Summary of UPS and HVDC Industry Conference Call Industry Overview - The North American UPS market is expected to grow at around 20%, significantly higher than the domestic growth rate of 8%-9% due to rapid AIDC construction [1][6] - The global UPS market size is approximately $7 billion, with North America accounting for about 52%, or $3.5 billion [2] Key Players and Market Dynamics - Major UPS manufacturers in North America include Vertiv, Schneider, and Eaton, which collectively hold 65%-70% of the market share [2] - Vertiv, Schneider, and Eaton primarily produce their products locally, with less than 5% sourced from other regions [5] - The average price per watt for UPS in North America is about $0.8, compared to approximately ¥0.45 in the domestic market [10][11] Demand and Supply Insights - Despite the potential for HVDC to replace UPS in the future, the demand for UPS remains strong in the short term [1][6] - Leading companies are not expanding production capacity significantly but are optimizing existing lines to meet demand, reflecting a cautious approach towards future HVDC adoption [7] Emerging Trends and Technologies - Nvidia's future distribution architecture will adopt a unipolar 0 and 800-volt scheme, which is expected to rapidly increase HVDC penetration from 0% to 60%-70% [24] - The third-generation 800-volt HVDC is currently in the pilot stage, with high costs primarily due to expensive components [4][28] Competitive Landscape - New giants like ByteDance prioritize performance metrics and rigorous testing over price when selecting UPS suppliers, with Eaton and Vertiv offering competitive pricing due to scale advantages [14][15] - Domestic companies are currently limited in their ability to directly access overseas end customers, primarily exporting through state-owned enterprises [12] Future Outlook - The North American UPS market is projected to maintain a growth rate of around 20% over the next few years, with no significant capacity shortages anticipated [22] - Domestic UPS industry growth is expected to remain at 8%-9%, driven by operators and cloud providers [13] Pricing and Cost Structure - The pricing for the third-generation HVDC is expected to decrease as production scales up, currently priced at around $4 per watt [38] - Solid-state transformers (SST) are priced at approximately $800-$900 per kilowatt due to their custom nature and advanced materials [31] Strategic Considerations - Companies like Sungrow are well-positioned to enter the HVDC market due to their existing technology in rectifiers and inverters, with a strong sales network in North America [42] - The U.S. market has a risk assessment for Chinese companies, but firms like Sungrow can mitigate concerns by being transparent about their technology [43] Conclusion - The UPS and HVDC markets are experiencing significant changes driven by technological advancements and shifting demand patterns. Companies must navigate these dynamics carefully to capitalize on growth opportunities while managing risks associated with market entry and competition.