According to a recent market report, Global Industrial UPS Market from research firm Frost & Sullivan, European investment in uninterruptible power supply (UPS) systems took the segment to revenues of $1.13bn in 2014, and it is predicted to grow to $1.38bn in 2018.
The Cyberwave industrial UPS system from Thomas & Betts Power Solutions
UPS systems are increasingly being installed in order to limit productivity losses and plant safety threats due to interruptions in grid power, the report found. Each year, poor power quality has been shown to cost the European industrial sector around €150bn ($160bn). In the US, that figure is $188bn, and these two national markets are driving the demand for UPS systems. Together, Europe and the US are expected to represent 45% of market revenues by 2018, followed by Asia Pacific at 26%.
When investing in UPS power, the report said, industrial users are increasingly opting for customised systems in order to support a growing number of specialised applications. F&S Energy & Environment Senior Industry Analyst Gautham Gnanajothi commented: ‘As niche segments have specific requirements, customised and specialised UPS systems will account for a large proportion of investments made in this space.’
However, he warned that the low replacement rate of industrial UPS systems – on average, they have a working lifetime of 20-30 years, which is almost twice the lifetime of commercial UPS systems – will limit potential market revenues.