Darnell Identifies Fast Growth Opportunities for AC-DC Power

September 12, 2011 by Jeff Shepard

In spite of the current economic slowdown, the global ac-dc power market is projected to grow from $17 billon in 2011 to over $22 billion in 2016, a compounded annual growth rate (CAGR) of 5.6%. Not only is the overall market growing, it is undergoing a significant shift in demand characteristics which is expected to result in new product designs and sales opportunities. In fact, emerging applications such as the Smart Grid, Solid-State Lighting (SSL), and Building Automation will surge with over 18% compound annual growth achieving over $750 million in sales in 2016. This is one of several important findings in the Tenth Edition of Darnell Group’s "AC-DC Power Supplies: Worldwide Forecasts."

"One of the more important findings is that the emerging applications – Smart Grid, SSL and Building Automation – are growing three times faster than the traditional applications, and are projected to make up an increasing portion of the unit market over the forecast period, growing from 22.0% to 32.0% of the unit market share," stated Richard Ruiz, research analyst with Darnell.

Due to a number of factors, it is expected that pricing will not follow the traditional patterns, which includes a steady annual pricing decline. As a result, the average selling prices (ASPs) of ac-dc power supplies will be much flatter than "normally" expected. In fact, in the first year of the forecasts, the ASPs for a number of applications will see a small increase, while others will see either no increase at all, or will realize a smaller-than-expected decline.

The pricing adjustments will have the most impact on the larger, more established segments in this report – the Communications, Computer and Consumer markets. Many of the applications in these segments rely on largevolume, highly commoditized power supplies, and any negative influence in price is more likely to result in shortages and increased material costs for power supply manufacturers. Although the unit projections remain the same, each of the sub-segments will experience either an increasing or flat average selling price in the first year.

However, Darnell Group does not expect consistent growth over the next five years. Projected growth will be significantly slower over the first several years of the period before returning to normal. The effect of the slowdown on growth will vary by category. Some applications are expected to be seriously impacted; other applications will be only slightly affected, while others are expected to remain unchanged.

Over 90 tables and graphs are presented in this report covering the embedded power supply market for 41 applications. The focus of this comprehensive analysis will be to provide decision makers with a detailed and insightful look at the current and future opportunities available in the embedded power supply market. Forecasts are provided for dollar sales, unit sales and pricing trends. Forecasts are provided for Wattages (<50W, 50-100W, 101-300W, 301-500W, 500-1,000W, and <1,000W), Package Styles (open-frame, PC board, enclosed, rack-mount, and DIN-rail), Design Types (standard, modified-standard, and custom), and by Applications (Communications, Computers, Industrial, Solid-State Lighting, Medical, Mil/Aero, and Consumer). The Application Segments are further divided into 39 sub-segments including: Communications (4 sub-segments), Computers (12 sub-segments), Industrial (3 sub-segments), Solid-State (LED) Lighting (7 sub-segments), Medical (4 sub-segments), Military/Aerospace (2 sub-segments), Consumer (7 sub-segments).

Darnell Group’s tenth-edition report on "AC-DC Power Supplies: Worldwide Forecasts" is offered in PDF format and is available for immediate delivery. Details are on line here.