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Electronics Production | February 03, 2011

Power Management to stay on double-digit growth in 2011

Following a 41.6% boom in 2010, revenue growth in the global power management semiconductor market will slow significantly in 2011 but still will manage to increase at a double-digit pace, according to new IHS iSuppli research.
Global power management semiconductor revenue will climb to USD 36.2 billion in 2011, up 13.9% from 2010. Growth will occur during every quarter throughout 2011.

“The solid rise in 2011 follows a banner year in 2010, when power management semiconductor revenue soared to USD 31.8 billion,” said Marijana Vukicevic, principal analyst for power management at IHS. That figure, Ms Vukicevic noted, was up from USD 22.5 billion in 2009.

Growth will decelerate in 2011 because this year follows a period of extraordinary growth in 2010. “Sales in 2011 simply will not be able to keep pace with the rapid expansion of 2010, when revenue rebounded dramatically from the recession year of 2009,” Ms Vukicevic added.

Among the factors causing the continuing expansion of global revenue in 2011 is the move toward more efficient battery-powered devices. With consumers everywhere looking for longer battery life in their mobile devices—from cell phones to tablets, to notebooks, to portable navigation devices—new design trends will likely emerge in power management integrated circuits (ICs), boosting revenue among suppliers.

Another factor driving expansion will be the growth in alternate energy markets, including solar, wind, the electrification of vehicles and the smart grid. IHS iSuppli research shows alternative energy being transformed from an emerging market in power management to a more mainstream segment in 2011, thus generating revenue growth for suppliers.

Also anticipated in 2011 is a move toward greater integration in power ICs; suppliers with the technology to further integrate their chips will reap the greatest benefits in terms of revenue.

For their part, some of the old legacy power suppliers are expected to radically change strategies to accommodate shifting market dynamics, IHS believes. Having grown less competitive and now being aggressively attacked by many smaller suppliers that deliver respectable designs at lower prices, legacy suppliers are likely to reorganize in order to counter the threats.

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