AC-DC Switching Power Supplies Remain Slow but Steady

According to a recent study released by Venture Development Corp. (VDC), revenues from North American shipments of ac-dc switching power supplies have declined dramatically in the past few years. The industry is still shrinking in certain vertical markets and growing slowly in other markets.

In general, VDC observed the following for the overall ac-dc switching power supply market for the next five years:

• An overall continuing decline in shipments through 2003, due primarily to the ongoing economic slowdown.
• Flat to slight growth expected for 2004, as excess inventory is exhausted and a slow recovery begins.
• Accelerating worldwide and North American growth in 2005 and beyond as demand from all vertical markets begins to increase.

Global economies are not to fully recover as previously expected. Vendors who realize that near- and long-term business strategies should be focused on slow economic recovery scenarios will be better equipped to make informed, intelligent, and tough decisions.

Vendors will no longer have the opportunity to chase high dollar volume growth as they did during the telecom boom. Slower, steady growth with long-term market potential in markets such as industrial/instrumentation and military are now being sought after.

For more information, visit www.vdc-corp.com.