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Power adapters to grow by $2B despite charging decline

Posted: 20 Mar 2013 ?? ?Print Version ?Bookmark and Share

Keywords:IMS Research? universal charging solution? LED? universal charging solution?

According to a recent report compiled by market research firm IHS, the market for power adapters and chargers is posed to grow by $2 billion from 2012 to 2017. The growth will be driven by new applications will counteract a decline in cell phone charging.

Jonathan Eykyn, an analyst for IHS, noted that while shipments of cell phone chargers are forecast to dropoff, the adoption of emerging applications such as tablets, wireless power and charging, and light-emitting dioed (LED) lighting is predicted to occur rapidly and drive growth, offsetting the loss in the cell phone segment.

The anticipated contraction of chargers in the cell phone market is due to the use of the wired universal charging solution (UCS), an incentive driven by the GSMA organisation of mobile operators and related companies, in order to reduce electronics waste by using a universal adapter for all cell phones and by eventually removing the bundled charger from the box. As the cell phone market is by far the dominant sector in the power adapter and charger space, a decline in shipments here will have a large impact on the overall market.

Given the reduced number of cell phone chargers that will be shipped, the power adapter and charger market is projected to decline in 2014 and 2015, in line with earlier IMS projections showing a steep falloff in 2014. However, stronger annual growth for the market will return by 2016, spurred by increasing demand from the new applications. Without the growth of the wireless power and LED lighting markets, the power adapter and charger market would have started to contract in 2016, ending up approximately $1.4 billion less in 2017.

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