"The increase in power quality problems, as well as the frequent occurrence of power cuts has led to a surge in the demand for UPS systems", notes the analyst of this research service. "Continuous and clean power is essential, especially for critical applications in the oil and gas (O&G) and power generation, as well as transmission industries". Power quality issues such as voltage fluctuations (sag, swell and transient), noise and harmonics can damage equipment, cause malfunctioning and result in premature wear and tear. This can lead to significant losses in the industrial sector, both for ‘process manufacturing’, as well as ‘discrete manufacturing’ industries. Critical applications in industries such as O&G and power generation (especially nuclear) cannot afford to be shut down even for a minute and the people handling such operations recognize the important role of UPS. Thus, growing awareness of the losses caused by the lack of proper backup is promoting demand in the industrial UPS markets.
[bGreater Investments in End-user Industries Influences Market Expansion[/b]
Investments in various industries, particularly O&G, power, semiconductor and other process industries are rising, thereby directly boosting demand for UPS systems. Growth in the O&G sector is being fuelled by high oil prices, while demand for more energy from both, industries and households is responsible for the increased investments in power plants. Another factor contributing to the growing investment rates is the rate of refurbishment as well as replacement of old, worn-out oil rigs or power plants. Additionally, the improved economic outlook of the world is leading to higher investments in infrastructure and industries. Petrochemicals are also demonstrating good growth due to the strong O&G industry, while activity in the rest of the-industries is gaining momentum, especially in the semiconductor and pharmaceutical segments.
Despite these positive trends, several end users in the textile, paper and printing, glass, and other discrete manufacturing industries continue to remain unaware of the advantages of UPS, in terms of minimizing losses and damage caused to equipment due to power disruption. "The lack of awareness among end users is a significant challenge that acts as major barrier to UPS demand expansion in the industrial sector," explains the analyst. "Another reason limiting the widespread use of UPS is the fact that customers consider surge suppressors or isolation transformers as sufficient protection against power quality problems such as spikes, brownouts and noise." Given the above factors, UPS manufacturers will need to educate customers about the benefits of UPS and the positive difference it can have on the company's profits. Moreover, working toward a one-stop shop solution and expanding the product offering in order to give customers the cost advantage can help to stimulate demand and increase the uptake of UPS systems.
