The Asia-Pacific region accounted for 68.6 percent of a $9 billion worldwide power-supply and power-management integrated-circuit (IC) market in 2005, according to market forecaster Venture Development Corp. (VDC) in Natick, Mass.

The Asia-Pacific market not only is the largest regional segment, but also is forecast to increase the fastest at a 14.2 percent compound annual growth rate (CAGR) thorough 2010, when it will account for 70 percent of a substantially larger worldwide market of 16.7 billion, VDC analysts say.

The Americas and Europe-Middle East-Africa markets are forecast to increase at more than 10 percent CAGRs through 2010, yet both will lose worldwide market share due to the higher growth rate of the Asia-Pacific region.

VDC released its findings in the fifth edition of the company’s global market analysis for power supply and power management ICs.

Regional observations also revealed in the research also say the Asia-Pacific region is the electronics-manufacturing center of the world for most of the products and equipment that use these ICs, and it continues to build on this strong position.

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The emergence of China and India as viable locations for OEMs to relocate their production operations is contributing to the region’s already large share of worldwide electronics manufacturing conducted in Japan, South Korea, Taiwan, and other countries.

Furthermore, growth is because of the many upsides of moving electronics production to countries such as China, VDC analysts say. China is fueling much of the growth in this region as the large markets in Japan, South Korea, and Taiwan are much more mature and somewhat stagnant.

The most obvious benefit of manufacturing in China is the favorable labor market, which makes major labor cost savings possible.

The potential of a large domestic market in China fueled by the country’s large population also makes it an attractive location for OEMs. As China emerges as an electronics production leader, the skills and education of the workforce are increasing, which make moving production there even more attractive. This provides increases in productivity and quality, attainable at low labor costs.

Electronics production is also increasing in India, yet that country is expected to continue as more of a center for low-cost design work and will trail China in growth of electronics manufacturing. There are many designs undertaken in India for which the manufacturing is done China, and this will increase.

For more information on the report, contact VDC online at www.vdc-corp.com/power/annual/05/br05-27.html.