Uninterruptible Power Supply Systems: Continuous Data and Network Service

Report Highlights

REPORT HIGHLIGHTS

• The value of worldwide shipments of UPS equipment and supplies is estimated to be $7.3 billion in 2004, and projected grow at an average annual rate (AAGR) of 6.8% to total $10.1 billion by 2009.
• The value of electronic (or battery-backed) UPS devices, the largest equipment market segment, is projected to rise at an AAGR of 7% to total $8.7 billion by 2009.
• The smallest equipment segment, rotary flywheel UPS devices, is projected to rise the fastest at an AAGR of 11.3% to $113.9 million by 2009.
• Of supplies, battery replacement kits and accessory shipments each represent $500 million markets with each growing in parallel to about $630 million in 2009.

INTRODUCTION

Uninterruptible power supply (UPS) systems have been on the market for approximately 40 years. These devices originally were developed to provide protection against the loss of data in a computer because of a sudden power failure and to effect an orderly shutdown in the event of a power interruption and enable users to save data that otherwise would be lost.

Advances in technology have improved and expanded 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, telecommunications functions, and the rise in networking have changed the demands of power management. In addition, more critical data is being generated, and it has to be protected from power outages and malfunctions. More es are aware of electrical power problems and are interested in the quality of their power, in addition to its continuous supply.

BCC has produced a study of the three basic topologies in electronic battery-backed UPS devices: standby, line-interactive and on-line. It also examines the status of rotary flywheel UPS technology, typically used to protect very large installations with highcapacity requirements. This study presents a worldwide industry structure, examines the competitive aspects of the industry, analyzes current markets, and projects shipments and their values for each major technology through 2009.

SCOPE OF STUDY

The report contains:

• Analysis of UPS system types, the batteries used to support them, and hardware and software accessories that diagnose power problems, communicate with UPS devices, and monitor and control their operations
• Projections of UPS shipments by capacity or by power range
• Growth potential by technology and application, and projections made by major application area
• A review of technological issues and trends
• Analysis of recent patents by topic, region and company
• Discussion of other influential factors, such as past growth, the economic climate, and efforts to improve utility power supply.

METHODOLOGY

We present an analysis of UPS shipments and their values by major product category. Our estimated value is what manufacturers and material providers have paid in current dollars. Then, based on the information obtained through our surveys, we analyze UPS applications, calculate estimates for growth, and forecast shipments of UPS systems and their values, and the shipments of replacement batteries and accessories through 2009.

INFORMATION SOURCES

Approximately 85 companies were surveyed to obtain the data for this study. Included were manufacturers of UPS systems, batteries, and hardware and software products. We surveyed distributors of UPS systems and companies that use these devices in various industries, such as computers and data processing, telecommunications, medical and laboratory equipment, industrial manufacturing and process control, security, and general industry. Data from current financial/trade information and government sources was also compiled.

ANALYST'S CREDENTIALS

After a successful career at IBM, Robert Moran has written extensively as a researcher and editor at BCC. Mr. Moran edits Display Development News and is the author of numerous BCC market research documents. The topics of his reports range from various deposition technologies to electronic displays, electronic publishing, solar energy and fiber optics. Mr. Moran has been with BCC for over 20 years and holds a B.S. in Economics from the University of Pennsylvania.