Recovery projected for West European PSU market

After declining by over 40 per cent between 2000 and 2002, the market for power supply equipment in Western Europe bottomed out in 2003 with sales of €3.51bn (at 2002 exchange rates), according to a recent report published by Reed Electronics Research.

A modest recovery is expected in 2004, although Reed Electronics Research predicts caution as the continuing loss of production to East Europe and Asia and the relentless reduction in prices will dampen growth. However, even modest growth will be a relief for many suppliers.

The market is forecasted to reach €4.2bn by 2008, an average growth of 3.7 per cent.

The report also reveals that the Uninterruptible Power Supplies (UPS) market, which is not really affected by the production migration, will show the strongest growth at 4.7 per cent average growth.

Meanwhile, recent industry consolidation, which continues unabated, has resulted in the emergence of a number of larger players, with US companies increasing their control of the European power supplies industry. In 2002 four companies had power supply revenues of over €300m with US companies American Power Conversion and Emerson Network Power the leaders.

Germany provides the largest market for power supply equipment, with just over 24 per cent of the total West European market.

This Market Alert is drawn from the Reed Electronics Research report, Profile Of The European Power Supplies Industry – Market Prospects to 2008, which reviews the markets, technological trends and major European manufacturers of power supplies.