Small Business' Need for Improved Power Supply to Drive Latin American UPS Markets

December 6, 2006; 02:22 AM

A spurt in demand for uninterruptible power supply (UPS) from small office, home office (SOHO) and small and medium businesses (SMBs) expects to buoy the fortunes of the Latin American UPS markets. Poor power quality in countries such as Brazil, expansion of telecom and financial sectors and improvements in IT equipment necessitating upgrades of existing UPS systems are likely to catalyze the expected revenue surge.

New analysis from Frost & Sullivan (http://www.latinamerica.frost.com/ ), Latin American UPS Markets, reveals that the market earned revenues of $266 million in 2005 and estimates this to reach $418.4 million in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end-users, and other industry participants with an overview of the Latin American UPS Markets, then send an e-mail to Jorgelina Pecina, Corporate Communications, at jorgelina.pecina@frost.com , with your full name, company name, title, telephone number, fax number, e-mail address, city and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

Continued economic progress, increased consumer awareness about the need for high-quality power and vertical markets' expansion will enhance the prospects of UPS markets. However, current market participants will have to guard against excessive competition, which can cause price wars and restrict revenue growth.

The arrival of small low-cost manufacturers from Asia is likely to escalate price wars in an intensely competitive market. Domestic manufacturers will need to be aware of existing international UPS manufacturers' strategies to enter new end-user segments to enlarge their presence in Latin America.

"As the technology continues to mature and price margins deteriorate, vendors will find it increasingly difficult to survive solely on UPS offerings," say Frost & Sullivan Energy Program Manager Milena Matone, who also adds: "An increasing number of Latin American UPS vendors are positioning themselves as total solution providers."

Competitors must acclimatize themselves to the changes in the market to sustain or increase their revenue and market shares. They can achieve this by offering complementary products and positioning themselves as power specialists.

Technological innovations can greatly help retain customers. For instance, there is a huge requirement for battery-free solutions such as rotary and flywheel-based UPS systems in the market. These solutions eliminate the need for battery management, cutting down unnecessary costs and hassles for end users.

"Partly due to the introduction of inventive solutions and partly due to the increasing affordability of systems, the UPS market is observing a shift from low-end UPS systems to high-end online UPS topology," observes Research Analyst Lorena Medina.

High-end markets will require UPS systems for several critical applications including facility management, data processing facilities, server farms, data warehouse and network management centers. Consumers from the premium segment are likely to be more knowledgeable about the necessity of power quality.

"Overall, with a more stable economy, resulting in a rise in energy consumption, the Latin American UPS market will be in a position to offer numerous growth opportunities," notes Malone.

The Latin American UPS Markets is part of the Energy & Power Systems Growth Partnership Service, which includes research in the following markets: Latin American gen-set markets, western European UPS markets, World emerging battery markets, World UPS markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics and demographics. For more information, visit http://www.frost.com/.