modular ups systems and its possibility to replace free standing ups – what are the chances?
TRANSCRIPT
Modular UPS Systems and its Possibility to Replace Free Standing UPS – What are the Chances?
Gautham Gnanajothi, Senior Research Analyst
Energy & Power Systems
2
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 Team
� Varied experience across industry segments
� Immense exposure in international project handling
� Very good understanding of strategic client requirements
Career Highlights
� Single point of contact for Capital Equipment projects, areas responsible for – West Africa, Caspian, Parts of
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)
Gautham GnanajothiSr. Research AnalystEnergy and Power System
Frost & SullivanEuropeChennai, India.
Gautham Gnanajothi
3
Focus Points
• Introduction to Modular Topology
• Distinct Features
• Revenue Projection & Growth Rate
• Product Life Cycle
• Market Segmentation
• Market Trends
• Distribution Channel Trends
• Key Challenges
• Market Drivers & Restraints
• Market Segments – Revenue Contributions
• Key Market Participants
• Key Take-Aways
4
Introduction to Modular Topology
Modular UPS systems are the result of technological advancement in the UPS industry. They employ a unique transformer-less design. This system owes its existence to the advancement in the power semiconductor industry.
The modular configuration provides redundancy if one of the units fails, and
modules can be added to accommodate an increase in capacity in affordable,
incremental steps without interruption to the critical load .
CountriesCountriesCharacteristicsCharacteristicsEnd-UsersEnd-Users
Modular UPSModular UPS
5
Distinct Features
• The Modular rack mounting configuration offers
customers the advantage of swapping a faulty module
with a new one without interruption to the working
process of the whole UPS. Modules can be safely
inserted or removed without turning the power off.
• The Modular rack mounting configuration offers
customers the advantage of swapping a faulty module
with a new one without interruption to the working
process of the whole UPS. Modules can be safely
inserted or removed without turning the power off.
Hot SwappableHot Swappable
• Every module has an independent charging system
• All critical components are duplicated and distributed
between the modules
• Modules can be added or made redundant according
to requirement.
• Every module has an independent charging system
• All critical components are duplicated and distributed
between the modules
• Modules can be added or made redundant according
to requirement.
Independent ModulesIndependent Modules
• Modern datacentres are very keen on effectively using
their office space.
• The transformer-less design of the Modular UPS offers
a solution with a very small footprint.
• Parallel rack mount modules offers reduction in weight.
• Modern datacentres are very keen on effectively using
their office space.
• The transformer-less design of the Modular UPS offers
a solution with a very small footprint.
• Parallel rack mount modules offers reduction in weight.
Smaller FootprintSmaller Footprint
• Reduced heat loss and low CO2 emissions
• Total output power much cleaner and greener when
compare to a free standing UPS
• Reduced heat loss and low CO2 emissions
• Total output power much cleaner and greener when
compare to a free standing UPS
Clean & Green PowerClean & Green Power
• Energy efficiency is higher than the free standing unit,
offering more than 96% efficiency.
• Improved efficiency saves energy costs and cooling
costs considerably, which increases the total energy
savings.
• Energy efficiency is higher than the free standing unit,
offering more than 96% efficiency.
• Improved efficiency saves energy costs and cooling
costs considerably, which increases the total energy
savings.
Energy EfficiencyEnergy Efficiency
• Faulty modules can be replaced within half an hour
• Provides easy and low cost maintanance
• Reduced mean time to repair (MTTR) and mean time
between failure (MTBF)
• Provides availability of 99.9999% (six nines)
• Faulty modules can be replaced within half an hour
• Provides easy and low cost maintanance
• Reduced mean time to repair (MTTR) and mean time
between failure (MTBF)
• Provides availability of 99.9999% (six nines)
High AvailabilityHigh Availability
6
Revenue Projection and Growth Rate
-
100.0
200.0
300.0
400.0
500.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Year
Reven
ues (
$ M
illi
on
)
0.0
5.0
10.0
15.0
20.0
Reven
ue G
row
th
Rate
(%
)
Revenues ($ Million) Revenue Growth (%)
•The European Modular UPS Market is estimated at $150.3 million by the end of 2010 and expected to grow 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 on the free standing UPS system than the Modular UPS. The growth rate was diminished to 6.0 percent but stayed positive during 2009 while the overall UPS market declined by as much as 20percent.
Modular UPS Market: Revenue Forecasts (Europe), 2007-2017
7
Introduction Growth Maturity Decline
Modular UPS Market: Product Life Cycle Analysis (Europe), 2010
Product Life Cycle
Source: Frost & Sullivan
Modular UPS is expected to evolve slowly in the short term but it is expected to be one of the most sought after UPS solutions in the medium and long term.
