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World Switch Mode Power Supplies Markets
Frost & Sullivan, April 2003
Product Differentiation and Diversification to Spur Growth
Product differentiation and diversification are the keys to growth in the over-populated and highly competitive world switch mode power supplies market. Participants are wooing end-users with quality assurances guaranteed by certifications such as the ISO 9000, superior service and product customization. While a majority of the smaller manufacturers are concentrating their efforts on standardization and design customization for greater growth, the more established participants seek to broaden existing customer and product bases.
This Frost & Sullivan research analyzes the global market for World Switch Mode Power Supplies, divided into product segments by AC-DC and DC-DC switch mode power supplies and by end-user segments into communication, industrial, aerospace & defense, medical and others (consumer, automation, transportation, etc.). It provides detailed insights into trends and offers market forecasts as well as competitive and opportunity analyses. It also provides geographic, end-user, and sub-segment analyses and specific strategic recommendations.
Consolidation and Thriving End-user Segments Give Added Impetus
Market consolidation seems imminent as larger switch mode power supplies manufacturers pursue a strategy for global growth by means of mergers and acquisitions to broaden their product line and gain access to new end-user sectors. Small manufacturers forging ties with large established manufacturers can benefit by capitalizing on their know-how and simultaneously reducing costs, and through the pooling of different resources enhance technology, product quality, and reliability, says the analyst.
The burgeoning industrial, telecommunication, and computer end-user segments in Asia Pacific are adding impetus to worldwide growth. Since the trend toward automation and miniaturization is on the rise, there is an increased demand for switch mode power supplies in industrial applications. As the aerospace and defense sectors are poised for growth, revenues are expected from equipment upgrading and new requirements as more planes, helicopters, and space ships are being built. Fresh demand from the medical segment is also expected, with medical devices becoming portable.
Better Manufacturing Systems and Customer Sensitivity Ignite Growth
New-age concurrent-engineering and design-ready platforms are enabling improvements and alterations at the initial manufacturing stage, giving the added advantage of time, says the analyst. Providing standard products using assembly-line techniques can reduce the time to market, cut overall costs, and allow companies greater chances of global success, adds the analyst.
To gain distinction in the price-driven switch mode power supplies market, manufacturers must focus on competitive factors such as after-sales service and technological support. Raising customer awareness by constantly educating them about new products and technologies, offering advanced and customized products, and maintaining customer bases with targeted marketing plans appears essential. Also, continuous technological upgrading is expected to become crucial, as any innovation that results in benefits to the customer gives an edge over competition.
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