Uninterruptible Power Supplies & Other Power Protection Systems

with forecasts to 2005 and 2010

New study finds:

• The US market for uninterruptible power supplies (UPS) and other power protection systems is projected to increase 7.2 percent per annum (including inflation) through 2005 to $9.2 billion • The industrial and health care sectors are already considered mature markets for power protection system products, although the latter will benefit from some base broadening as demand for electronic medical systems rises with an aging population • Leading suppliers include American Power Conversion, Caterpillar, Cooper Industries, Cummins Engine, Danaher, Invensys, Liebert (subsidiary of Emerson Electric), MGE UPS Systems, Pillar (subsidiary of TESSAG of Germany), Toshiba, Tripp Lite, Tyco International and Wiremold (subsidiary of Legrand of France) Freedonia Industry Study #1438 Study Publication Date: June 2001 Price: $3,700 Uninterruptible Power Pages: 197 Supplies (UPS)

& Other Power Protection Systems Uniterruptible Power Supplies (UPS) & Other Power Protection Systems, a new study from The Freedonia Group, provides you with an in-depth analysis of major trends in the industry and the outlook for product segments and major markets -- critical information to help you with strategic planning.

This brochure gives you an indication of the scope, depth and value of Freedonia's new study, Uninterruptible Power Supplies (UPS) & Other Power Protection Systems. Ordering information is included on the back page of the brochure.

Brochure Table of Contents

Study Highlights ...... 2 Table of Contents and List of Tables and Charts ...... 4 Sample Pages and Sample Tables from: Market Environment & Technology ...... 6 Power Protection Systems ...... 7 Applications ...... 8 Industry Structure ...... 9 Company Profiles ...... 10 List of Companies Profiled ...... 11 Forecasting Methodology ...... 12 About the Company ...... 13 Advantages of Freedonia Reports ...... 13 About Our Customers ...... 14 Other Titles From Freedonia ...... 15 Ordering Information...... 16 Study Highlights

• The US market for uninterruptible power supplies (UPS) and other power protection systems is projected to increase 7.2 percent per annum (including inflation) through 2005 to $9.2 billion.

• UPS systems based on battery/inverter technology will continue to account for a plurality of power protection systems sales through mid-decade, although inherent shortcomings of batteries (short life spans, high maintenance costs, disposal problems, etc.) are opening up opportunities for other technologies, such as flywheels and fuel cells.

• Engine-powered generator sets are finding increasing application, both to support conventional UPS systems and as stand-alone backup supplies in high power (e.g., facility level) settings.

• The information technology (IT) area -- which encompasses computer- and communications-related uses -- will continue to pace gains, although the rate of increase will slow significantly from the robust mid/latter 1990s pace.

• The industrial and health care sectors are already considered mature markets for power protection system products, although the latter will benefit from some base broadening as demand for electronic medical systems rises with an aging population. * Excluded from the scope of the study are related and ancillary products such as fuses and circuit breakers, most types of • Leading suppliers include American Power Conver- transformers (except those dedicated to power protection sion, Caterpillar, Cooper Industries, Cummins functions) and low-power component-level voltage regulators Engine, Danaher, Invensys, Liebert (subsidiary of and similar items for small electronic devices. Emerson Electric), MGE UPS Systems, Pillar (subsidiary of TESSAG of Germany), Toshiba, Tripp Lite, Tyco International and Wiremold (subsidiary of Legrand of France).

