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Frost & Sullivan: Cloud Computing And Modular Data Centers To Boost UPS Installations In The Asia-Pacific

KUALA LUMPUR, Malaysia, Nov. 13, 2013 /PRNewswire/ -- Increasing concerns over greenhouse gas emissions have moved the uninterruptible power supplies (UPS) market's focus from product performance to product efficiency. This shift in priority has opened up significant opportunities for UPS dealers to offer efficient, end-to-end solutions.

New analysis from Frost & Sullivan ( http://www.powersupplies.frost.com), Asia-Pacific UPS Market Update 2012, finds that the market earned revenues of US$1.42 billion in 2012 and estimates this to reach US$1.92 billion in 2018. Market growth will be fuelled by IT, finance and manufacturing sector applications.

Over the next five to seven years, the main thrust for the Asia-Pacific UPS market will come from advances in mobile computing, data services, cloud and virtualization/IT. Market growth is already being encouraged by high demand for robust and smart electrical infrastructure from IT-enabled service providers, online portals, eCommerce companies, stock brokerages, and insurance firms.

Most end users, particularly those in the data center segment, are looking for compact UPS systems with a small footprint due to space constraints. Increased share of data center revenue will help improve margins, as the stakes are high for data center operators in their business critical networks.

Participants in the UPS market will also be eager to cash in on the spate of infrastructural developments in the Asia-Pacific. Over the coming decade, as much as US$8 trillion is likely to be spent on infrastructure projects across sectors such as energy, transport, housing, communications, and water facilities, which translates to higher demand for UPS.

However, numerous competitive forces are exerting considerable pressure on manufacturers' bottom lines and pushing the industry towards incremental differentiation. Participants are reacting to these pressures by widening their product portfolio and creating an efficient distribution and inventory management. Hence, business integration through acquisition could well be the way forward.

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