Topics Covered Include:

• POWER FACTOR CORRECTION MARKET ANALYSIS AND TRENDS
• REGIONAL MARKET FORECASTS
• COMPETITIVE ENVIRONMENT

The 106-page, First Edition of Darnell Group’s in-depth analysis of ``Power Factor Correction: Potential Market Forecasts, Application Trends & Competitive Environment`` provides a detailed examination of the trends driving the adoption and utilization of power factor correction (PFC) in a wide variety of application systems.

Power factor correction (PFC) has been implemented for some time and is highly driven by regulations. It got a boost in power supplies in 2001, when the International Electrotechnical Commission (IEC) standard 61000-3-2 went into effect in Europe. This specification required new electronic equipment consuming more than 75W to meet certain standards for harmonic content, which basically required the use of PFC. Britain, Japan and China soon adopted similar standards, and any company selling equipment into these regions needed to meet these requirements. No similar requirements hae gone into effect for North America, although PFC can help power supply manufacturers meet current North American energy efficiency standards.

The total Worldwide market for PFC (both passive and active) is expected to be approximately 1.3 billion units in 2006, increasing to 2.2 billion units in 2011, a compound annual growth rate of 11.4%. Darnell's Power Factor Correction study looks at three questions: (1) How quickly will PFC get adopted? (2) What applications are the most likely candidates for adoption? (3) What will be the mix of active versus passive PFC?

The report provides detailed, quantitative, worldwide and regional unit forecasts for North America, Europe and Asia. These are broken down by applications that are likely to adopt PFC; the wattage categories expected to utilize active versus passive PFC; and the wattage splits for discontinous versus continuous conduction mode (DCM and CCM).

Scope

This report encompasses the following areas:

(1) Estimates for the potential worldwide market for power factor correction in units from 2006 to 2011, broken down by application, power supply product, wattage, active versus passive, and DCM versus CCM. Geographical regions include Worldwide sales trends, along with trends for three regional segments: North America, Europe, and Asia.

(2) Market forecasts are given for the following application segments: Computers (Notebooks, Desktop PCs, Servers, Printers [Laser and Inkjet]); Consumer (Games, Home Theater [LCD TVs <23”, LCD TVs >23”, Plasma TVs, DVD Players/Recorders, Home Audio, Set-top Boxes], White Goods, Air Conditioners); Communications (Rectifiers, Data Communications); Lighting Ballasts (Compact Fluorescent Lamps, Linear Fluorescent, High-Intensity Discharge, Light-Emitting Diodes, Halogen); and Industrial (Motor Drives, Embedded AC-DC). Power supply Product forecasts include: Embedded AC-DC, External AC-DC (Adapters, Off-line Battery Chargers), Motor Drives, and Lighting Ballasts.

(3) Estimates for the potential worldwide market by Wattage and PFC in units from 2006 to 2011. Geographical regions include Worldwide unit sales, along with trends for three regional segments: North America, Europe, and Asia. These include Active PFC, Passive PFC, and No PFC for the following Wattage segments: <75W, 75W-150W, 151W-300W, 301W-500W, 501W-750W, 751W-1kW, and >1kW. These Wattage segments are also broken out by DCM and CCM.

(4) Discussion of economic trends, business conditions and market drivers for the power factor correction market, including worldwide economic, regulatory and business drivers; existing and emerging applications for PFC; technology drivers for active PFC; the changing mix of active versus passive PFC; and new product developments.

(5) Provides a detailed competitive analysis, including market share, competitor profiles, and recent developments in the industry.

Methodology

Primary and secondary research was conducted of both makers and end-users of power factor correction. In addition, semiconductor makers were polled to help determine industry trends and growth rates. The research was in no way limited to companies in North America, with the implicit understanding that a significant portion of the systems produced by the major OEMs are shipped outside of their region.

The detailed methodology proceeded as follows:

(1) A series of telephone, fax and e-mail interviews were conducted by Darnell Group with a select group of vendors and PFC users/specifiers. During interviews, a checklist was used to make sure that no points were overlooked. The primary research efforts were directed to major implementers of power factor correction solutions. The use of multiple primary data sources enabled cross-validation and ensured the highest possible database quality and reliability.

(2) The primary data collected was supplemented by secondary data gathered from a variety of published sources including previous industry studies, trade journals, proceedings from related trade conferences, annual reports, 10ks, product literature, advertising, industry web pages, newspapers and periodicals, previous reports, related work performed by the Darnell group and a variety of other sources.
The fundamental purpose of this study is to provide the information and analysis necessary to make strategic decisions about the sales potential and future demand characteristics for the power factor correction (PFC) market. This study analyzes the power factor correction market in the context of: (1) the applications in which it is likely to implemented, including computers, consumer, communications, lighting ballasts, and industrial; (2) the power supply products that would utilize PFC, including embedded ac-dc power supplies, external ac-dc power supplies, motor drives and lighting ballasts; (3) wattage segments; (4) active versus passive PFC; and (5) discontinuous conduction mode (DCM) and continuous conduction mode (CCM). This study is designed to help companies improve their current market understanding, as well as anticipate and plan for future trends. In addition to determining the potential market size and growth, this report also profiles the key competitors in the power factor correction market.


