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
The automation obituaries
January 27, 2015
What will humans soon have in common with horses? Obsoletion in the work place, if a video on YouTube by CGP Grey is anything ...
TSVs to split more chips: re-integration is the focus
Analog, embedded drive TI upwards in 2014
Maxim exits consumer MEMS, touch sensors
Algorithm indicates the electricity consumption of individual appliances
Graphene enables electrical control light emitter energy flows
January 27, 2015
Scientists from Europe's Graphene Flagship have demonstrated active, in-situ electrical control of energy flow from erbium ...
ARM backs printed electronics startup
Infineon takes the lead in auto semiconductors
Harman continues shopping spree with two software takeovers
- Sensing Elements for Current Measurements
- Investigating Die attach Failure in IGBTs using Power Cycling Tests
- Power Semiconductor Failure Diagnosis using Thermal Characterization and Power Cycling
- Top 5 Trends in Product Development and Test Engineering
InterviewCEO interview: Bosch's IoT startup is all about the system
Thorsten Mueller, CEO of Bosch Connected Devices and Solutions GmbH (Reutlingen, Germany), has been guiding the latest startup subsidiary of Robert Bosch GmbH since 2013 when he started the initiative ...
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
To ensure you have a good start in 2015, Freescale is giving away five of its QorIQ TWR-LS1021A Tower system modules, worth USD269 each, for EETimes Europe's readers to win.
The module is the most feature-rich and high-performance Tower system offered by Freescale, enabling compatibility and interoperability with the growing list of Tower expansion modules, offering an easily accessible...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.