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Freedonia Industry Study 2 Study Highlights Power Protection Systems Sales, 2000

Battery/Inverter Engine Generator Systems Systems 28.6% 16.4% Flywheel & Advanced Systems 2.5%

Power Converters & Rectifiers 16.5% All Other Power Protection Systems Surge Protection 25.4% Devices 10.6%

Power Protection Systems Supply & Demand (million dollars) % Annual Growth Item 1995 2000 2005 2010 00/95 05/00

Electric Power Generation (bil kWh) 3357 3840 4190 4570 2.7 1.8 $ power protect/000 kWh 1.2 1.7 2.2 2.8 -- --

Power Protection Systems Sales 4024 6490SUMMARY 9200 12800 TABLE 10.0 7.2 UPS & Backup Power Supplies: 1878 3085 4500 6350 10.4 7.8 Battery/Inverter Systems 1039 1855 2600 3450 12.3 7.0 Engine Generator Systems 756 1065 1425 1850 7.1 6.0 Flywheel & Advanced Systems 83 165 475 1050 14.7 23.5 Other Power Protection Systems 2146 3405 4700 6450 9.7 6.7 Power Converters & Rectifiers 721 1070 1425 1900 8.2 5.9 Surge Protection Devices 421 685 925 1225 10.2 6.2 All Other 1004 1650 2350 3325 10.4 7.3

net imports 578 1720 2550 3700 -- -- Power Protection Systems Shipments 3446 4770 6650 9100 6.7 6.9

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Order form on last page 3 List of Contents, Basic UPS & Standby Power Technologies ...... 30 Engine-Based Backup & Standby Power...... 31 Tables and Charts Battery/Inverter-Based UPS ...... 32 UPS Topologies ...... 34 Advanced/Alternative UPS Technologies ...... 35 Flywheels ...... 35 Fuel Cells ...... 36 I. EXECUTIVE SUMMARY Chart - Basic Fuel Cell Construction ...... 38 Summary Table ...... 3 Table - Fuel Cell Market ...... 40 Microturbines ...... 40 II. MARKET ENVIRONMENT Table - Microturbines Market ...... 42 General ...... 4 Economic Environment ...... 5 IV. POWER PROTECTION SYSTEMS Cyclical Trends ...... 5 General ...... 43 Table - Macroeconomic Environment...... 8 Table - Power Protection Systems Supply & Demand ....45 Long Term Trends ...... 8 Uninterruptible & Backup Power Supply Products ...... 45 Table - Power Protection Systems Market Volatility ....10 Table - Uninterruptible & Backup Power Supplies Chart - Power Protection Systems Market Volatility ....11 Supply & Demand ...... 48 Electric Power Generation Sector Trends ...... 11 Chart - UPS & Backup Power Supplies Electricity Production & Consumption ...... 12 Market by Technology, 2000...... 49 Table - Electricity Supply & Demand ...... 14 Table - Uninterruptible & Backup Power Supplies Electric Utility Deregulation ...... 14 Demand by Power Rating...... 51 Distributed Power Generation ...... 16 Chart - UPS & Backup Power Supplies Chart - US Distributed Power Generation Market by Power Rating, 2000 ...... 52 Capacity, New ...... 17 Battery/Inverter-Based Systems ...... 52 Electrical & Electronic Equipment Sector Trends...... 17 Table - Battery/Inverter-Based UPS Demand ...... 55 Table - Electrical & Electronic Equipment Shipments ....20 Engine Generator-Based Systems ...... 55 Cost/Pricing Dynamics ...... 20 Table - Engine Generator-Based UPS Demand ...... 57 Chart - Power Protection Systems Pricing Patterns ...... 22 Flywheel-Based Systems...... 58 Multinational Dynamics ...... 22 Table - Flywheel-Based UPS Demand ...... 59 World Power Protection Systems Market ...... 23 Advanced Technology Systems...... 60 Table - World Power Protection Systems Market ...... 25 Table - Advanced Technology-Based UPS Demand ...61 Trends in US Foreign Trade ...... 25 Fuel Cells ...... 61 Table - Trends in US Foreign Trade ...... 26 Microturbines ...... 63 Solar & Other Technologies...... 64 III. TECHNOLOGY Other Power Protection Systems ...... 65 General ...... 27 Table - Other Power Protection Systems Basic Electrical Properties ...... 28 Supply & Demand ...... 66 Power Conversion & Conditioning ...... 29

