market for board mount DC-DC converters is demanding in terms of quality and performance, as the companies operate in an environment where seamless continuity in operations and superior quality of available power are highly critical to their operations. In terms of the performance of DC-DC converters, the customer expectations are comparable to that of aerospace and defense customers. However, an important challenge exists in terms of price-sensitivities of customers in this market. The highly fragmented nature of the industry adds to the price-competitiveness that companies face.
The second challenge that the industry is facing is emerging trends in energy efficiency and low power consumption requirements of customers. Many countries have enforced regulations and standards that stipulate that telecommunications providers and datacenter operators in their region must use energy-efficient components and products. Companies in the market strive hard to achieve the norms specified by the regulatory bodies, along with strong demand from customers for miniaturization, efficiency, and price reduction.
Over the years, Ericsson Power Modules has become a major force to reckon with in the board mounted DC-DC converter market with a focus on the ICT (information, communication and technology) segment. The company was able to achieve its market position by adopting a continuous innovation philosophy in its product development process. Moreover, the company has demonstrated its leadership qualities through offering highly energy efficient products in the market, with performance levels even beyond those mandated by rules and regulations, said Dinkar Krishnan, Research Analyst - Energy & Power Systems at Frost & Sullivan.
Frost & Sullivan estimates that Ericsson Power Modules presently holds about three percent share of the world market for DC-DC converters, whereas its share for the low power range of DC-DC converter market is about eight percent. In the board mount DC-DC converter market, the company holds more than a 10 percent share. There has been an increase of 1.5 percent over its share five years ago. At the end of 2009 Ericsson Power Modules sales increased compared to declines of 20 percent and more for most of the companies serving in the same area, which demonstrates the company's ability to withstand the pressures of changing economic conditions on business performance.
This award recognizes Power Modules' ability to innovate, to develop high quality products and to service our customers all across the world, especially during the operating conditions of the last turbulent year. Together with our customers we have been able to find solutions that have enabled us to grow our mutual business, said Martin Hägerdal VP & Head of Power Modules. It also confirms that the Ericsson Power Modules sales channels and product portfolio are well positioned in the market to deliver the most advanced board-mounted power solutions going forward.
Ericsson's recently introduced 3E power modules concept focuses on optimizing performance, flexibility and value for the end-user. 3E stands for Enhanced Performance, Energy Management, and End-user Value - the main benefits of the concept. Ericsson becomes the first company to offer a complete range of board-mounted-products based on digital control and monitoring, and in doing so, contribute to reduce energy consumption, and CO2 emissions.