DC-DC Market Study Identifies “Tipping Points”

October 09, 2006 by Jeff Shepard

Darnell Group Inc. has just released the 305-page Ninth Edition report, "DC-DC Converter Modules and ICs: Global Market Forecasts and Competitive Environment." This update expands upon previous editions by including forecasts for dc-dc converter/regulator ICs, non-isolated dc-dc controllers and isolated dc-dc controllers. The new edition details how power management ICs and "hybrid" products have reached a higher-current "node" and are now encroaching on territory that had, until recently, been the exclusive domain of modules.

The total worldwide dc-dc converter module market is projected to grow from approximately $3.2 billion in 2006 to $4.4 billion in 2011, a five-year growth rate of 8.6%. This is a 12.5% drop from Darnell's previous 2006 projection of $3.6 billion in the previous edition report. The adjustment was made due to several business and economic factors, including changes in the competitive landscape, the maturation of the intermediate bus architecture, growth of the blade server market, and the above-mentioned encroachment of power management ICs into the module market. In addition, companies like Delta are bringing their competitive, ac-dc pricing model to the dc-dc converter module world.

These trends are expected to contribute to lower dc-dc converter sales over the next few years. The updated report analyzes the key "tipping points" that are expected to significantly alter the dc-dc converter market. Module makers have had to trim margins in order to remain competitive. Specifically, IC makers are expected to take market share from module makers in the >3A ranges, with the >5A to =10A range experiencing the greatest dynamics and growth. Combined, the >5A to =10A and >10A segments will go from just 8% of the Converter/Regulator IC market to 11% of the market between 2006 and 2011.

"DC-DC Converter Modules and ICs" includes a detailed discussion of the economic forces shaping the market, along with module forecasts for worldwide, North America, Europe, Asia and Central and Latin America. Converter IC forecasts for LDOs, charge pumps and switching regulators are included for the worldwide region. In addition, the top ten worldwide companies by dollar market share are provided, along with the top five companies by individual region.