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Freedonia Industry Study 4 Chart - Other Power Protection Systems Health Care ...... 96 Market by Product, 2000 ...... 67 Sector Outlook ...... 97 Surge Protection Devices ...... 67 Table - National Health Expenditures ...... 98 Table - Surge Protection Devices Demand ...... 69 Power Protection Systems Outlook ...... 98 Industrial-Grade Voltage Regulators ...... 70 Table - Health Care Power Protection Systems Market .... 100 Table - Industrial-Grade Voltage Regulators Demand .....72 Government/Military ...... 100 Power Converters & Rectifiers ...... 72 Sector Outlook ...... 101 Table - Power Converters & Rectifiers Demand...... 74 Table - Government Spending & Investment Trends .... 102 Power Management Software ...... 74 Power Protection Systems Outlook ...... 102 Table - Power Management Software Demand ...... 76 Table - Government/Military Power Protection All Other ...... 76 Systems Market ...... 103 Table - All Other Industrial-Grade Other Applications ...... 104 Power Protection Systems Demand ...... 78 Table - Other Users Power Protection Systems Market ..... 105

V. APPLICATIONS VI. INDUSTRY STRUCTURE General ...... 79 General ...... 106 Table - Power Protection Systems Industry Composition & Market Share ...... 107 Demand by Application ...... 80 Chart - US Power Protection Systems Market Share Chart - Power Protection Systems by Company, 2000 ...... 108 Market by Application, 2000 ...... 81 Chart - UPS & Backup Power Supplies Market Share Information Processing ...... 81 by Company, 2000 ...... 110 Sector Outlook ...... 82 Chart - Other Power Protection Systems Market Share Table - Computer Hardware & Software by Company, 2000 ...... 111 Market Trends ...... 83 Research & Product Development ...... 111 Power Protection Systems Outlook ...... 84 Table - Research & Development Spending Patterns: Table - Information Processing Power Protection Selected Power Protection Systems Manufacturers ..... 113 Systems Market ...... 85 Manufacturing Strategies ...... 113 Communications ...... 86 Table - Capital Spending Patterns: Selected Sector Outlook ...... 86 Power Protection Systems Manufacturers ...... 115 Table - Communications Sector Revenues ...... 88 Marketing & Distribution ...... 115 Power Protection Systems Outlook ...... 88 Table - Selected Strategic Partnerships ...... 117 Table - Communications Power Protection Financial Issues ...... 121 Systems Market ...... 90 Table - Composite Financial Ratios: Selected Industrial/Factory Automation ...... 90 Power Protection Systems Manufacturers, 2000 ...... 123 Sector Outlook ...... 91 Mergers, Acquisitions & Industry Restructuring ...... 124 Table - Industrial Sector Indicators...... 93 Table - Selected Acquisitions & Divestitures ...... 125 Power Protection Systems Outlook ...... 94 Table - Revenue & Profits Data: Selected Table - Industrial/Factory Automation Power Power Protection Systems Manufacturers, 2000 ...... 127 Protection Systems Market ...... 96 Company Profiles ...... 127-197

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Order form on last page 5 Market Environment & Technology

These Sections discuss factors influ- encing uninterruptible power supplies demand, including electricity demand

