New report: Slowdown in the UPS market, but no need to panic

According to new numbers from IMS Research the uninterruptible power supply (UPS) market saw year-over-year growth slow to 5% in Q4 2011 following three consecutive quarters of double digit growth. The year started relatively strongly, ending with a nearly 12 point gain year-to-date over 2010.

“However, fourth quarter’s sales slumped and this is a trend likely to continue rather than be just a seasonal slowdown in the market,” said IMS in it’s press release.

  • America’s UPS sales performed as projected in 2011, with mid-range and large UPS sales growing faster than single-phase UPS.
  • While Latin America’s market is projected to show double-digit growth, the market size is only a quarter of that of the US.
  • Europe, the Middle East, and Africa (EMEA) also saw faster growing sales in the mid-range to large UPS after being flat in 2010, though favorable currency exchange helped the situation to some extent. Unfortunately, EMEA’s signs of improvement appear to be short-lived, as problems with economic stability continue and the region slides back into recession.
  • Even Asia’s growth rates have showed signs of slowing down, especially the single-phase segment. IMS Research market analyst Lori Lewis explains, “The low growth in Asia’s fourth quarter is relative only to an extremely strong past two years in the region. We knew Asia’s growth would decelerate a bit towards the end of the year, but we project that the region’s growth will continue to outperform the rest of the market over the next 3-5 years.”

Taken together, these numbers predict that 2012 can be a bumpy ride. But apart from that, one has always to keep in mind that calculations of past growth are no help in predicting future growth.

IMS Research: Slowdown in the UPS Market – A Sign of Things to Come? »

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