Modular UPS Systems and its Possibility to Replace Free Standing UPS – What are the Chances?
Modular UPS Systems and its Possibility to Replace Free Standing UPS – What are the Chances? Gautham Gnanajothi, Senior Research Analyst Energy & Power Systems
Gautham Gnanajothi Functional Expertise • Over 5 years of experience in operations, sales and contracts administration and internal quality Auditing. Extensive expertise in client management and project management. • Other areas of expertise include - Resource Co-ordination, Review and analysis of proposals -Purchasing/Negotiating, Order Management, Contract review -Report writing, Sales forecasting and Revenue Forecasting Industry Expertise Experience base covering broad range of sectors with global assignments, leveraging long-standing working relationships with clients. - Oil & Gas Industry - Telecom Industry What I bring to the TeamGautham GnanajothiSr. Research Analyst Varied experience across industry segmentsEnergy and Power System Immense exposure in international project handling Very good understanding of strategic client requirementsFrost & Sullivan Career HighlightsEurope Single point of contact for Capital Equipment projects, areas responsible for – West Africa, Caspian, Parts ofChennai, India. Europe and U.K. Companies worked with include: - National Oilwell Varco, Aberdeen, Scotland - British Telecom, Aberdeen, Scotland Education Master of Business Administration from University of Aberdeen (Aberdeen, Scotland) Bachelor of Engineering (Electronics and Communication) from Kongu Engineering College (Erode, Tamilnadu) 2
Introduction to Modular TopologyModular UPS systems are the result of technological advancement in the UPSindustry. They employ a unique transformer-less design. This system owes itsexistence to the advancement in the power semiconductor industry. Modular UPS End-Users Characteristics CountriesThe modular configuration provides redundancy if one of the units fails, andmodules can be added to accommodate an increase in capacity in affordable,incremental steps without interruption to the critical load . 4
Distinct Features Hot Swappable Independent Modules• • The Modular rack mounting configuration offers •• Every module has an independent charging system The Modular rack mounting configuration offers Every module has an independent charging system customers the advantage of swapping aa faulty module customers the advantage of swapping faulty module •• All critical components are duplicated and distributed All critical components are duplicated and distributed with aa new one without interruption to the working with new one without interruption to the working between the modules between the modules process of the whole UPS. Modules can be safely • • Modules can be added or made redundant according process of the whole UPS. Modules can be safely Modules can be added or made redundant according inserted or removed without turning the power off. to requirement. inserted or removed without turning the power off. to requirement. Smaller Footprint Clean & Green Power• • Modern datacentres are very keen on effectively using Modern datacentres are very keen on effectively using their office space. • • Reduced heat loss and low CO2 emissions Reduced heat loss and low CO2 emissions their office space.• The transformer-less design of the Modular UPS offers • Total output power much cleaner and greener when • The transformer-less design of the Modular UPS offers • Total output power much cleaner and greener when aa solution with a very small footprint. solution with a very small footprint. compare to a free standing UPS compare to a free standing UPS• Parallel rack mount modules offers reduction in weight. • Parallel rack mount modules offers reduction in weight. Energy Efficiency High Availability• • Energy efficiency is higher than the free standing unit, Energy efficiency is higher than the free standing unit, •• Faulty modules can be replaced within half an hour Faulty modules can be replaced within half an hour offering more than 96% efficiency. • Provides easy and low cost maintanance offering more than 96% efficiency. • Provides easy and low cost maintanance• Improved efficiency saves energy costs and cooling • Reduced mean time to repair (MTTR) and mean time • Improved efficiency saves energy costs and cooling • Reduced mean time to repair (MTTR) and mean time costs considerably, which increases the total energy costs considerably, which increases the total energy between failure (MTBF) between failure (MTBF) savings. savings. • • Provides availability of 99.9999% (six nines) Provides availability of 99.9999% (six nines) 5
Revenue Projection and Growth Rate Modular UPS Market: Revenue Forecasts (Europe), 2007-2017 500.0 Revenues ($ Million) Revenue Growth (%) 20.0 Revenues ($ Million) Revenue Growth 400.0 15.0 Rate (%) 300.0 10.0 200.0 100.0 5.0 - 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year•The European Modular UPS Market is estimated at $150.3 million by the end of 2010 and expected togrow at CAGR 15.4 percent during the forecast period of 2010 – 2017 and reach $404.7 million by 2017.•The economic recession did affect the Modular UPS business in 2009, however the impact was more onthe free standing UPS system than the Modular UPS. The growth rate was diminished to 6.0 percent butstayed positive during 2009 while the overall UPS market declined by as much as 20percent. 6
