12/6/2002 - After a stagnate growth period that will run through the first quarter of 2003, VDC forecasts the global switch market to reach US$ 3.3 billion by December 2002. Worldwide consumption of switches is forecast to reach $3,748.0 million in 2006, growing at a compound annual growth rate of 3.0% between 2002 and 2006.
VDC deduces the global switch market to be at the end of a retraction period, largely due to demand slowly returning to vertical markets in the United States. After a period of flat growth, a global rebound should occur before consumption growth rates level off to historic levels.
According to switch market analysts John Gordon and Jake Millette, much of the fallout from depressed demand from many consuming markets (namely price declines, inventory excesses and displacement of switches by competing technologies), has rounded the corner, and better times are on the horizon.
Gordon states, "The appliances and power tools application segment is the largest global consumer of switches, with a 19.3% market share. Demand for switches used in these applications will continue to help support a return to rising levels of demand for several types of electromechanical switches throughout the global economy."
VDC's Millette adds, "The fastest growing switch consuming application through 2006 is forecast to be consumer electronics, but its high growth rate will not be enough to overcome appliance and power tool applications for the largest market share."
Millette continues, "New technologies and lower costs will increase the demand for consumer electronics, and the consumption of switches used in this application is forecast to grow 4.0% annually through 2006."
VDC's Components Business Group has a number of recent market research reports available, including the 2002 Global Switch Market Intelligence Service, with many more to come.
ABOUT VENTURE DEVELOPMENT CORPORATION
VDC is a technology market research and strategy firm. We have over 30 years of experience in providing market research, strategic analysis and consulting services to technology companies worldwide. VDC offers its clients a wide variety of research solutions tailored to meet their strategic business needs. These include highly customized consulting engagements, ongoing research services and select industry investigations. Through our considerable industry contacts, we also provide services related to acquisitions and the generation of key account leads.
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