New report: A look at the UPS markets in Argentina and Chile

New analysis from Frost & Sullivan on the 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.

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 conclusion of the report:

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.

Frost & Sullivan: Argentinean and Chilean Uninterruptible Power Supply (UPS) Market»

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