Rising demand expands selections, spurs upgrades

	Lang Ming’s model Supreme-600 offline 600VA UPS has 220/230VAC or 110/120V voltage input and output.

Large-capacity and environment-friendly models top suppliers’ product development objectives as they widen reach in export markets.

China makers of UPS are broadening selections to increase exports and sharpen competitiveness amid an evolving industry. Putting a premium on R&D, a growing number are adopting new technologies and releasing large-capacity and environment-friendly models. Demand for these types has been rising, driven by the trend for massive data storage and ecological awareness.

Xiamen Kehua Hengsheng Co. Ltd is among the first in the country to introduce parallel and triple-phase online large-capacity versions. Its selection consists of 0.5 to 1,200kVA units. The supplier boasts 37 national patents, a team of more than 130 engineers, and an EMC and high-low temperature laboratory. For its part, Guangdong East Power Co. Ltd offers customized solutions that include energy-saving variants.

Widening adoption in the computing, enterprise, data center, government, finance, telecom and traffic segments is encouraging manufacturers to raise shipments overseas. This is buoyed by economic downsizing as more enterprises shift to power-efficient systems to reduce expenditure.

Lang Ming Power Technologies (Shenzhen) Ltd exports all output, while it is 50 percent for Foshan Prostar Science & Technology Development Co. Ltd. The former expects a 100 percent sales increase this year. It will release large-capacity models in 2H10.

Since 2005, the global UPS market has been growing, slowing down by only 0.5 percent YoY in 2009 with a shipment value of $5.6 billion, according to CCID Consulting. In the next five years, the industry is expected to post a CAGR of 5 percent. In China, sales from the line totaled $107 million in 1Q10, up 25 percent YoY. As a result, the number of local suppliers now surpassing 300 is anticipated to increase.

Small- and medium-capacity UPS, which have a power rating of less than 10kVA, are the major products from China makers. The types are mainly used in PCs and SMPs. They are estimated to account for 95 percent of China’s output but the revenue share is less than 35 percent. This is because intense competition forces suppliers to lower prices, thinning margins.

The growing orders for large-capacity units is encouraging companies to venture into this line. Driving demand is the rising use of the Internet, online advertising and e-commerce, which all require bigger data storage and corresponding power.

The category remains the turf of international companies, which include Meilanrilan Electric of Europe, and Eksi Electronic and APC of the US. All three have manufacturing bases in China. Because of the high technology barrier, only midsize and big ventures are able to produce this type. Nevertheless, supply is expected to increase in coming months.

Large-power units pack more than 10kVA of power. Online variants are rated up to 50kVA.

Offline versions account for 50 percent of China makers’ total output, online 40 percent and interactive the rest. Lang Ming has a monthly yield of 120,000 UPS, 90 percent of which are of the first kind.

Many companies plan to invest in R&D on high-capacity models to compete with international players and meet the requirements of Europe and North America markets. Currently, enterprises offering such kinds ship mainly to the Asia-Pacific region and the Middle East.

Foshan Prostar and Xiamen Kehua Hengsheng are among those specializing in large- and medium-capacity UPS. The former can produce versions with up to 250kVA capacity. Only about 5 percent of China’s suppliers can provide this type.

Foshan Prostar is set to release large-frequency units with an adjustable input voltage through an LCD panel. For Lang Ming, it will be variants that support SNMP for better management and monitoring.

Spurred by the growing environment-friendly trend, green UPS variants adopt a modular form and integrate technologies such as digital signal processing or DSP, PWM and N+X redundant configuration.

Only a few enterprises in China, however, are able to manufacture such units due to the high production and R&D expenditure involved. The type is priced at least 30 percent more than traditional counterparts.

One of the companies with such capability is Xiamen Kehua Hengsheng. It has introduced a model with a parallel N+X redundant design. The product is enclosed in a standard cabinet modular structure that includes a power distribution unit, static switch and power modules. It supports hot swapping and plugging for easy expansion. The THDi is lower than 0.05, PF over 0.99, and efficiency exceeds 95 percent.

For industrial applications, the category faces the challenge of achieving improved efficiency in a limited space. To address this, further enhancements in the power factor and THDi ratings are being pushed.

The selections from China makers consist of offline, online and line-interactive. The capacity ranges from 0.5 to 1,200kVA. Units are targeted at the low-end and midrange markets.

Offline and online models with 0.5 to 3kVA power are the best-sellers. These are adopted in personal workstations, printers, servers and other equipment for SMEs.

Variants with 3 to 10kVA load are mainly online types and applied in Internet data centers, industrial processes, SOHOs, and traffic and government equipment.

Large-capacity versions have more than 10kVA of power and are utilized in applications with an expanded energy requirement. These include the finance, security, telecom, postal service and national defense sectors. Models have a voltage input of 220/230VAC or 110/120V at 50/60Hz frequency.

Offline types include single phase-in and -out. They have cold-start function and built-in protection against short circuit, overload, high/low voltage and battery deep discharge. A smart audible alarm is integrated. The power capacity is less than 1kVA. Prices range from $10 to $100.

Online and line-interactive units listing from $101 to $13,000 come in single- and triple-phase configurations. These have 1 to 100kVA power capacity, intelligent battery management and optional LCD.

Advanced IGBT technology, DSP and direct digital control are adopted. Interfaces such as RS-232 and USB are added when specified. The design can be parallel redundant N+X or modular.

Versions that are quoted at more than $13,000 generally have the same specifications and design but differ with a capacity of more than 100kVA.

Materials and components account for 60 to 80 percent of total costs. Key inputs such as IGBT are usually sourced from Japan and the US. Raw materials, including copper, aluminum and PVC, are locally obtained.

Metal outlay increased by at least 10 percent in past months but makers have no plans of raising quotes to remain competitive.

Taiwan makers offer a range of power solutions that includes UPS, transformers, switching power supplies, AC/DC adapters and inverters. The island boasts a strong manufacturing base composed of 200 makers, about 50 of which focus on UPS.

To avoid price competition in the low-end sector, suppliers target high-end models for niche applications in the industrial, telecom and server segments.

Energy efficiency, system stability and customized voltage rating are the three major R&D areas. Many companies offer “green” power solutions that emphasize energy-saving features. A number have secured patents for this.

Voltronic Power Technology Corp., for example, has a series of UPS models that come with eco-mode functions. The feature allows a 97 percent cost-effective operation of the equipment, cutting energy consumption and expenses.

Units from Beam Tech. Electronics Co. Ltd have a 96 or 97 percent power efficiency. The maker specializes in compact UPS for SOHO applications. It has released a model as small as a CD-ROM drive.

Manufacturers typically source inputs from Japan and local providers.