|
|
Growth Opportunities in the Western European UPS MarketPublished by: Frost & Sullivan Published: Dec. 31, 2008 - 42 Pages Table of Contents
AbstractDatacentres Register Strong Demand for UPSA severe credit crunch has hit western European economies. The lack of available finances is affecting investment, paralleled by falling consumer spending, rising unemployment and declining industrial output. With many end-user sectors reeling, demand for UPS equipment has also fallen and revenue growth is likely to be affected for the next two years, at least. However, spending in certain applications such as power generation, transportation and healthcare, among others, has been less affected. Public and infrastructure applications are set to sustain the UPS market across the region during this turbulent period. "Increasing demand from end-user applications, particularly datacentres has been driving the demand for UPS systems," notes the analyst of this research. "The rise in data transfer and storage has led to an increase in datacentre space and construction, boosting demand for UPS systems." Datacentres require 24/7 power and even one-second downtime can lead to losses of millions of pounds. UPS systems provide reliable and quality power, protecting datacentres from sudden interruptions in power. The past 2-3 years have seen a rapid increase in data being stored and exchanged. Initiatives such as e-healthcare and the EU Data Retention Directive have further added to this need. Datacentres provide infrastructure for IT operations and are crucial for business continuity. Hence, UPS and other forms of backup power are essential components. Multi-pronged Approach Critical to Ride out Economic Downturn and Subsequent Fall in Demand The financial crisis and subsequent recession have dampened demand for UPS systems from various applications such as industries, datacentres, offices and commercial buildings among others. Industrial output is on the decline; the automotive industry is experiencing severe losses and oil prices are falling, leading to job losses, plant closures, project cancellations and lower investment. With little or negative growth in the major end-user applications for UPS systems, the demand for the equipment is also anticipated to suffer. "Following the economic downturn, the demand for UPS systems, especially from industrial and commercial applications, has taken a hit," explains the analyst. "Moreover, demand from other applications such as banking and financial services is declining, due to cost cutting measures, negatively impacting the uptake of UPS equipment by these sectors." The expansion of product portfolios, a focus on after-sales servicing activities, increasing the efficiency of processes, curbing operation and production costs and growing through mergers and acquisitions are some methods UPS manufacturers are pursuing to ensure stability in revenues. Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||