The power supply market is a cornerstone of global technology infrastructure, power electronics, powering industries from telecom and industrial applications, medical devices, data centres, railways to electric vehicles and other sectors. As per WAWT’s latest report on Global AC-DC and DC-DC Merchant Power Supply Market, 2025 Report Edition, the power supply market is expected to grow at a revenue CAGR of around 6% in the next five years, with each power supply solution across application market projected differently.

This growth is being driven by increasing digitalization, electrification of transport, technology innovation, adoption of wide-band gap solutions, rising energy efficiency demands, and the adoption of advanced technologies. Notably, breakthroughs in GaN technology, linear power supplies, and immersion cooling are revolutionizing traditional power supply systems.

Power Supply Market Segments

The global power supply market is broadly segmented into:

• AC-DC Power Supplies (commodity and non-commodity)
• DC-DC Converters
• External Power Adapters & Chargers
• Linear Power Supplies
• Application-Specific Power Supplies (e.g., medical, railway, datacentre)

Each segment serves unique application areas, and their growth varies based on industry demand, technological evolution, and regional investments.

AC-DC Power Supply – Non-Commodity Market Segments

The non-commodity AC-DC power supply market comprises specialized, higher-value applications where performance, reliability, and customization are critical. Key non-commodity market segments include:

• Medical-grade power supplies: Designed to meet strict regulatory and safety standards.
• Industrial and Automation Systems: Require rugged, reliable, and high-efficiency designs.
• Communication Infrastructure: Demands compact and energy-efficient AC-DC solutions.
• Military and Aerospace: Necessitate rugged, high-reliability systems for harsh environments.

Unlike commodity supplies, these segments are less price-sensitive and offer greater opportunities for differentiation and innovation.

Power Supply Market Trends

1. GaN Technology Revolution

Gallium Nitride (GaN) semiconductors are transforming AC-DC and DC-DC power supplies. GaN enables higher switching frequencies, smaller sizes, and greater energy efficiency compared to silicon-based solutions. Data centres, EV chargers, and industrial applications are increasingly adopting GaN-based power modules.

2. Open and Closed Power Supplies

The choice between open-frame and closed-frame power supplies depends on application needs. Open-frame dominates in telecom and medical fields, whereas closed-frame is preferred for industrial and ruggedized environments due to enhanced protection and durability.

3. Data Centre Cooling and Immersion Technology

With the AI and hyperscale computing boom, data centre power systems face unprecedented thermal loads. Immersion cooling is emerging as a powerful solution, improving the energy efficiency of Switched-Mode Power Supplies (SMPS) and extending system life.

4. Power Supply for Railway Applications

As countries modernize transportation through railway electrification, there’s growing demand for robust power supplies that withstand extreme vibrations, temperatures, and load variations—primarily ruggedized AC-DC and DC-DC converters.

5. Linear Power Supplies for Precision Applications

Despite the dominance of SMPS, linear power supplies remain indispensable for low-noise, high-precision applications such as medical imaging and scientific instrumentation.

Power Supply Market Forecast

According to WAWT projections:

• Global AC-DC and DC-DC Merchant Power Supply Market, post achallenging 2024 (decline over 2023), and a uncertain 2025, is projected to at a revenue CAGR of around 6% in the next five years.
• WAWT expects reduction in market and demand uncertainty, balanced inventory, and optimism to rebuild from Q4 2025, with growth catching up in 2026. Saying so, WAWT expects supply chain constraints to again be front-end challenge in 2026 as demand picks up and companies start to rebuild inventory and honour orders.
• GaN-based power supply solutions will see the robust CAGR, with growth extending beyond consumer sector, to data centres, industrial as well as medical applications.
• AC-DC and DC-DC non-commodity (non-consumer) segments will outpace general-purpose supplies due to their increasing use in high-growth verticals like AI datacentres, factory automation, demand for test and measurement equipment, EV infrastructure, smart healthcare as well as replenishment cycle across key sectors.
• Asia-Pacific remains the dominant production and consumption region, but North America and Europe are seeing strategic investments in medical, aerospace, and defence power systems. Growth in America could be seen to be higher than Europe, as well as Asia though Asia would continue to have a dominant share.

Future Opportunities in Power Supply

• Widespread GaN Adoption in AC-DC converters for efficiency and miniaturization.
• Immersion Cooling in Datacentres for power loss reduction and thermal management.
• Railway Electrification Surge boosting demand for rugged power solutions.
• Stable Demand for Linear Power Supplies in niche, precision-driven sectors.
• Electrification and Digitisation across sectors
• More and move focus towards use of renewable energy – wind, solar, hydrogen, and to some extent nuclear energy.

Research Update: Global AC-DC and DC-DC Merchant Power Supply Market Report 2025

WAWT has commenced research on the 2025 edition of its flagship report:
“Global AC-DC and DC-DC Merchant Power Supply Market Report.” This is the most comprehensive research on the power supply market covering around 15 applications sectors, with market share analysis of more than 80 regional and global power supply companies, with annual five years market forecast across product, regional, application, power class and other key segments This report will provide:

• Market sizing and growth analysis by segment and region
• Market share ranking of power supply companies based on revenue
• Technology and application trends
• Insights into both commodity and non-commodity market opportunities
• AC-DC, DC-DC as well as external power adapters and chargers market.

This report is scheduled to be published towards end August 2025. Please reach out to our subject matter expect at [email protected], to learn more about this comprehensive research, to request sample report as well as to avail the pre-publication subscription offer. Earlier confirmation would entitle companies FOR AN early access to the preliminary and final report, at a discounted early bird price.

About Wired and Wireless Technologies (WAWT)

WAWT’s specialized solution related to power supply market titled, ‘Power Supply Market Intelligence’, covers AC-DC, DC-DC, SMPS, and linear power supplies. Our flagship reports include:

• AC-DC and DC-DC Merchant Power Supply Market Report
• External Power Adapters & Chargers Market Report
• Application-Specific Power Supply Reports (railway, datacentre, medical)
• Market share ranking of power supply vendors

We analyze technology trends, vendor dynamics, and regional shifts to help businesses make informed decisions in an evolving landscape.

Don’t forget to subscribe to our monthly Power Bulletin Newsletter (e-newsletter), and follow our LinkedIn Page (WAWT) to stay ahead with the latest industry updates.

Conclusion

The global power supply market is entering a transformative era driven by GaN technology, immersion cooling, AI-powered datacentre demands, and niche applications for linear supplies. With WAWT’s research and insights, industry players can stay informed, adapt early, and lead with confidence in this evolving ecosystem.