London —The global market for AC-DC and DC-DC power supplies is expected to grow 4.6 percent in 2014, with strengthening growth in 2015 and 2016, according to a new report from IHS Technology. Market revenue will reach $25.1 billion in 2018, up from $21.6 billion in 2014.
This translates into a healthy expansion of $3.5 billion, compared to the previous three years from 2010 to 2013 when revenue grew less than $1 billion, according to IHS. Big growth drivers are emerging applications including LED lighting and tablets.
“The markets for most applications that use a power supply are now growing again after a couple of gloomy years, with emerging applications such as power supplies for light-emitting diode (LED) lighting and media tablets leading the way,” said Jonathon Eykyn, power supply and storage component analyst for HIS, in a statement. “Demand for power supplies for these two applications alone is projected to grow by more than $2.5 billion from 2014 to 2018, but other power supply markets—such as telecommunications, data communications and industrial—are also projected to provide growth opportunities to power supply vendors in the coming years.”
In addition to emerging applications driving growth, the report, “The World Market for AC-DC & DC-DC Merchant Power Supplies” finds that many projects that had been delayed or cancelled due to economic concerns over the past several years are now being restarted, along with new projects and technology rollouts. Growth of data centers also is fueling growth to keep up with increasing demand for cloud computing and the Internet of Things (IoT). As a result, IHS projects revenue for power supplies to the server, storage and networking markets will grow 24 percent from 2014 to 2018.
Power supply revenue for cellphones is projected to grow more than eight percent in 2014, but growth will start to slow next year as more phones ship without a bundled charger, according to the report. As expected, the power supply market for desktop PCs and notebooks will decline by about two percent every year from 2014 to 2018, as consumers move to more mobile solutions, such as tablets and cellphones.
These changes have impacted supplier rankings in 2013. Six of the top 10 manufacturers changed positions while two new companies joined the list. Delta Electronics retained its position as the largest global supplier of merchant power supplies, followed by Emerson and Lite-On. Salcomp and Mean Well grew the most in market share for a combined revenue increase of more than 30 percent.
“These suppliers are well-entrenched within the fast-growing cellphone and LED lighting markets,” Eykyn stated. “It’s clear from these results that other manufacturers will have to continue to diversify their portfolios in order to remain competitive.”