Demand for reliable power continues to spark power quality service markets, report shows

SAN ANTONIO, March 11, 2002 — The proliferation of mission- critical computer equipment and the increasing instability of public utilities continue to boost demand for reliable power quality.

Companies in a range of industries now require high-quality, reliable power with guarantees against surges, outages, sags, transients, or harmonics that could result in equipment downtime and loss in revenues. From premium installation services to preventive maintenance, the need for power quality services will continue to grow in the years to come.

New analysis from Frost & Sullivan (www.powersupplies.frost.com ), North American Power Quality Services Markets, reveals that this industry generated revenues totaling $1.26 billion in 2001.

Despite the promise of these markets, the economic downturn has had a significant impact on revenues.

“Softening economic conditions are challenging both potential customers and service providers,” says Frost & Sullivan Industry Analyst Sara Bradford. “Among service providers, the downturn will impact not only smaller regional firms but also multinational organizations.”

While short-term investments from information technology and telecommunication sectors could continue to plunge, the future is not entirely bleak. The eventual build-out of third-generation telecommunication products, for example, will resuscitate revenues.

The overall market is already showing signs of recovery. After a dip in 2001, total revenues from services relating to single- and three-phase uninterruptible power supplies and direct current power systems are expected to climb through 2008.

To maximize revenues, market participants will have to target new opportunities from emerging trends. The move towards ongoing software monitoring could offer an important area for growth.

“Users are slowly abandoning the traditional tendency to wait for equipment emergencies before performing maintenance,” says Bradford. “Instead, they are increasingly adopting preventative schedules and ongoing monitoring services.”

The progress toward ongoing monitoring is expected to drive demand for remote, computer-based monitoring systems.

“Remote monitoring software programs have captured a viable market in response to users’ demands for redundant, reliable systems,” says Bradford. “As prices decline for this type of service, large-scale ongoing service efforts will become even more realistic.”

Frost & Sullivan is a provider of strategic market consulting and training. This ongoing research includes market analyses on World UPS Markets, World AC/DC SPS Market, World DC/DC Converter Market, U.S. Battery Charger Market, and World Rechargeable Battery Market. Frost & Sullivan also offers custom consulting to a variety of national and international companies.
For more information on Report: A112, “North American Power Quality Service Markets,” contact Frost & Sullivan at:

Julia Rowell
P: 210.247.3870
F: 210.348.1003
E: jrowell@frost.com
www.frost.com


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