AC/DC Chip Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global AC/DC Chip Market is Segmented By Type (Ac, Dc), By Application (Consumer Electronics, Industrial Eletcronics, Automotive, Healthcare, Telecommunications, Others), By Power Range (Low Power AC/DC Chip, Medium Power AC/DC Chip, High Power AC/DC Chip), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

AC/DC Chip Market Size

The Global AC/DC Chip Market reached USD 31.3 billion in 2022 and is expected to reach USD 64.2 billion by 2031, growing with a CAGR of 9.4% during the forecast period 2024-2031.

The Global AC/DC Chip Market is poised for significant growth in the coming years. The increasing demand for electronic devices, the expansion of electric vehicles and the emphasis on energy efficiency will continue to drive market growth.

Technological advancements and developing more efficient and compact AC/DC chips are expected to propel the market further forward.

The U.S. is contributing to the growth of the Global AC/DC Chip Market through recent developments by manufacturers. TI, a leading AC/DC chip company, has made significant contributions to the AC/DC chip market. They have introduced advanced AC/DC chip solutions that offer higher efficiency, integration and miniaturization. TI's latest product offerings include AC/DC converter chips with improved power density and enhanced thermal management capabilities, enabling more efficient power supplies for various applications. 

On March 2, 2023, An addition to its active bridge driver, the AlphaZBL family, was launched by Alpha and Omega Semiconductor Limited, a designer, developer and global supplier of a wide variety of power AC/DC chips, power ICs and digital power products. In addition to power supplies for desktop computers, game consoles and servers, the new device can be used in adapters for high-end laptops and televisions. Therefore, the U.S. accounts for more than 3/4th of the regional shares.

AC/DC Chip Market Scope

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AC/DC Chip Market Dynamics

Rise in Industrial Automation

Industrial automation involves using intelligent systems, control algorithms and machinery to optimize manufacturing and industrial processes. AC/DC chips are crucial in industrial automation by providing efficient power conversion and regulation. Industrial automation systems require reliable and efficient power conversion solutions to ensure the smooth operation of machinery and equipment. 

AC/DC chips are essential components in power supplies, converting the incoming AC power into regulated DC power for industrial devices. The increasing adoption of industrial automation drives the demand for AC/DC chips.

For instance, ON Semiconductor has been focusing on developing AC/DC chip solutions with improved energy efficiency and power density. They have introduced highly integrated AC/DC converter chips that combine power factor correction (PFC) and pulse width modulation (PWM) functions, enabling compact and efficient power supplies for consumer electronics, industrial equipment and automotive applications.

Shift toward Energy Efficiency

As energy consumption and environmental concerns continue to rise, there is a growing demand for energy-efficient solutions across various industries. AC/DC chips play a vital role in power conversion and regulation, enabling energy-efficient operations. Governments and regulatory bodies worldwide are implementing stricter energy efficiency regulations for electronic devices and appliances. 

AC/DC chips are essential components in power supplies and manufacturers are developing chips that meet and exceed these energy efficiency standards. Recent developments focus on improving the power conversion efficiency of AC/DC chips to comply with regulations and reduce energy consumption.

High Initial Investment

The significant upfront investment acts as a barrier to entry for new players in the market. Developing and manufacturing AC/DC chips requires substantial capital for research and development, specialized equipment and fabrication facilities. This barrier makes it difficult for smaller companies or startups with limited financial resources to enter the market and compete with established players. 

The high initial investment can restrict the ability of companies to invest in research and development activities. Developing new and innovative AC/DC chip technologies often requires significant financial resources for experimentation, prototyping and testing. Without adequate investment, companies may struggle to bring new and advanced products to the market, limiting the pace of innovation and technological advancements.

AC/DC Chip Market Segment Analysis

The Global AC/DC Chip Market is segmented based on type, application, power range and region.

