ABB acquisition brings new power to UPS market

IMS report: Purchase of Newave could turn growing UPS market into a four-way race

12/14/2011


According to the analyst firm IMS Research,  ABB’s acquisition of Newave points to more consolidation in a market where the top 10 suppliers control 72% of industry revenues. It is a smart acquisition, given that the $7Bn market is projected to grow by an average of 7% per year over the next five years.

 

A year and a half after it was by outbid by Emerson for the purchase of Chloride, Switzerland-based ABB has returned to the data center-power area, this time looking closer to home. The recent announcement of acquisition of Newave SA, a fellow Swiss company specializing in Uninterruptible Power Supply (UPS) systems, continues the trend of large multinational organizations purchasing UPS manufacturers. IMS Research believes this most recent example could present a challenge to established players in the coming years.

 

Jason dePreaux, a Research Manager who studies the UPS market, maintains that the impact of ABB’s acquisition of Newave will be felt more in the future, as opposed to instantly. “When Schneider bought APC, and when Emerson acquired Chloride, each entity was already deeply involved in the UPS market," he said. "So, each time, it was a case of making a big UPS company even bigger. In contrast, ABB is not currently a major UPS player and Newave’s footprint is mainly in Europe. So, the effect of the acquisition will not be immediate on the market.”

 

Currently, over half the UPS market is held by the top three players - Schneider Electric, Emerson, and Eaton. Over the past five years, each of these companies purchased other UPS vendors to enhance geographic coverage and expand product portfolios.

 

Depending on how aggressively ABB moves to expand Newave’s business, it could challenge the supremacy of the “big three." dePreaux continues, “The reach of ABB is enormous and could accelerate the growth of Newave’s business. Today, Newave is the 7th ranked vendor in Western Europe, but much of the future market growth will be found in developing areas like Asia and Latin America. ABB’s resources could really kick-start Newave’s expansion in these regions.”

 

The trend is for vendors to expand beyond UPS and provide a full range of products and services centered on data center markets. dePreaux concludes, “I think this is a long term play for ABB. UPS is a critical part of data center infrastructure and services. When the deal closes, it won’t radically reshape the market but, over time, ABB could develop its position in to the point where we may need to redub the market leaders as ‘the big four.’”



Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2017 Top Plant.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
May 2018
Electrical standards, robots and Lean manufacturing, and how an aluminum packaging plant is helping community growth.
April 2018
2017 Product of the Year winners, retrofitting a press, IMTS and Hannover Messe preview, natural refrigerants, testing steam traps
March 2018
SCCR, 2018 Maintenance study, and VFDs in a washdown environment.
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
February 2018
Focus on power systems, process safety, electrical and power systems, edge computing in the oil & gas industry
December 2017
Product of the Year winners, Pattern recognition, Engineering analytics, Revitalize older pump installations
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
April 2018
Implementing a DCS, stepper motors, intelligent motion control, remote monitoring of irrigation systems
February 2018
Setting internal automation standards

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

The Maintenance and Reliability Coach's blog
Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
One Voice for Manufacturing
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Maintenance and Reliability Professionals Blog
The Society for Maintenance and Reliability Professionals an organization devoted...
Machine Safety
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
Research Analyst Blog
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Marshall on Maintenance
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
Lachance on CMMS
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Maintenance & Safety
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
Industrial Analytics
This digital report explains how plant engineers and subject matter experts (SME) need support for time series data and its many challenges.
IIoT: Operations & IT
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Randy Steele
Maintenance Manager; California Oils Corp.
Matthew J. Woo, PE, RCDD, LEED AP BD+C
Associate, Electrical Engineering; Wood Harbinger
Randy Oliver
Control Systems Engineer; Robert Bosch Corp.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me