Market Trends of AC DC Power Supply Industry
Consumer Segment is Expected to be the Largest End-user Industry
- The increasing adoption of wearable devices such as smartwatches, fitness trackers, and other devices is fueling the demand for compact and efficient power supply solutions. These devices need power-efficient components to enhance battery life and enable uninterrupted usage, driving demand for AC-DC power supply devices. The recent advancement in smartphone technologies and rising demand for 5G smartphones have driven the sales of mobile devices. Efforts by smartphone makers such as Samsung, Apple, Xiaomi, Oppo, and Vivo to innovate their products are also driving up demand for AC DC power adapters.
- According to GSMA, the Asia-Pacific, Latin America, and Sub-Saharan Africa are expected to experience the highest surge in smartphone adoption by 2023 due to the growing affordability of these devices. The average selling prices of smartphones are decreasing, and various initiatives are proving successful in driving uptake. It is projected that by 2030, there will be 9 billion smartphone connections, which will account for 92% of total connections. The increasing Internet penetration, marketing activities by smartphone vendors, and increasing subscriptions in social media are expected to boost smartphone sales, leading to a significant increase in demand for power supplies.
- The growing sales of consumer electronics contribute to the market growth. For instance, according to the Consumer Technology Association, the retail revenue of consumer electronics (CE) in the United States has recorded continuous growth over the years. The retail sales of consumer electronics are expected to reach USD 512 billion by 2024, compared to USD 498 billion in 2023. This significant growth in the consumer segment is likely to create demand for power supply devices with different specifications.
- Moreover, the increased use of laptops and desktops plays a key role in driving consumers' demand for power supply devices. In addition to the battery, crucial internal components such as CPUs and GPUs rely on DC power, highlighting the importance of a dependable DC supply. When the CPU/GPU does not require high performance, it can operate on a lower voltage, resulting in power savings.
- The significance of power supplies in digital cameras is growing rapidly as power supplies are essential in converting the high-voltage alternating current (AC) from the power grid into low-voltage direct current (DC), which is essential for most digital cameras' operation. In April 2023, Powerstream Technology introduced a wall plug Universal AC input adjustable output adapter specifically designed for digital cameras. This AC/DC adapter is compact, of superior quality, and operates as a switch mode regulated power supply with adjustable output, making it compatible with various digital camera models.
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Asia-Pacific to Register Significant Growth
- According to the Ministry of Industry and Information Technology, China is the largest country in the production and sales of consumer electronics through its enhanced innovation and brand-building capacity. With the increasing investments in the region to enhance its consumer electronics production capabilities, the market is expected to gain traction.
- China has one of the largest telecommunications markets in the world, driven by rapid urbanization, increasing internet penetration, and the adoption of advanced communication technologies. Telecommunications infrastructure, including mobile networks, data centers, and communication towers, relies on power supply devices such as rectifiers, converters, and backup power systems to ensure uninterrupted operation.
- The telecommunications sector in India is witnessing rapid growth due to increasing smartphone penetration, digitalization initiatives, and expanding internet connectivity. As telecom companies continue to expand their networks and upgrade infrastructure to support emerging technologies like 5G, the demand for high-efficiency power supplies with advanced features such as remote monitoring and energy optimization is expected to increase.
- India's consumer electronics industry is driven by factors, including rising disposable incomes, urbanization, and technological advancements. Power supply devices such as AC adapters, chargers, and battery management systems are integral components of consumer electronics products such as smartphones, laptops, TVs, and home appliances. With a large population and increasing consumer demand for electronic gadgets, there is a continuous need for efficient and compact power supply solutions that offer fast charging, energy efficiency, and compatibility with a wide range of devices.
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