UPS services market grows

Ongoing strength in data center construction means more UPS systems are being installed, and businesses providing outsourced UPS services are going strong according to a recent market report.
By Consulting Specifying Engineer Staff September 1, 2008

Ongoing strength in data center construction means more UPS systems are being installed, and businesses providing outsourced UPS services are going strong according to a recent market report. The market, which earned revenues of $876.3 million in 2007, is projected to reach $1.29 billion by 2014.

The report, “North American UPS Services Markets” from Palo Alto, Calif.-based Frost & Sullivan, said more data center managers are turning to outside resources to manage UPS systems so they can concentrate on overseeing increasingly complex networks.

Researchers found that service providers also are growing their earnings by expanding their service offerings to include the entire physical infrastructure of their clients’ facilities, including power distribution units, air handling units, chillers, and other equipment. By compiling all of these services under one roof, some vendors now can market all-in-one packages that address predictive faults, emergency operations, and preventive maintenance.

However, falling margins are encouraging increased industry consolidation, the report notes, with the top four companies in the UPS services field now controlling more than 50% of the market.