and technological advances. MARKET ENVIRONMENT

This information provides you with an Electric Utility Deregulation understanding and an analysis of the climate in which the uninterruptible Deregulation of the electricity sector has been and will continue to be the principal external force acting upon the sector for the foreseeable future, with its impact power supplies industry operates. being felt by virtually all associated parties, the power protection systems industry not excepted. Beginning withSAMPLE the Energy Policy PAGE Act of 1992, which opened the national wholesale market, utility companies have been given a greater degree of freedom and risk while the increase in nonutility generators (NUGs) has resulted in heightened competition for customers. Deregulation will also allow greater creativity in supply and distribution planning, such as utilities purchasing power from NUGs at peak demand times,TECHNOLOGY and a possible reduction in the level of total additional capacity required. Although alternative suppliers still comprise a relatively small share of total US electricity generation -- 20 percent in 2000 -- Advanced/Alternative UPS Technologies - Fuel Cells this proportion has risen rapidly since the passage of the 1992 act -- and evidently surged in the year 2000 as the momentum behind deregulation began to Fuel cells have received considerable attention in the popular and business media pick up. over the past half decade or so, and have begun to attract substantial amounts of capital for research, product development and initial commercialization efforts. Another impact of the Energy Policy Act of 1992 was to give states the jurisdic- This extensive degree of interest is a direct reflection of fuel cell’s virtually tion to deregulate the retail market for electric utilities. The states have been unrivaled potential to generate substantial amounts of power with very little SAMPLEslowly grappling PAGE with this task, examining issues such as the recovery of stranded accompanying pollution. Not a new technology by any means, the basic concepts costs, protecting smaller residential and commercial users from rate discrimination, underlying fuel cell performance and operation were first articulated more than and providing universal coverage. California, Massachusetts, Montana and Rhode 150 years ago. The basic factor holding back greater utilization of fuel cells has Island were the first states to open up their retail electric markets to competition, always been high costs relative to alternative methods of energy generation. The all beginning in 1998. Subsequently, a number of other states have passed laws to latter-day upsurge of interest in the devices owes much to a spate of technological introduce or phase in retail competition, including Arizona, Arkansas, Connecti- innovations originating about 15-20 years or so ago, that have dramatically cut, Delaware, Illinois, Maine, Maryland, Nevada, New Hampshire, New Jersey, lowered fuel cell costs on a per-kilowatt hour of energy produced basis. New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Vermont, Virginia and West Virginia, and every state is considering such laws to In terms of physical construction, fuel cells resemble batteries with respect to their one degree or another. Each of the laws passed has differing phase in and fundamental operating components -- anode, cathode and electrolyte. Operation- ally, fuel cells are essentially electrolysis (the splitting of water into hydrogen and oxygen) working in reverse. Thus, fuel fed to the anode releases hydrogen electrons which flow to the cathode via an external circuit (such as a wire), while the positively charged ions left behind pass through the electrolyte to the cathode where they merge with oxygen, creating water. The flow of electrons creates an electrical current which can be used to power a load. It is important that the

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Freedonia Industry Study 6 Power Protection Systems

POWER PROTECTION SYSTEMS

This Section provides demand for Other Power Protection Systems - Power Management Software historical years and forecasts growth to 2005 and 2010. Demand for unbundled power management software will rise better than eleven percent per annum through 2005 to $350 million, among the best rates of growth expected for any power protection systemSAMPLE product overPAGE the span. As power This information helps you: protection hardware becomes increasingly commodity-oriented, vendors are turning to software solutions to upgrade the performance of their systems and to differentiate product offerings from those of competitors. Preventing even • Analyze your company's stronger growth in this subsegment is another trend that is gaining momentum in growth potential in the power protection industry -- the bundling of software into complete UPS and other power conditioning systems. the industry.

Software has been developed to address a number of power protection system • Outline your strategic issues, with the most sophisticated packages able to perform complete system monitoring and control. Specific features include monitoring the status of critical plans for five and ten operating variables (i.e., diagnostics), warning of impending problems, allowing for years out. sequential shutdown of equipment, communicating with the load, etc. Some systems also perform remote as well as local monitoring, and some offer real-time monitoring and control. The various power management packages available fall • Establish sales goals. under several different generic software types, including network administration, utilities, security and applications. Most are compatible with various versions of Microsoft’s WINDOWS operating system and many support other operating systems as well. Somewhat of a de facto networking standard has emerged in the power protection software area that many vendors have adopted, known as the Simple Network Management Protocol, or SNMP.