Product Life Cycle Modular UPS Market: Product Life Cycle Analysis (Europe), 2010Modular UPS is expected to evolve slowlyin the short term but it is expected to beone of the most sought after UPS solutionsin the medium and long term. Introduction Growth Maturity Decline Source: Frost & Sullivan 7
Market SegmentationGeography End-User Application• United Kingdom • Banking and finance operations • Information and Communication Technology• Germany • Datacentres• France • Infrastructure• Italy • Telecommunication • Medical/healthcare• Spain• Benelux — Belgium, the Netherlands,Luxembourg• Central and Eastern Europe (CEE)• Rest-of-Europe 8
Market Trends 1 1 The European datacentre industry is currently booming and provides a huge potential for the Modular UPS Systems. The European datacentre industry is currently booming and provides a huge potential for the Modular UPS Systems. The largest country datacentre markets are the UK, Germany, France & Spain for both raised floor space and revenues. 2 2 The largest country datacentre markets are the UK, Germany, France & Spain for both raised floor space and revenues. 3 3 The demand and investment pertaining to the European datacentre Market is increasing considerably. The demand and investment pertaining to the European datacentre Market is increasing considerably. 4 4 The annual growth rate predicted for the European datacentre market is 14.0%. The annual growth rate predicted for the European datacentre market is 14.0%. 5 5 This increase in demand if capitalised could provide a massive scope for the Modular UPS system installations This increase in demand if capitalised could provide a massive scope for the Modular UPS system installations Banking and financial sectors are also considered to be a very important end user for the Modular UPS. There are about 6 6 Banking and financial sectors are also considered to be a very important end user for the Modular UPS. There are about 3,200 banks across the European region. 3,200 banks across the European region. The UK has proved itself to be one of the world’s largest medical devices markets in the world; it is valued at just under The UK has proved itself to be one of the world’s largest medical devices markets in the world; it is valued at just under 7 7 US$8.4 billion in 2010. US$8.4 billion in 2010.Footnote or Source Information here, Arial 10 pt. 9
Distribution Channel Trends UPS Market: Distribution Channel Analysis (Europe), 2010 20% OEM’s and VAR’s End Users • Banking and finance operations • Information 35% and Communication Equipment Manufacturers Technology • Datacentres • Infrastructure • Telecommunication EPC Contractors • Medical/healthcare 45% and Distributors 10
Key Challenges Modular UPS Market: Industry Challenges (Europe), 2011-2017 Price Pressure Industry Challenges Increase in Raw Material Keeping up with Price technology innovations Source: Frost & Sullivan 11
Market Drivers and Restraints Modular UPS Market: Key Drivers and Restraints (Europe), 2011-2017 High Reducing price gap Reduced CO2 emissions between the Modular UPS Increasing demand and low total cost of and the traditional UPS for power availability ownership Increasing awareness level among the end High flexibility andMarket Drivers users regarding Modular reduced foot print Impact technology Low Short Term Medium Term Long Term LowMarket Restraints Impact Preference to lower cost substitute products (Traditional free standing UPS) State of the art technology of the modular UPS becomes High impractical at one point Source: Frost & Sullivan. 12
Key Market Participants Modular UPS Market: Tier analysis (Europe), 2010 Tier 1 : 70% APC by Schneider Electric, Newave and Eaton Tier 2 : 20% Emerson Network Power (Chloride), Socomec, Riello, Gamatronic Tier 3 : 10% AEG, Benning, Tripplite, Salicru and Others. 14
Key Take-AwaysThe Modular UPS Market in Europe is expected to register a high growth between 2010 and 2017 at a CAGR of 15.4%. Ithas all the possibilities to overtake and replace the traditional free standing UPS systems in the long run.The economic downturn caused a moderate slowdown in the Modular UPS Market, however it is not affected as much asthe traditional free standing UPS.Increased environmental concerns raising the need to reduce the carbon footprint, high flexibility, and reduced footprintwill drive the Modular UPS MarketDatacentres and Bank/Financial are the two end user segments which contribute about 50% of the total revenue.Among various countries in the region, the UK leads others in terms of revenue contribution.The Modular UPS market is witnessing established UPS manufacturers venturing into the Modular UPS sector andtherefore it is necessary to establish a proper definition on true Modularity.Competitive price, quality, reliability and availability are the factors likely to influence the customers’ decisions whilechoosing Modular UPS manufacturers. Source: Frost & Sullivan 15
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For Additional InformationChiara Carella Juliet ShawHead of Corporate Communications Sales DirectorEurope, Middle East & Africa Energy, Environment & Building +44 (0) 207 3438314 +44 (0)20 7343 firstname.lastname@example.org email@example.comSuba Arunkumar Gautham GnanajothiResearch Manager Sr. Research AnalystEnergy & Power Systems Energy & Power Systems+91 (0) 44 66814000 Ext: 4204 +91 (0) 44 66814000 Ext: 4203Suba.firstname.lastname@example.org email@example.com 19
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