The Malaysian UPS systems market is expanding, largely due to the booming economy, government initiatives, and growth of segments such as financial services, healthcare, business process outsourcing, and IT/IT-enabled services (ITeS). "There has also been an increasing need for good quality power and greater usage of power-hungry equipment," notes the analyst. "New industries are also expected to open the market up and provide new end-user markets." The growth of the telecom and IT/ITeS segment can increase the consumption of high-end UPS systems. Another factor that could increase the demand for offline and line interactive UPS systems is the decline in the prices, making them more affordable to small office home offices (SOHOs) and small- and medium-sized enterprises (SMEs). It could also improve the growth rates in the Malaysian replacement market

User Awareness
In the Malaysian uninterrupted power supply (UPS) systems market, users have low awareness about novel technologies. Since they do not know the advantages of these various technologies, they invariably choose an inappropriate technology and configuration for their requirements. The complete absence of any kind of standard specifications for UPS systems has also added to their lack of clarity. UPS system manufacturers will have to invest heavily in end-user education to make headway in that market.

Service Becomes the Key
"Technology parity has put the spotlight on service as the most important criterion in the choice of brand," says the research analyst. "The service infrastructure of the manufacturers is expected to come under severe scrutiny." Users have started looking at third party for after-sales service, giving rise to the question of product reliability.

End users expect excellent and comprehensive after-sales services for all their UPS system brands. Large corporates and industrial customers demand direct service from manufacturers. Market participants comply with such requirements to retain clients, through high levels of service offering. UPS system manufacturers can also enhance their product offerings by optimizing packaging, service, delivery, financing, and/or other value-added services.

Source : Frost&Sullivan