As would be expected, advances and upgrades to power management software have Engine Generator-Basedbeen quite prevalent in UPS* recent years. Demand An example of a highly sophisticated product (million dollars)would be Liebert’s SITESCAN 2000 package that allows users to monitor equipment on a nationwide basis, with features including location-specific alarms Item 1990 1995 2000 2005 2010

Manufacturers’ Shipments (bil $) 2767 3436 4273 5207 6464 $ UPS/000$ shpt .23 .22 .25 .27 .29 SAMPLE TABLE Engine Generator-Based UPS* 637 756 1065 1425 1850 Natural Gas/Gasoline-Powered 419 457 635 850 1100 Diesel-Powered 218 299 430 575 750

% engine generator-based 46.8 40.3 34.5 31.7 29.1 Total UPS & Backup Power Market 1360 1878 3085 4500 6350

* including backup & continuous power systems

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Order form on last page 7 Applications

The Applications Section analyzes trends and considers the threats and opportunities in each of the major applications for

uninterruptible power supplies. APPLICATIONS

The information presented will Government/Military - Power Protection Systems Outlook help you: The market for power protection systems used in government/military-related • Focus your sales and marketing applications is projected to increase 5.8 percent per year through 2005 to million, SAMPLE PAGE efforts on high growth areas. below the forecast pace for overall demand. Notably, however, prospective growth in the government/military market represents an acceleration from the mid/latter 1990s performance, one of the few power protection markets expected to achieve • Propose new areas for development. this over the forecast horizon. This reflects primarily the improved outlook for spending in the military sector where most public sector power protection equipment demand is centered. (Note: power protection products used in connection with general purpose computer and communications equipment located in government offices is included in the Information Processing and Communications markets discussed above.)

Power protection systems are widely used to provide backup power for military Information Processingfacilities Power (e.g., Protectionon ships, bases and Systems the like) and Market are extensively deployed in (million dollars) mission-critical settings on military aircraft and space vehicles, where they protect sensitive instrumentation from voltage interruptions of various types. For example, Elgar Electronics’ global UPS (GUPS) systems are designed to protect Item 1990 1995 2000 2005 2010 against power sags and other interruptions in harsh operating environments Computer Products Sales (bilincluding $) aircraft and 72 other military 135 settings. 230 The375 GUPS products 600 reportedly meet $ power protect/000$ computerUS military MIL-STD-810E17.7 13.6specifications 13.5 for vibration 12.1 and 10.8 shock. In nondefense governmental settings (including both federal and state and local), providing Information Processing Marketbackup power in the1273 event of 1832 blackouts 3115 and brownouts 4550 is the 6450 most common By Setting: application for power protection systems. Corporate Data Centers 421 648 1145 1700 2350 Other 852 1184SAMPLE 1970 2850 TABLE 4100

By Product: UPS & Backup Power 597 871 1505 2275 3275 Other Power Protection Equipment 676 961 1610 2275 3175 © Copyright by The Freedonia Group, Inc. % info process 43.4 45.5 48.0 49.5 50.4 Power Protection Systems Market 2931 4024 6490 9200 12800

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Freedonia Industry Study 8 Industry Structure Sample page from Freedonia Industry Study

Gain#1117 a better Fractional understanding Horsepower of your Motors competition and analyze your company's position in the industry with information about:

• industry composition & market share INDUSTRY STRUCTURE

• research & product development Financial Issues

The hefty costs associated with maintaining large-scale product development • manufacturing strategies efforts, state-of-the-art production facilities and effective marketing programs place considerable strains on the financial resources of power protection systems • marketing & distribution vendors in virtually all segments of the business. Such high -- and rising -- financial requirements account in large part for the rather significant amount of • mergers & acquisitions consolidation that has occurred in the industrySAMPLE of late, as largerPAGE firms with sufficient financial resources acquire smaller firms with good technology and/or access to coveted markets but lacking sufficient capital to sustain or enhance • financial issues competitive position. In the type of business climate that has evolved in the power protection systems business, it is becoming increasingly difficult for smaller players to maintain a commercially viable position in a higher-end segment of the industry without being acquired by or teaming up with a larger concern; the substantial influx of low-cost foreign-built items onto the US market of late only magnifies such difficulties.

