Introduction
The global AC-DC and DC-DC power supply markets encompass the trade and distribution of standardised power supplies that convert AC supply to DC supply. The AC-DC power supplies find varied applications based on the output of power. The market is vertically segmented into industrial, medical, lighting, telecom, servers, storage, networking, datacenters, consumer electronics, and other application sectors. According to Wired and Wireless Technologies (WAWT)’s global power supply market report titled ‘AC-DC and DC-DC Power Supply Market Report’ and ‘External Power Adapters and Chargers Market Report ’, the total power supply market is projected to grow at a CAGR of 6% through 2027.
Power supply market segments
The LED lighting sector has the largest share of the global AC-DC and DC-DC power supply revenue market, followed by the industrial and storage sectors. Asia contributes to an overwhelming two-thirds of the global revenues, followed by the Americas with a 20% share, and the rest by Europe and Middle East Africa. WAWT projects faster revenue growth from the Americans, while Asia is expected to maintain its largest share of the revenue. The latter can be credited to the rapid industrialisation, large population, and the subsequently large market in the region.
WAWT in its report, bifurcates the global AC-DC and DC-DC merchant power supply market into the commodity and non-commodity segments. The commodity segment, encapsulated power supplies with common specifications developed for consumer electronics such as mobile phones, laptops, tablets, home appliances and other devices, is expected to witness a drop in revenue by 2027. The drop is mainly driven by the demand for end-equipment, such as relatively lower sales of mobile phones, laptops and tablets.
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On the contrary, the non-commodity segment, which includes power supplies that are specialised, and custom-engineered products adopted across non-consumer segments like industrial, medical, datacenters, medical, and others, and which offer unique features and functionalities, is projected to grow relatively faster at a five-year revenue CAGR of 7% through 2027. The non-commodity power supplies often cater to the LED lighting, industrial, and Storage vertical segments, which significantly grew their revenue, as mentioned above.
AC-DC power supply non-commodity market segments
The AC-DC non-commodity power supply market was segmented into four broad package types i.e., rectifiers/rackmount; open-frame/enclosed; power adapters; and DIN Rail. The rectifier/rack-mount market, commonly used in telecommunications and industrial automation, was the largest package type in terms of revenue share, followed by open-frame/enclosed type power supplies. The open-frame and enclosed type of power supplies are designed to be either mounted directly onto a circuit board (open-frame) or housed in protective enclosures. Considering their design characteristics (form factor), they are adopted across LED lighting, medical, and industrial sectors, hence, they are expected to grow at a CAGR of more than 6%. The LED Lighting, Industrial, Storage, Medical, and Consumer application markets are expected to grow stronger than the total AC-DC merchant power supply revenue market which is projected to grow at a CAGR of around 6%.
Power supply market forecast
Based on WAWT’s comprehensive study, the global AC-DC and DC-DC power supply market was estimated to be US$34 billion in 2023. In terms of unit shipments (an indicator of volume), the market is projected to grow at a five-year CAGR of 5%. One of the key findings in the volume analysis suggests a discrepancy in the volume share of the power adapter market i.e. while its volume share was around a quarter of the total market, it accounted for only 6% of the total revenue of the AC-DC non-commodity power supply market.
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Power adapters are considered more affordable than power supply solutions used in the non-commodity power supply segments like the rackmount or enclosed power supply type. The competition in the external power adapters market is also relatively higher which all cumulatively contributes to less revenue. On the other hand, the non-commodity power supplies cater to specialised industry sectors with higher price points, and high power solutions, making their revenue contribution more significant despite a lower volume size. Saying so, each application sector will grow or decline at varying paces depending on the dynamics of the end-equipment market as well as the power supply market.
Summary
While the industrial, medical and LED Lighting sectors are expected to grow faster than the industry average, the networking, storage and server markets are expected to grow at the industry average. The access, telecom/cellular, and consumer segments are projected to show a declining trend.
The research on the 2024 edition of WAWT’s Global AC-DC and DC-DC Merchant Power Supply Market Report has commenced, with the report scheduled to be published in June 2024. Feel free to contact us to participate in the research and gain early access to the report at an early bird price.
About Wired and Wireless Technologies (WAWT)
WAWT, a strategic technology analyst and consulting firm, specializes in the wireless power and power supply industries. Its comprehensive report, titled “AC-DC and DC-DC Merchant Power Supply Market Report” and “External Power Adapters and Chargers Market Report”, offers critical market data, insights, and market intelligence. It provides the latest market size estimates and forecasts for the power supply market, catering to companies across the power supply ecosystem. The report covers product segments, regional segments, and power classes, and includes a detailed analysis of power supply vendors’ market share. Furthermore, it ranks power supply companies based on their revenues, across industry sectors.
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In summary, WAWT’s reports are an invaluable resource for businesses seeking to understand the power supply landscape, make informed decisions, and stay competitive in this dynamic industry.
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