UPS Revenues Fall Sharply in 1Q09

Printer-friendly versionPDF version

12 June 2009

According to the latest results from IMS Research, global uninterruptible power supply (UPS) revenues in the first quarter of 2009 fell by nearly 25% from the same quarter last year, to under $1.5 billion. This marks the second consecutive quarter of year-on-year decline.

Regionally, EMEA showed the sharpest pullback because of severe economic difficulties in most countries, but notably in Spain and Russia. This was exacerbated by an unfavorable currency exchange with the Euro and Pound weakening significantly against the US dollar. The American and Asian markets were not far behind, all falling by over 20%. “The global economic crisis is taking its toll on this market by forcing users to delay upgrades and replacements. Additionally, new projects have been postponed with the uncertain market conditions and shortness of credit,” explains analyst Donald Henschel. Henschel adds, “While government spending in selected environments is propping up revenues, new installations in most regions have slackened considerably.”

Although the single-phase market has been damaged the most by the deep cutbacks in consumer and small business spending, the recent fast growth in sales of larger three-phase systems has been choked off. The longer lead time of higher kVA UPS units means that their sales were more insulated at the beginning of the recession, but they then saw a sudden and drastic fall as projects came to completion and new orders in the pipeline slowed. This indicates that the recovery of this segment will lag the rest of the UPS market. Still, the high power market stands to see future growth driven by continued computing requirements, power quality issues, and infrastructure stimulus.

Notes for Editors

If you would like an interview with an expert in this area, please contact Ash Sharma, Power & Energy Research Director atAsh.Sharma@imsresearch.comor +44 (0) 1933 402255.

About IMS Research

IMS Research is a supplier of market research and consultancy services on a wide range of global electronics markets. The company is supported by headquarters in Wellingborough, UK and offices in Austin, Texas and Shanghai, China. IMS Research regularly publishes detailed research on the UPS market, among others.

Show Report Synopsis:

Uninterruptible Power Supplies - Worldwide – 2009

News Source : UPS Revenues Fall Sharply in 1Q09