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Middle East, Africa UPS market worth $550m in 2012

Fri, 04/26/2013 - 18:36 -- Ruth Williams

UPS sales in the Middle East and Africa returned to growth in 2012 after three years of decline and growth is forecast to continue in 2013, according to analysts IHS.

"Looking just at the Middle East, growth is projected to stay around the 5% range during the next two years," said Liz Cruz, senior analyst, data centre and critical infrastructure, at IHS. "Saudi Arabia and the United Arab Emirates will drive growth in the near term, while more emerging UPS markets like Oman and Qatar will generate higher long-term growth."

While oil prices are expected to weaken in 2013 and continue to be soft in 2014, some countries in the Middle East have other market drivers that are creating new applications for UPS. Building out the transportation and utility infrastructure will affect numerous regions' UPS markets, as well as some new data centre construction that will boost sales in the region.

As a whole, the UPS market in Africa is forecast to grow by single-digits in the near term but will pick up steam by 2015. North Africa will constrain growth over the next year or two as the political and resulting economic situation recovers. But the Sub-Saharan regions, especially Nigeria and South Africa, are forecast to have stronger growth in the near-term.

"Everything from power quality, civil unrest, emerging data centre construction, infrastructure development and even tourism will affect UPS market growth over the next five years," said Cruz. "These factors will affect each country's UPS market differently."