Sales of uninterruptible power supplies (UPS) into Asia during the first quarter grew by over 25% from last year. According to a recent analysis of the market by IMS Research, Asia added revenues at the fastest rate in five years. The spike in billings comes after four consecutive quarters of decline, resulting in a $500 million dip.

Jason dePreaux, a senior analyst at IMS Research commented, “There was a swift uptick in the Asia UPS market in the first quarter while UPS sales in much of the rest of the world remained stagnant. The extremely high growth in Asia can be attributed in part to the snappy economic rebounds of several key UPS markets like India, China, and areas of South East Asia. These countries are once again deploying UPS across infrastructure, small and medium business, and data center segments.”  1Q10 marked an important milestone in the history of the market. IMS Research estimates that UPS revenues from the Asia eclipsed that of the Americas and EMEA for the first time.

However, dePreaux cautions that the current exceptional rate of growth is unsustainable. “What we are seeing in Asia is the rapid recovery to pre-recessionary demand levels. UPS spending in Asia dropped by nearly 20%, so while it is recovering quickly, the current growth is being fuelled in part by inventory restocking and a pipeline of projects that were in the waiting.” IMS Research projects growth will taper slightly into 2011/2012, though five year CAGRs will remain above the rest of the world.

Against the backdrop of a fragmented recovery comes renewed M&A actively as companies jockey for pieces of the power protection pie. Emerson Electric’s second effort to absorb UK’s Chloride Power was dealt a potentially lethal blow when Swiss-based ABB swooped in with a higher offer that was approved by Chloride’s board. While the supplier base for UPS is highly concentrated with the top five vendors controlling 60% of the market, Asia has a more diverse landscape with dozens of suppliers that cater to the varied market requirements in the regions. dePreaux adds, “With attractive long-term growth prospects and a diverse supplier base, expect future acquisitions to increasingly focus on Asia.”