Sep 5 2008
According to a new technical market research report, POWER ELECTRONICS: TECHNOLOGIES AND GLOBAL MARKETS (EGY057A) from BCC Research, the global market for power electronics devices was worth $9.8 billion in 2007 and is expected to reach $10.2 billion by the end of 2008. It should increase to $17.7 billion in 2013, for a compound annual growth rate (CAGR) of 11.6%.
Sales for power electronics devices in the U.S. reached $2.1 billion in 2007 and an estimated $2.2 billion in 2008. This should increase to $3.9 billion in 2013, a CAGR of 12.3%.
Three factors account for the rapid growth rate that is expected in this market. The first, which was suspected in the first quarter of 2008, is that the rapid increase in petroleum prices that occurred in the last quarters of 2007 and first quarters of 2008 reflected something other than a speculative bubble. A consensus is now solidifying that oil production may have in fact plateaued at the very time the world is experiencing an increased demand for liquid fuels as a result of economic growth in China and India.
The second factor, which also became manifest in late 2007 and early 2008, is a consequence of a weak dollar and a strong Euro. There is strong evidence that even if there were no upwards price pressure exerted by demand for oil the economies in India and mainland China, the unfavorable position of the dollar vis-à-vis the Euro would still cause prices to rise.
The third reason, which was suggested in the second quarter of 2008 and is expected to be confirmed by a major geological study in the third quarter of 2008, is that global oil reserves are less than have been estimated. There is strong speculation within the energy community that a major study undertaken to determine if oil reserves have been overestimated will confirm that the world is entering a post peak-oil period. The report is schedule for release in November 2008, but already industries have begun to adjust to an era when the new realities about energy pricing translate into higher prices for virtually everything that is sold in a modern technological society.