Power Electronics

VDC Finds Shift in Switch Vendors’ Market Shares

In the recently completed Buyers and Sellers volume of the 2002 Global Switch Market Intelligence Service, Venture Development Corp. (VDC) found a shift in global vendor market share of several switch product types and vertical market segments.

Changes in vendor market shares are a result of three underlying market trends:

  • A continuing trend toward consolidation through mergers and acquisitions has changed the makeup of the global switch market. From Tyco's acquisitions of the Alcoswitch line and Eaton's trigger switch line to ITT Cannon's merger with C&K, these moves significantly altered both product type shares and application market segment shares.
  • General trends of falling prices and increased competition have greatly affected market shares. OEMs are still demanding prices as low as, or lower than, the levels vendors introduced in 2000 to clear up huge inventory gluts. This has not only reduced the overall revenue of the market leaders, but helped small and mid-size suppliers offering low-cost products to gain share.
  • The majority of recent significant shifts in market share (and vendor revenues) are a direct result of economic conditions affecting the industries served by switch vendors. As some major market segments (i.e., telecom) have slipped, other smaller markets have experienced above average growth rates. Simply put—switch vendors concentrating in application segments poised for growth have maintained their position or gained market share since VDC's previous report, while those heavily invested in stagnant or declining industries have lost market share.

The top 10 suppliers of switches to the global market, in descending order by revenues from switch shipments for consumption, are:

  1. Honeywell
  2. Alps Electric
  3. ITT Cannon/C&K
  4. NKK
  5. Omron
  6. SIBER Group
  7. EAO
  8. Eaton
  9. Idec Izumi
  10. Tyco

The Analysis of Buyers and Sellers volume contains more than 100 exhibits covering vendor market share in all global geographic markets, 12 vertical application segments, and for all major switch types.

The study also explores the buyers' side of the market, including OEM requirements and trends. This consists of vendor and product selection criteria, problems with vendors, and more.

For more information, visit www.vdc-corp.com.

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