In order to better assess the financial health and requirements of the US power protection systems business, a composite set of 2000 financial ratios has been prepared for selected producers who in the aggregate represent virtually all of the products offered by the industry. To facilitate analysis, the firms have been assigned to samples corresponding to generic company types well-represented in the industry. The ratios are provided for illustrative purposes, and their proper utilization requires awareness of their limitations, which include different methods of accounting for inventory, revenue recognition, securities valuation and other matters that sometimes significantly affect the bottom line. In addition, the impact of multiple business segments upon companywide results must also be considered in certain instances, as must (in the case of the European firms) differences in national accounting standards. Extraordinary or nonrecurring items causing a material distortion in the averages have been eliminated. The ratios are

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Order form on last page 9 Company Profiles

The Profiles Section analyzes 48 companies active in the U.S. uninterruptible power supplies market. These profiles represent a

sampling or cross-section of the types of COMPANY PROFILES companies involved in the industry. MGE UPS Systems SA 140 Avenue Jean Kuntzmann Divisions, subsidiaries, joint ZIRST Montbonnot Saint-Martin ventures, etc., are discussed under 38334 Saint-Ismier Cedex appropriate parent companies. France 33-476-183-000

Sources for profiles included: MGE UPS Systems Incorporated 1660 Scenic Avenue Costa Mesa, CA 92626 • Information provided by 714-557-1636 key staff members in the respective companies MGE UPS Systems is a manufacturer of uninterruptible power supplies (UPSs), static transfer switches, power distribution units, harmonic filters, surge suppressors, • Annual reports inverters, power conditioners and power management software. In April 2000, the Company completed a management buy-out transaction and raised the employee stake in MGE UPS Systems from 14 to 35 percent, while Schneider Electric SA • 10-K reports (France) increased its ownership from 15 to 32 percent. These shares were acquired from Europe-based Euro Capital Partners, which divested its 71-percent stake in the Company. The remaining 33-percent interest is primarily held by equity investment • Security analysts reports firms. In the US, MGE UPS Systems operates through MGE UPS Systems Incorpo- rated. In FY 2000, the Company had sales of $590 SAMPLEmillion, of which PAGE about $250 million were to the Americas. The Company employed 2,995 in FY 2000. • Corporate product literature

The Company is active in the power protection systems industry in the US through its MGE UPS Systems Incorporated subsidiary, which offers a variety of UPS systems, surge suppressors, power conditioners and other equipment. The company’s products are used in data center, enterprise networking, telecommuni- cations, industrial, small office, residential and other applications. MGE UPS

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Freedonia Industry Study 10 Companies Active Power Incorporated Fuji Electric Company Limited Profiled Advanced Protection Technologies Hubbell Incorporated American Power Conversion Corporation Ohio Brass Company Advance Power International International Computer Power ANTEC Corporation Invensys plc Ballard Power Systems Incorporated Best Power DBB Fuel Cell Engines GmbH BTR Siebe Belkin Components Powerware Corporation Capstone Turbine Corporation Katy Industries Incorporated Caterpillar Incorporated Woods Industries Incorporated Solar Turbines Incorporated Key Components LLC Chloride Group plc Acme Electric Corporation ONEAC Corporation LaMarche Manufacturing Company CITEL SA Legrand SA Colfax Corporation Wiremold Company Warner Electric Leviton Manufacturing Company Incorporated Components Corporation of America Marconi plc Incorporated MARELCO Power Systems Incorporated Para Systems Incorporated Marmon Group Incorporated Staco Energy Products Company Solidstate Controls Incorporated Controlled Power Company MGE UPS Systems SA Converter Concepts Incorporated Murata Manufacturing Company Limited Cooper Industries Incorporated OnLine Power Incorporated Crane Company Panamax ELDEC Corporation Precise Power Corporation Cummins Engine Company Incorporated RWE AG Dana Corporation LAHMEYER AG Danaher Corporation Piller Incorporated Cyberex LLC TESSAG GmbH Joslyn Electronic Systems Company Semtech Corporation United Power Corporation SL Industries Incorporated Delta plc Todd Products Corporation Eaton Corporation TII Industries Incorporated Cutler-Hammer Toshiba Corporation Elgar Holdings Incorporated Tripp Lite Emerson Electric Company Tyco International Limited Control Concepts Lucent Power Systems Kato Engineering Incorporated Raychem Circuit Protection Liebert Corporation Sola/Hevi-Duty eTEK Labs Incorporated Fiskars Corporation Newpoint Power Sentry

