A source of converting direct current (DC) from one voltage level to another, a DC-DC converter has been gaining popularity over the past few years now, owing to its cost-solutions and high-performance power system. As of now, North America holds the largest share of the global market for DC-DC converters; however, the market in Asia-Pacific is estimated to experience the highest growth in the next five years. The worldwide DC-DC converters market for space is estimated to be valued at USD 268.2 Million by 2020 from USD 213.2 Million in 2015, growing at a CAGR of 4.70% during the forecast period from 2015 to 2020. The space power industry has become greatly dependent on the number of satellite launches and space programs carried out by various space organizations, thereby boosting the demand for power-efficient DC-DC converters.
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What is the geographical growth scenario of this market?
In 2015, North America dominated the global DC-DC converter market with the largest share, followed by Europe, and this trend is expected to continue, with the North America estimated to account for more than 40% of the global market share. The recent changes in the U.S. export administration regulations in the space industry is likely to boost the DC-DC converters market for spaces internationally, which in turn is likely to boost the over demand for DC-DC converters. However, the market in Asia-Pacific is projected to grow at the highest CAGR during the forecast period. This growth can be majorly attributed to the tremendous rise in the use of paid TV channels in this region, thereby boosting the demand for effective and technologically-advanced satellite launches with power-efficient devices.
Major forces driving the growth of DC-DC converter market
Over the coming years, there is likely to be a rise in the number of satellite constellations, which will majorly drive the worldwide market for DC-DC converters, owing to its huge demand for communication satellites and paid TV market. This has led to the governments and space organizations of various countries to actively invest in order to get highly-advanced space DC-DC converters for satellite systems. Moreover, the increasing use of GaN technology for increased efficiency of dc-dc converters, emergence of new power architectures and digital power management and control, growing demand for high-performance and cost-effective system, and development of thick-film hybrid DC-DC converters are expected to further boost the market growth.
How is the rise in the number of satellite constellations impacting the growth of this market?
This program is aimed at making internet accessible to everyone in the world, and under this, around 900 satellites are expected to be launched by 2019. This surge in satellite number is fueling the demand of DC-DC converters as on-board power converters play a huge role in the functionality of a spacecraft/satellite. Moreover, countries such as the U.S., India, and China are actively spending to enhance and upgrade their satellite systems with power-efficient space DC-DC converters.
What obstacles is the market likely to face over the forecast period?
Although the global market for DC-DC converters is expected to witness steady growth on the next five years, inability of DC-DC converters during quiescent condition, restrictions on export for the manufacturers in the U.S., and technical issues with commercially available converters are likely to inhibit the growth of this market. Moreover, development of DC-DC converters with low-noise performance and those having more power density and efficiency are the key challenges faced by the leading players involved in this market.
Leading market players and their key strategies
Crane Aerospace and Electronics ( U.S.), Infineon Technologies Inc. (Germany), Microsemi Corporation (U.S.), Vicor Corporation (U.S.), Synqor Inc. (U.S.) and Modular Devices Inc. (U.S.) are the prominent players operating in the global market for DC-DC converters. New product launches was among the key strategies adopted by leading market players to sustain their market share. Apart from this, the market players are also focusing on contracts and agreements to introduce advanced technologies in the space segment of DC-DC converters. Some of the key players also rely on mergers & acquisitions to broaden their product portfolio.