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LONDON, Dec. 2 /PRNewswire/ -- Romania and Bulgaria are currently the
fastest growing countries within the Central and Eastern European (CEE) market
for uninterruptible power supplies (UPS), as stated in a recent Frost &
Sullivan study. The process of joining the European Union in 2007 gave Romania
the euro 3078 million in aid it needed to develop its industry,
transportation, rural and environmental infrastructure and to boost its
agricultural sector.
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Backup power manufacturers have now a huge opportunity in Romania, due to
recent developments in the power generation, telecommunication and automotive
sectors. With domestic consumption increasing, and the construction,
automotive, industrial, mining and retail sectors performing well, Romanian
demand for backup power equipment such as uninterruptible power supplies
(UPS), gensets, and DC power systems is growing.
"The collapse of Communism in 1990 resulted in the severe downturn of the
Romanian economy. However, the past few years have seen the economy improving
and production and consumption levels rising," notes Frost & Sullivan analyst
Malavika Tohani. "Inclusion in the EU has accelerated improvements in
infrastructure and efforts are underway to weed out corruption and red-tapism.
The global economic slowdown, affecting the US and Western European economies
significantly, is expected to have a lesser impact in Romania. Short-term
growth (next 1-2 years) might slow down due to fall in foreign direct
investment (FDI), industrial output, investment in real estate, available
financing, purchasing power of consumers, etc. However, the medium to long
term scenario looks bright for this emerging economy, thereby providing
immense opportunities for backup power manufacturers."
A quickly expanding sector in Romania is the automotive industry and
companies like Renault, Mercedes-Benz, Audi and Ford are starting to
manufacture cars there, creating more jobs. Mercedes-Benz and Audi are
viewing Romania as a strategic location to set up production facilities
designed to benefit close markets like Russia, China and India. These
factories are highly automated and require power continually, making
investment in backup power equipment essential.
The telecommunications market is also soaring due to its large target
market. Compared to Western European markets, Romania boasts of a fairly low
installed base, and therefore has room to grow. Since implementing the EU
Data Retention Directive in 2006, information like the identity of the caller,
time and means of communication must be stored for a minimum of 6 months.
This has added the need for datacenters, which require power and power backup
around the clock.
The power generation sector is growing, as Romania draws foreign
investors. Inclusion in the EU as well as privatisation of the state monopoly
RENEL has attracted many foreign companies such as E.ON, CEZ and Enel.
Although Romania generates energy from a variety of different fuel sources,
nuclear energy is an important source of power generation. Czech power company
CEZ is constructing two additional reactors at the nuclear power plant located
in Cernavoda, scheduled to finish construction by 2015. Nuclear power plants,
where safe shut downs are essential, depend on backup power systems.
Given the positive growth of the power generation sector along with
opportunities emerging in both the telecommunication and automotive sectors,
backup power manufacturers have much to look forward to in Romania.
If you are interested in knowing more about the Uninterruptible Power
Supplies (UPS) Market in Europe, please send Chiara Carella - Head of
Corporate Communications an email at chiara.carella@frost.com with your full
contact details. An overview will be sent to you by e-mail.
Frost & Sullivan, the Growth Partnership Company, partners with clients to
accelerate their growth. The company's TEAM Research, Growth Consulting and
Growth Team Membership(TM) empower clients to create a growth-focused culture
that generates, evaluates and implements effective growth strategies. Frost &
Sullivan employs over 45 years of experience in partnering with Global 1000
companies, emerging businesses and the investment community from more than 30
offices on six continents. For more information about Frost & Sullivan's
Growth Partnerships, visit http://www.frost.com.
Contacts:
Chiara Carella
Corporate Communications
Frost & Sullivan
t) 0044 (0) 207 3438314
m) 0044 (0) 7533017689
e) chiara.carella@frost.com
4, Grosvenor Gardens, London SW1W 0DH
SOURCE Frost & Sullivan
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