SPECIAL OFFER TO UFTO CLIENTS
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“North American Markets for Power Quality:
The Top 50 Equipment Suppliers and Service Providers,”
Research Publication: 5621-27, March 1999 (approx. 400 pages; Price: $4450)

Frost & Sullivan, in collaboration with Power Quality Magazine, has produced this major new report. It was written by a friend and colleague, Jane Clemmenson, whose qualifications include many years of experience in the field of power quality, business development, joint venture development, strategic partnering, and technology transfer. She is considered a power quality industry expert, dating back to the mid 80’s when she managed the utility consulting practice at SRI. She has been quoted in Business Week and The Wall Street Journal. She can be reached in Berkeley CA at 510-848-8002, jclemm@gte.net

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!!! By special arrangement, UFTO Client companies are being !!!
!!! offered a 25% discount on the purchase price of this report. !!!

Contact: Alex Lopez, Frost & Sullivan,
alopez@frost.com, 650-237-6514, and mention UFTO.
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More information is available at:
http://www.frost.com/verity/reports/electronics_semiconductors/rp562127.htm

In addition, I have a PDF version of the brochure which includes the complete table of contents (which at this time is missing from the brochure available on line.) The materials below are from Frost & Sullivan.

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Announcement of the Study (prepublication)

Until now, the market for power quality equipment and services has not been described in total. Studies have focused on narrow segments of the market in isolation. A comprehensive view of the market is necessarily broader and includes analysis of competitive and synergistic forces that operate between technologies and segments of the market. A broad view also provides a vantage point for understanding existing industry partnerships and alliances, for spotting merger/acquisition candidates, and for planning corporate strategy. The “Power Quality 50” provides valuable insight on competitors and identifies which companies should be the focus of competitive benchmarking.

The report defines the total power quality market in the United States and Canada, including revenue estimates, growth rates, industry leaders and market share, for the following equipment or aggregated categories of equipment:

* transient voltage surge suppressors
* power conditioners, including isolation transformers and power distribution units, voltage regulators, motor generators, and harmonic filters
* uninterruptible power supplies
* energy storage systems for power quality applications, including superconducting magnetic energy storage systems, battery energy storage systems, mechanical storage systems including flywheels, and capacitor and ultracapacitor systems
* low- and medium-voltage static transfer switches and custom power products
* power quality test and measurement instrumentation and software including hand-held, portable and transportable, and permanently installed types
* software for power quality analysis and power management software
* a qualitative discussion of the market for standby generators in UPS backup applications will be included

The services market is evolving and with deregulation of the electric utility market, energy service companies (ESCOs) are becoming more active in the front end of equipment sales. Future bundling of power quality equipment into power contracts is likely. The report includes revenue estimates, growth rates, industry leaders and market share for ESCO-provided services, vendor-provided services, and independent consulting. The role of architect-engineer and electrical contracting firms is discussed.

A synthesis section describes how these various segments of the equipment and services market compete or act synergistically. The top 50 equipment suppliers and service providers are identified and profiled, with attention to industry leaders in each segment of the market and the total power quality market. Profiles describe each industry leader in terms of its product lines and market share. Profiles also include company history, ownership and affiliations, facts and figures, financials where available, and a discussion of strategies in the marketplace.

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Portions of the F&S press release:

“Cross-Segment Competition and New Entrants Challenge Power Quality Market Participants”

Cross segment competition is becoming evident in the power quality market as the debate continues about whether it is more cost-effective to protect end-user equipment at the point-of-use, at a branch circuit, or at a facility level. Small, medium and large-scale solutions are available for different applications, and customer education and marketing is essential. Vendors must now educate themselves about products that compete directly with their own, as well as possible alternative products.

Another challenge that is covered in the study is the entrance of new players such as Siemens, Hewlett Packard and General Electric, who bring with them money and strong corporate backing, say the authors of this study. In addition, the recent consolidation of several large companies has heightened competition.

The power quality market is comprised of over 200 companies, half of which hold identifiable market share in one or more segments of this study. The top equipment suppliers and service providers constitute the Power Quality 50, a term originated by Power Quality Assurance and Frost & Sullivan. The Power Quality 50 accounted for 60.2 percent of the total market in 1997.

It is important to recognize the contributions of companies to particular subsegments where they may be market leaders, no matter how small these companies are with regard to the total market. The top contributors on the basis of 1997 revenue in one or more subsegments makes up Frost & Sullivan’s 50 Market Leaders. This study contains detailed profiles of each company listed in the 50 Market Leaders.

This new study, North American Markets for Power Quality: The Top 50 Equipment Suppliers and Service Providers, addresses the major challenges and issues affecting growth in the market. Frost & Sullivan’s objective is to show how these implications impact the market and to assist equipment manufacturers and service providers in better preparing for a successful future.

This research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research include: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help market participants navigate successfully though the power quality industry.

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A news story from the F&S website (available free if you register):

“Primary Restraints in the North American Power Quality Protection Equipment Markets”

The power quality protection equipment markets consists of the following four segments:

– transient voltage surge suppressors (TVSSs)
– power line conditioners (PLCs)
– voltage regulators (VRs)
– shielded isolation transformers

In 1998, the North American market revenues reached $1.4 billion and the market is expected to experience healthy growth throughout the forecast period. Although the markets for power quality protection equipment are growing, manufacturers need to also be aware of several issues which are restraining the revenue growth.

One of the primary restraints affecting the revenue growth of power quality protection equipment is the movement towards the UPS market, based largely on the misconception that they address all power quality problems. In reality, UPSs do not regulate and maintain voltages to electronic equipment nor do they act as an alternative power source. They typically only receive the actual raw electrical power coming in through the sockets. While this misconception has increased the demand for UPSs, it has created a decreasing demand for power quality protection equipment. The incorporation of UPS features into these devices could bring in more revenues for these market segments.

Another restraint that manufacturers should be concerned about is the lack of technological innovation in these products. While the technologies in computers and electronic equipment are continuously and rapidly changing, the technology in power quality protection equipment has remained much the same over recent years. A relative lack of breakthroughs has caused manufacturers to spend valuable resources on other product lines, and decreasing their focus on these products. The power quality protection equipment discussed in this market has remained relatively the same in both appearance and function.

Finally, the third restraint that should be of concern for manufacturers is the general lack of end-user awareness and understanding of the need for power quality protection. Potential and existing end users must become aware and knowledgeable about the possible causes and problems of what is coming through the electrical sockets. Without the appropriate knowledge, customers will most likely not make the best decisions regarding their power problems. A possible effect of this is that by not knowing what power quality protection products are available, consumers may select low-end products to protect their expensive equipment. Using such products can lead to loss of money and damaged equipment.

These are the three issues restraining growth in the North American markets for power quality protection equipment. Manufacturers must create and develop strategies to stay ahead of their competitors and on top of their markets. To learn more about this market, as well as the issues to be aware of, consult Frost & Sullivan’s recent study 5801-27, North American Power Quality Protection Equipment Markets.