Power Supply Market Forecasts to 2030 - Global Analysis By Product (Alternating Current (AC)-Direct Current (DC) Power Supply and Direct Current (DC)-Direct Current (DC) Converter), Output Power, End User and By Geography

According to Stratistics MRC, the Global Power Supply Market is accounted for $37.8 billion in 2024 and is expected to reach $55.8 billion by 2030 growing at a CAGR of 6.7% during the forecast period. The power supply market encompasses the development, production, and distribution of devices that provide electrical power to various systems and equipment. It includes AC-DC power supplies, DC-DC converters, and uninterruptible power supplies (UPS) used across multiple sectors such as consumer electronics, industrial, telecommunications, medical, and automotive.

According to the IEA, global electricity demand rose moderately in 2023 but is set to grow faster through 2026, at an average of 3.4% annually.

Market Dynamics:

Driver:

Increasing demand for electricity

The increasing demand for electricity is driven by the rapid expansion of data centers, the electrification of residential and transport sectors, and the growth of industrial activities. This surge in demand necessitates reliable and efficient power supply solutions, thereby propelling the market forward. Additionally, the adoption of advanced technologies such as AI and cloud computing further amplifies electricity consumption, creating a robust demand for power supply systems.

Restraint:

High cost of raw materials

The high cost of raw materials, such as copper and aluminum, significantly impacts the production costs of power supply systems. This increase in material costs can lead to higher prices for end consumers, potentially limiting market growth. Additionally, supply chain disruptions and material shortages exacerbate the cost challenges, making it difficult for manufacturers to maintain competitive pricing while ensuring quality and reliability.

Opportunity:

Renewable energy expansion

The expansion of renewable energy sources presents a significant opportunity for the power supply market. As governments and organizations worldwide push for cleaner energy solutions, the demand for power supplies that can efficiently integrate with renewable energy systems, such as solar and wind, is rising. This shift towards sustainable energy not only drives market growth but also encourages innovation in power supply technologies to support renewable energy infrastructure.

Threat:

Regulatory and policy challenges

Stringent regulations and compliance requirements can increase operational costs and limit market entry for new players. Additionally, inconsistent policies across regions can create uncertainties and hinder the smooth operation and expansion of power supply businesses. Navigating these regulatory landscapes requires significant resources and strategic planning, which can be a barrier for many companies.

Covid-19 Impact:

The COVID-19 pandemic led to a reduction in electricity demand due to lockdowns and economic slowdowns. However, the residential sector saw an increase in electricity consumption due to work-from-home arrangements. The pandemic also caused supply chain disruptions and financial stress for power utilities, impacting their operations and investments. Overall, the pandemic highlighted the need for resilient and adaptable power supply systems.

The telecommunications segment is expected to be the largest during the forecast period

The telecommunications segment is expected to be the largest during the forecast period due to the continuous advancements in communication technologies and the increasing demand for seamless connectivity. The rollout of 5G networks and the expansion of telecom infrastructure require robust and reliable power supply solutions, driving significant growth in this segment. The critical nature of telecommunications in modern society ensures sustained demand for power supplies in this sector.

The direct current (DC)-direct current (DC) converter segment is expected to have the highest CAGR during the forecast period

The direct current (DC)-direct current (DC) converter segment is expected to have the highest CAGR during the forecast period. This growth is driven by the increasing adoption of DC-DC converters in various applications, including electric vehicles, renewable energy systems, and portable electronic devices. The efficiency and versatility of DC-DC converters make them essential components in modern power supply systems, contributing to their rapid market expansion.

Region with largest share:

The Asia Pacific region is positioned to dominate the power supply market due to its robust industrial growth, increasing urbanization, and significant investments in infrastructure development. The region's strong demand for consumer electronics, telecommunications, and industrial automation drives the need for advanced power supply solutions. Additionally, the presence of major manufacturing hubs in countries like China, Japan, and South Korea further boosts market growth.

Region with highest CAGR:

The Asia Pacific region anticipates rapid growth in the power supply market, driven by the increasing adoption of digital technologies, automation, and renewable energy projects. The region's focus on sustainable development and energy efficiency, coupled with government initiatives and investments in smart grid infrastructure, propels the demand for innovative power supply solutions. This dynamic environment fosters a high CAGR, making Asia Pacific a key growth region in the market.

Key players in the market

Some of the key players in Power Supply Market include Delta Electronics, Inc., Emerson Electric Co., LITE-ON Technology Corporation, Acbel Polytech Inc., Salcomp PLC, MEAN WELL Enterprises Co. Ltd., TDK Corporation, Siemens AG, General Electric, XP Power, Murata Manufacturing Co. Ltd., PHOENIX CONTACT, COSEL CO. LTD., Puls Technologies Inc, CUI Inc, Lite-On Cloud Infrastructure Power Solutions, FSP GROUP, MTM Power Messtechnik Mellenbach GmbH and Power Systems & Controls Inc.

Key Developments:

In July 2023, ABB has completed the divestment of its Power Conversion division to AcBel Polytech Inc. with an enterprise value of $505 million. ABB expects to record a small non-operational book gain in Income from operations on the sale in the third quarter of 2023.

In May 2022, Emerson and AspenTech announced the successful closing of the combination of Emerson's industrial software businesses - OSI Inc. and its Geological Simulation Software business - with AspenTech to create a global industrial software leader ("new AspenTech"). With the close of the transaction, Emerson owns 55% of new AspenTech on a fully diluted basis and AspenTech shareholders own the remaining 45%. Shares of new AspenTech will begin trading on NASDAQ under the ticker symbol "AZPN" (previously AspenTech's ticker symbol) starting May 17, 2022.

Products Covered:

• Alternating Current (AC)-Direct Current (DC) Power Supply
• Direct Current (DC)-Direct Current (DC) Converter

Output Powers Covered:

• Power Supply With Low Output (500 W and Below)
• Power Supply With Medium Output (500-1,000 W)
• Power Supply With High Output (More Than 1,000 W)

End Users Covered:

• Consumer Electronics
• Industrial
• Telecommunication
• Medical & Healthcare
• Military & Aerospace
• Automotive
• Lighting
• Renewable Energy
• Residential Sector
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances