Abstract
UPS Markets Experience Growth In Spite of Mature Market Conditions
With entry barriers in the reasonably mature Singapore uninterruptible power
supply (UPS) markets almost non-existent--compared to the other Southeast
Asian countries--the competition is highly intense. Currently, there are eight
to ten Tier-I total solution providers in the nation's UPS segment, which was
worth $26.9 million in 2004 and is likely to grow at a compound annual growth
rate (CAGR) of 5.5 percent during 2004-2011. In order to sustain and grow,
vendors, system integrators, and contractors are continuously educating their
customers, the result being that these systems are being used to support
various critical and non-critical equipment in diverse industries.
This Frost & Sullivan research service provides an overview and outlook for
the Singapore UPS markets. It segments the market based on energy sources into
less than 1 kilovolt ampere (kVA), 1 to 6 kVA, 6 to 20 kVA, 20 to 50 kVA, 50
to 200 kVA, and above 200 kVA. The study provides detailed revenue forecasts
and market share analysis and is essential for both large and small market
participants seeking to position themselves to earn maximum return on
investments.
Absence of Standard Specifications is a Concern for UPS System Vendors
A concern for UPS vendors is the absence of a clear product classification in
terms of capacity and technology and any regulatory requirements that could
specify the features to be present in the equipment. This is allowing small
unreliable vendors to sell substandard products, which is eventually damaging
the reputation of the whole UPS enterprise community.
"Nevertheless, the severe and large-scale power outage that affected the
country on 20th April, 2004 has made consumers alert to the need of UPSs in
saving them their resources in terms of data and time," states the analyst of
this research service. "UPS is rapidly being perceived as a tool used along
with energy storage devices for providing backup power and also as a
protection unit that prevents adverse impacts arising out of grid
irregularities."
Thriving Economy and Growth in Specific Segments Favor More Usage of UPS Units
"The Singapore economy has recovered from the previous year's slump and grown
by 8.4 percent in 2004 and this rate is likely to stabilize at 7.5-8.5 percent
in the next few years," points out the analyst. "Benefiting from this,
Singapore's booming telecommunications industry with its requirement for pure
harmonic power for its latest equipment and adoption of new technologies such
as third-generation (3G) wireless systems and voice over Internet Protocol
(VoIP) are driving the UPS markets."
Presently, the rising demand from the financial segment has created immense
number of opportunities for niche UPS vendors that predominantly cater to this
area. During the forecast period, this requirement is likely to remain steady
for both new procurements as well as replacements. Further, the flourishing
information technology/information technology enabled services (IT/ITES) in
Singapore and in the Asia Pacific region at large has created a need for
high-end UPS products.
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