UPS market has potential for growth
A
Frost and Sullivan product story
Edited by the Engineeringtalk editorial team
Mar 20, 2007
Although slow technological development and lack of end-user perception pose major challenges, industrial UPS markets across the world offer good potential for growth.
Although slow technological development and lack of end-user awareness pose major challenges, industrial UPS markets across the world offer good potential for growth, especially with rising investments in oil and gas (OandG), power and certain process and discrete manufacturing industries.
Frost and Sullivan finds that the World Industrial UPS Markets earned revenues of US $815.8 million in 2006 and estimates this to reach US $1505 million in 2012.
"An increase in power quality problems as well as the frequent occurrence of power cuts has led to the rising demand for UPS systems", notes Frost and Sullivan Research Analyst Malavika Tohani.
"Continuous and clean power is essential, particularly for critical applications in the OandG and power generation as well as transmission industries".
Power quality issues such as voltage fluctuations (sag, swell and transient), noise and harmonics can damage equipment, cause malfunctioning and effect premature wear and tear.
This can result in huge losses for the process and discrete manufacturing industries.
Critical applications in industries such as OandG and power generation (especially nuclear) cannot be shut down even for a minute and the people handling such operations recognise the important role that UPS plays in ensuring the smooth functioning of such activities.
However, many end users in the industrial UPS markets are still unaware of the advantages that a UPS system can provide in terms of minimising losses and damage to their equipment due to power disruption.
Some of these industries are textiles, paper and printing, glass and other discrete manufacturing.
Another reason limiting the widespread use of UPS is customers' perception that surge suppressors or isolation transformers provide sufficient protection against power quality problems such as spikes, brownouts and noise.
The low price of these products, as compared to UPS, also promotes their uptake to the detriment of the latter.
"Manufacturers should educate customers about the benefits of having a UPS and the positive Impact it can have on the company's profits", advises Tohani.
"Moreover, working towards a one-stop shop solution and expanding the product offering in order to offer customers a clear cost advantage can help stimulate demand for UPS systems".
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