The world market for merchant power supplies rose 7.7 percent year over year to reach $23.5 billion in 2016. Much of the forecast revenue growth can be attributed to LED lighting. LED lighting applications will help drive the power supply market to a projected value of $30.9 billion by 2021. Without LED lighting applications, revenue growth will remain flat, reaching a value of $19 billion by 2021. In 2016, without LED lighting, revenue growth was measured at 3.9 percent over 2015 totals.
LED lighting leads growth in non-commodity power supplies
LED lighting is projected to be the fastest-growing application from 2017 to 2021. The market for merchant power supplies in LED lighting applications is estimated to have been worth $4.9 billion in 2016, which accounted for 20.9 percent of total market revenues. The LED lighting market for power supplies is projected to increase to $11.9 billion in 2021 as LED lighting adoption penetrates commercial markets. LED lighting applications are driving growth as commercial markets seek to save energy costs by installing LEDs instead of fluorescent lighting.
AC-DC non-commodity market exceeds AC-DC commodity market
IHS Markit splits the market into “commodity” high-volume consumer power supplies and lower-volume “non-commodity” power supplies, in order to improve the clarity of the analysis.
The AC-DC non-commodity market is projected to be the fastest-growing market on a revenue basis from 2017 to 2021, with a compound annual growth rate (CAGR) of 10.2 percent, according to the IHS Markit Power Supplies Intelligence Service. The increase will be driven by strong revenue growth in power supplies for both LED lighting and medical applications.
Revenue for the AC-DC commodity market has peaked, as demand declined in key commodity applications. Commodity AC-DC power supplies include all high-volume, consumer-based power supplies, for example, power supplies for desktop PCs, notebooks, tablet PCs and mobile phones.
The market for power supplies has historically been characterized by stable, moderate growth. The supplier landscape consists a small number of companies at the top that sell in the wider, horizontal market. The rest of the suppliers focus on specialty, or niche, markets. In 2016, the largest supplier by revenue, Delta Electronics, had a total market share of 15.5%. Only ten suppliers had a revenue market share of 2% or more in 2016, down from thirteen in 2015.
These findings are from the latest annual study from IHS Markit on the global AC-DC and DC-DC merchant power supply market. The report is published as part of the IHS Markit Power Supply Intelligence Service, a comprehensive package of detailed forecasts, topical reports and regular analyst insight on the power supply market.
Many of the themes discussed in this research note are explored in greater depth in IHS Markit’s Power Supply Intelligence Service.