Increasing Demand for Portable Electronic Devices Drives the Growth of the Low Power AC/DC Chip

Low-power AC/DC chips are crucial in meeting portable electronic devices' power conversion and management needs. The demand for smartphones, tablets, wearables and IoT devices has grown consistently. These devices require efficient power management solutions that can extend battery life and minimize energy consumption. Low-power AC/DC chips enable energy-efficient charging, power conversion and voltage regulation, contributing to the market’s growth. Therefore, the lower-power AC/DC chip holds for the majority of the global segmental share.

Source: DataM Intelligence Analysis (2023)

AC/DC Chip Market Geographical Share

Asia-Pacific's Manufacturing Supremacy Drives Dominance in the Global AC/DC Chip Market

Asia-Pacific has emerged as a dominant region in the Global AC/DC Chip Market due to several factors, including a strong manufacturing base, technological advancements and growing demand for electronic devices. Asia-Pacific, particularly countries like China, Taiwan, South Korea and Japan, has established itself as a manufacturing powerhouse for electronics. 

These countries have a robust infrastructure and a well-developed supply chain ecosystem, enabling efficient production of AC/DC chips and related electronic components. The region's manufacturing capabilities contribute to its dominance of Global AC/DC Chip. Therefore, the Asia-Pacific dominates the global AC/DC chip market with nearly half of the worldwide market share.

Source: DataM Intelligence Analysis (2023)

AC/DC Chip Market Companies

The major global players include Texas Instruments Inc., ON Semiconductor Corporation, STMicroelectronics N.V., Infineon Technologies AG, Maxim Integrated Products, Inc., ROHM Co., Ltd., Dialog Semiconductor PLC, NXP Semiconductors N.V., Renesas Electronics Corporation and Microchip Technology Inc.

COVID-19 Impact on AC/DC Chip Market

The pandemic triggered changes in consumer behavior, leading to increased demand for certain electronic devices and appliances. As people spent more time at home, there was a surge in demand for laptops, tablets, gaming consoles and home appliances, which require AC/DC chips. This shift in consumer behavior positively influenced the demand for AC/DC chips in specific segments.

The pandemic accelerated the digital transformation across industries, including healthcare, education and remote working. This increased reliance on digital infrastructure and devices drove the demand for AC/DC chips in data centers, cloud computing, network equipment and communication devices, offsetting some of the negative impacts on the market.

Russia- Ukraine War Impact 

Geopolitical conflicts can lead to disruptions in global supply chains. If the conflict between Russia and Ukraine affects critical supply routes or manufacturing facilities involved in producing AC/DC chips, it could lead to delays in production, reduced product availability and increased lead times.

Geopolitical tensions can result in the imposition of trade restrictions, embargoes or tariffs on certain goods and services. If such measures are imposed on AC/DC chips or related components, it could impact the import and export of these products, leading to changes in market dynamics and pricing.

Geopolitical conflicts often create market uncertainties and volatility. Investors and businesses may become cautious, leading to shifts in investment patterns and consumer behavior. This volatility can impact the overall AC/DC chip market and potentially slow down its growth or create fluctuations in demand.

Key Developments

• On March 9, 2023, AmberSemi announced the successful tapeout of a silicon chip for patented AC direct DC power delivery technology. The AC Direct DC Enabler, a silicon product that extracts DC directly from AC Mains without using transformers, rectifier bridges or filtering, has entered the manufacturing and integration phase, according to the company, after completing the first silicon tapeout. This is one of the company's three core breakthroughs, patented technologies.
• On October 8, 2022, Amber Semiconductor began developing a chip that can run LED dimmers and microcontrollers directly from an AC source. With a single unit, AmberSemi seeks to offer a silicon chipset-based global lighting control architecture for various standard and smart dimmer switches available on the market.
• On July 21, 2021, Infineon intends to target LED lighting With a generation of single-stage fly-back off-line controller chips for constant voltage outputs. In primary-side-regulated (right) and optocoupler secondary-side-regulated configurations, the ICL88xx can produce up to 125W. As secondary-side regulated constant-voltage output controllers, they are optimized.

Why Purchase the Report?

• To visualize the Global AC/DC Chip Market segmentation based on type, application, power range and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous AC/DC chip market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global AC/DC Chip Market Report Would Provide Approximately 61 Tables, 59 Figures And 210 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies