UPS Market Hits $7 Billion in 2007

The global market for uninterrupted power supply (UPS) equipment will reach $7 billion for 2007, according to a new analysis from IMS Research, which cited activity in the data center sector as a major driver in that growth.

"The UPS market has been experiencing record growth over the past few years, with average yearly growth of almost 20 percent," analyst Michael Markides writes in the new IMS study (via DataCenter Dynamics). "It is widely believed within the industry that this surge will continue over the next year or two with the main driver being the installation of what is termed 'mega data centers.'"

Sales of larger UPS units are driving the market's growth, but IMS said there were signs that small companies in the U.S. may be deferring purchases due of smaller units to economic uncertainty.

"Three-phase growth continues to be the main driver for the global UPS market, but it should noted the Americas showed a significant slowdown in the 3Q for sub-10 kVA UPS, which can be attributed to economic concerns," said Markides. "The sub-10 kVA segment of UPS is a good barometer of IT spending by small-to-medium sized businesses and our analysis show a flat sub-10 kVA market for the Americas from the 3Q of 2006 to the 3Q of 2007. It will be interesting to see if the EMEA and Asian markets maintain their current growth levels with the economic uncertainly in the US and the impact of the falling dollar."

IMS Research's Power & Energy Group supplies market research and consultancy services on a diverse range of power product and applications, including power supplies and UPS, renewable energy, utility meters and AMR, and batteries and battery management ICs.