Battery Quality, New Applications Drive Demand for Under 5

Natick, MA, July 7, 2003 -- In the recently released multi-volume study entitled The 2002 Power Protection Market Intelligence Program, Venture Development Corporation (VDC) concluded in its North American Demand Analysis that the under 5 kVA UPS market is poised for extensive transition over the next five years. Global consumption of battery-powered uninterruptible power supplies (UPS) of all ranges is expected to increase at a relatively modest compound annual growth rate (CAGR) of 2.95% through 2006. Within the highly competitive North American under 5kVA market, this growth should be driven primarily by consumer requirements for improved battery performance and an expanding set of applications, for the following reasons:

End users do not have strong preferences toward specific brands. They do not draw associations to particular brands based on quality, service, price, or otherwise.

Business segments did not show strong differences among various UPS product features or specifications. Most UPS systems were similar in offerings and had little variation for end users to choose from as a result.

Growth in multiple applications for UPS systems across new segments will allow for various features and specifications to become more and less important. The uses for UPS systems across new applications such as entertainment will provide for more specific market segmentation and specialization by the vendors.

Standardization of product features and specifications, and the subsequent expectations of end users will demand new and improved product performance in areas such as battery backup time and physical dimensions.

About the Study

The report, The 2002 Power Protection Market Intelligence Program: Volumes I - VIII (North America (under and over 5kVA), Europe (under and over 5kVA), Asia-Pacific, Latin America, and North American Demand Analysis (for under and over 5kVA), is a multi-client study designed to provide subscribers with relevant and up-to-date market intelligence to support strategic marketing and product planning decisions. This report includes:

Forecasts by product categories, major applications, major industries, country, channels of distribution, product features, etc.;

Major issues, technology trends, and end-user needs that affect the future of this market;

Discussion of the industry structure and the influences generated by the various types of participants;

North American, European, Asia-Pacific, and Latin American vendor shipment levels and market share data by product categories;

Detailed profiles on the leading global suppliers of battery powered UPS systems; and

Recommendations providing insight into current and future market opportunities in this highly competitive marketplace.