8
Market Segmentation
• United Kingdom
• Germany
• France
• Italy
• Spain
• Benelux — Belgium, the Netherlands,
Luxembourg
• Central and Eastern Europe (CEE)
• Rest-of-Europe
Geography End-User Application
• Banking and finance operations
• Information and Communication Technology
• Datacentres
• Infrastructure
• Telecommunication
• Medical/healthcare
9
Market Trends
22
33
44
55
66
77
11
The largest country datacentre markets are the UK, Germany, France & Spain for both raised floor space and revenues.The largest country datacentre markets are the UK, Germany, France & Spain for both raised floor space and revenues.
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.
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%.
This increase in demand if capitalised could provide a massive scope for the Modular UPS system installationsThis 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 3,200 banks across the European region.
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.
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 US$8.4 billion in 2010.
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 US$8.4 billion in 2010.
The European datacentre industry is currently booming and provides a huge potential for the Modular UPS Systems.The European datacentre industry is currently booming and provides a huge potential for the Modular UPS Systems.
Footnote or Source Information here, Arial 10 pt.
10
Distribution Channel Trends
EPC Contractors and Distributors
End Users
• Banking and finance operations • Information and Communication Technology• Datacentres• Infrastructure• Telecommunication• Medical/healthcare
OEM’s and VAR’s
Equipment Manufacturers
UPS Market: Distribution Channel Analysis (Europe), 2010
20%
45%
35%
11
Key Challenges
Price Pressure
Modular UPS Market: Industry Challenges (Europe), 2011-2017
Industry Challenges
Keeping up with technology innovations
Increase in Raw MaterialPrice
Source: Frost & Sullivan
12
Short Term Medium Term
Impa
ct
Ma
rke
t D
rive
rsM
ark
et
Res
tra
ints
Impa
ct
Long Term
High flexibility and reduced foot print
Increasing demand for power availability
State of the art technology of the modular UPS becomes
impractical at one point
Reducing price gap between the Modular UPS
and the traditional UPS
Low
High
Low
High
Market Drivers and Restraints
Source: Frost & Sullivan.
Reduced CO2 emissions and low total cost of
ownershipIncreasing awareness level among the end
users regarding Modular technology
Preference to lower cost substitute products
(Traditional free standing UPS)
Modular UPS Market: Key Drivers and Restraints (Europe), 2011-2017
13
Market Segments – Revenue Contributions
37.5825.0Banks/
Financial
150.32100.0TOTAL
End-User Market
Revenues
(%)
Revenues
($ million)
Healthcare 5.0 7.52
Datacentres 25.0 37.58
ICT 15.0 22.55
Infrastructure 10.0 15.03
Telecom 20.0 30.06
Data Centers
25%
ICT
15%Infrastructure
10%
Telecom
20%
Banks/ Financial
25%
Healthcare
5%
Modular UPS Market: Percent of Revenues by End Users (Europe), 2010
14
Key Market Participants
Tier 3 : 10%
AEG, Benning, Tripplite, Salicru and Others.
Tier 2 : 20%
Emerson Network Power (Chloride),
Socomec, Riello, Gamatronic
Tier 1 : 70%
APC by Schneider
Electric, Newave and
Eaton
Modular UPS Market: Tier analysis (Europe), 2010
15
Increased environmental concerns raising the need to reduce the carbon footprint, high flexibility, and reduced footprint will drive the Modular UPS Market
The Modular UPS market is witnessing established UPS manufacturers venturing into the Modular UPS sector and therefore it is necessary to establish a proper definition on true Modularity.
Datacentres 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.
Competitive price, quality, reliability and availability are the factors likely to influence the customers’ decisions while choosing Modular UPS manufacturers.
Source: Frost & Sullivan
The Modular UPS Market in Europe is expected to register a high growth between 2010 and 2017 at a CAGR of 15.4%. It has 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 as the traditional free standing UPS.
Key Take-Aways
16
Next Steps
� Request a proposal for Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. ([email protected])
� Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth occurring in London on 17 – 18 May 2011 (www.gil-global.com)
� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keepabreast of innovative growth opportunities (www.frost.com/news)
17
Your Feedback is Important to Us
•Growth Forecasts?
•Competitive Structure?
•Emerging Trends?
•Strategic Recommendations?
•Other?
Please inform us by rating this webinar.
What would you like to see from Frost & Sullivan?
Frost & Sullivan’s Growth Consulting can assist with your growth strategies
18
http://twitter.com/frost_sullivan
Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter
http://www.facebook.com/FrostandSullivan
http://www.linkedin.com/companies/4506
http://www.slideshare.net/FrostandSullivan
19
For Additional Information
Chiara Carella
Head of Corporate Communications
Europe, Middle East & Africa
+44 (0) 207 3438314
Juliet Shaw
Sales Director
Energy, Environment & Building
+44 (0)20 7343 8363
Suba Arunkumar
Research Manager
Energy & Power Systems
+91 (0) 44 66814000 Ext: 4204
Gautham Gnanajothi
Sr. Research Analyst
Energy & Power Systems+91 (0) 44 66814000 Ext: [email protected]