SAN JOSE, Calif.—May 29, 2002—The failure of dot-com businesses and the continuing global economic downturn has restrained corporate spending and restricted demand for direct current (DC) power systems, which support microprocessor equipment susceptible to power disturbances.

Participants in DC power protection markets will be forced to devise new strategies to minimize the impact of this global economic trend on this industry.

New analysis from Frost & Sullivan (www.powersupplies.frost.com), World DC Power System Markets, reveals that this industry generated revenues totaling $4.94 billion in 2001. Although this figure reflects a drop from 2000 revenues, growth is expected to resume again in 2003. Total revenues for low-, mid-, and high-power systems combined could reach $7.13 billion by 2008.

Market participants could realize new sales opportunities by developing systems that save floor space.

"The market is demanding smaller and more compact units," says Frost & Sullivan Industry Analyst Farah Saeed. "In particular, end users such as Internet service and access providers want to minimize space used by non-revenue generating equipment."

Although the cost of commercial rental properties has subsided since the Internet boom, floor space remains a valuable commodity for companies.

"By utilizing small energy-dense DC power systems, end users can save floor space for additional servers and other web equipment," says Saeed.

With competition intensifying among Internet service and access providers, the need to maximize office area will continue to grow, boosting sales of compact equipment.

End users in many sectors are calling for systems that are simple to install and easy to use. Market participants must respond by implementing technologies that allow computer uploads of preset current, voltage, and alarm threshold settings and offering consumers the ability of effortless monitoring.

"More customers are demanding the ability to monitor their system and diagnose a problem anytime, anywhere," says Saeed. "Meanwhile, post-sales service is becoming an increasingly essential selling point in this marketplace. Offering substantial technical support, monitoring services, and repair will be crucial to attracting customers away from competitors."