Based on Wired and Wireless Technologies’ (WAWT) AC-DC and DC-DC Merchant Power Supply Report – 2021 edition, Asia region holds the largest share of the global AC-DC and DC-DC merchant power supply market with around 60% of the total revenues, and around 75% of the total volumes in 2022. Americas, the second largest region is projected to have the fastest CAGR (compounded annual growth rate) in the next five years as compared to Asia and EMEA regions.

The global power supply production landscape is expected to shift production from out of China to other Southeast Asian as well as South America regions due to the geo-political reasons,  US-China trade conflicts as well as the COVID-19 pandemic and post pandemic scenario.

WAWT’s insights also predict the CAGR of the AC-DC non-commodity market will be 3% higher than the CAGR of the DC-DC Converter market from between the years of 2020 to 2025. The revenue share of the AC-DC non-commodity market, which is currently the largest product segment of the total merchant power supply market, is also expected to grow at a CAGR of 5% during the same period.

Comparatively, the revenue share of the AC-DC commodity market is expected to decline by around 5% in the next five years through 2025. In 2020 itself, there was a drop of over 2% in revenue shares in the AC-DC commodity market, caused by the drop in demand for mobile devices and chargers’ applications. If one were to eliminate the mobile devices and chargers applications’ market from the AC-DC commodity market segment, the unit shipments of the AC-DC commodity market is expected to grow at the CAGR of around 5%.

The DC-DC converter merchant power supply market is expected to marginally grow in the last two years, with the growth rate being below 1% from 2019 to 2020. 

When it comes to the applications of the AC-DC and DC-DC power supplies, there were three main sectors that observed the most growth in the market in 2020. The highest leading applications in terms of growth rate were: computer and office segment which had a nearly 8% growth rate, followed by the medical sector and third highest leading sector was the storage sector. Power supplies for industrial applications are also expected to be growing at a higher growth rate than the total market, driven by factory automation, robotics, semiconductor manufacturing as well as other sub-segments.

LED lighting continued to be the biggest application market of the global merchant power supply market in 2020, followed by the mobile devices and charger market.

To summarise, based on WAWT’s industry’s most comprehensive report on power supplies research solution, Power Supplies Intelligence Service, the global AC-DC and DC-DC merchant power supply market registered a lower annual growth in the year 2020 compared to 2019, primarily due to the adverse effect of the COVID-19 pandemic. Continued challenges related to the COVID-19 pandemic in addition to the current demand-supply gap, geo-political conflicts, inflation (price increases) are set to have an adverse impact on the market during 2022 and early 2023. The projected CAGR from 2020 to 2025 for the global AC-DC and DC-DC merchant power supply market is expected to be around 5%, reaching over 30 billion USD in 2025.