Increase in number of commercial establishments and amplifying data center market will escalate the demand for ups systems in the UAE
UAE UPS market is led by three players, APC by Schneider Electric, Vertiv/Emerson Network Power and Eaton. APC’s Smart-UPS Series is significantly popular within the SMB’s in the UAE due to which the company accounted for the highest share in the market during 2015. The company is dominant in below 20 KVA segment of the market. Vertiv on the other hand, has good presence in the above 40 KVA segment owing to which it has become the second largest player in the market during 2015. Other major players in the segment include Tripp Lite, Socomec and AEG Power solutions. As of 2015, there were 10-15 players operating in the UAE UPS market.
UAE UPS market thrives majorly from the import of tools from countries such as China, the Philippines, Germany, Italy, US, India, France, Slovakia and others. Almost all the manufacturers present in the industry are importing the products from these countries. None of the key players operating in the market is manufacturing their UPS systems domestically in the UAE. Majority of the manufacturers in the market have channel partners spread in different parts of the country. Major companies such as APC, Eaton, Emerson Network Power/Vertiv and Tripp Lite have a distribution network consisting of two entities, Resellers and System Integrators.
Line interactive type has been the most popular UPS type in the UAE due to high reliability, ideal for rack/distributed servers and for harsh power environments. These types of UPS systems are demanded by majority of commercial establishments in the UAE due to which it has gathered the largest share in the market. Online systems followed line interactive systems due to its popularity among large organizations and data centers. Moreover, online systems are slightly more expensive considered to line interactive systems, resulting in high revenue generation. UPS systems of below 10 KVA ratings are the most demanded types of UPS systems in the UAE. Majority of SME’s in the UAE use UPS systems with KVA rating below 10.
According to Research Analyst, a new entrant should save the cost of setting up a manufacturing facility in the UAE and import its products as the custom duty on imports is 0%. Moreover, new company should channel efforts majorly towards UPS systems with 10 KVA or below rating as majority of commercial establishments in UAE demand UPS systems from this category. Furthermore, a new entrant should set up a large distribution network in the UAE. Without an extensive dealer presence, it is very difficult for a new entrant to establish a base in the market.
The report titled “UAE UPS Market Outlook to 2021 - Rising Number of SMBs and Enhancing Commercial Sector to Foster Growth” provides brief overview on the UPS Market and helps readers to identify the ongoing trends in the market and anticipated growth in future depending upon changing market dynamics in coming years. The report will help existing distributors, manufacturers along with end users in UPS division to align their market centric strategies according to ongoing and expected trends in the future.
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Ankur Gupta, Head Marketing & Communications
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