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Order form on last page 11 Forecasting Methodology

Freedonia does not just collect and reprint data; Freedonia develops data. Our analysts thoroughly investigate an industry by extensively interviewing key industry participants and analyzing information from sources such as associations, government and trade literature. Once this The Freedonia research is complete, Freedonia establishes Economics Group Freedonia one set of forecasts. All writing, editing In-house Research Consistent framework and forecasting is done in-house to assure of economic indicators on . . . • Quantitative forecasting quality and consistency. In cases where • Electricity Demand • Industry structure & market • Manufacturers' Shipments share analyses data does not exist, Freedonia develops the • Gross Domestic Product (GDP) • Product analyses & forecasts data based on input/output ratios, bills of . . . and many others materials and flow charts. The following chart summarizes Freedonia's methodology:

Methodology for Uninterruptible Power Supplies (UPS) & Other Power Protection Systems

Proprietary Extensive Interviews Electronic Database • Key participants • Trade publications • Industry experts • Government reports • End-users • Corporate literature • Online databases . . . and many others

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Freedonia Industry Study 12 The Freedonia Group, Inc. is a leading international industry study/ About database company. The Freedonia Group Since 1985, Freedonia has published over 1,600 titles covering areas such as chemicals, coatings and adhesives, building materials, plastics, industrial components and equipment, health care, packaging, household goods, security, and many other industries.

Freedonia has produced a wide variety of titles, including:

• Micropower • World Electronic Components • Fuel Cells • Passive Components

Because Freedonia is a reliable information source, our forecasts are cited in numerous publications such as The Wall Street Journal, Batteries Digest and Purchasing.

Advantages In-house operations of Freedonia Reports Because all of our staff work at the same location, interaction between analysts and departments provides a strong system of checks and balances.

Consistency Our Economics Group develops indicators that are used by all analysts. Therefore, every Freedonia study is based on a consistent set of economic assumptions (GDP, electricity demand, manufacturers' shipments, etc.)

Reliable forecasts Because all of our forecasts consider the environment in which a product or industry is operating, as well as threats and opportunities to the market, Freedonia forecasts are reliable indicators of future performance.

One-on-one interviews All studies are produced by conducting interviews with key industry participants and end-users.

Proprietary electronic database Freedonia’s analysts can tap into an extensive in-house electronic database containing corporate literature (including private company information), trade publications, government reports and many other sources of information.

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Order form on last page 13 About Our Customers

Freedonia's clients include major US and international companies in the manufacturing, services, consulting and financial sectors.

Typical purchasers of Freedonia studies :

• Key Executives • Corporate Planners • Market Researchers • Financial Analysts • Information Centers • New Product Developers • Merger & Acquisition Specialists

Since 1985 we have provided research to customers ranging in size from global conglomerates to one person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia research to help with their strategic planning.

Some of Freedonia's customers in the uninterruptible power supplies market include: Caterpillar, Cooper Industries, Danaher and Invensys.

