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Frost & Sullivan: Argentina's UPS Market Experiences a Slower Demand, while Mergers and Acquisitions Promote Growth for UPS Market in Chile


News provided by

Frost & Sullivan

13 Aug, 2013, 18:05 GMT

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- 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.

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Argentinean and Chilean UPS Markets is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related research services include: Mexican Geothermal Power Generation Market, Chilean Electricity Industry, and the Southern Cone Renewable Energy Markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

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Argentinean and Chilean UPS Markets
NC9F-14

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

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