On January 9, 2019, TDK-Lambda (Japan) completed the acquisition of Nextys, headquartered in Switzerland. This acquisition is expected to enhance the DIN rail power supplies and accessories portfolio of TDK-Lambda. Nextys, a company involved in designing and manufacturing of DIN rail power supplies and accessories that already compliments the TDK-Lambda’s solution. With the integration of Nextys power supplies and expertise, TDK-Lambda will be able to offer its products in the market such as medical equipment, semiconductor-manufacturing equipment, and renewable energy equipment, and further improving the bottom-line of its core customers.
Analysis by MarketsandMarkets™:
According to Ashish Mishra Associate Manager: Semiconductor and Electronics at MarketsandMarkets™ shares his point of view as mentioned below:
The inclusion of Nextys’ innovative products/solutions for DIN rail powered equipment to the portfolio of TDK-Lambda, the leading market player in industrial power supplies, will consolidate the prospect of development business for both players. As DIN rail power supply market is growing much faster than many other segments and the specialist expertise of the Nextys will enhance TDK-Lambda’s position as market leader in the power supplies segment. The acquisition of Nextys’ by TDK-Lambda will further strengthen its capabilities into the power supply market.
Power Supply Market:
A power supply is a device that accepts an AC power input, rectifies and filters it and then applies the resulting DC voltage to a regulator circuit that provides a constant DC output voltage. There are wide varieties of AC-DC and DC-DC power supplies that can have an output voltage from less than 1 V to thousands of volts and output power ranging from 0.1 W to thousands of watts. AC-DC and DC-DC power supply applications from verticals such as lighting, industrial, consumer electronics, and medical are driving the power supply market by integrating it in various devices such as street lighting, home lighting, wearable bands, smartphones, and patient-monitoring devices. The power supply market is estimated to grow from USD 25.00 billion in 2017 to USD 34.92 Billion by 2023, at a CAGR of 6.7% from 2018 to 2023.
Source: MarketsandMarkets™ Analysis
What will be the scenario of the market for AC-DC and DC-DC type of power supply from 2018 to 2023?
The power supply has two major types AC-DC and DC-DC. AC-DC power supplies are further segmented by type into six different categories; enclosed/encapsulated, DIN rail, open frame, PCB mount, configurable, and others. Other types comprise power supplies such as panel mount, specific purpose, chassis mount, front-end type, and external type power supplies; whereas the DC-DC converters are categorized as isolated and non-isolated type.
The market for AC-DC power supply accounted for 85.7% of the overall power supply market in 2017. The market for AC-DC power supply was valued at USD 21.41 Billion in 2017 and is projected to reach USD 30.38 Billion by 2023, at a higher CAGR of 7.0% from 2018 to 2023. This growth can be attributed to its wide usage in industrial and healthcare applications. The market for DC-DC power supply was valued at USD 3.59 Billion in 2017 and is projected to grow to USD 4.54 billion by 2023, at a CAGR of 5.0% during the forecast period.
The most significant factor driving the power supply market is the growing adoption of home and building automation systems, emerging telecommunications sector, and increasing demand for energy-efficient devices/appliances services. The growing use of datacentres and increasing requirement of power supplies in medical & healthcare devices are the major factors fuelling the growth of the power supply market.
“Major strategies adopted by key companies in the power supply market”
During 2015–2018, product launches/developments have been the key strategies adopted by the market players to grow in the power supply market. These strategies collectively accounted for a share of ~88% of the overall growth strategies adopted by the market players from 2015 to 2018. For instance, in May 2018, MEAN WELL launched HRPG-1000 series power supply that extends the output power up to 1000 W. The HRPG-1000 uses the same mechanism as the already existing PFC enclosed type power supply HRPG-600 series. With various functions, HRPG-1000 series is suitable for industrial control, electric motor, communication systems, and network equipment.
A few major players operating in the power supply market include MEAN WELL (Taiwan), TDK Lambda (Japan), Siemens (Germany), General Electric (US), XP Power (US), Murata Power Solutions (Japan), Artesyn (US), Phoenix Contact (Germany), Delta Electronics (Taiwan), Cosel (Japan), PULS (Germany), CUI (US), Acbel Polytech (Taiwan), Salcom (Finland), LITE-ON Power System Solutions (US), FSP (Taiwan), Power Innovation (Germany), MTM Power (Germany), and Power Systems & Controls (US).
Conclusion
Power management plays a vital role in almost every electronic system as it controls, regulates, and distributes power throughout the system. Hence, the reliability, performance, and cost of the associated electronic equipment is dependent on the complete power management system. The power management system enables an electronic system to function by supplying and controlling its power properly. The key component of the power management system is the power supply that provides the required power. The lighting vertical witnesses growth and has a good growth potential owing to the increase in the consumer demand for energy-efficient lighting systems, reduction in prices of LEDs, as well as a rise in the penetration of LEDs as a light source in numerous lighting applications. The LED lighting is a significant consumer of power supplies, thereby driving the growth of the power supply market in the near future. In addition, various verticals, such as consumer electronics, transportation, industrial, and medical, are utilizing power supplies for efficient power management of various devices/equipment/appliances, whereas in numerous industrial applications, AC-DC and DC-DC power supplies are utilized to improve the reliability and efficiency of devices/systems.