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Voltage transformers: Active R&D, new categories sustain growth

Dynamic trends in various electronics industries continue to drive product development, boosting output by 15 percent.

China suppliers of transformers are underscoring high frequency, power consumption and dissipation, and overall performance reliability to match the requirements of today's features-rich devices. Many are exploring more compact models to ride the miniaturization trend in the consumer electronics sector.

  
Voltage transformer

  In this report
  •  Main story
  •  Extensive product range
  •  Mini & 'green'
  •  Manufacturing targets
  •  Taiwan: Industry targets mainstream, niche applications
  •  Hong Kong: Makers underscore quality, cost reductions
Although traditional configurations dominate output because of wide adoption, new types are emerging under efforts to broaden application and market base. These include planar, chip and thin-film variants, with the first leading the way.

All these developments are expected to translate into 15 percent YoY growth in 2010 that will solidify the country's status as the world's largest manufacturing base for the line.

A basic input in a range of electronic devices, the product is expected to deliver $5.6 billion in overall sales this year, with nearly $2 billion from exports. The total output is forecast to touch 5 billion units.

Even in the aftermath of the financial crisis, the sector held out, achieving an estimated $4.9 billion in revenue from 4.3 billion units made in 2009. Overseas shipments contributed $1.7 billion. Farther back in 2008 when the economic slowdown began, the industry posted a more than 15 percent increase, or a total of $4.3 billion in transactions with approximately $1.5 billion from abroad. The global market value was about $10 billion at the time, or almost 8 percent of the entire components segment.

The main industry drivers in 2008 were the power supply, consumer electronics, information technology, automotive and communications sectors. While these remained strong applications through 2009, rising requirements in energy-saving lamps, HDTVs, LCD monitors and portable devices are setting a new direction for the line.

Besides assured demand, makers in China continue to benefit from the segment's highly labor-intensive and customized manufacturing. Varying specifications and multiple-batch processing render it unsuitable for full automation.

This setup, however, was instrumental in the rapid and solid development of the local industry during the last decade. For one, the low manpower cost attracted many overseas enterprises to shift production activities to the country swelling the supplier pool further.

At present, there are more than 3,000 makers of transformers in China, according to the China Electronic Components Association. Half of them are foreign-invested operations, 30 percent local private and the rest state-owned. The majority of companies are based in the provinces of Guangdong, Zhejiang, Jiangsu, Fujian and Shanxi, and the cities of Beijing and Shanghai.

Only 35 percent of total output is exported, and the bulk absorbed domestically. The main overseas markets are Europe, North America and Southeast Asia. Since the financial crisis, makers have been boosting presence in the thirddestination. They are also looking to explore the Middle East, Russia and India.

This article "Voltage transformers: Active R&D, new categories sustain growth" is originally posted in Global Sources.
Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.

Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates' respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.

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