Executive summary
Power factor correction (PFC) has been implemented for some time, although it got a boost in power supplies in 2001, when the International Electrotechnical Commission (IEC) standard 61000-3-2 went into effect in Europe. This specification required new electronic equipment consuming more than 75W to meet certain standards for harmonic content, which basically required the use of PFC. Britain, Japan and China soon adopted similar standards, and any company selling equipment into these regions needed to meet these requirements.

No similar requirements have gone into effect for North America, although PFC can help power supply manufacturers meet current North American energy efficiency standards. PFC can often add cost and does not benefit the end user. So its advantage to suppliers can be a way of differentiating themselves by providing an energy efficiency benefit to society. The Electric Power Research Institute says that some manufacturers have claimed energy savings up to 10% through the application of power factor correction equipment in industrial facilities. It is also a way that larger original equipment manufacturers can “meet the spec” in Europe and Asia, while selling “added value” in other regions.

The worldwide PFC market is, therefore, a potential market based on current and future regulatory actions. The forecasts in this study are based on the applications that have adopted PFC already and those likely to adopt it in the future, along with the wattage ranges identified in the IEC standard. In addition, active and passive PFC are expected to penetrate certain markets, while continuous conduction mode and discontinuous conduction mode topologies are likely to be used at certain wattage levels. Each of these factors contribute to a potential, long-term picture of the power factor correction market.

The total Worldwide market for PFC (both passive and active) is expected to be approximately 1.3 billion units in 2006, increasing to 2.2 billion units in 2011, a compound annual growth rate of 11.4%. This report looks at three questions:

(1) How quickly will PFC get adopted?
(2) What applications are the most likely candidates for adoption?
(3) What will be the mix of active versus passive PFC?

Until recently, power factor correction has been most commonly used in motor drives and pumps. Lighting ballasts also often use PFC, in part because of the Class C requirements of EN61000-3-2. PFC implementation is likely in distributed power architectures, including embedded ac-dc power supplies. Active PFC is a requirement for Server System Infrastructure (SSI) compliance. Flat panel displays are also potential applications for PFC.

Cost is the biggest issue determining when active or passive PFC is used. Active PFC can be a more expensive solution, depending on the application. Volume production and price declines are factors that will drive the adoption of active or passive PFC. Higher-powered products are also likely to use active PFC, since it would be the most cost-effective way to bring products into compliance with the EN standard.

Driven by regulations, the development and production of PFC components is expected to continue to expand at a steady pace over the next several years. The industry is expected to remain extremely competitive, with large, multinational companies like ST Microelectronics, Fairchild, Texas Instruments and International Rectifier competing for market share with dozens of smaller regional companies worldwide. Profiles are presented of both larger players offering PFC solutions, along with some of the smaller, more specialized companies.

Companies are also looking at full digital power factor correction, although these solutions can have higher costs associated with them. PFC greatly benefits from non-linear programming. Digital implementation allows two separate functions to be integrated into a single unit and allows the power converter to be changed to accommodate different loads. This improves efficiency, which will help drive customer demand for digital control of power supplies.

CHAPTER I - INTRODUCTION
Introduction.............................................................................................................6
CHAPTER II - PURPOSE, SCOPE & METHODOLOGY
Purpose ..................................................................................................................8
Scope .....................................................................................................................8
Methodology ...........................................................................................................9
Correlation and Analysis.........................................................................................9
CHAPTER III - EXECUTIVE SUMMARY
Power Factor Correction Market Analysis and Trends .........................................11
Regional Market Forecasts...................................................................................13
Competitive Environment......................................................................................17
CHAPTER IV – POWER FACTOR CORRECTION MARKET ANALYSIS AND TRENDS
Introduction...........................................................................................................22
Worldwide Economic and Regulatory Drivers.......................................................23
Applications for PFC: Existing and Emerging .......................................................28
Technology Drivers for Active PFC.......................................................................30
Product Developments .........................................................................................34
CHAPTER V - REGIONAL MARKET FORECASTS
Introduction...........................................................................................................38
Assumptions and Methodology Underlying the Forecasts....................................38
Regional Market Share.........................................................................................40
Application and Power Supply Forecasts .............................................................41
Wattage and PFC Forecasts ................................................................................53
CHAPTER VI - COMPETITIVE ENVIRONMENT
Introduction...........................................................................................................71
Company Market Share........................................................................................71
Profiles of Leading Suppliers of Semiconductor Components Used in PFC
Circuits ................................................................................................................74
ABB Ltd.... ............................................................................................................74
Champion Microelectronic Corp. ..........................................................................75
Fairchild Semiconductor .......................................................................................77
Fuji Semiconductor...............................................................................................78
Green Power Technologies Ltd. ...........................................................................79
Infineon Technologies AG ....................................................................................81
International Rectifier Corp. ..................................................................................82
iWatt Inc................................................................................................................83
IXYS Corp.............................................................................................................85
Linear Technology Corp. ......................................................................................86
Microsemi Corp. Integrated Products ...................................................................87
ON Semiconductor ...............................................................................................88
Power Factor One ................................................................................................90
Powerex Power Semiconductors..........................................................................90
Renesas Technology Corp. ..................................................................................91
Sensitron Semiconductor......................................................................................93
STMicroelectronics ...............................................................................................94
Texas Instruments ................................................................................................96
Toko America Inc..................................................................................................98
Unisonic Technologies Co. Ltd. ............................................................................98
Vishay Intertechnology .........................................................................................99
APPENDIX A – SEMICONDUCTOR MANUFACTURERS
Semiconductor Manufacturers............................................................................101
APPENDIX B – GLOSSARY
Glossary .............................................................................................................104

