The increasing need for reliable, high-quality power has spurred a greater demand for direct current/alternate current (DC/AC) power inverters in North America.
New analysis from Frost & Sullivan reveals that revenues in this market totalled $469.3 million in 2001 and are projected to reach $1,307.8 million by 2008.
Increasing demand for power and its uninterrupted supply underlie the expansion of this market, which can be divided into three main segments: non-renewable-energy-based power inverters, non-renewable-energy-based inverter/chargers, and renewable-energy-based power inverters and inverter/chargers. Multinationals, in particular, cannot afford disruptions in power, as it increases inconvenience and could lead to potential financial losses.
There is a pressing requirement for alternative sources of energy, fuelled by the growing awareness of environmental issues and the needs of remote residential areas that are cut off from the utility grid. The renewable- energy-based power inverter and inverter/charger segment has the potential to address such needs, and is therefore poised for strong growth, according to the report from Frost & Sullivan.
‘The development of renewable energies such as photovoltaic, wind, and fuel cell creates new opportunities for power inverters and inverter/chargers in North America,’ said Frost & Sullivan Industry Analyst Jessy Cavazos.
The non-renewable-energy-based product segments provide opportunities to manufacturers, despite moving toward potential maturity. By relocating the production process to countries that offer inexpensive labour, companies can endeavour to reduce end-user prices, leading to increased market revenues.
Low end-user prices are, of course, vital to stay competitive. With the recent introduction of reasonably priced products from countries such as China and Taiwan, competition is increasing dramatically. To counter this challenge, North American companies have to closely monitor market and product developments that will help identify opportunities.
‘By joining key industry associations as well as conducting regular analysis of their targeted end-user segments, manufacturers develop an important competitive advantage, which is the ability to respond and meet demand as quickly as possible,’ stated Cavazos.
Customer satisfaction is of prime importance, particularly since the market has low replacement rates. Companies have to strive to develop unique product features that will attract customers and aid them in their decision-making process.