Power Electronics

Taiwan Continues to Dominate Adapter, Charger Market

Taiwanese companies continue to lead the global market for external adapters and chargers, according to the latest data from IMS Research (Wellingborough, United Kingdom). The recent market report found that Taiwanese companies account for seven of the top 15 largest vendors of external adapters and chargers, with Delta Electronics Inc. (Taiwan) deemed to be the largest vendor with an approximate market share of 12.7%. Also in the top 15 are three Japanese companies, three European and U.S. companies, one Korean company and one Chinese company.

“The Taiwanese vendors have always been major suppliers of external adapters and chargers in the PC space,” commented Matthew Towers, managing director of IMS Research. “The main difference we have seen in the last couple of years is that they have started to make greater in-roads into the consumer sector. They have even taken some share of the cellular market, which has traditionally been dominated by European vendors such as FRIWO and Salcomp.”

Ominously for all of the established suppliers, the first vendor from mainland China in the external adapters and chargers market entered the top 15 in 2005. China's Fuhua Electronic took an estimated market share of nearly 2%, and even the Taiwanese suppliers must be keeping a careful eye on China expanding its market share.

One of the many reasons for this, explained Towers, “External adapters/chargers are low-cost products, which are relatively simple to manufacture and are, hence, well suited to being made in China or other low-cost countries. The transition to Chinese production over the last five years has come mainly through: established players setting up their own plants in China, and established players OEMing in China.

“However, once Chinese companies develop the manufacturing expertise through OEM agreements, many try to enter the market using their own branded products,” Towers continued. “Many fail, but a few of the most motivated and able companies succeed. This is very similar to the process that occurred in Taiwan in the 1980s.”

Towers added that he would not be surprised to see three or four companies from mainland China in the top 15 within five years.

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