The recent power blackout in certain regions within North America resulted in huge loss of revenues for companies. The need for continuous power for critical applications is being felt within the industry and could potentially result in the increased demand for static transfer switch.
New analysis from Frost & Sullivan, World Static Transfer Switch Markets, reveals that this industry-generated revenue totaled $64.2 million in 2002. Total market revenues are expected to reach $76.9 million in 2009.
“End-user sectors such as data centers, telecommunication networks, airport and military bases among others require continuous power for proper functioning,” says Frost & Sullivan Research Analyst Vishal Sapru. “A static transfer switch provides the perfect balance between no power and continuous power.”
The heady growth of data centers, semiconductors and telecommunications industries has also been tempered by the slowdown of the global economy, reducing capital spending on static transfer switches. Nevertheless, the cyclical nature of economic growth suggests that the market will rebound soon.
“In anticipation of increased demand for power quality equipment and independent feeders, manufacturers and service providers of static transfer switches spent excessively on product upgrades and new equipment,” says Sapru.
However, the economic slump discouraged customers in telecommunications and semiconductor sectors from further investing in infrastructure and new devices. Higher static transfer switch budgets are likely to be allotted once the industries win back customers’ confidence and capital markets improve. As the market evolves, there will be many technical innovations and intense competition, compelling manufacturers to be alert to budding trends.
“The markets addressed by current and planned products are rapidly evolving and are characterized by emerging standards and competing technological platforms,” remarks Sapru.
Vendors can keep hold on their market shares by providing reliable, cost- and time-efficient, as well as easily maintainable products. The switches must ensure smooth transfer of current between sources and should be flexible enough to integrate well with different applications.
With competition intensifying, a fall in prices is almost certain. Companies can keep their prices low while also differentiating their products by automating production, expanding globally and introducing new products.
Incorporation of advanced features such as built-in surge suppressors, test switches and emergency power source monitors will drive demand for static transfer switches. Offering multiple functional capabilities including quality control, customer consultation and faster delivery times will also attract a wider range of customers.
The ability of manufacturers to make the right decisions regarding service mix, technical functions, as well as types of customers and manufacturing processes will strongly influence their long-term success. Efficient management of resources, such as investing in plant equipment, will help them meet customers’ and new product designs’ demands for application-specific tests.
For more information, visit www.frost.com.