The market for AC and DC controllers is expanding due to the growing need for energy-efficient systems and the trend toward increased EVS use. However, a bottleneck with AC and DC controllers is their high development and production costs.
According to Technavio, the size of the global market for AC and DC controllers is expected to increase by USD 3.19 billion between 2024 and 2028. During the forecast period, the market is anticipated to expand at a compound annual growth rate (CAGR) of 6.5%.
EVs Driving Significant Growth
The growing popularity of electric vehicles (EVs) is driving significant growth in the global market for AC and DC controllers. This trend is being driven by significant advancements in the EV industry, as manufacturers launch new models to meet growing consumer demand.
AW Rostamani Group and ZEEKR Luxury EVs
For example, the February 2024 strategic alliance between AW Rostamani Group and ZEEKR intends to provide luxury EVs to the UAE market, which will raise demand for sophisticated AC and DC controllers for peak performance and energy efficiency. The low-cost Seagull EV was introduced by BYD Co. Ltd. in China in March 2024, expanding the market for EVs and increasing need for dependable and reasonably priced AC and DC controllers.
BYD Dolphin Model
Furthermore, the June 2023 introduction of BYD Co. Ltd.’s Dolphin model in Brazil highlights the increasing adoption of EVs in developing countries, necessitating the use of AC and DC controllers to accommodate the wide variety of EVs that are coming into these areas.
The market for AC-DC controllers is expanding significantly as a result of smart city and vehicle electrification trends. AC-DC controllers are necessary for effective power conversion in electronic power supplies (EPS) in smart cities and electric power steering (EPS) systems in automobiles.
Numerous industries, including healthcare, consumer products, technology, mining, and renewable energy, are served by the global market for AC-DC controllers. Rectifiers, filters, AC-DC power supplies, DC voltage regulator circuits, and AC-DC converters are important parts.
Suppliers of raw materials are essential to the manufacturing of these controllers. The types of cooling, power, and input and output voltages differ according to the application.
Notable businesses include the semiconductor industry, medical devices, industrial robotics, telecoms, and Delta Electronics. The need for low standby power and power factor adjustment in AC-DC controllers is fueled by consumer behavior, which is influenced by trends such as online shopping, LED lighting, smartphones, and electric appliances.
Market Challenges for AC-DC Controllers
- Because of the high development and production costs, manufacturers face considerable obstacles in the global market for AC and DC controllers. The requirement for complex algorithms and cutting-edge control systems, which necessitate a large investment in research and development, is the main factor driving these expenses.
- Advanced models with specialist features like programmable logic can cost between USD 500 and USD 5,000 or more, while basic models with conventional functionality can cost between USD 50 and USD 500. Custom-built, high-volume controllers for industrial use might cost more than $10,000. The cost of production is increased by the complex electronic circuitry and specialized parts used in the manufacturing process, such as power semiconductor devices. Manufacturing costs are further raised by the intricacy of power conversion circuits, voltage regulation systems, and control tactics.
- It is crucial and expensive to adhere to strict quality and safety requirements, which include thorough testing and validation processes. For producers in the market for AC and DC controllers, striking a balance between the demands for cutting-edge features and high efficiency and economical production techniques is crucial. Manufacturers must overcome these financial obstacles in order to stay competitive as the market for dependable and energy-efficient power conversion systems expands.
- The market for AC-DC controllers is expanding significantly as a result of growing trends in smart cities, electric power steering, and vehicle electrification. Major users of AC-DC power supplies include the healthcare, consumer goods, technology, and telecommunications sectors, which call for rectifiers and filters to regulate DC voltage.
- When it comes to providing input and output voltage for AC-DC converters, raw material providers are essential. Meeting the needs of sectors including mining, renewable energy, and cooling—which need for both isolated and non-isolated AC-DC controllers—presents challenges. One major supplier of control integrated circuits (ICs) for low standby power and power factor adjustment is the semiconductor industry. Market expansion is further fueled by consumer behavior, which is influenced by online shopping and the widespread use of electronic devices such as smartphones, LED lights, and electric appliances.
Key Market Players
Among the leading companies in the market are Antares Technology, Campbell Scientific Inc., Diodes Inc., Infineon Technologies AG, Microchip Technology Inc., Monolithic Power Systems Inc., Mornsun Guangzhou Science and Technology Co Ltd, NXP Semiconductors NV, ON Semiconductor Corp., RECOM Power GmbH, Renesas Electronics Corp., Richtek Technology Corp., Rockwell Automation Inc., ROHM Co. Ltd., Shenzhen Slkor Micro Semicon Co Ltd, STMicroelectronics International N.V., Texas Instruments Inc., and WINSEMI.
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