Electricity price hikes drove South African UPS market up 20% in 2012

IHS reports that South Africa’s market for uninterruptible power supplies (UPS) grew last year in excess of 20% to more than $50 million primarily because of rising electricity prices in the country.

09/04/2013


South Africa’s market for uninterruptible power supplies (UPS) grew last year in excess of 20% to more than $50 million, a notable increase considering the slow economic growth of the region. The main driver for growth was rising electricity prices in the area, according to a new report titled “The Middle East & Africa Market for Uninterruptible Power Supplies - 2013 Edition” from IMS Research, now part of IHS. 

Following the rolling blackouts of 2008, South African public-utility company Eskom invested in building new power stations and installed new power-demand-management programs that have since greatly improved power reliability. But because of the investment required to keep electricity supply in line with demand, Eskom has had to raise power prices each year, resulting in prices tripling from 2007 to 2012. All these developments, in turn, powered the UPS market in the country by double-digit growth last year.

In the latest round of price hikes, the National Energy Regulator of South Africa, the country’s regulatory body for piped gas and petroleum, approved in February this year further increases at an annual rate of 8% from 2013 to 2018, setting the stage for continued growth of the UPS market in the years ahead. 

“Ever-increasing electricity prices are causing South African businesses to invest in new practices and equipment in order to minimize the cost of power,” said Liz Cruz, senior analyst, data center and critical infrastructure, at IHS. “Much of this attention has been directed at data centers, which account for a significant portion of the electricity consumption of businesses. In turn, a resulting demand for more efficient UPS has spurred replacement sales of 3-phase UPS units, and is driving up the average unit price of this product segment.” The earlier replacement of UPS with a more expensive product explains the major increase in UPS market growth. 

The need to control power costs has also led to a desire for better information, Cruz noted. “Companies want to know where and how their power is being used, which is also generating demand for data center infrastructure management (DCIM) software.” 

While some are investing in DCIM to implement better power usage practices, others are choosing to outsource this aspect of efficiency management. In particular, colocation facilities are experts in the design, construction and operation of efficient and reliable data centers, an appealing proposition for companies looking to minimize electricity costs with the added benefit of deferring capital expenses.

As electricity prices continue to climb, so, too, will the market for equipment, services and software that help constrain power costs. All told, the UPS market in South Africa can look forward to continued double-digit growth rates through 2017. 

IHS regularly analyzes all aspects of the market for data-center infrastructure. Click here for more information regarding these detailed reports. “The Middle East & Africa Market for Uninterruptible Power Supplies - 2013 Edition” report provides the most in-depth analysis available for the Middle East and African market for UPS. Unit shipments, average sales prices and revenues are estimated for 2012 and forecast through 2017. The market is segmented by country, product type, power rating and sales channel. Supplier market share estimates for 2012, and an analysis of the competitive environment, are also provided.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
Control Engineering Leaders Under 40 identifies and gives recognition to young engineers who...
Learn more about methods used to ensure that the integration between the safety system and the process control...
Adding industrial toughness and reliability to Ethernet eGuide
Technological advances like multiple-in-multiple-out (MIMO) transmitting and receiving
Big plans for small nuclear reactors: Simpler, safer control designs; Smarter manufacturing; Industrial cloud; Mobile HMI; Controls convergence
Virtualization advice: 4 ways splitting servers can help manufacturing; Efficient motion controls; Fill the brain drain; Learn from the HART Plant of the Year
Two sides to process safety: Combining human and technical factors in your program; Preparing HMI graphics for migrations; Mechatronics and safety; Engineers' Choice Awards
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
News and comments from Control Engineering process industries editor, Peter Welander.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
Anthony Baker is a fictitious aggregation of experts from Callisto Integration, providing manufacturing consulting and systems integration.
Integrator Guide

Integrator Guide

Search the online Automation Integrator Guide
 

Create New Listing

Visit the System Integrators page to view past winners of Control Engineering's System Integrator of the Year Award and learn how to enter the competition. You will also find more information on system integrators and Control System Integrators Association.

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.