Cloud Computing Increasing Demand for Uninterruptible Power Supply Devices in Asia-Pacific Region

Now that the Asia-Pacific region is coming to life after the recent economic downturn, more and more countries, including Australia and Japan, are investing in cloud computing. To ensure reliability and availability, data centers need more uninterruptible power supply devices.

The UPS market in Southeast Asia, for instance, earned $1.46 billion in 2011. By 2017, that revenue is expected to increase nearly 30 percent to $2.03 billion annually.

A UPS device generates backup power for a wide range of purposes, from protecting a desktop PC to preventing outages in a data center. A UPS provides power for a few minutes, which usually provides enough time to switch to an auxiliary power source.

In addition to governments eager to adopt cloud computing, the mining, manufacturing and power utility sectors may also drive significant growth in the UPS device market. Smart grids, which are multiplying across Asia, require constant monitoring, communication and intelligent control.

However, the power utility industry, according to Frost & Sullivan (News - Alert), tends to be reluctant to accept new technology because of fears that it could slow down or halt production. Additionally, many UPS manufacturers lack expertise in utilities, manufacturing and mining.

“Customers' expectations could challenge UPS manufacturers since they generally lack expertise and industry knowledge in the mining, chemical, power and manufacturing sectors,” notes research analyst, Avanthika Satheesh.

“Manufacturers will be better equipped to meet end-user demand by participating in frequent development programs and training so they have skilled manpower.”

Pike Research (News - Alert) also studied the global UPS device market earlier this year. According to Pike, growth factors for Southeast Asia include fast expansion in China and other emerging Asian economies. Increased sensitivity of devices to fluctuations in the power grid and decreased tolerance for downtime were also cited as factors.

Many countries in Asia, such as India, have notorious power grid issues. Demand for power is rapidly outpacing the ability of aging infrastructure to produce electricity, which causes frequent outages and rolling blackouts in countries throughout Asia.

Pike states that UPS devices must continue to grow more efficient, to focus on transformer-less designs and to improve with evolving battery technology.