Hot swap controllers: Key market research findings
- Increasing deployment of SSDs propels market growth
- Telecommunications segment accounts for a majority of the market’s growth
- Key vendors – Analog Devices, Intersil, Linear Technology, Maxim Integrated, Microchip Technology, ON Semiconductor, Semtech, and Texas Instruments
Market research analysts at Technavio anticipate the global hot swap controllers market to grow at a CAGR of around 8% between 2016 and 2020. The growth of the market can be accredited to the increasing deployment of SSDs. The shipment of SSDs is growing significantly among data center customers, especially in mission-critical data center facilities. The growing construction of mission-critical facilities, such as cloud-enabled data centers will be the major contributors in terms of shipment as well as revenue. The global market is currently dominated by APAC, which accounts for more than 68% of the overall market revenue. High concentration of OEMs and ODMs in the region is expected to fuel further growth in the hot swap controllers market in APAC over the next four years.
The new market research report from Technavio presents a breakdown and analysis of the hot swap controller segments based on the end-user.
“Miniaturization of semiconductor products is the latest trend that will play a key role in the growth of this market. Industry verticals such as communication, automotive, and consumer electronics use a combination of power management semiconductor ICs and other discrete power semiconductors, either as a monolithic device or as a system in a package. The deployment of power management ICs in semiconductor devices not only enables high power conversion efficiency but also minimizes switching losses,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
At present, the telecommunications segment accounts for almost 62% of the overall market revenue to become the key revenue generating segment of the global hot swap controller market. The telecommunications segment of the market includes hot swap controllers that are used in servers, storage systems, Ethernet switches, SSDs, and HDDs. Communication service providers (CSPs) and Internet-based organizations are expected to build many hyper-scale data centers with the modern IT infrastructures such as high-density, mission-critical servers, storage area network (SAN) storage, and Ethernet switches. In terms of storage space, the increased adoption of SAN storage can be seen accompanied by network-attached storage (NAS) adoption with regard to enterprise preference and the operational requirement of the environment.
The key vendors in the global hot swap controllers market include Analog Devices, Intersil, Linear Technology, Maxim Integrated, Microchip Technology, ON Semiconductor, Semtech, and Texas Instruments. To remain competitive in the market, vendors in the market will have to meet the application-specific needs as well as ensure high performance and durability of hot swap controllers. These vendors are offering cutting edge products at low prices, compelling global giants to reduce their product prices while accelerating R&D activities to keep offering innovative products.
A more detailed analysis is available in the Technavio report, Global Hot Swap Controllers Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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