PRZOOM - /newswire/ -
Palo Alto, CA, United States, 2007/10/09 - New analysis from Frost & Sullivan, World Isolation Transformer Market, finds that the market earned revenues of $641 million in 2006 with a growth rate of 1.7 percent.
Isolation transformers are set to experience growth due to global expansion of infrastructure in the manufacturing sector. Commercial and medical transformers expect to witness significant demand, particularly in the United States, enabling them to obtain a premium price. This attributes to growth in the construction industry and implementation of energy efficiency specifications by standard associations.
New analysis from Frost & Sullivan, World Isolation Transformer Market, finds that the market earned revenues of $641 million in 2006 with a growth rate of 1.7 percent.
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"Commercial and medical application transformer markets expect to experience substantial growth due to the expansion of infrastructure and the enforcement of new specifications in the United States," notes Frost & Sullivan Research Analyst Ajay Kumar Sridharan. "The compulsory implementation of new specifications by standard associations such as the Canadian Standards Association (CSA), Underwriters Laboratories Inc. (UL) and National Electrical Manufacturers Association (NEMA) will result in increased demand for isolation transformers in commercial and medical application sectors."
The vast expansion of commercial and industrial infrastructure in Asia is likely to result in an increase in the demand for the isolation transformers. Vendors in North America and Europe expect to venture into direct investments by establishing their manufacturing units in high demand regions such as Asia. This development is price competitive.
The generic nature of the product, coupled with the increase in prices and shortage of raw materials, creates critical price pressure on vendors. In addition, the replacement of isolation transformers by the double-conversion technology in uninterruptible power supply for few applications adversely affects market demand.
"Given the simple construction of the product and lack of significant technology innovation or product differentiation, isolation transformers are being considered as a commodity product," explains Sridharan. "In this situation, emphasis on competitive prices will be a unique selling point for vendors."
Considering the shortage of raw materials, vendors should use aluminum as a replacement for copper. Targeting growing application markets and geographic regions that offer potential for business development will also prove beneficial. For instance, by focusing on the Asian market, vendors in developed regions can either establish their manufacturing units or enter into joint ventures with local vendors to gain benefits from the expansion of infrastructure. This will enable them to compete with local vendors.
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