MarketEye: The Market for High Voltage Resistors

11.02.2009 // Posted by: Dennis Zogbi // Posted in: Articles, Passives

Statements of fact and or opinions expressed in MarketEye by its contributors are the responsibility of the authors alone and do not imply an opinion of the officers or the representatives of TTI, Inc.

Basic Theme:

I have written this under the pretense that electronic component manufacturing is continually being diverted away from the United States, Western Europe and Japan in favor of low-cost regions such as China. This has placed less emphasis on the mass production of resistors in NAFTA, as mass consumption has now moved offshore, and logically, component production has followed suit. This is not a new concept; as the transition to a value-added and application specific supply chain in NAFTA has been going on for more then two decades. The last great migration of the electronics supply chain to China began after the last economic down cycle in 2001. In 2010, we fear that even what remains will be threatened with movement to China. What we thought was at one time sacred, such as NAFTA production of automotive electronics, now seems less certain. This will place more emphasis on only those market segments that support true value added efforts in critical markets. This MarketEye article looks at one narrow segment in this market- the high voltage resistor for operating voltages greater then 1 kilovolt- that continue to remain viable and lucrative market segments in the NAFTA region. These markets are typically not price, but quality sensitive; and therefore require precision manufacturing and advanced testing capabilities that are difficult to emulate and subsequently requires massive capital investment or a strategy for acquisition of a company that does have that in-house capability and expertise.

High Voltage Resistor Technologies and Capabilities by Type> 1kV:

The highest voltage resistors are manufactured from either metal oxide (glaze), or from carbon film. Oxide products are available up to 125 kV (and even higher, with European products now available up to 400 kV). The metal alloy/foil resistors go to 15 kV, while carbon film matches the operating voltage of oxide.

Metal Oxide/Metal Glaze Resistors:

The axial leaded metal oxide (usually a variation on tin or copper) resistor has the broadest coverage in terms of operating voltage other then carbon film. It is the largest product market for resistors greater than 1 kV operating voltage. There are approximately 15 vendors competing for share. Metal oxide varistors cover the range of voltages from 1 kV to 125 kV, with some European variations as high as 400 kV. Many companies produce proprietary oxide solutions in house and make patented claims on these materials.

Carbon Film Resistors:

Carbon film resistors also cover a wide gamet of voltages, including up to 125 kV. Carbon film resistors have largely been replaced by metal oxide resistors in low voltages, but in high voltage the market is still viable.

Thick Film SIP Divider Networks:

The thick film single-in-line package resistor “network” is in fact a thick film on ceramic or steel configuration. The single in-line package design is typically sold in conjunction with the tin oxide axial resistor for applications in high voltage power supplies. Many of the same companies who sell axial leaded oxide or metal glade high voltage resistors also sell the SIP network.

Metal Alloy/Metal Foil Resistors:

The metal alloy or metal foil resistor also competes in the high voltage axial leaded markets, although the product line typically maxes out at 10 kV.

Thick Film Chip:

High voltage thick film chip resistors are applicable up to 3 kV and this is an area of growth in the industry.

Power Applications for High Voltage Resistors: 2009

It is important to note that the majority of applications for high voltage resistors, regardless of configuration or performance characteristic, are consumed in the input and output filters of specialty high-end switch mode power supplies and DC/DC converters.

Power Applications for High Voltage Resistors: 2009

It is important to note that the majority of applications for high voltage resistors, regardless of configuration or performance characteristic, are consumed in the input and output filters of specialty high-end switch mode power supplies and DC/DC converters.

Specialty Power Supplies:

• Defense Electronics
• • Pulse Forming/Radar
  • Missile Power Up
  • Night Vision
  • Concentric Warfare
  • Research & development
  • Satellite Electronics
  • Spacecraft Electronics
  • Remote Measuring
• Telecommunications Infrastructure
• Broadcasting Transmitters
• Medical Electronics
• Test & Scan Equipment
• Defibrillators
• Other Implantable Devices (Emerging)
• Laboratory Test Equipment
• Laser Power Supply
• Co2 Pumped Laser (Burst)
• Oil well Services Sensors
• Down hole Pump High Voltage
• Other Specialty Markets
• Airport Security Systems

It is important to note this because the power supply manufacturers are the consumers of the high voltage resistors, who in turn sell their power supplies to major customers in each segment.

In certain instances however, these high voltage components are consumed directly on printed circuit boards by the major OEMs. Such examples would include undersea cable repeaters, medical devices, instrumentation and defense electronics, who would consume high voltage resistors for their PCBs in addition to consuming resistors directly on the PCB.

Variations on the High Voltage Resistor: High Frequency and High Temperature Applications:

Many applications for high voltage resistors > 1 kV also include extreme requirements with respect to either high frequency > 1 Ghz or high temperature > 150 degree C operation. The added specifications for frequency and operating temperature add value to the high voltage component. This is especially true for defense communications and for oilwell services industries and in some instances, may push the price of the high voltage resistor from an average of $3.00 per unit upwards to $150.00 per unit.

