Power Electronics

Economy Impacts Hard-Wire Surge Suppressor Market

Over the past two years, the North American market for hard-wired power line surge suppressors has leapt to new heights, averaging 9.8% annual growth. According to recent analysis by Venture Development Corp. (VDC), this market growth rapidly abated in 2001 and is expected to decline in 2002. Setbacks in the North American economy, especially that of the United States, have significantly impacted the hard-wired surge suppressor market, though this isn’t a long-term trend. Deregulation, grid reliability, and power quality issues are beginning to affect the bottom line of companies in a variety of industries. As these companies realize the benefits of surge suppression and slowly recover from a recessed economy, they will create demand for the hard-wired market.

VDC determined that the largest markets for hard-wired surge suppressors were the same as in 1999: industrial, education, and telecom. Although the telecom sector was devastated in 2001, these companies must protect the equipment that operates their networks. These companies spend a great deal on hard-wired surge protection because they realize that the impact of a catastrophic failure on the general public would be disastrous. In addition, the costs associated with surge protection are passed on to end users.

Education was also a large industry segment, as many schools and universities possess a sizeable number of electronic equipment, such as PCs, faxes, and other equipment, that require surge protection. Users at these facilities deem it vital to protect this equipment for both safety and public concerns. Government facilities--particularly military and scientific--must be protected because they also contain electronic equipment necessary for the continued operation of local, state, and federal level operations.

In addition, the emergence of home networking is influencing growth as homeowners seek whole house protection for their computers, audio/video/satellite devices, and home appliances. VDC believes the residential market will provide hard-wired vendors with significant growth opportunities in the near future.

For more information, visit www.vdc-corp.com/power/press/03/pr03-16.html.

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