Mumbai, Maharashtra, India
There is an increasing need for stable, regular, and good-quality power in China, primarily due to the rapid development of the country's economy and the increasing dependency on manufacturing, information technology (IT), and telecommunications industries. While this has boosted UPS sales by 10.0 percent in 2006, manufacturers should pay attention to the increasing competition in the market, and ensure aggressive pricing strategies to stay competitive.
New analysis from Frost & Sullivan (www.powersuppliesandbatteries.frost.com), Chinese UPS Markets, reveals that revenues in this market totaled $424.7 million in 2006, and is likely to reach $505.9 million in 2010.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Chinese UPS Markets, then send an e-mail to Ravinder Kaur, Corporate Communications, at ravinder.kaur@frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.
"The biggest driving incentive for UPS systems is the elevation in power requirements, primarily triggered by the increased deployment of network and data storage equipment," notes Frost & Sullivan Research Analyst Xiaoliang Tang. "Datacenters, in particular, generate substantial demand as an average data center uses 50 watts of power per square foot, per day. Based on this, an average datacenter of around 50,000 square feet would consume 2.5 megawatts of power per day."
In addition, the number of small- and medium-sized enterprises (SMEs) is increasing rapidly in line with the development of the Chinese economy. This is a great opportunity for UPS system manufacturers, since most of the enterprises prefer using computers, network systems, and telecommunications equipment for increasing efficiency in their business. Overall, the sales of online UPS systems is expected to increase with the development of the IT and telecommunication industries, considered to be the pillar industries in China.
However, the increasing life cycle of UPS systems is a critical restraint for the markets' growth as it delays the repurchase cycle. Unlike other electronic equipment, a UPS has a strong frame and can last for up to 20 years, if properly maintained. Predictive part replacement programs offered by vendors to ensure low mean time between failures (MTBF) over the entire 15 to 20 year service life of the UPS also delay replacements. Hence, the market for UPS systems has a low repurchase rate, and is therefore largely dependent on new installations and purchases.
"Moreover, manufacturers are facing severe price pressures due to increased competition, and this in turn is restraining revenue growth," says Tang. "Prices for low-end/low-power UPS systems in the range of below 1 kilo volt-amps (kVA) have been affected the most, recording a price drop of around 10 percent."
Given these challenges, it is extremely important for vendors to develop new products and technologies. In addition, they should also adopt efficient distribution strategies to ensure greater market share and revenue growth.
Chinese UPS Markets is part of the Power Supplies & Batteries Subscription. It analyzes the key drivers and restraints impacting the sales prospects of UPS systems in China. It also evaluates the latest trends, new technologies, and product offerings, while providing in-depth market share analysis and discussion on the key competitive factors of the Chinese UPS markets. Interviews with the press are available.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 45 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.
Chinese UPS Markets
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Ravinder Kaur, Corporate Communications - South Asia, Middle East, Frost & Sullivan, +91 (044) 4204 4515 ravinder.kaur@frost.com
Donna Jeremiah, Corporate Communications - Southeast Asia & ANZ, Frost & Sullivan, +603 6304 5832 djeremiah@frost.com
Source: Frost & Sullivan (Business Wire India)
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