SAN ANTONIO, June 08, 2017 -- A new analysis by Verify Markets shows the North American UPS Rental Market was valued at $150.0 million in 2017. The market has started to experience high growth rates during the last two years driven mainly by long lead times from UPS manufacturers, expansion and upgrading of data center facilities and an increase in infrastructure spending.
The data center market has experienced double-digit growth rates and it is projected to continue growing fast during the next five years. The amount of information managed by data centers is expected to grow, fueled by increasing needs for data storage. Renting a supplementary UPS unit provides a cost-effective and practical solution to companies that need to rapidly expand their datacenter capacity. Even when deciding to buy a new UPS unit, companies tend to rent UPSs to avoid losing productivity due to delays in receiving new units.
Similarly, the construction industry is one of the most important end-users of UPS rental units, representing 55 percent of the total market in North America. During building construction or expansion, electrical contractors tend to rent UPS units to reduce production downtime while awaiting delivery of a newly ordered UPS system.
Despite the market potential, rental companies will be deterred by customer’s preference for purchasing instead of renting UPS units. Commonly, end-users have a preference for purchasing UPS units. Renting is considered as a short-term solution to provide main power or standby power to a temporary location or during a short period of time. To overcome this challenge, some rental companies are offering lease-to-purchase options to its clients.
Another important factor affecting the market is the increasing competition from several small and medium companies entering the market. Barriers to entrance are low and there are a significant number new competitor entering the market every year. Frequently, competitors may attempt to compete aggressively by lowering rental rates or prices.
The North American UPS Rental Market report has been segmented by power source, end-user and power range. Main customers include construction and manufacturing, healthcare facilities, IT networks and communication. Other end-users are universities and events. Universities and colleges are an important end-user of UPS rental during admission and registration months, where additional electronic data protection and back-up power is required. Demand for UPS rental units for broadcasting events has increased in the last few years and there are several companies starting to play in this segment of the market.
Based on power source, the market has been segmented by valve-regulated lead-acid (VRLA), flooded-cell batteries and lithium-ion batteries.
Some of the key companies covered in this report include Global Power Supply, LLC, Facility Gateway Corporation, Caterpillar, Inc, and Sure Power, Inc. (UPS Rental), among others. This report provides an in-depth analysis of the overall North American UPS Rental Market. The report captures various market dynamics such as growth drivers, restraints, market revenues and forecast, technology trends and competitive landscape.
A copy of the North American UPS Rental Market research report can be obtained at www.verifymarkets.com. Follow us for more updates on Twitter @verify_markets and LinkedIn. This report is part of Verify Markets’ Energy & Power Equipment market research and consulting practice. Other power rental market reports:
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