by Power management system plays a pivotal role in the functioning of various electronic appliances and devices. It is used to efficiently manage the power requirements and distribution across various components in these devices. It ensures optimal power utilization along with protection against fluctuations, surges, and other power related issues. Power management systems find wide usage in various industries such as automotive, telecom, healthcare, energy & utility, and consumer electronics. Their demand is growing significantly owing to increasing adoption of electric vehicles worldwide due to stringent emission norms.
The global Power Management System Market is estimated to be valued at US$ 3618.7 Mn in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing adoption of electric vehicles worldwide presents a major market opportunity for power management systems. Due to stringent emission norms, many countries are promoting adoption of electric vehicles. This is prompting leading automotive manufacturers to launch more electric vehicle models. Power management plays a critical role in electric vehicles as it efficiently manages the power flow from battery to electric motor and other components. With electric vehicle sales expected to grow significantly in the coming years, especially in Asia Pacific and Europe, the demand for efficient power management systems from automotive industry is projected to rise tremendously. This will foster the growth of global power management system market during the forecast period.
Porter’s analysis
Threat of new entrants: New companies entering this market will face high initial investment costs to set up manufacturing units for power management systems. established players have significant economies of scale and brand loyalty advantages.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many established players. however, switching costs are low.
Bargaining power of suppliers: Component suppliers have low-to-moderate bargaining power as power management systems require electronic and mechanical parts that have many substitutes available.
Threat of new substitutes: Alternatives like hybrid and electric vehicles pose a potential threat, but internal combustion engines will still dominate for several years.
Competitive rivalry: High due to many global players competing on technology, price and brand loyalty.
SWOT Analysis
Strengths: Growing demand for fuel-efficient vehicles. Established global distribution networks.
Weaknesses: High R&D investment required to develop new technologies. Supply chain disruptions can impact profits.
Opportunities: Expanding into electric vehicle market. Growing demand in emerging economies.
Threats: Stringent emission regulations. Shift to alternative powertrain technologies. Rising raw material prices.
Key Takeaways
The Global Power Management System Market Demand is expected to witness high growth over the forecast period due to the rising demand for fuel efficient vehicles.
Regional analysis: Asia Pacific region is projected to grow at the fastest rate during the forecast period. This can be attributed to the rapid economic development and increasing disposable incomes in countries like China and India which is driving automobile sales. China is the largest producer and consumer of automobiles globally and therefore dominates the Asia Pacific as well as global power management systems market.
Key players operating in the power management system market are Finish Line, White Lightning, Tri-Flow, Pedro’s, Park Tool, Muc-Off, Shimano, WD-40 Bike, Motorex, Rock N Roll, Maxima, Boeshield, Squirt, Morgan Blue, Mazola, Castrol, Weldtite, Phil Wood, ProGold. Major players are focusing on investments in research & development to develop more efficient and intelligent systems as well as expanding their global presence through partnerships and acquisitions.
Note:
Source: Coherent Market Insights, Public sources, Desk research
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