Global Hot Swap Controllers Market 2016-2020

This industry research report identifies Analog Devices, Intersil, Linear Technology, Maxim Integrated, Microchip Technology, ON Semiconductor, Semtech, and Texas Instruments as the prominent vendors in the global hot swap controllers market. This report also presents a competitive analysis of the market by end-user (computer hardware and telecommunications) and by geography (the Americas, APAC, and EMEA).

Overview of the global hot swap controllers market

Market research analysts at Technavio have predicted that the global hot swap controllers market will grow steadily during the forecast period and will post a CAGR of almost 8% by 2020. This market research analysis identifies the increasing deployment of SSDs (solid-state drive) as one of the primary growth factors for the hot swap controller market. There will be an exponential increase in the installation of SSDs in PCs and SSDs are estimated to account for almost one-third of the PC storage solutions market. The rise in demand for ultrabooks and other ultra-thin notebook PCs will drive the demand for SSDs. The constantly growing internet penetration has led to the growth of digital data, which has also increased the demand for efficient storage infrastructure to store and process data in data centers. Since data storage solution providers are one of the major consumers of hot swap controllers, this increasing demand for SSDs will subsequently augment the growth of the hot swap IC market in the next few years.

Technological advances in the recent years have led to the availability of products that incorporate multiple features on a single platform. Since computers and networking equipment use a combination of power management semiconductor ICs and other discrete power semiconductors and are constantly prone to board space restrictions. This will result in several industries such as communication, automotive, and consumer electronics demanding the need for the miniaturization of semiconductor devices. This will lead to the introduction of ultra-miniature circuits with line widths in the 10 nm range during the forecast period.

Competitive landscape and key vendors

The market is characterized by the presence of several established vendors providing hot swap controllers. Hot swap controllers are built for a specific purpose and vary only in terms of voltage and current requirements. Scope for product differentiation is very low and vendors normally compete by offering products at lower prices compared to their competitors. All the existing hot plug controller vendors have a strong product portfolio and equally compete to gain a considerable share of the market. As a result, vendor competition in the market is very high and new vendors find it difficult to enter the market. Hot swap vendors have the need to meet the application-specific needs of end-users and also have to ensure effective performance and durability of the controllers. The forecast period will also witness leading vendors investing heavily in their R&D sectors.

The prominent vendors in the market are -

• Analog Devices
• Intersil
• Linear Technology
• Maxim Integrated
• Microchip Technology
• ON Semiconductor
• Semtech
• Texas Instruments

Segmentation by end-user and analysis of the hot swap controllers market

• Computer hardware
• Telecommunications

The telecommunications market segment accounted for more than 61% of the total share of the market and dominated this industry during 2015. This segment uses hot swap controllers in servers, storage systems, Ethernet switches, SSDs, and HDDs. The construction of data centers in developing countries as well as renovations of the existing facilities will aid in the growth of the hot swap controller market in the coming years. Also, the increasing focus of communication service providers (CSPs) and internet-based organizations to build hyper-scale data centers across the world will also fuel the market’s growth.

Geographical segmentation and analysis of the hot swap controllers market

• Americas
• APAC
• EMEA

This market study estimates that in terms of geography, APAC will account for more than 68% of the total share of the global hot swap controllers market by 2020 and will also dominate this market throughout the forecast period. This is mainly due to the high concentration of OEMs and ODMs in the region. The availability of raw materials, low establishment and labor costs, and business friendly government policies will attract hot plug controller companies to start production facilities in APAC. Also, technological advances in the semiconductor technology and the presence of leading electronics manufacturing countries such as China, South Korea, Taiwan, and Japan will also fuel the growth of the market.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global hot swap controllers market?
• What are the key market trends impacting the growth of the global hot swap controllers market?
• What are the challenges to market growth?
• Who are the key vendors in the global hot swap controllers market?
• What are the market opportunities and threats faced by the vendors in the global hot swap controllers market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global hot swap controllers market?

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