Recovery forecast for West European power supply industry

Oxford, UK, February 2004

After declining by over 40% between 2000 and 2002 the market for power supply equipment in Western Europe bottomed out in 2003 with sales of Euro 3.51 billion (at 2002 exchange rates), according to the latest figures from Reed Electronics Research (RER).

A modest recovery is expected in 2004 although Graham Weaver the principal analyst for the study predicts caution. “the continuing loss of production to East Europe and Asia and the relentless reduction in prices will dampen growth, although even modest growth will be a relief for many suppliers”. RER forecasts the market to reach Euro 4.2 billion by 2008, an average growth of 3.7%. The UPS market which is not really affected by the production migration will show the strongest growth at 4.7% pa.

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 Euro 300 million with US companies American Power Conversion and Emerson Network Power the leaders. A further four companies achieved sales of over Euro 100 million with the top ten accounting for approaching 65% of the market.

Notwithstanding the existence of a number of major players in the OEM power supply market the industry in general remains fragmented with a large number of small companies concentrating on certain niches, either type and power range or OEM industry sector. Overall the report identifies over 270 companies with manufacturing facilities for power supply equipment in Europe .

Reed Electronics Research (RER) specialises in providing international business information sources designed to assist senior management, marketing and business development personnel, industry watchers and analysts in keeping abreast of changes, developments and other factors affecting their business. RER is part of the global Reed Electronics Group a part Reed Business Information a leading provider of critical information and marketing solutions to business professionals and a member of Reed Elsevier.