London −The global market for merchant power supplies is forecast to grow by 2.4 percent in 2013, bolstered by demand for tablets, smartphones, LED lighting, and servers, according to IMS Research, now part of IHS Inc. After a relatively flat market in 2012, the rebound is largely driven by tablet PCs and smartphones, which represent the fastest growing segment of the merchant power supply market, according to IMS Research.
The market for power supplies for tablet PCs is projected to grow by $250 million from 2012 to 2014, according to The World Market for AC-DC & DC-DC Merchant Power Supplies report from IMS Research. Apple continues to be the market share leader, although its share has shrunk as competitors release new products, said IMS.
The market for power supplies for smartphones is expected to expand by 40 percent from 2012 to 2014, although growth projections in the long term are much lower, according to IMS. Growth is driven by the latest models introduced by manufacturers including Apple and Samsung, along with 3G and 4G rollouts.
"The proliferation of consumer devices such as tablet PCs and smart phones has helped drive demand for bundled power adapters, helping to maintain growth in the overall power supply market," said Jonathon Eykyn, power supply and storage component analyst for IHS, in a statement. "The adoption of LED lighting and the continuing growth of datacenters are also projected to help the market to rebound in 2013."
The markets for power supplies used in LED lighting and server and storage applications also are forecast to be key growth drivers in the future. IMS projects the adoption of LED lighting will almost triple the market for power supplies in five years.
The adoption of cloud computing, which is has resulted in companies investing heavily in information technology (IT) equipment, particularly server and storage capabilities in datacenters, is expected to drive growth for power supplies in server and storage applications by $500 million in five years, said IMS.
Despite the projected growth from these four applications, they only account for about 25 percent of the total power supply market, pegged at $20.2 billion in 2012. Large, traditional markets such as industrial and telecommunications continue to face a lack of investment and low business confidence, which directly impacts the demand for power supplies used in new equipment for these markets. Due to weak end-market demand, IMS doesn't expect revenue to return to the 2011 level of $20.8 billion for four years.
IMS recommends that power supply manufacturers and suppliers identify and target growth markets that will provide future opportunities as demand from traditional market sectors remains low.