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CCID: Markets for computer room products, scopes grow in China

Posted: 10 Mar 2008 ?? ?Print Version ?Bookmark and Share

Keywords:China's electronics market? 3G? communications power supply?

China's electronic special equipment and instrument market showed healthy growth in 2007, according to CCID Consulting. Sales revenue of computer room products grew 20.8 percent, that of communication power supply increased 8.9 percent, and that of oscilloscope market increased 22.2 percent.

According to CCID, the sales revenue of decoration and fitment, UPS and accurate air conditioning in computer rooms, hit $1.8 billion, accounting for 68.1 percent of the total market.

Development of the communication power supply market benefited from four major market developments: TD-SCDMA pre-commercial trial, 2G dilation, service outsourcing and breakthrough of overseas scale.

Shipments of communication power supplies hit 296,000 sets, and revenues from communication power supplies reached $500 million. Sales revenue from oscilloscopes reached $70 million in first- to second-tier markets in 2007, which occupied 65 percent of total market share. In the third- to fourth-tier market, sales revenue from oscilloscopes hit $37 million.

CCID Consulting believes that China's economy will be favorable for the country's electronic special equipment and instrument markets over the next five years, fuelled with advances in IT applications and technology.

Key factors
CCID outlined several factors contributing to the growth of China's electronic special equipment and instrument markets.

The first factor boosting growth for China's market is the upcoming industrial and key events including the Beijing Olympic Games, Shanghai World Expo and Asian Games in Guangzhou, which bring investment opportunities to these cities. IT applications that focus on emergency response system and community intelligence's construction gradually step into right path in these cities, said CCID. For industry applications, 3G's deployment will drive growth for communications, consumer electronics and IT service markets.

Another factor CCID noted is that acquisition integration becomes a shortcut for improving UPS product line. The acquisition integration between international UPS manufacturers in UPS industry was most remarkable in 2007with the convergence of APC and MGE, Powerware acquiring MGE's UPS with low power or Eaton acquiring Phoenixtec Power. The subjects of these acquisitions are remedying defects, improving UPS product line and the quality of channels.

A third factor is the healthy market for oscilloscopes wherein first- and second-tier cities are the main sales market and third- to fourth-tier cities continue to grow rapidly. Because of the intense competition and manufacturers' expansions, major manufacturers pay attention to the third- to fourth-tier markets and dig emerging market demands. Thus, third- to fourth-tier markets will grow rapidly.

According to CCID, competition in communications power supply be on technology and product quality. Compared with other electric products, the communications power supply market is characterized by vitality and high profit. Rapid developments in communications industry have led global communications power supply to put forward higher requirements to manufacturers in terms of technology and product quality.

Finally, UPS products converge with integrated solution and manufacturers extend the concepts of green electronics. More and more manufacturers consider UPS as one part of industrial integrated power supply solution. The manufacturers have also put forward the concept of green and energy-saving solutions, which could promote the healthy development of the UPS industry.




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