AC and DC controllers market to grow by $3.19 billion (2024-2028)

The global AC and DC controllers market size is estimated to grow by $3.19 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  6.5%  during the forecast period. Growing need for energy efficient systems is driving market growth, with a trend towards rise in adoption of EVS. However, high development and production costs associated with AC and DC controllers poses a challenge. 

Key market players include Antares Technology, Campbell Scientific Inc., Diodes Inc., Infineon Technologies AG, Microchip Technology Inc., Monolithic Power Systems Inc., Mornsun Guangzhou Science and Technology Co Ltd, NXP Semiconductors NV, ON Semiconductor Corp., RECOM Power GmbH, Renesas Electronics Corp., Richtek Technology Corp., Rockwell Automation Inc., ROHM Co. Ltd., Shenzhen Slkor Micro Semicon Co Ltd, STMicroelectronics International N.V., Texas Instruments Inc., and WINSEMI.

Market drivers
The global AC and DC controllers market is witnessing notable growth due to the rising adoption of electric vehicles (EVs). Key developments in the EV sector are fueling this trend, as companies introduce new models to cater to expanding consumer demand. 

For instance, AW Rostamani Group's strategic partnership with ZEEKR in February 2024 aims to bring luxury EVs to the UAE market, increasing the need for advanced AC and DC controllers for optimal performance and energy efficiency. In March 2024, BYD Co. Ltd launched the affordable Seagull EV in China, making EVs more accessible to a broader consumer base and driving demand for reliable and cost-effective AC and DC controllers. 

Additionally, BYD's Dolphin model launch in Brazil in June 2023 signifies the growing acceptance of EVs in emerging markets, requiring AC and DC controllers to support the diverse range of EVs entering these regions. Morris Garages' introduction of the Windsor EV in India in September 2024 further enhances the EV landscape in the country, emphasizing the crucial role of AC and DC controllers in managing power conversion and ensuring the efficiency of electric drivetrains. 

AC-DC controllers market is experiencing significant growth due to trends in vehicle electrification and smart cities. Electric power steering (EPS) systems in vehicles and electronic power supplies (EPS) in smart cities require AC-DC Controllers for efficient power conversion.

The global market for AC-DC Controllers serves various industries such as healthcare, consumer goods, technology, mining, and renewable energy. Key components include AC-DC power supply, rectifiers, filters, DC voltage regulator circuits, and AC-DC converters. 

Raw material suppliers play a crucial role in the production of these controllers. Input and output voltages, power, and cooling types vary based on application. Notable companies include Delta Electronics, telecommunications, industrial robotics, medical devices, and the semiconductor sector. Consumer behavior, driven by trends like Internet shopping, LED lighting, smartphones, and electric appliances, fuels demand for low standby power and power factor adjustment in AC-DC controllers. 

Market challenges
The global AC and DC controllers market presents manufacturers with significant challenges due to the high costs associated with their development and production. These costs are primarily driven by the need for sophisticated algorithms and advanced control strategies, which require substantial investment in research and development. 

Basic AC and DC controllers with standard features can range from $50 to $500, while advanced models with specialized features like programmable logic can cost between $500 and $5,000 or more. High-volume, custom-designed controllers for industrial applications can exceed $10,000. 

The manufacturing process involves intricate electronic circuitry and specialized components, including power semiconductor devices, which add to the production costs. The complexity of control strategies, voltage regulation mechanisms, and power conversion circuitry further increases manufacturing expenses. 

Adherence to stringent quality and safety standards, including rigorous testing and validation procedures, is essential and requires significant investment. Balancing the need for advanced features and high efficiency with cost-effective production methods is a critical issue for manufacturers in the AC and DC controllers market. As the demand for energy-efficient and reliable power conversion solutions grows, manufacturers must navigate these cost challenges to remain competitive.

AC-DC controllers market is experiencing significant growth due to increasing trends in vehicle electrification, smart cities, and electric power steering. Industries like healthcare, consumer goods, technology, and telecommunications are major consumers of AC-DC power supply, requiring rectifies and filters for DC voltage regulation. 

Raw material suppliers play a crucial role in supplying input and output voltage for AC-DC converters. Challenges include meeting the demands of industries like mining, renewable energy, and cooling types, requiring both isolated and non-isolated AC-DC controllers. 

The semiconductor sector is a key player in providing control ICs for low standby power and power factor adjustment. Consumer behavior, driven by internet shopping and the proliferation of electronic devices like LED lighting, smartphones, and electric appliances, further fuels market growth. 

Companies like Delta Electronics cater to various industries, including industrial robotics, medical devices, and renewable energy, with their AC-DC controllers. Battery charging, electric propulsion, and electroplating are other applications driving market expansion.