London —The global markets for digital power supplies and digital power integrated circuits (ICs) are each forecast to increase nearly 65 percent in 2014, according to IHS Technology (NYSE: IHS).
Citing explosive growth, IHS expects global revenue for digital power supplies to near $3.3 billion in 2014 and then increase to $11.8 billion in 2018. The IHS report, “The World Market for Digital Power - 2014," also finds that global revenue for digital power ICs will reach $605 million in 2014, and then reach $3.1 billion by 2018.
The early adopters of digital power include servers, telecommunications, and datacommunications applications, but as more sectors leverage the benefits of digital power it will drive increased opportunities and revenues.
“The market for digital power solutions is already well-established in the server and telecommunication markets,” said Jonathon Eykyn, power supply and storage component analyst for IHS, in a statement. “However, IHS is now starting to see growing adoption across a much broader range of products and applications, which is driving rapid growth.”
Adoption is being driven by several advantages over analog power. One of the biggest drivers of adoption is the reduction of the bill-of-materials cost. This is accomplished "by consolidating the number of discrete components, reducing the carbon footprint, increasing power density, providing the ability to monitor and optimize power levels and system requirements while in operation, and speeding time to market for products," stated Eykyn.
Although there are no dominant suppliers in the digital power market, IHS finds the big players in the digital power supply market include Delta Electronics with an estimated 10.3 percent share in 2013, followed by Eltek and Emerson with 9.1 percent and 8.8 percent market share, respectively. Texas Instruments is the leader in the digital power IC market with an estimated 9.8 percent share, followed by Infineon and Powervation with 9.6 percent and 8.9 percent market share, respectively.
“Both the digital power supply and digital power IC markets remain fairly fragmented, with no suppliers having a dominant position,” according to Eykyn. “This means that competition and innovation remain high as companies seek to win major customers.”