What a momentous year 2016 has been – Brexit, the US presidential election, the loss of some of our country’s finest including Adam Rickman and Terry Wogan, Andy Murray became the first ever British tennis player to achieve the world number one ranking and Toblerone had a very disappointing makeover!
So, what’s in store for 2017? Whilst we won’t predict what global events might happen – as enjoyable as that might be!, we will comment on the what we have experience in – the UPS market – over 20 years of it in fact.
There have been many rumblings of late that centre around the demise of traditional standalone UPS systems and the market longevity of these. It is undeniable that the market is saturated when it comes to centralised UPS. Technology seems to have plateaued and the performance delivered from different manufacturers has become much of a muchness.
This has meant that manufacturers are now having to compete on cost and subsequently, judging from the latest industry figures, are making less profit.
Despite this slightly glum outlook, demand for critical power goes on, albeit in a slightly different vein. The requirement for medium to large sized UPS systems is diminishing and is being replaced by more modular and easily scalable options, fuelled by not just economic circumstances but also the need for rapid infrastructure development.
The adoption of, and reliance on technologies continues to grow, which coupled with increasing power shortages means that the need for emergency power shows no sign of abating. According to experts, the market will continue to grow at a steady pace and is expected to reach in excess of £4.5billion by 2020.
Much of this growth will come from the uptake of modular UPS solutions. When it comes to the deployment of new UPS systems within large infrastructure settings, the outlook for the immediate future will see many adopt a ‘repair and make do’ attitude.
Commenting, Power Control Ltd’s managing director Mark Trolley said: “We believe that the focus will be very much on the maintenance and replacement of existing UPS systems, particularly in more sizeable facilities.
“With regards to modular UPS growth, I don’t disagree with industry speculation that the market will grow – I have no doubt that it will. However, I do question the speed in which this is anticipated. With global economic uncertainty, it is inevitable that consumers will be even more cautious with their spending.
“Our position within the industry means that we are ultimately responsible for driving growth and ensuring clients make intelligent investment decisions. This will come with helping them realise true TCO (total cost of ownership).
“Unfortunately there are very few power protection organisations out there that can offer genuine technical guidance attune to all the varying industry sectors and applications. I am proud to say that Power Control is a business built on technical knowledge and as such, we are one of the most highly sought after service and support companies for UPS systems.
“The shift in market attention from centralised units, to modular UPS systems, the need to appreciate TCO and the requirement for a greater understanding of the true potential of existing solutions plays into the strengths of our business perfectly.”
It would be fair to say that unless those involved in the power protection field take the time to understand and react appropriately to the market shift, we could see many reputable organisations perish. Some forward thinking businesses such as Power Control have already embraced new market thinking and are already fully focused on the importance of TCO, scalability and practical financial investments.
The UPS market still has huge growth potential as long as it is driven by expert power protection specialists who are willing to adapt to the ever evolving consumer needs.