| Product Code | FRS01541 |
|---|---|
| Publication Date | November 2009 |
| Publisher | Frost & Sullivan |
| Product Type | Report |
| Pages | 120 |
Maintenance and Replacement Segments Drive Growth in the Asia Pacific UPS Service Market
With the replacement market and maintenance activities displaying huge potential for growth, the Asia Pacific uninterruptible power supply (UPS) market is expected to continue on an upward trajectory until 2015. As UPS is an indispensable part of IT operations as well as finance and engineering applications, UPS services are expected to gain significant traction and generate more revenues. The mushrooming of data centers and growing awareness of the urgency of system upkeep have convinced market participants that UPS systems and post-sale servicing are likely to experience growing uptake. The large number of data centers that are likely to be built within the next 5 years will enable the proliferation of servicing contracts for market participants. In the energy sector, UPS services are exhibiting signs of consistent growth, holding the promise of long-term returns. "Although business setbacks were observed across the industry verticals due to the global economic downturn, it had a reverse impact on the UPS service market," notes the analyst of this research service. "Currently, operational expenditure (OPEX) is emphasized to tackle the credit crunch effectively and obtain longevity in power systems and equipment." Trends indicate that upgrading activities and demand for retrofits are likely to receive a significant boost as end users focus more on revamp and rejuvenation objectives.
Though the outlook for the market looks upbeat, there are some impediments to market progression. Instances of end users insisting on having the UPS service as a part of the overall package are increasing. End-user persistence has led to reduction in the overall revenue generation for market participants, as the merging of products and services slashes profit margins. A majority of manufacturers operate in separate sales and servicing teams. Integrating the sales and services teams at the point of contact could dispel confusion in the interaction between customers and manufacturers. Liaison between the sales and servicing teams can expedite sales and enhance competitiveness. Attempts to seek a general consensus on ideal and common practice are still underway to obtain energy efficiency. Solutions have been proposed at the sub-systems segments such as server, server rack, or power supply level. Such practices are not feasible at present due to the clash of interests among market participants. A complete energy-efficient solution from a single entity remains unavailable. "Market participants and IT solution providers are likely to have different approaches to the same requirement," says the analyst. "Thus, the market is expected to experience a delay in the decision making process due to this conflict.
"Diversifying manpower is vital for gaining the competitive edge in the Asia Pacific. Sustained development in UPS technology requires the persistent acquisition of new engineering skill sets to provide legitimate consultation and value-added services. Efforts must be ramped up to strengthen employee development programs, training facilities, remuneration packages, and geographical coverage. End users consider UPS service as a need, owing to the lack of understanding of the consequences of neglecting service and maintenance. Manufacturers and third-party participants should undertake the responsibility of educating users on the benefits of adopting maintenance and service.
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Service Type
By Geographic Region:
By End user Vertical:
Technologies
The following technologies are covered in this research:
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