Forecast for Power Supply Manufacturers

Power Supply Manufacturers Estimated Growth 2012-2016

The market for merchant power supply manufacturers has not been growing as it was expected to in the 2nd half of last year due to the devastating economic state. Despite this, the industry was able to grow by six and a half percent. Although it did grow, this growth only fulfilled 2/3 of the estimated and projected growth that was expected for the 1st half of 2011.

IMS Research that was recently purchased by HIS Incorporated has issued a report that analyzes and studies the Merchant Power Supply market. This report is the result of more than ten years of focusing and studying the market. The reports’ edition this year continued giving unbiased and a detailed evaluation of the market of the DC-DC and AC-DC power supply market. The study included the market for commodity and non-commodity ac-dc supplies and also included dc-dc converters. It gave detailed classifications according to package type, rating, application, major region and sales channel as well as other classification.

According to the IMS Research report, it is expected that the market will do much better in 2012, according to the researches, it is expected that revenue will grow by 9.3 percent. These numbers are acquired by the latest report of IMS Research that analyzed DC-DC and AC-DC merchant supply markets. This growth in revenue as forecasted for this year is expected to push the market to an amazing total of twenty-three billion.

Research also predicted numbers and forecasts for 2016 as it stated there will be an annual positive growth from 2012 to 2016. This growth will be consistent, but it will be a slow rate due to the results of the adoption of the new cell phone solution (Wired Universal Charging Solution) that is expected to be introduced to the market in 2014.

IMS Research’s report stated that the 3 fastest growing markets related to power supplies throughout the upcoming 5 years will be servers’ storage, tablet PCs and lighting. The fastest growing market is expected to be lighting as it is forecasted for a rapid growth as a result of the worldwide adoption of the newest solution in lighting, LED lighting.

Jonathon Eykyn who is a market analyst stated that the three mentioned markets (lighting, servers’ storage and tablet PCs) currently account for 0.6 percent of the market but according to reports and forecasts of IMS Research, these 3 markets are going to easily outperform all of the other markets by a noticeable margin. This is why it is estimated that these markets will have a share of fifteen percent of the market which will become an opportunity for manufacturers that should not be overlooked. The ranking of the top 5 manufactures in the merchant power supply market have not changed since 2011, but collectivity, the 6 manufactures grew slower than the market.

The top 10 manufacturers in the international DC-DC and AC-DC market included 7 Asian manufacturers, two American manufacturers and one European manufacturer. The latest manufacturers to join the top ten list included ZTE and GE Energy that has acquired Lineage Power. ZTE is considered to be the first ever Chinese manufacturer to join the top 10 list.

Jonathon Eykyn added that the popping up of ZTE in the top ten list paves the way for the expected overtake of the Chinese market of the market of North American market in two years. The Chinese market for merchant power supply manufacturers is expected to be the biggest market worldwide. This means that we can expect to see more and more Chinese manufacturers making it into the top ten list in the years leading to 2014.

The PV market (America’s photovoltaics) achieved great numbers in the 1st half of this year as it doubled to 1.7 GW. It is also expected to reach 4.3 GW in the final quarter reports. This is according to the IMS Research (Q3 PV Demand Report). As for the installation and setting up of PVs, it increased by one-hundred and twenty percent in the 1st half of 2012, and will be of great aid to the international market of PV which will help it grow by a minimum of 3 GW this year.

According to the most recent IMS Research quarterly report, the international installation of PV surpassed thirteen GW in the 1st half of this year. The two markets that led this amazing increase were the Americas and the German markets. The PV markets of the two Americas have witnessed a growth of well over one-hundred and twenty percent to reach 1.7 GW during the 1st half of this year after reaching seven-hundred and fifty MW in the 1st half of 2011.

Commenting on this, the director of PV research at IMS Research, Ash Sharma stated that despite the decent performance of the suppliers of the PV industry, the demand on the installation of PV was robust during the 1st 6 months of 2012 with the 1st half installation increasing by thirty-five percent from last year. The market of the Americas which is led by none other than the United States of America achieved great results during the 1st half, and it did not present any noticeable slowdown that would have resulted from anti-dumping duties.

The research report indicated that the US will be the biggest contributor of the growth in the PV power supply manufacturing market this year as it will account for forty percent of the estimated growth of the PV market. On the other hand, the PV European market is indicated to be the exact opposite. It is estimated that the market will shrink by 3 GW this year regardless of the powerful start of the German market at the beginning of this year. Sharma also stated that IMS Research is very optimistic about the United States’ PV market and believes in the great potential that the American market holds. It is expected that the market of the United States is going to increase by a minimum of 3.5 GW this year to elevate its self as the 3rd biggest PV market in the world.

The international demand on PV is expected to increase during the 2nd half of this year regardless of the decreasing pace of the main markets in Europe including Italy and Germany. According to IMS Research’s report, the installation of PV is going to hit a new record of eighteen GW during the upcoming second half of this year, this increase will be led by the markets in the Americas, Japan and China. China has recently approved PV projects of 1.7 GW that are expected to be established at the end of 2012. As for Japan, the new FIT  became operational on the 1st of July, and it will help increase the demand by the end of this year.