- The economic development of Chile and public investments in Argentina stoke the market
BUENOS AIRES, Argentina, Aug. 13, 2013 /PRNewswire/ -- The uninterrupted power supply (UPS) market continues to forge ahead in both Argentina and Chile, despite the imports restriction in the former and the high bargaining power of customers in the latter. While Argentina is the larger market, but there is a perceptible shift in balance toward Chile.
New analysis from Frost & Sullivan (http://www.energy.frost.com), Argentinean and Chilean UPS Markets, finds that the market earned revenues of $44.2 million in 2012 and is expected to reach $55.1 million in 2017 at a compound annual growth rate of 4.5 percent.
"The increased need for energy efficiency and management of critical loads in data centers will sustain product demand in the near future but other verticals are expected to intensify their investment in UPS," said Frost & Sullivan Energy & Environment Industry Analyst Martin Cataife.
In Chile, economic expansion will have a huge bearing on the UPS market, with various verticals becoming eager to lower downtime through power protection. The construction of IT infrastructure is a particularly strong market driver.
The biggest push for adoption came from the 2010 Pelluhue Earthquake, which compelled Chilean companies across segments to consolidate their investment toward strengthening the existing IT infrastructure and thereby, deploying UPS systems.
In Argentina, the frequent snags in centralized electricity provision are forcing consumers to turn to UPS. However, only specific verticals such as public infrastructure and industrial have realized the importance of adopting not only power generating equipment such as gensets but also protective equipment such as UPS systems.
While UPS purchases in Argentina were mainly replacements sales rather than the expansion of the current installed capacity, the Chilean market has grown consistently due to new purchases in data centers.
"The customers' high bargaining power notwithstanding, the increased need for energy efficiency and management of critical loads in data centers will sustain the demand for UPS equipment in the near future," noted Cataife.
UPS vendors can increase their volume of new sales by tapping unexplored verticals. Participants will also do well to focus on mergers and acquisitions to gain market shares and expand their footprints in new markets.
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