AC-DC Converter Market - Forecasts from 2024 to 2029

The AC-DC converter market is expected to grow at a CAGR of 10.12% reaching a market size of US$34.140 billion in 2029 from US$17.382 billion in 2022.

AC-DC converter is a device that converts alternating current (AC) electrical power to direct current (DC) electrical power. This conversion is necessary for many electronic devices, as they require a steady and constant flow of DC power. AC-DC converters come in many forms, such as linear and switched with low and high-power options. AC-DC converters are typically used in automotive, medical & healthcare, electrical & electronics, and industrial applications. The global AC-DC converter market is primarily driven by the increasing demand for electronic devices and the growing use of automation in various industries.

The rising use of smartphones, laptops, tablets, and other computing devices has led to a notable expansion in the market in recent years. Additionally, there are a lot of opportunities for vendors of AC-DC power adapters because of the global acceleration of the demand for wearables and smart home appliances. Power supplies are in high demand across several industries, including aerospace, government and military, and medical and healthcare. This creates a lucrative opportunity for the market.

Growing use of mobile devices

DC is widely used in small electronic gadgets and devices, especially cell phones. When compared to other technologies, smartphone technology is advancing very quickly, mostly due to consumer demand. With every new generation of the mobile communication network, there is a noticeable increase in the number of inductors found in mobile phones. Given that these smartphones run on DC power, there will likely be a significant rise in the need for AC-DC adapters.

Since batteries require DC electricity to charge and buildings have AC electricity running through their walls, there is a notable increase in demand for AC power adapters in the smartphone charger market. Thanks to technological advancements, regular phone adapters are becoming less necessary with the advent of USB power adapters.

Increasing use of electronic devices

The demand for electronic devices such as smartphones, laptops, and televisions has been growing steadily in recent years, particularly in emerging economies, due to the increasing affordability of such devices, and this demand has led to the growing use of AC-DC converters as electronic devices typically require stable and efficient DC power to operate. The trend toward miniaturization of electronic devices has also driven the demand for small and efficient

AC-DC converters that can be integrated into compact devices. The increasing demand for electronic devices is expected to drive the growth of the global AC-DC converter market in the coming years. The United States accounted for one-third of India's smartphone shipments in value terms during the April-July fiscal year, according to data from the Commerce Ministry. India shipped smartphones worth US$ 4.67 billion. Compared to the same period in 2022-2023 (April-July), smartphone exports rose by 99.52% in 2023-2024. The Commerce Ministry reports that in the first four months of the current fiscal year 2024, smartphone exports to the US jumped to US$ 1.67 billion from US$ 284.6 million in the same period the previous year, a multifold increase.

High demand in the automobile industry

AC DC converters are used in automobiles to convert the high-voltage DC power from the vehicle's battery into low-voltage DC power needed to operate various electronic systems such as infotainment systems, lighting, air conditioning, power windows, and electric power steering. AC DC converters have become even more critical in the automotive sector as these vehicles require an AC DC converter to convert the high-voltage DC power from their batteries into AC power for the electric motor. Hence, the demand for AC DC converters in the automotive sector is also expected to rise significantly. According to the Indian Brand Equity Foundation, 2.08 units of passenger vehicles*, three-wheelers, two-wheelers, and quadricycles were produced in total as of July 2023. This demonstrates that the AC-DC converter market has a great demand.

Increasing use of isolated AC-DC converters

The goal of isolated AC DC converters' electrical isolation between the input and output is to guarantee security and shield against voltage spikes and disruptions. These converters are widely used in applications like high-end consumer electronics, industrial machinery, and medical devices where galvanic isolation is required. Isolated AC DC converters provide increased safety and can handle higher power levels. When stable power conversion and isolation between the input and output circuits are needed, they are the recommended options. On the other hand, non-isolated AC/DC converters are widely used in low-power applications but do not provide electrical isolation.

High use of forced air-cooling method

Forced air cooling is the process of moving air through fans or blowers to cool the AC DC converters. This method is widely employed because of its affordability and effectiveness in cooling electronic components. Forced air cooling systems are widely used in locations where heat dissipation is crucial, such as data centres, industrial machinery, and power electronics. To prevent overheating, maintain optimal operating temperatures, and ensure the dependable and efficient operation of AC DC converters, fans or blowers can be employed.

Asia Pacific is witnessing exponential growth during the forecast period

The government's efforts to promote electronics manufacturing, the presence of multiple companies, investments in other industries, and growing sales of consumer electronics are all expected to contribute to the growth of the market under study in the region. Due to a large working population, the fast growth of consumer electronics markets, and the increasing use of smart devices, the Asia-Pacific region has become more significant in the market for AC-DC power adapters. In the market of the region, China, India, South Korea, and Japan are important players. They have advanced the semiconductor industry significantly. For instance, in March 2023, Foxconn Technology Co. Ltd. committed to investing in Telangana, a state in southern India, to manufacture electronics as a supplier to Apple Inc.

Market key launches

• In August 2023, Aimtec introduced two new high-power enclosed AC/DC converters that offer 2 X MOPP with power factor correction, expanding its medical product line. Additionally, they have a regulated output voltage range of 12V to 48V, and up to 54V for the 1000W model, as well as an input voltage range of up to 277VAC. These power supplies also have a 5V DC auxiliary output for added flexibility.
• In July 2023, AcBel Polytech Inc. declared that it had successfully finished acquiring the Power Conversion division of ABB Ltd. By strengthening its power solution technology in tandem with Power Conversion and fostering a mutual culture of innovation, the acquisition enables the business to provide customers with even more value.
• In June 2023, Delta Electronics, a USD 12.89 billion company, announced that it would be expanding its manufacturing operations in India. The company offers a variety of charging stations, such as fast chargers, DC chargers, and AC mini chargers. In India, the company has put in 8,000 EV chargers. The company wants to control 40% of the EV charging market. 

Segmentation:

By Type

• Linear
• Switched

By Power

• Low
• High

By End-User

• Automotive
• Medical & Healthcare
• Electrical & Electronics
• Industrial
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Other