Analyst predicts power supply market will grow by $3.5 billion by 2018

July 10, 2014 // By Graham Prophet
The global market outlook for AC-DC and DC-DC power supplies is set for healthy expansion starting this year until at least 2018, with revenue during these four years projected to grow by $3.5 billion, according to a report from IHS Technology.

Market revenue will expand to $25.1 billion in 2018, up from $21.6 billion in 2014, as presented in the figure. This increase will represent an improvement compared to the previous three years from 2010 to 2013, when revenue grew by less than $1.0 billion. Growth this year is anticipated at 4.6% with expansion to be as robust or even strengthen in 2015 and 2016.

“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 IHS. “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.”

Aside from emerging applications driving growth, IHS believes that many projects that had been cancelled or postponed because of economic concerns in the past are now being restarted to coincide with new projects and technology rollouts, further stimulating the market. Also fuelling significant expansion in the demand for power supplies is the continued growth of data centres to cope with the rise of cloud computing and the Internet of Things. Thanks to such drivers, revenue for power supplies to the server, storage and networking markets is projected to climb 24% from 2014 to 2018.

Growth is also solid in the markets for cellphone power supplies, with revenue forecast to rise more than 8% in 2014. However, growth will slow after this year as more phones begin to ship without a bundled charger.

Meanwhile, the power supplies market for desktop PCs and notebooks is calculated to decline by around 2% every year from 2014 to 2018. This is because the traditional