An uninterruptible power supply (UPS) is typically used to protect electrical equipment where an unexpected power disruption could cause injuries, business disruption or data loss. UPS units range in size from small ones designed to protect a single computer to large versions, backing up data centers or entire buildings.
Despite its maturity, the global UPS services market has found a rich vein of opportunities in the retrofit market. The large installed base of UPS systems has widened the scope for upgrades and upkeep agreements, brightening the prospects for service providers like electrical contractors. This finding is according to a recent analysis from Frost & Sullivan, a leading global research company.
Frost & Sullivan found that the UPS market earned revenues of $1.97 billion in 2013 and estimates it to reach $2.67 billion in 2017. North America and Europe will remain the two biggest markets for UPS services worldwide.
“The rapid increase in mission-critical applications is pushing end-users to devise ways to avoid downtimes,” said Gautham Gnanajothi, Frost & Sullivan’s analyst. “One of their solutions is to employ high-end UPS systems along with service contracts, which translates to lucrative opportunities for service providers.”
The global UPS market has untapped potential, but the lack of a large service network has prevented it from breaking into several underserved markets. The dearth of capable and skilled service professionals further hinders service providers from capitalizing on this potential. UPS manufacturers must broaden their networks by setting up regional service stations. Forming alliances and partnerships with local manufacturers will help them widen their service capabilities and maintain proximity to end-users.
“It is also crucial to proactively educate customers on the benefits of service contracts, preventive maintenance and remote monitoring,” Gnanajothi said. “Developing and sustaining a favorable relationship with end-users will give UPS service providers an edge in the competitive global market.”