By Ashok Bindra, Editor, PETech Demand for Power Supplies Stimulates Growth Demand for compact, portable devices—such as cellular phones and laptops—is fueling growth in switch mode power supplies (SMPS), according to a recent report released by market research firm Frost & Sullivan. Its latest study on world SMPS markets reveals this market totaled revenues worth $10.09 billion in 2002 and is poised to expand to $15.64 billion by 2009. “Although the worldwide recession has slowed down investments in the telecommunication and information technology industries, a booming Asia-Pacific market provides fresh impetus to growth,” noted Frost & Sullivan research analyst Vishal Sapru. “The demand for computers, consumer goods, industrial equipment and better telecommunications in these markets are boosting switch mode power supplies,” he added. Companies face the dual challenge of manufacturing low-cost, high-quality products. Given the overcrowded, price-sensitive nature of the market, functionality of design, streamlined processes, and automation are essential to develop a cost-effective product. However, current technological advancements in SMPS products are evolutionary and not revolutionary, said Sapru.

In a separate independent study on world dc power supplies and electronic loads market—a segment of overall power supplies market—the Frost & Sullivan report shows that this sector is moving slowly. It’s not expected to regain momentum before 2004, stated Frost & Sullivan analyst Farah Saeed. “Future drivers include adoption of new wireless applications and recovery of capital spending,” added Saeed. According to new analysis on this market, the report reveals that world dc power supplies and electronic loads market saw total revenues of $289.5 million in 2002, and is projected to reach $377.2 million by 2009.

The world SMPS report shows that the market is moving forward due to more applications emerging and manufacturing advancements taking place. Even though consolidation within the industry continues to strengthen technology bases of the companies to compete aggressively, the report suggests that this consolidation will not damper the influx of newer products into the market. However, customer concerns regarding the support and service for existing products will need to be alleviated. “To dispel doubts, and pave the way for a smooth transition to more cost-effective products, manufacturers will need to enlighten customers and enlist their support regarding the direction of future products,” stated Sapru. Superior service and product customization are increasingly becoming the key differentiators. Improved service can facilitate closer customer relations and the incorporation of critical customer feedback at the inception stage can impact economies of scale positively.

On the dc front, the report expects emerging applications such as wireless fidelity (Wi-Fi) and 3G wireless technologies, as well as development and introduction of 42V and hybrid vehicles, to trigger this market.

For more information visit www.powersupplies.frost.com

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