Frost & Sullivan Research Reveals Competition in the UPS Industry Impacted by Multiple Acquisitions.

Business Editors & High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--June 5, 2000

World uninterruptable power supply (UPS) markets are enjoying prosperous growth primarily due to growth in microprocessor equipment markets, most notably in the telecom industry.

With the continued success of the UPS industry, competition in the marketplace has increased. Market participants need to address issues of price and new marketing strategies to continue to flourish.

According to new strategic research from Frost & Sullivan (www.frost.com), "World UPS Markets," this market generated revenues of $4.93 billion in 1999 and is projected to reach $11.6 billion by 2006.

"As competition stiffens, acquisitions and mergers will become more common and smaller firms will continue to disappear. Through acquisitions, businesses can gain better global and domestic positioning as well as improving their infrastructure, which is imperative for aggressive marketing," says Frost & Sullivan Analyst Farah Saeed. "Multiple acquisitions have been a part of becoming total power quality solution providers."

The UPS market has seen a five to six percent drop in prices in the last three years, which has elevated industry competition. Survival for most UPS vendors depends on volume sold.

Companies must seek to develop strategies to maintain a reasonable volume in order to compensate for the price erosion.

While UPS will continue to stimulate growth for the next 10 years, this market will see growth rates curtail slightly, impacted by the limited product innovations and growing price pressures.

Frost & Sullivan presents 2000 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the World UPS industry. Competitive Strategy Award is presented to MGE UPS Systems while American Power Conversion is given both the Business Development and Marketing Strategies Awards.

Companies participating within this industry include: Acme Electric Corporation; Acumentrics Corporation; Alpha Technologies; American Power Conversion; American West; Battery Systems Inc.; Behlman; Belkin Components; Caldwell Associates; Chloride Power Electronics; Clary Corp.; Compower; CompuPOWER Systems Inc.; Computer Power Corp.; Computer Power Inc.; Controlled Power Co.; Cyberex; Energy Control Systems; Energy Technologies Inc.; Falcon Electric; Galco Industrial Electronics; Hightech; International Computer Power; IMV Invertomatic S.A.; Kato; Engineering/Reliance Electric; Liebert Corporation; Lightning Master Corp.; Loren Green Assoc. South Inc.; Magnum Power Solutions Limited; Maxwell Technologies; Mesta Electronics Inc.; MGE UPS Systems; Minuteman UPS; Mitsubishi Electronics -- UPS Group; MSC Technologies; Nova Electric; OnLine Power Incorporated; PK Electronics Inc.; Pacific Power Source Corp.; Philtek Power Corp.; Phoenixtec Power Co. Ltd.; Piller Inc.; Power & System Innovations; Power Paragon; Power Quality Inc.; Power Systems & Controls; Powerware Corporation; Pro-Active Technology; Russelelectric; Socomec Group; Sola/Hevi-Duty; Staco Energy Products; Toshiba America; Tripp Lite; TSi Power Corp. and United Power.

Related companies include: Active Power; Amsdell Inc.; Automated Power Technologies; Best Power (Now Invensys); Deltec; Graybar; Guardian On Board; Ingram Micro; Lectro Product Inc.; Oneac Corp.; Rexel; Silcon Power Electronics; Storage Battery Systems Inc.; Tech Data Corporation and Universal Power Systems Inc.

Frost & Sullivan, which is headquartered in San Jose, Calif., is a global leader in international market consulting and training. Frost & Sullivan monitors the Electronics & Semiconductors industry for market trends, market measurements and strategies. This ongoing research is used to complement the Batteries & Power Supplies Custom Subscription. Free executive summaries and interviews are available to the press.

Along with publishing in-depth market consulting reports, Frost & Sullivan also provides custom consulting needs to a variety of national and international companies.

World UPS Markets

Report: 5804-27 Date: June 2000 Price: $3,450