Uninterruptible Power Supply Systems: Continuos Data and Network

Report Highlights

• The value of worldwide shipments of UPS equipment reached $5.3 billion in 2000. Shipments are forecast to grow at an average annual rate of 13% to reach $9.8 billion by 2005.
• The value of traditional static, or electronic, UPS devices reached $5.1 billion by 2000 and is projected to grow at an average annual rate of 12.5% to total $9.2 billion by 2005. Shipments of dynamic, or rotary, flywheel UPS devices totaled $230 million in 2000. Their value is projected to grow at an average annual rate of 22.7% to reach $643 million by 2005.
• The value of replacement battery kits and packs reached $440 million by 2000 and is projected to grow at an average annual rate of 10.4% to total $723 million by 2005. Accessory shipments were valued at $373 million in 2000 and they are forecast to grow at an 11% rate to reach $629 million by 2005.

INTRODUCTION

STUDY GOAL AND OBJECTIVES

BCC's goal in conducting this study was to determine the current worldwide status of the market for uninterruptible power supply (UPS) systems, and to assess their growth potential over a five-year period from 2000 to 2005. BCC last studied this industry in 1998 and we were particularly interested in the impact on the market brought about by new technology and the growth of electronic devices. We were also interested in the UPS battery and replacement markets.

Our major objective was to present a comprehensive analysis of the current uninterruptible power supply market and plot its future course.

REASONS FOR DOING THIS STUDY

Advances in technology have decreased the size and improved the functions of UPS systems. Smaller and more powerful devices are being sold to meet the requirements of changing markets. The increase in the number of data centers, the rapid increases in the use of the Internet, and the rise in networking have changed the demands of power management. In addition, electronic instruments have largely replaced electro-mechanical devices in the factory and the laboratory, expanding the need for UPS systems.

CONTRIBUTIONS TO THIS STUDY AND FOR WHOM

We assembled a study of the three basic topologies in electronic UPS devices: standby, line-interactive and online. We also examine the rotary, or flywheel UPS technology, which is typically used to satisfy large capacity requirements. We present a worldwide industry structure, examine the competitive aspects of the industry, analyze the current markets, and project shipments for each major technology to 2005. The study will be of interest to those who manufacture and distribute UPS devices, electrical and electronic equipment, batteries and cables. It will also be of interest to those who manufacture computers, communications network equipment, laboratory and process control devices, fabrication facilities and security systems. Producers of software will also find it useful.

SCOPE AND FORMAT

The scope of our study encompasses the various kinds of UPS systems, the batteries used to support them, and the kinds of hardware and software accessories that enable users to diagnose power problems, communicate with UPS devices, and monitor and control their operation. We also project UPS shipments by capacity, or power range. Growth potential by technology is analyzed and projections are made by major application area, including computers, communications, laboratory/medical, industrial and security. We present forecasts of shipments and their value to 2005. Technological issues and trends and reviewed. Other influential factors such as past growth, the effects of the economic climate, and the deregulation of power are also discussed.

Since this is a worldwide industry, BCC analyzes the domestic and international regulatory and standards situations and their impact on the UPS . In addition, the economic environment and its long-range impact are reviewed. BCC presents an analysis of the market factors within the UPS industry and among the various end-user industries, and looks at their impact for the future.

METHODOLOGY

BCC presents an analysis of UPS shipments and their value by major category. Our estimated value is what manufacturers and material providers have paid in current dollars. Then, based on our surveys, we analyze UPS applications, calculate estimates for growth, and forecast shipments of UPS systems and their value, and the shipments and value of replacement batteries and accessories for 2005.

INFORMATION SOURCES

BCC surveyed approximately 90 companies to obtain the data for this report. Included were manufacturers of UPS systems, batteries, hardware and software products. We surveyed distributors of UPS systems and companies that use these devices in various industries such as computing, telecommunications, medical and laboratory equipment and industrial processes. We also included the U.S. Department of Commerce, and data from industry and financial sources.