After the accession of more European countries to the European Union (EU), the market is witnessing the entry of new companies from these countries. Hence, as the economies of these countries stabilise and converge with that of western Europe, opportunities for further growth are expected to increase. The surge in investments in recent years has contributed to the growth of the market, remarks the analyst of this research service. Further, as national governments and local companies leverage their links with the West, foreign and domestic investments are expected to increase.
Due to the significant growth potential of the market, leading global UPS suppliers (primarily from North America and Western Europe) have already entered the market. Currently, the market is becoming increasingly competitive and price is anticipated to become a crucial factor for success. While key participants have targeted fast-emerging markets such as Poland and the Czech Republic, these companies are also likely to expand their networks in other regions in CEE. Accordingly, the CEE UPS market is projected to grow from €106.0 million in 2005 to achieve revenues of €164.0 million by 2012.
As a result of growing competition, companies will need to focus on strategic planning to improve product sales and increase their market presence, says the analyst. Penetration into the CEE UPS market requires identification of best sales channels to suit the different types of UPS. Hence, knowledge of the local market and discovery of the best distribution method will become essential since the market is characterised by low awareness of power quality issues. Moreover, with the arrival of cheaper products from Asia and Africa, manufacturers will need to focus on their products range as well as the price factor.
