Since electric power was developed, it has been quickly promoted in various fields with its unique advantages. Whether it is lighting or power, electricity has now become the main source of energy supply.
Driven by electric power, China's economic construction has developed rapidly, and significant progress has been made in industry and service industries. However, in response to China's economic development, China's power grid construction is relatively backward and the development of the new energy industry is relatively slow. This has led to insufficient power resources in China's economic activities, and power outages occur from time to time, which has caused industrial production. Economic activities have brought heavy losses. Therefore, UPS as a solution to this problem comes in handy. UPS can effectively prevent economic losses caused by sudden power outages and power outages, and its status in all walks of life cannot be underestimated. Therefore, the deficiencies of China's power system have brought favorable market opportunities to the development of the UPS industry.
UPS, uninterruptible power supply, is a system equipment that connects the battery with the host and converts DC power into AC power through the host inverter and other module circuits. The three basic functions of UPS: voltage stabilization, filtering, and uninterrupted. The entire UPS industry chain covers many fields, the upstream is the supplier of material components and parts, the midstream is the power assembly, and the downstream is the application market.
The Global UPS Market Is Growing Steadily, And the UPS Market in China Is Growing Faster
In 2018, the global UPS market reached 7.56 billion U.S. dollars, a year-on-year increase of 2.4%. From 2015 to 2018, the global UPS market basically maintained a steady growth of around 2%. China's UPS industry has developed more rapidly than overseas markets. In 2018, the domestic UPS market was 971 million US dollars, a year-on-year increase of 10.3%. In 2019, China's UPS market reached 1,029 million US dollars, with a year-on-year growth of 6.1%.
UPS Mid-To-High-End Market Is Monopolized by European And American Companies, And UPS Demand in Developing Countries Is Strong
From the perspective of global proportions, the main consumer market of UPS is still economically developed countries and regions. The maturity of the UPS market in countries is high, and the demand for a full range of UPS products is strong. Multinational giants, brand manufacturers, and distributor networks are all very developed. Market competition is therefore very fierce.
The mid-to-high-end UPS market is basically monopolized by the three Fortune 500 companies, Eaton, Emerson, and APC-MGE. The total market share of the three companies exceeds 75%. In addition, other European and American UPS manufacturers have transformed into brand distributors. It still maintains a certain influence in the mid-to-high-end market; in the mid-to-low-end UPS market, multinational companies do not have a cost advantage, while brand distributors are active.
Compared with developed countries, developing countries have an increasing demand for data centers and energy-efficient power solutions, and the local UPS market is ushering in rapid development. With the rise of the UPS market in developing countries, especially the Chinese market, the Asia-Pacific region will become the world's largest uninterruptible power supply system demand market. It is estimated that by 2020, the Asia-Pacific region will account for about 30% of the total global share, with a compound annual growth rate of 16.1% during the period.
China's UPS market can be subdivided into small and medium power markets and high-power markets. The small and medium power market refers to UPS products with a capacity of less than 20kVA, among which products with a capacity of less than 10kVA are low-power machines, and products with a capacity of 10-20kVA are medium-power machines; and the high-power market refers to products with a capacity of more than 20kVA UPS products.
The Demand for High-Power and Online UPS Continues to Increase, Testing Technical Strength of UPS Manufacturers
From the perspective of UPS product types, online UPS is currently the mainstream of the industry, occupying 80.8% of the market, interactive accounting for 10.7%, and offline UPS accounting for only 8.5%. From the perspective of UPS's sub-power product structure, in the past five years, the proportion of sales of high-power UPS representing high-end demand has continued to increase. In 2018, domestic high-power UPS shipments accounted for 70%. From the perspective of market competition, the technical barrier of high-power online UPS is higher than that of small and medium-power products, and it was the main advantage area of foreign brands in the past. With the increase in the proportion of high-power UPS products, for domestic UPS manufacturers, the technical research and development capabilities of local companies will be more tested.
In the future, UPS will focus on high frequency, green, intelligent, etc. High-frequency UPS has the advantages of small size and lightweight. Generally, it is only equivalent to 60% of the weight of a power frequency UPS with the same capacity. Since there is no output transformer, the expansion and parallel circulation current is small.
In the information age, UPS is more widely used, including information industry, financial industry, communication system, national defense and security, aerospace, and transportation system. Telecommunications, the Internet, and finance are still the three most widely used areas of China's UPS products in 2019, accounting for 17.6%, 15%, and 14.1%. Among them, due to the increasing downward pressure on the economy and the impact of the overall domestic development environment, as well as the increasingly stringent standards of new data centers in various provinces, the proportion of revenue in telecommunications and other fields has shown a downward trend. In contrast, the government, transportation, and finance are developing vigorously and growing rapidly.
UPS intelligence includes automatic identification and control of system operating status, system fault self-diagnosis, automatic battery detection and management, intelligent internal information detection and display, etc., which are mainly realized through system control software. With the development of computer technology, computers and their networks have put forward higher requirements for the corresponding power guarantee, and intelligent UPS will gradually become popular.
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