Fueled by gains in both the commercial and industrial sectors, the power management semiconductor industry will finish 2010 on a high note that will be unmatched over the next few years, according to the market research firm iSuppli Corp. Comprising integrated circuits and discretes, power management semiconductors will generate $31.4 billion in 2010, up a sizable 39.9 percent from $22.4 billion in 2009. This year’s expansion not only will reverse the losses of 2009 — when revenue declined by 15.8 percent — it also will be unequaled during the next four years, none of which will enjoy growth higher than 13 percent.
“Growth was solid for the first half of the year, marked by an exceptionally robust first quarter, due mainly to demand in the industrial and communication markets, as well as to deliveries that had been pushed to the start of this year after the component shortages of late 2009,” said Marijana Vukicevic, principal analyst for power management at iSuppli. “Revenue will continue to expand into the third quarter, iSuppli data show, after which the market will slow as the year ends, in keeping with normal seasonal patterns. For the second half of the year, growth will be propelled by demand in the consumer electronics, wireless and data processing sectors, reflecting the overall improvement of the Consumer Confidence Index. Prices, however, are likely to increase as backlogs ease at the backend, and some time will be needed before supply catches up with demand.”
Power management market to continue strong growth until 2014
Over the next five years, a good part of growth in power management semiconductors will derive from the vibrant alternative energy market, which will bring inverters to the attention of many suppliers. The need for inverters — devices that convert direct current to alternating current — will stem from applications in the automotive, solar and wind turbine markets. Revenue is expected to more than double by 2014, reaching $7.2 billion, compared to $2.9 billion in 2009.
Among the various types of power management semiconductors, the fastest growth will take place among power MOSFETs, a kind of discrete semiconductor device designed to handle large amounts of power.
From 2009 to 2014, power MOSFET revenue will increase at a Compound Annual Growth Rate of 20.8 percent — higher than any type of power management semiconductor in either the discrete or Integrated Circuit (IC) category.
Within the power MOSFET group, the best performer will be low-voltage discretes, exploding at a runaway CAGR of 25.6 percent during the same period of time with forecasted revenue by 2014 of $4.9 billion, iSuppli data show. Several markets will contribute to the growth of low-voltage power MOSFETs, including wired communications, consumer, automotive and industrial.
Overall, ICs will slightly outpace discretes in growth during the period. Total revenue for integrated circuits will climb from $12.4 billion in 2009 to $25.3 billion by 2014 — a CAGR of 15.3 percent. In comparison, total revenue for discretes will rise from $10.0 billion to $19.7 billion — a CAGR of 14.5 percent.
Power management semiconductors as a whole are expected to grow about 15 percent, driven mainly by the notebook market, server infrastructure replacement and alternative energy requirements issuing from hybrid and electric vehicles, wind and solar energy and grid upgrades.
Furthermore, observable improvements in the efficiency of electronics products and processes that make use of the semiconductors — everything from power tools to forklifts, from trains to cars — can be considered an emerging trend for power management, iSuppli believes.
Learn more about the latest developments in the power management market with Vukicevic’s report, entitled: Is the Industrial Market Really Catching Up with Consumer Markets?
About iSuppli Corporation
iSuppli Corporation is the global leader in technology value chain research and advisory services. Services afforded by iSuppli range from electronic component research to device-specific application market forecasts, from teardown analysis to consumer electronics and from display device and systems research to automotive telematics, navigation and safety systems research.