A modest recovery is expected in 2004 although Graham Weaver the principal analyst for the study predicts caution. “the continuing loss of production to East Europe and Asia and the relentless reduction in prices will dampen growth, although even modest growth will be a relief for many suppliers”. RER forecasts the market to reach Euro 4.2 billion by 2008, an average growth of 3.7%. The UPS market which is not really affected by the production migration will show the strongest growth at 4.7% pa.

Recent industry consolidation, which continues unabated, has resulted in the emergence of a number of larger players with US companies increasing their control of the European power supplies industry. In 2002 four companies had power supply revenues of over Euro 300 million with US companies American Power Conversion and Emerson Network Power the leaders. A further four companies achieved sales of over Euro 100 million with the top ten accounting for approaching 65% of the market.