Table of exhibits
CHAPTER III - EXECUTIVE SUMMARY
Graphs
Graph III-1 - Worldwide Power Supply Market, by Application (Total Available Market), (millions of units)......................................................18
Graph III-2 - Worldwide Power Supply Market, by Product (Total Available Market), (millions of units) ...........................................................19
Graph III-3 - Worldwide Power Factor Correction Market, Active PFC, by Region (millions of units)...........................................................20
Graph III-4 - Worldwide Power Factor Correction Market, DCM and CCM, by Region (market share) ......................................................21
CHAPTER IV – POWER FACTOR CORRECTION MARKET ANALYSIS AND TRENDS
Tables
Table IV-1 – Regulations and Standards Related to PFC.....................................24
CHAPTER V - REGIONAL MARKET FORECASTS
Tables
Table V-1 - Worldwide Power Supply Market, by Active PFC (regional unit market share)..........................................................................40
Table V-2 – Worldwide Power Supply Market, by Application (Total Available Market), (millions of units)..........................................................42
Table V-3 – North America Power Supply Market, by Application (Total Available Market), (millions of units).........................................45
Table V-4 – Europe Power Supply Market, by Application (Total Available Market), (millions of units) ...........................................................46
Table V-5 – Asia Power Supply Market, by Application (Total Available Market), (millions of units)..............................................................47
Table V-6 – Worldwide Power Supply Market, by Product (Total Available Market), (millions of units) ...........................................................49
Table V-7 – North America Power Supply Market, by Product (Total Available Market), (millions of units)..........................................................50
Table V-8 – Europe Power Supply Market, by Product (Total Available Market), (millions of units).............................................................50
Table V-9 – Asia Power Supply Market, by Product (Total Available Market), (millions of units).............................................................50
Table V-10 – Worldwide Power Factor Correction Market, by Wattage and PFC, (millions of units).............................................................56
Table V-11 – North America Power Factor Correction Market, by Wattage and PFC, (millions of units)......................................................58
Table V-12 – Europe Power Factor Correction Market, by Wattage and PFC, (millions of units)................................................................59
Table V-13 – Asia Power Factor Correction Market, by Wattage and PFC, (millions of units)..........................................................60
Table V-14 – Worldwide Power Factor Correction Market, by DCM & CCM, (millions of units)................................................................63
Table V-15 – North America Power Factor Correction Market, by DCM & CCM, (millions of units)..............................................................64
Table V-16 – Europe Power Factor Correction Market, by DCM & CCM, (millions of units)..........................................................................65
Table V-17 – Asia Power Factor Correction Market, by DCM & CCM, (millions of units)...........................................................................66
Graphs
Graph V-1 - Worldwide Power Supply Market, by Application (Total Available Market), (millions of units)..................................................43
Graph V-2 - Worldwide Power Supply Market, by Region (Total Available Market), (millions of units) ...........................................................44
Graph V-3 - Worldwide Power Supply Market, by Product (Total Available Market), (millions of units) ...........................................................49
Graph V-4 - Worldwide Power Supply Market, by Embedded AC-DC (Total Available Market), (millions of units) ......51
Graph V-5 - Worldwide Power Supply Market, by External AC-DC (Total Available Market), (millions of units) ...52
Graph V-6 - Worldwide Power Supply Market, by Wattage (Total Available Market), (millions of units) ...........................................................57
Graph V-7 - Worldwide Power Factor Correction Market, Active PFC, by Region (millions of units)............................................................61
Graph V-8 - Worldwide Power Factor Correction Market, Discontinuous Conduction Mode, by Region (millions of units)..............................67
Graph V-9 - Worldwide Power Factor Correction Market, Continuous Conduction Mode, by Region (millions of units)....................................68
Graph V-10 - Worldwide Power Factor Correction Market, DCM and CCM, by Region (market share) .........................................................69
CHAPTER VI - COMPETITIVE ENVIRONMENT
Tables
Table VI-1 – Worldwide Power Factor Correction Market, Company Market Share....................................................................73