MOUNTAIN VIEW, Calif., April 27, 2016 /PRNewswire/ -- The global critical power market will benefit significantly from the substantial proposed investments in the data center end-user market in 2016. Particularly, the growth in modular data centers will give a strong push to the modular power solutions segment, with revenues for modular UPS market reaching $623.4 million in 2016. Meanwhile, the revenues from power management integrated circuit (PMIC) in portable and wearable devices will touch $13.63 billion market in 2016, at a year-on-year growth rate of 9.0 percent.
Recent analysis from Frost & Sullivan, 2016 Global Outlook of the Critical Power Market (http://www.frost.com/mbe4), finds that the market earned revenues of $28.98 billion in 2015 and expects this to reach $31.32 billion in 2016. Uninterruptible power supply (UPS) systems accounted for the highest revenue share of 32.6 percent. However, photovoltaic (PV) inverters will be primary drivers of the market, which is expected to grow at 6.9 percent, and light emitting diode (LED) drivers, which will likely contribute to 27.9 percent growth in 2016.
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2016 is expected to be a game-changing year for smart inverters with enhanced capabilities, as many utilities, especially in the United States, begin to roll them out.
"As the critical power market's prospects are highly dependent on the health of its end-user markets, it will be challenged by the weak investment climate in China, Brazil and weaker economies in Southern Europe.," said Frost & Sullivan Energy & Environment Industry Director Malavika Tohani. "Low oil prices have dampened demand from the oil and gas sectors, while the decline in mining has further lowered the demand for critical power."
Nevertheless, there are opportunities for growth in the market. In addition to the data center and smart utility segments, the wireless power charging and LED driver segments will provide considerable support to the overall market. For instance, revenues for wireless power charging grew by more than 150 percent in 2015 over 2014, and this momentum is expected to extend into 2016.
"While the demand from traditional applications is almost saturated, there is vast scope for growth in demand from new technologies, and a shift toward distributed energy," noted Tohani. "Overall, to survive in the market, critical power manufacturers and suppliers need to offer technologically superior products and a complete solution rather than just a product."
2016 Global Outlook of the Critical Power Market is part of the Power Supplies & Batteries (http://ww2.frost.com/research/industry/energy-power-systems/power-supplies-batteries) Growth Partnership Service program. Frost & Sullivan's related studies include: Trends in the Distributed Power Generation Market in Southeast Asia, Annual Africa Energy Landscape (2015) Current and Future Trends Shaping the Continent, the Global Primary Lithium Battery Market, Trends Affecting the Asia-Pacific Uninterruptible Power Supply Market, Global Demand Response Trends, and US Prime Power Generators Market Analysis. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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2016 Global Outlook of the Critical Power Market
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SOURCE Frost & Sullivan