Power Engineering - Cross-segment competition demands increased knowledge

SAN JOSE, Calif., July 22, 2003 -- Cross-segment competition from traditional and new technologies makes customer education and marketing imperative for success in the North American automatic transfer switch market. The availability of small, medium, and large-scale solutions for different applications demands greater product awareness.

New analysis from Frost & Sullivan (www.powersupplies.frost.com ), North American Automatic Transfer Switch Market, reveals that this industry generated revenues totaling $202.4 million in 2002. Total market revenues are expected to reach $266.4 million in 2009.

"Vendors have to educate themselves not only about competing products but also about alternatives to better convey the benefits of their solutions to potential customers," states Frost & Sullivan Research Analyst Vishal Sapru.

Superior understanding of the overall market will also enable manufacturers to plan strategically to meet the demands of an expanding and developing market. New, advanced critical loads demand cutting-edge power quality monitoring equipment, which forces companies to spend more on research and development.

Due to technological advances in several markets, both within and outside the industry, manufacturers have to monitor developments in their own sector as well as end-user industries served by their products.

"The ability of manufacturers to address issues about technical functions, manufacturing processes, and global operations is expected to strongly influence long-term growth," notes Sapru.

However, as the large market leaders continue to broaden their product lines, smaller manufacturers will find it increasingly difficult to compete against them.

Industries that sell major capital equipment to energy providers are affected by the slow pace of deregulation in the U.S. electric utility industry. This is because the Federal Energy Regulatory Commission has not mandated open transmission access at the retail level and each state has the right to design its own solution.

This uncertainty over deregulation creates apprehensions about conducting business in several states due to issues of stranded costs, universal access, and residential competition.

"Manufacturers and customers have to work in a shared risk-and-reward environment to supply the requirements of a changing marketplace and pave the way for a smooth transition to more cost-effective products," remarks Sapru.

Frost & Sullivan is a specialist strategic growth consulting. This ongoing growth opportunity analysis is part of the Power Quality Subscription, which also includes market insights on North American Switch-mode Power Supplies Market, North American Power Quality Equipment Monitoring and Services Market, and World UPS Markets - Alternative Energy Storage Solutions. Frost & Sullivan also offers custom growth consulting to a variety of national and international companies.

Contact:
Julia Paulson
Senior Media Relations Executive
P: 210.247.3870
F: 210.348.1003
E: jpaulson@frost.com
www.frost.com

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