Digital Power Market on the Rise

The global market for digital power is set for rapid growth in 2014. Plus, tablet and cell-phone processors drive growth in the IC market.

The worldwide market for digital power is on the rise, according to a new report from industry researcher IHS predicting “explosive growth” in the segment this year. Revenues for digital power supplies and digital power ICs are projected to increase nearly 65% in 2014, the researcher said in a new report, “The World Market for Digital Power—2014.”

Global revenue for digital power supplies will approach $3.3 billion in 2014 before climbing to $11.8 billion in 2018, IHS says. Global revenue for digital power ICs will top $605 million in 2014 and then reach $3.1 billion by 2018. IHS points to the expansion of digital power into new applications as a key growth driver.

“The market for digital power solutions is already well-established in the server and telecommunication markets,” said Jonathon Eykyn, power supply and storage component analyst for IHS. “However, IHS is now starting to see growing adoption across a much broader range of products and applications, which is driving rapid growth.”

Digital power offers customers advantages over traditional analog power, particularly in reducing the overall bill-of-material cost, according to Eykyn. It consolidates discrete components, reduces the carbon footprint, increases power density, provides the ability to monitor and optimize power levels and system requirements while in operation, and speeds time-to-market for products.

The report also points to the fragmented nature of the power supply market and resulting high level of competition. The largest players in the power supply market are Delta Electronics, at roughly 10% of the market; Eltek, at roughly 9%; and Emerson, also around 9%, the researcher says. Texas Instruments leads the digital power IC market, with an estimated 9.8% of the market, followed by Infineon at 9.6% and Powervation at 8.9%.

“Both the digital power supply and digital power IC markets remain fairly fragmented, with no suppliers having a dominant position,” Eykyn said. “This means that competition and innovation remain high as companies seek to win major customers.”

Tablet, Cell-Phone Processors Lead IC Market

In other industry news, tablet microprocessor units (MPUs), DRAM, and cell-phone application MPUs are driving growth in the IC market, according to a report from researcher IC Insights. In an update to its “2014 McClean Report,” the company pegs 10 product categories to exceed the 7% total IC market growth forecast for this year, with seven of the 10 set for double-digit growth.

In addition to tablet MPUs, DRAM and cell-phone MPUs, industrial applications, NAND flash, 32-bit microcontroller units (MCUs), and display drivers are all set for double-digit growth in 2014. Tablet MPUs are forecast to grow 35%; DRAM is set to grow 23%; cell-phone app MPUs 19%; industrial/other app-specific analog and NAND flash are set to grow 12% each; and 32-bit MCUs and display drivers are forecast to grow 10% each. Automotive applications and wired communications are also set to outpace the average IC market growth this year, at 8% each.

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