First Half of 2015 Proves Challenging for UPS Market

Trend toward colocation data centers means fewer new server rooms are being built, resulting in a net decrease in demand for UPSs.

According to the uninterruptible power supply (UPS) market indexes operated by IHS, the UPS market recorded its worst half year result (first half of 2015) in five years — down by 8.7% from the previous first half of 2014. IHS analysts attribute this trend to the following factors:

  •        Several large UPS deals closed in 2014. With fewer similar sized deals on the horizon for this year, achieving positive growth in revenues for the largest vendors in the market in 2015 will be a challenge.
  •        The Eurozone, United Kingdom, and Japan have seen exchange rates against the U.S. dollar fall at the start 2015, which artificially deflates local market sizes when reported in U.S. dollars.
  •        The trend toward the use of colocation data centers is strengthening. This is believed to be decreasing the volume of new UPS shipments required for small- and medium-sized data centers and server rooms.

See chart for the aggregated UPS hardware and services market indexes from 2010 to 2015 in half year increments, in terms of billions of U.S. dollars.

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