Frost: Automation Spurs Transient Voltage Surge Suppressor Markets

July 8, 2006

Industrial customers increased the implementation of electronic equipment including power supplies, programmable logic controllers (PLCs), computer numeric controls (CNCs), sensors, adjustable-speed drives and variable-frequency drives, to boost both productivity levels and cost efficiencies. According to Frost & Sullivan, this move toward automation will likely continue to increase demand for transient voltage surge suppressors (TVSS) equipment, given their capacity to ensure surge protection on the individual and facility levels and guarantee that power disturbances don't result in productivity or revenue losses.

New analysis from Frost & Sullivan of the world transient voltage surge suppressor markets found that revenues were $1.17B in 2005, and will likely grow well into 2012.

Of the key factors that drive the market, analysts said the increasing proliferation of microprocessor-based equipment could significantly boost the sale of TVSS equipment. Most new equipment has built-in microprocessors. As these chips get more complex with electronic components, their vulnerability to surges or spikes also increases. Computer-controlled systems, in particular, are much more sensitive to surges as increased integration of electronic circuits into smaller packages increases sensitivity to transient voltages.

"With microelectronics ushering in tremendous productivity advances, microprocessor-based equipment will continue to gain popularity, thus driving the growth of the world TVSS markets," said Frost & Sullivan program manager Vishal Sapru. "In addition, the continuing explosion in PC (personal computer) usage is likely to further strengthen this growth, especially as the impact of power problems on computers is around five times greater."

However, analysts said the entry of an increasing number of electrical distribution manufacturers in the construction and retrofit markets is proving a major challenge for traditional hard-wired TVSS companies. Not only do they provide TVSS to end-users, but they also provide products aimed in solving power quality problems.

"With the entry of electrical distribution equipment manufacturers into new construction and retrofit markets, power quality protection equipment and traditional hard-wired TVSS manufacturers are having to compete with these larger companies for the same share of the market," said Sapru. "The advantages of entering the market as an electrical distribution equipment manufacturer include offering integrated solutions to power quality problems, utilizing cost-effective strategies and providing a larger variety of products and electrical distribution components from one source."

In response to this challenge, power quality protection equipment and traditional hard-wired TVSS manufacturers must strategize to distinguish themselves by providing top quality solutions to surge suppression problems, analysts said. While this will enable them to compete more effectively with electrical distribution manufacturers, there lies added benefit in raising customer awareness about power quality problems, their potential consequences, and ways of protecting themselves from and preventing such problems.

Source: Frost & Sullivan.