Elevated Power Requirements Ensuring Market Growth in the Chinese UPS Industry.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c54140) has announced the addition of the Frost & Sullivan report: Chinese UPS Markets to their offering

The Frost & Sullivan research service titled Chinese UPS Markets analyzes the key drivers and restraints impacting the sales prospects of UPS systems in China. It also evaluates the latest trends, new technologies, and product offerings, while providing in-depth market share analysis and discussion on key competitive factors that are presented in the Chinese UPS market.

This analysis is available through our Power Supplies & Batteries Growth Partnership Service program. With this program, clients receive industry-leading market research such as this, along with technical and econometric data as well as many interactive features including Analyst Inquiry Time and Client Councils.

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Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By application:

- Standby UPS

- Line-interactive UPS

- Online UPS

The following technologies are covered in this research:

- Uninterruptible Power Supply (UPS) System: A UPS system is defined as a backup power system that is used to ensure uninterrupted power for various electronic devices. Uninterrupted power can range anywhere from five minutes to several hours.

- Standby UPS: A standby unit switches from utility to battery power only when the utility power fails. The unit typically comprises four components, including an input surge protection circuit, a battery, an inverter, and a battery charger. The system remains idle until the input voltage rises above or below the normal load. This is suitable for users that need only simple protection. This topology will be made available mainly in the below 20 kVA range.

- Line-interactive UPS: Line-interactive UPS systems are very similar to the standby UPS systems. In addition, these UPS systems also provide constant monitoring of the integrity of utility power and reduce or provide voltage whenever it rises very high or falls very low. If there is very high deviation, the unit will switch to battery power. This topology will mainly be available in the below 20 kVA range.

- Online UPS: Online UPS systems, also known as double-conversion systems are the most expensive units.

These units are mainly sold in the above 3 kVA-power range. The basis for the unit is the same as the aforementioned topology, with the exception of a rectifier. The rectifier eliminates noise and harmonics, ensuring clean and regulated voltage to the load. Online UPS systems are suitable for mission critical applications that cannot afford to be shutdown. These systems are available in all power ranges. The bulk of these UPS systems will be found in the above 20-kVA UPS market.

Elevated Power Requirements Ensuring Market Growth

The need for stable, regular, and good-quality power is becoming increasingly significant in China, primarily due to the rapid development of the country's economy as well as increasing dependency on the manufacturing, information technology (IT) and telecommunications industries. Power abnormalities cost the Chinese economy approximately $5 billion a year, with one power outage costing between $1 million a minute to $1million an hour for manufacturers. Hence, with the imbalance in power supply, it is a given strategy for major organizations to install backup power equipment. Aided by this, the sales of Uninterruptible Power Supply (UPS) systems increased by 10.0 percent in 2006 and are expected to grow between 3.0 and 5.0 percent in the following years.

However, UPS systems across all power ranges are facing severe price pressures, and this, in turn, is restraining revenue growth. Prices for low-end/low-power UPS systems with capacity below 1 kVA have been affected the most, recording a price drop of around 10 percent. "Price pressure exists due to several factors such as product maturity, intense competition, and price consciousness of the end users," notes the analyst of this research service. "With limited expenditure budgets, customers have adopted a more conservative approach to spending, forcing vendors to reduce their price margins significantly in order to compete in the market."

Growing Power Consumption in Datacenters Supporting Demand

Due to their high power consumption, Datacenters are seen to be major drivers for the growth of the Chinese UPS markets. An average datacenter uses 50 watts of power per square foot and based on this, an average datacenter of around 50,000 square feet would consume 2.5 megawatts of power per day. Going forward, this power consumption is projected to increase due to advances in processing power, which allow increased server density. It is said that power density for computer equipment has grown 300 percent and could reach 2,000 watts per square foot by 2010 for computer equipment. This driver is likely to have a high impact in the short term and medium impact in the medium and long terms.

"Among the product segments, the 1 to 5 kilo volt-amps (kVA) UPS segment remains the largest revenue earning segment, generating $109.3 million in 2006," says the analyst. "By 2013, the 1 to 5 kVA UPS would maintain its leading position followed next by the 5.1 to 20 kVA UPS segment."

Topics Covered

1. Executive Summary

2. Total UPS Market

3. Below 1kVA UPS Market

4. 1 to 5 kVA UPS Market

5. 5.1 to 20 kVA UPS Market

6. 20.1 to 50 kVA UPS Market

7. 50.1 to 200 kVA UPS Market

8. Above 200 kVA UPS Market

9. Definition

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