High Voltage and High Frequency Applications:

The following table illustrates many applications for electronic systems in very high frequency applications. The reader should note that we are making specific reference to applications in the chart that require both high voltage and high frequency operation, and in many instances, these applications are defense related. However, key markets for high voltage resistors, such as medical imaging and semiconductor manufacturing equipment (as well as airport security systems) also require the resistor to operate at higher frequencies, which adds value to the overall component.

High Voltage and High Temperature Applications:

In two major segments- defense and oilwell electronics, there may be additional requirements that add value to the component. These include high frequency application greater than 1 Gigahertz, and operating temperature range that can go as high as 300 degrees C.

90% of all applications for high temperature resistors > 1 kV are for oil well services and down hole pump markets. Paumanok makes a distinction and leaves out the massive under the hood markets for resistors especially for engine control units, but these are rated to 125 degrees C, and although an extremely valuable portion of the market, not on the fringe of the true value-added and application specific segment if we look at prices and operating margins. We mention the automotive markets here because the trend toward electrification of the powertrain in automobiles and in class 7 and 8 offroad trucks to create hybrid electric vehicles is of interest to the high voltage resistor manufacturers. The typical hybrid electric platform for the powertrain operates at 750 Vdc and exposes the components to substantial vibration frequencies and requires a substantial amount of corrosion resistance in the components. The other area of new interest is in braking resistors that are designed to recoup energy in hybrid designs.

The other 10% of the market 200 to 300 degrees C (and higher) is aerospace, satellite and spacecraft (where skin temperatures may reach as high as 1000 degrees C). However, most demand is for a maximum of 300 degrees C in defense applications due to the addition of component and power supply shielding.

Multiple Opportunities─High Voltage, High Frequency, High Temperature:

One key market opportunity where vendors can maximize their profitability in 2010 is in high voltage applications for airport security equipment which operates at both high voltage and high frequency. Airport security is a major portion of the spending plan for both China and USA economic stimulus packages. Medical test and scan equipment produced in NAFTA also remains a critical growth market as the technology remains domestic and is an area of anticipated continued innovation.

Circuit Applications by End-Market For High Voltage Resistors > 1 kV:

The following chart illustrates the majority of circuit applications for high voltage resistors for applications greater than 1 kV.

Capacitor Charge/Discharge Circuits:

The reader will note in the chart below that we note 14 instances of circuit applications for capacitor charge and discharge circuits requiring high voltage resistors. In terms of circuit applications, capacitor charge and discharge is a major circuit requiring high voltage resistors in multiple end-use markets, including power related devices (the largest market) such as power conditioning equipment, frequency converters, high voltage power supplies and RF power generators. Other markets requiring high voltage resistors for capacitor charging circuits include motor controllers, medical equipment, defibrillators, semiconductors, circuit breakers and relays and lasers.

Soft Start/Surge/Current Limit:

Other circuits requiring high voltage resistors > 1 kV include soft start, surge protection and current limiting applications in welding, motor controllers, power related devices, relays and circuit breakers, laser power supplies and high voltage power supplies. We note 7 specific circuit applications requiring high voltage resistors as is shown in the table below.

Snubber Circuits/Transient Protection/Harmonic Filtering:

Circuit protection at high voltages is also a recurring theme noted during our research. Snubber circuits, high voltage surge protection (also note the gas discharge tube applications as a separate item in the table below) and harmonic filtering for applications in motor controls, power related devices and lasers are also an important circuit application for high voltage resistors.

Tube Arc Protection:

Protection of gas filled tubes from overvoltages require circuitry containing high voltage resistors. This includes the broad markets for gas discharge tubes which are typically consumed in telecommunications central office and station class equipment. CATV broadcast antennas and medical electronics (especially medical scan equipment) require high voltage resistors > 1 kV.

Dummy Loads:

“Dummy load” circuits also require high voltage resistors primarily in broadcast equipment and radio frequency power related designs.

Inverter/Rectifier Circuits:

High voltage inverters and rectifiers require high voltage resistors primarily for applications in welding equipment and in specialty motor controllers.

Wave Form Loads:

Surge protection test equipment operates at extremely high voltages in order to test equipment to meet IEC specifications and Telcordia specifications for overvoltage protection. The wave forms are typically fast and furious and require high voltage resistors.

Dynamic Braking:

Dynamic braking for applications in DC motors, especially for hybrid electric motors, is a fast growing portion of the high voltage resistor market.

Market Opportunity and Outlook: 2010-2015

The market outlook for high voltage resistors remains excellent over time. Opportunities exist for high voltage resistors in multiple markets around the world because of similarities and overlap between economic stimulus packages in the USA, China and Europe. Opportunities of note include high voltage, high frequency power supplies for airport security equipment which is outlined in both the USA and China as areas of heavy funding. The same stimulus packages will also drive demand for high voltage resistors for applications in renewable energy systems and for upgrades to the existing power transmission and distribution grids in industrialized nations and emerging economies (China, Brazil, India and Russia). We also expect that as the global economy improves, costs for raw materials, especially fuel and rare earth metals will generate increased spending for prospecting, new wells and new mines. This will in turn create increased demand for high voltage resistors consumed in mining electronics and down hole pump electronics. Other areas of continued growth are anticipated in medical test and scan equipment markets, where technological breakthroughs in imaging should create perpetual opportunities for application specific component vendors.

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