Across the board, 2017 saw impressive growth for firms within the power supply market.
This was confirmed a little earlier this month, when market leader XP Power revealed a huge boost in fourth quarter revenue on the back of significant demand.
In this post, we’ll explore these findings in further detail, while asking what this means for the immediate future of the power supply market.
The Facts and Figures – How XP Power Excelled in 2017
In simple terms, the firm announced a quarterly revenue increase of 16%, with turnover peaking at £43.2 million. Over all, this hike represented a 29% increase in revenue for the year, highlighting the incredible growth that has underpinned the firm throughout 2017.
Although the acquisition of Comdel prevented the firm from realising the potential profitability of this turnover, it was interesting to note that the company’s annual order intake increased by 38% year-on-year. In total, incoming orders achieved a cumulative value of £184.3 million, helping the firm to minimise losses in the wake of a high value acquisition.
How XP Power Continues to Benefit from Rising Demand – What Does this Mean for the Power Supply Market
This sustained increase in demand remains a cause of significant optimism for the business in 2018, as the company enters the New Year with considerable momentum and genuine hope of boosting its order book further in the near-term.
The question that remains, of course, is why companies such as XP Power have benefited from such considerable demand in recent times? The answer to this is two-pronged, and it starts with the emergence of AC-DC convertors as increasingly accessible and affordable power supply solutions. The conversion of AC-DC lends itself to high power applications, while creating the type of uninterruptible power supply that optimise business efficiencies and performance in the digital age.
At the same time, we’ve seen big data and the sustained growth of the Cloud drive a huge expansion in server capacity. In order to increase the capability and performance of their servers and effectively handle large swathes of data, businesses have continued to invest in AC and DC convertors across the length and breadth of the UK. With both smaller companies and larger consumers adopting different approaches in how power is transferred, with a focus on saving on energy, the benefits will be reaped by both. Operating in the UK and in the states, international stocks are at a high as reported in Stock Market Wire as firms continued to invest in the impact XP Power’s products have on company systems.
The combination of these factors has had a strong decisive impact in the power supply market, creating increased product demand and the type of advanced technology that can empower businesses to leverage big data and achieve a competitive advantage. As one of the market leaders in this field, XP Power have been able to consistently meet such an exalted demand, while continuing to research and develop new products for the marketplace. XP Power are continuing to prove doubters wrong with their growth in Defense and Avionics and the Healthcare industry, to date.
Markets firmly expect this trend to continue throughout 2018, while XP Power may also see such sustained growth finally deliver a viable increase in profitability.
Founder Dinis Guarda
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