Power surge for analog markets

23 February 2005 News

Power management continues to quietly outperform several of the more celebrated product markets, including microprocessors. And while much of the growth attributed to the strong market in 2004 was compounded by rising prices and increased unit demand in the DRAM market, power management continued to deliver strong results that match the performance of the overall semiconductor market.

Analog power ICs, a market that includes revenue from switching regulators, hot swap controllers, linear regulators, charge controllers, and fuel gauges, overall was up 25% this year. This follows two prior years of over 20% growth. A once $3 bn market in 2001 has grown to over $5,5 bn in just three short years. Looking forward, the market for power is expected to hit a slight glitch in 2005, but is expected to resume strong revenue growth over the next five years, a compound annual growth rate of 15% each year.

Short term, this market is expected to see an increase in pricing pressure as well as a slight drop off in demand which will impact sales, resulting in a contraction in revenue of around 5%. However, an upcoming replacement cycle for handheld devices, such as cellphones, and multimedia players will drive growth in 2006, up 14%, and in 2007, up 29%.

www.databeans.net

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