Service Contracts Assure Steady Revenue Flows for Southeast Asian UPS Service Providers, Finds Frost & Sullivan

Service Contracts Assure Steady Revenue Flows for Southeast Asian UPS Service Providers, Finds Frost & Sullivan PR Newswire SINGAPORE, Aug. 23, 2012 - Greater awareness of the importance of backup power drives sales of UPS products and services SINGAPORE, Aug. 23, 2012 /PRNewswire/ -- The existence of a $305.3 million market for UPS service in Southeast Asia ensures a steady stream of revenue for service providers, as UPS products are usually sold with annual service contracts, which can be extended. These contracts keep the existing client base active and guarantee a continuous inflow of revenue. New analysis from Frost & Sullivan (http://www.powersupplies.frost.com), Analysis of the Southeast Asian Uninterruptible Power Supply (UPS) Services Market, finds that the market earned revenues of $82.3 million in 2011 and estimates this to reach $117.6 million in 2016. Between the commercial and industrial UPS services markets, the former accounted for the higher revenue share for 2011. Despite the security of an assured inflow, service providers have to stay on their toes due to economic volatility and the increasing competition in the market, which has, in turn, intensified price wars. Manufacturers with the capability to provide lesser priced services can recoup their investments through economies of scale but tier 3 manufacturers with niche service offerings have to fall back on product quality to stand apart.