Aside from the ceaseless growth of the mobile devices industry, power management integrated circuit (IC) manufacturers can thank environmentally friendly policies for a promising financia outlook, says the latest study from business intelligence providers.
According to the firm’s new report, demand for power management IC devices essential to electrical grids and power plants, such as regulators and comparators, will grow as governments around the world boost support for renewable energy generation. Solar photovoltaic (PV) power, for example, is a rapid growth market, recording a compound annual growth rate (CAGR) of 43% over the last three years.
Power management ICs are also used in energy efficient smart grids to improve the functional life span of rechargeable batteries such as Lithium Ion (Li-Ion), Lithium-Polymer (Li-Poly) and Nickel-Cadmium (NiCd). Correspondingly, analysis expect power management ICs to dominate in terms of smart grid applications over the coming years.
The industry will benefit from the rise of hybrid electric vehicles (HEV), too. HEVs employ power management semiconductors to meet specific automotive requirements such as switching frequency and short-circuit current rating.
HEVs are equipped with a higher number of electronic components when compared to other vehicles and therefore require more power management semiconductors in engine management systems in order to control the motor/generator units.
For 2012, the global sales revenue of power management ICs is expected to total $16.4bn, analysis predict that this will increase at a CAGR of 6.7% to reach $22.7 bn by 2016.