IMS Research forecasts more consolidation in the UPS market
December 15, 2011 // Paul Buckley
Market analyst, IMS Research, is predicting that ABB’s acquisition of Newave points to more consolidation in a market where the top 10 suppliers control 72% of industry revenues. IMS Research describes the move as a smart acquisition citing that the $7 billion market is projected to grow by an average of 7% per year over the next five years.
A year and a half after it was by outbid by Emerson for the purchase of Chloride, Switzerland-based ABB has returned to the data center-power area, this time looking closer to home. The recent announcement of acquisition of Newave SA, a fellow Swiss company specializing in Uninterruptible Power Supply (UPS) systems, continues the trend of large multinational organizations purchasing UPS manufacturers. IMS Research believes this most recent example could present a challenge to established players in the coming years.
Jason dePreaux, a Research Manager who studies the UPS market, maintains that the impact of ABB’s acquisition of Newave will be felt more in the future, as opposed to instantly. “When Schneider bought APC, and when Emerson acquired Chloride, each entity was already deeply involved in the UPS market. So, each time, it was a case of making a big UPS company even bigger. In contrast, ABB is not currently a major UPS player and Newave’s footprint is mainly in Europe. So, the effect of the acquisition will not be immediate on the market.”
Currently, more than half the UPS market is held by the top three players - Schneider, Emerson, and Eaton. Over the past five years, each of these companies purchased other UPS vendors to enhance geographic coverage and expand product portfolios.
Depending on how aggressively ABB moves to expand Newave’s business, it could challenge the supremacy of the “big three." dePreaux continues, “The reach of ABB is enormous and could accelerate the growth of Newave’s business. Today, Newave is the 7 th ranked vendor in Western Europe, but much of the future market growth will be found in developing areas like Asia and Latin America. ABB’s resources could really kick-start Newave’s expansion in these regions.”
The trend is for vendors to expand beyond UPS and provide a full range of products and services centered on data center markets. dePreaux concludes, “I think this is a long term play for ABB. UPS is a critical part of data center infrastructure and services. When the deal closes, it won’t radically reshape the market but, over time, ABB could develop its position in to the point where we may need to redub the market leaders as ‘the big four.’”
Visit IMS Research at http://imsresearch.com
It's crunch time (again) for EUV lithography
July 07, 2015
Looking down the semiconductor road map, researchers at the Imec research institute see small, medium and large challenges ...
Digi-Key to distribute Monolithic Power Systems worldwide
Autonomous taxis would be green and cost effective says study
What she sees is what you get
Prototyping in silicon photonics boosted by European collaboration
Private equity makes moves on GaN startup
July 06, 2015
Private equity firm KKR & Co Ltd. – formerly known as Kohlberg, Kravis and Roberts – has led a $70 million investment in ...
TSMC overtakes Intel in chip capex ranking
3D fingerprint scanner beats Apple's
Solar powered flight smashes long distance records
- Critical Requirements in High Speed Signal Generation Applications
- The 400XAC Series: Two Major Advantages that Simplify Functional Testing
- A Smart Way to Drive ECU Consolidation
- Autonomous Driving: An Eye on the Road Ahead
InterviewCEO interview: Cadence is about enablement, collaboration
EDA companies are being asked to provide expertise from the circuit- to the system-level observes Lip-Bu Tan, CEO of EDA software vendor Cadence Design Systems Inc. Covering such a breadth of endeavour ...
Filter WizardCheck out the Filter Wizard Series of articles by Filter Guru Kendall Castor-Perry which provide invaluable practical Analog Design guidelines.
Linear video channel
READER OFFERRead more
This month, Novelda is giving away two full XeThru Inspiration kits worth 1499 US Dollars each, for EETimes Europe's readers to experiment first hand with its XeThru technology.Based on the use of radio waves, rather than infrared, ultrasound or light, the company's X2M1000 Inspiration modules can detect presence just from the chest movement while breathing, and measure both the rate and... MORE INFO AND LAST MONTH' WINNERS...
December 15, 2011 | Texas instruments | 222901974
Unique Ser/Des technology supports encrypted video and audio content with full duplex bi-directional control channel over a single wire interface.