The market for Uninterruptible Power Supplies (UPS) in South Africa grew by over 40% in 2008. IMS Research’s study of the Middle East and Africa, published in December 2008, shows that the recent power crisis, preparations to host the 2010 World Cup, and data center construction have combined to drive extremely high growth in the past year.

“The situation in South Africa was unique in 2008, as in the first half of the year it was plagued by widespread power outages,” comments report author Jason dePreaux. The nationwide electricity utility, Eskom, instituted a series of rolling blackouts to cope with significant under-capacity. “The problem had been festering for years but came to a head as demand rose during the summer months of 2007-08. The blackouts underscored the need for constant power across all sectors of business, and had an immediate impact on UPS sales. As a result, UPS market growth in the country was one of the highest in the world,” adds dePreaux.

In addition to the power crisis, other factors helped drive growth. South Africa’s UPS market has benefited from increased IT infrastructure spending in preparation for the 2010 World Cup. Large-scale commercial computing facilities and data center construction are also on the rise, providing the largest market for three-phase UPS on the continent. Growth rates are projected to have peaked sharply in 2008, although the five-year CAGR is still forecast at a double-digit rate.

IMS Research’s assessment of the market names the top three suppliers to the African market as APC/MGE, Eaton, and Meissner. Together, they account for over half the UPS revenues.