4. Systems from 20.1 to 50 kVA

5. Systems from 50.1 to 100 kVA

List of Figures

Chapter 2

Distribution Channel Analysis of the Small and Medium UPS Market: Impact of Top Four Industry Challenges (Europe), 2007-2013

Chapter 4

Distribution Channel Analysis of the Small and Medium UPS Market: Market Drivers Ranked in Order of Impact (Europe), 2007-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Market Restraints Ranked in Order of Impact (Europe), 2007-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Revenue Forecasts (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Revenue Forecasts by Power Range (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues by Power Range (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Revenue Forecasts by End-user Applications (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues by End-user Applications (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues by Regions (Europe), 2006

Distribution Channel Analysis of the Small and Medium UPS Market: Company Market Share by Revenues (Europe), 2006

Chapter 5

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Healthcare Applications (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Public and Government Applications (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Applications in Financial Services and Datacentres (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Commercial Applications (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Industrial Applications (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Telecommunications Applications (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Other Applications (Europe), 2003-2013

Chapter 6

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Systems below 3 kVA (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Systems from 3.1 kVA to 10 kVA (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Systems from 10.1 kVA-20 kVA (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Systems from 20.1 kVA to 50 kVA (Europe), 2003-2013

Distribution Channel Analysis of the Small and Medium UPS Market: Per cent of Revenues for Systems from 50.1 kVA to 100 kVA (Europe), 2003-2013

Abstract

This Frost & Sullivan research service titled European Small and Medium UPS Markets - Distribution Channel Analysis provides an overview of the various distribution channels that help in selling UPS systems of different sizes for varied end-user applications. The research also provides an in-depth analysis of the different drivers and restraints and provides end-user views. In this research, Frost & Sullivan's expert analysts thoroughly examine the following distribution channels: direct sales, IT distributors, electrical distributors, mechanical and electrical (M&E) contractors, consultants and installers, partners and others for various UPS sizes in the following application segments: healthcare, industrial, public and government, telecom, commercial, financial services, data centres and others.

Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Direct Sales
• IT Distributor
• Electrical Distributor
• Mechanical and Electrical (M&E) contractors, consultants and installers
• Partners

Market Overview

Timely Availability and Support to Customers Necessitate the Presence of Distribution Channels

The European distribution network for small and medium UPS systems is expanding due to the strong growth in the demand for below 100 kVA systems. This segment contributed approximately €1,102.0 million to the overall European UPS market in 2006. UPS systems below 3 kVA are channelled mainly through IT distributors, as a well-established distribution network ensures that the product reaches the customer at the right place and at the right time. Moreover, for all UPS manufacturers, customer satisfaction is the topmost priority and a strong sales channel guarantees the timely provision of service and availability of spare parts.

It is a difficult proposition for UPS manufacturers to have offices or subsidiaries in each country within Europe. Additionally, it is practically impossible for UPS vendors to target every customer without the help of distributors. However, IT and electrical distributors, partners, value-added resellers (VARs) and such others have a very wide geographical coverage and can reach customers promptly and efficiently with the help of their local offices. "Presence of distributors also aids in cutting down the delivery time, which is extremely important in order to complete projects according to the planned schedule," notes the analyst of this research service. "Moreover, after-sales service in terms of provision of spare parts, maintenance and repair can be conducted efficiently."

UPS Manufacturers Must Enhance IT Distributors’ Skilfulness for Greater Efficiency and Revenues

The level of technical knowledge and skill is not very high among IT distributors, placing them in a slightly disadvantageous position in terms of selling medium-sized UPS systems. Large IT distributors are box movers and offer small UPS systems, usually below 5 kVA to resellers, VARs and retailers. These UPS systems are mostly single-phase and belong to the offline or line interactive topology.

"UPS manufacturers must undertake training activities for IT distributors in order to equip them with the right skills required for providing technical support, thus enabling them to sell systems with higher power ranges," explains the analyst. "They must also focus on marketing and advertising activities in order to increase their brand popularity and penetrate the IT sales channel."

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