AC-DC Power Adapters - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The AC-DC Power Adapters Market size is estimated at USD 16 billion in 2024, and is expected to reach USD 23.70 billion by 2029, growing at a CAGR of 8.18% during the forecast period (2024-2029).

AC-DC power adapters, sometimes called AC adapters, are external power supplies consisting of a transformer and rectifying and filtering units typically enclosed in a compact, sealed unit for safety and aesthetic reasons. These adapters convert AC power to DC for portable devices or household and commercial electronics. The market study comprises various applications such as computing, mobile devices, consumer electronics, and industrial applications.

Key Highlights

• Power supply devices such as power adapters have become increasingly popular over the years as they play a crucial role in providing energy to electric loads for consumption and operation. The growing demand for power supply in various industries and industrial equipment is anticipated to boost its adoption.
• The market has witnessed significant growth in recent years due to the increasing adoption of smartphones, laptops, tablets, and other computing devices. Also, the demand for smart home appliances and wearables has accelerated worldwide, which creates huge opportunities for AC-DC power adapter vendors. There is a high demand for power supplies in various industries such as medical and healthcare, government and military, and aerospace, which presents a profitable opportunity for the market.
• AC-DC adapters are primarily used as external power supply units for electrical equipment that is unable to draw power from the mains network directly. These devices convert alternating current (AC) into direct current (DC). Typically, power adapters do not have space in their casing for the huge components required for this conversion. Power adapters save equipment from damage and fire as a rise in current and voltage can cause fires and damage equipment. The circuitry of the power adapters is designed to shut down when power surges, which helps to reduce the risk of equipment damage.
• The increasing adoption of consumer electronics, mobile devices, computing devices, and other industrial applications such as motors and automobiles is accelerating the market. However, market growth is expected to face obstacles due to regional and country-specific regulatory and safety standards. Thus, the power supply market is projected to face challenges over the forecast period.
• The COVID-19 pandemic had a significant impact on the power adapter market, both on the demand side and on the supply side. Lockdowns and factory shutdowns worldwide contributed to a supply shortage, but many of these impacts are expected to be temporary. Governments worldwide are taking steps to support the semiconductor industry, which could lead to a recovery for the market studied.

AC-DC Power Adapters Market Trends

Mobile Devices to Witness Major Growth

• DC is extensively utilized in compact electronic devices and gadgets, particularly mobile phones. Smartphone technology advancements are progressing swiftly compared to other technologies, primarily driven by consumer demand. The number of inductors in mobile phones sees a notable surge with each subsequent generation of the mobile communication network. Considering that these mobile phones operate on DC power, there is a projected substantial increase in the demand for AC-DC adapters.
• Notably, the demand for AC power adapters is significantly high in the smartphone charger segment because buildings have AC electricity running through their walls, and batteries (like cell phone and laptop batteries, for example) need DC electricity to charge. Technological innovation has given rise to USB power adapters that are turning out to be an adequate replacement for normal phone adapters. One noteworthy advantage of USB power adapters over normal adapters is that they can be utilized to charge phones.
• For instance, Apple's USB power adapters are the most popular, allowing users to connect directly to devices and into the wallet socket through a lightning cable to charge. While the majority come with a compact design, they provide fast, efficient charging. Fast mobile adapters help charge devices faster than usual. Despite the decline in smartphone shipments due to the impact of COVID-19, there is potential for an increase as the market is not yet saturated. The expanding internet penetration and the rising consumer demand are anticipated to drive the demand for smartphone technology.
• Moreover, as stated by 5G Americas, the global number of fifth-generation (5G) subscriptions is projected to reach approximately 1.9 million by 2023. This estimate is expected to rise to 2.8 million in 2024 and 5.9 million by 2027. The expansion of the Internet of Things (IoT) market is anticipated to be driven by the implementation of 5G connectivity in the coming years. This cutting-edge mobile technology will facilitate faster data speeds, enabling seamless communication between machines and devices while necessitating higher power capabilities. Such developments are expected to increase the market’s potential.

Asia-Pacific to Witness Significant Growth

• The market studied in the region is expected to increase owing to rising consumer electronics sales, government initiatives to boost electronics manufacturing, the presence of several companies, and investments in other industries.
• The Asia-Pacific region has gained prominence in the AC-DC power adapters market owing to the presence of a major working population in the region, the rapid expansion of the consumer electronics markets, and the growing adoption of smart devices. Key players in the region's market include China, India, South Korea, and Japan. They have made significant strides in the semiconductor industry. The region commands a substantial market share due to the widespread adoption of advanced electronic devices.
• According to the Indian Brand Equity Foundation (IBEF), India has aimed to achieve a target of USD 300 billion in electronics manufacturing and USD 120 billion in exports by 2025-26. Furthermore, the Union Budget 2023-24 has earmarked INR 16,549 crore (USD 2 billion) for the Ministry of Electronics and Information Technology, representing a substantial annual increase of approximately 40%. Numerous companies are consistently making significant investments in establishing manufacturing facilities, which will generate demand for various power management IC devices.
• For instance, in March 2023, Foxconn Technology Co. Ltd agreed to invest in the southern Indian state of Telangana for the purpose of manufacturing electronics as a supplier to Apple Inc. The company has expressed a desire to expand beyond China, where a COVID-19 outbreak disrupted its largest iPhone plant. Foxconn is also rapidly diversifying into higher-margin products, including electric vehicles and their components. These investments will necessitate using AC-DC power adapters in electronics, which are responsible for managing battery power charging and sleep modes, DC-to-DC conversion, and voltage scaling, among other functions.

AC-DC Power Adapters Industry Overview

The AC-DC adapters market is semi-consolidated as the level of innovation, time-to-market, and performance are the key terms by which the players differentiate themselves in the market. Some of the players include AcBel Polytech Inc., Belkin International (Foxconn), Delta Electronics Inc., Lite-on Technology Corporation, and Mean Well Enterprises Co. Ltd.

• July 2023: AcBel Polytech Inc. announced that it has successfully completed the acquisition of ABB Ltd's Power Conversion division. The acquisition helps the company strengthen its power solution technology together with Power Conversion and further cultivate a shared culture of innovation, driving even greater value for the customers.
• June 2023: Delta Electronics announced the expansion of manufacturing in India, with the USD 12.89 billion company offering a range of charging stations, including AC mini chargers, DC chargers, and fast chargers. The company has installed 8,000 EV chargers in India. The company aims to hold a 40% market share in EV charging.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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