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Freedonia Industry Study 14 World Fuel Cells Micropower The world fuel cell market will more than triple Demand for micropower generators in the US Other Titles to 2005 to US$8.5 billion, and exceed US$23 will grow over 12% per year, driven by utilities billion by 2010. Fuel cells are receiving extensive deregulation, environmental concerns and tech- investigation due to their inherent nature as a nological innovation. Micropower units gener- From Freedonia low-polluting, high efficiency energy source. ate electricity close to its point of use and far Three major uses are emerging: electric power from the central grid. Microturbines will soon generation, portable electronic devices and mo- join engines in commercial viability, while fuel tor vehicles. This study analyzes the world fuel cells have greater long-term potential. This cell industry to 2005 and 2010 by product, mar- study analyzes the $3.4 billion US micropower For more information about ket and region, and for 10 countries. It also re- industry to 2005 and 2010 by product, applica- views technology and profiles leading companies. tion and end-user. It also discusses technology, these or other Freedonia titles, #1425...... 5/01...... $4,700 evaluates market share and profiles key firms. please contact us at: #1358...... 1/01...... $3,800 Fuses & Circuit Breakers The Freedonia Group, Inc. US demand for fuses and circuit breakers will World Batteries Phone: (440) 684-9600 grow 4.5% annually through 2005. Aftermarket Primary and secondary battery demand will grow prospects will be favorable as last decade’s robust nearly 8% per year worldwide, driven by new and (800) 927-5900 OEM demand has broadened the market for re- emerging portable electronic devices. The best placement products. Electronic fuses and power prospects will remain in less advanced countries Fax: (440) 646-0484 circuit breakers will exhibit the best growth, while whose markets are growing fast. Lithium ion- electronic and automotive uses outpace other and lithium polymer-based rechargeables and markets. This study analyzes the $3.5 billion US “superpremium” alkaline batteries will lead fuses and circuit breakers industry to 2005 and gains. This study analyzes the US $41 billion 2010 by type and market. It also evaluates market world battery industry to 2004 and 2009 by share and profiles key companies. type, region and 24 major countries. It also #1420...... 5/01...... $3,600 evaluates market shares and profiles key firms. #1347...... 12/00...... $4,600

Passive Components World Electronic Components Passive electronic component demand will ex- World electronic component demand will grow ceed $21 billion in the US by 2005. Growth will over 9% annually based on further development be driven by applications in wireless and fiber of the Internet, new generations of handheld and optic communications, defense and aerospace, wireless computers, and rising electronic content and motor vehicles. Connectors will remain the in original equipment. High-end integrated cir- largest product segment, while microwave com- cuit (IC) devices such as microprocessors and ponents and inductance devices exhibit the best digital logic ICs will lead gains. This study ana- growth. This study analyzes the $17.8 billion US lyzes the $278 billion world electronic compo- passive components industry to 2005 and 2010 nents industry to 2004 and 2009 by product, by product and market. It also presents market market and region, and for 33 countries. It also share data and profiles key companies. details market shares and profiles key vendors. #1376...... 3/01...... $3,700 #1322...... 10/00...... $4,500

Electric Power Equipment Fuel Cells Growth in US demand for electric power equip- US fuel cell markets will rise over fourfold ment will be bolstered by the positive outlook for through 2004, with the market reaching $7 bil- electrical and electronic equipment. Gains will lion in 2009. Fuel cells combine atmospheric also benefit from the increasing use of computers oxygen with hydrogen or hydrocarbon fuels to and other sensitive electrical devices which re- produce electrical energy, emitting virtually no quire more advanced distribution equipment to pollution. Fuel cells may soon be able to com- protect against power surges and failures. This pete with internal combustion engines, gas-fired study analyzes the $14 billion US electric power turbines and storage batteries. This study ana- equipment industry to 2004 and 2009 by market lyzes the US fuel cell industry to 2004 and 2009 and product. It also presents market share data by product/chemistry and application. It also de- and profiles selected key industry participants. tails market share and profiles key companies. #1360...... 11/00...... $3,600 #1275...... 5/00...... $3,700

Uninterruptible Power Supplies (UPS) & Other Power Protection Systems #1438 Order form on last page

15 How to Order

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