KVM cables

	The AS7116UDL KVM switch from Shanghai Shigao has a 17in LCD monitor. It is made of aluminum alloy and steel.

Enterprise sectors sustain the growth of the segment, but entry-level units are making inroads.

China has a small KVM switch supply market comprising only 20 suppliers, most of which were agents or traders of KVM switches before starting production of low-end units. Technology requirements have kept many potential suppliers from joining the fray.

Small supplier base and technology hurdles notwithstanding, China’s KVM switch market has been growing steadily in the past years. Supply now comprises low-end to high-end models catering to a broader range of users, which now includes enterprises as opposed to just home users in the early stages of the product line.

The globalization of business, rising adoption of IP-based remote server management and distributed remote management architecture all contribute to the growth in China’s KVM switch industry. Maturing technology for making traditional KVM switches and expanding applications also help fuel product development. Even entry-level servers are making inroads into the enterprise market, boosting supplier interest in the line. In addition to rising revenue from sales of external and rack-mount models, KVM switch makers are also finding growth momentum in the embedded/internal KVM module segment. KVM technology’s penetration of the banking and finance sector, large data centers and government facilities will further boost the line in the region.

Current product development initiatives in China are centered on LCD KVM and IP KVM switches. The high technology threshold for IP KVM switch development remains a challenge for some makers, but this sector is nonetheless seen as the most promising in China’s KVM switch market. Large-scale suppliers, which target the enterprise market, expect adoption of IP KVM switches to pick up pace in the next two years. The demand upturn will encourage more makers to enter the line, which will stoke product development and manufacture.

China makers produced about 70,000 KVM switches in 2008. Low-end models dominated last year’s supply with a 55 percent share of production. Midrange and high-end models accounted for 30 percent and 15 percent, respectively.

In 2009, makers expect output to increase by at least 5 percent, with low-end models forecast to make up the bulk of supply.

Many suppliers, on the other hand, are keeping production steady in 2009. Shanghai Shigao Technology Co. Ltd, for instance, expects a stable output. The company produces 3,500 KVM switches a month against 10,000-unit monthly capacity.

Makers of KVM switches in China mainly pursue OEM and own-brand businesses, respectively sharing 55 percent and 45 percent of the export volume. Only a few makers provide ODM services.

Notwithstanding the global economic crisis, makers are gearing up to explore markets in Europe, the United States, the Middle East and Southeast Asia. Exports accounted for about 40 percent of Evak Technology Co. Ltd’s annual sales of KVM switches in 2008. This year, the company is targeting new markets in Australia, the Middle East and Southeast Asia.

Along with overseas market expansion, makers in China are also broadening their product offerings in 2009. Databay Technology Co. Ltd, which provides low-end to high-end KVM switches, plans to start offering customized products in the months ahead.

	The DS LCD KVM switch from Evak has a 17in LCD monitor and supports remote access to computers via LAN, WAN or the Internet. It features a security mode.

The growing demand for servers is spurring the development of KVM switches with more ports, high compatibility and fast switching speed. IP KVM switches are likewise gaining the support of more suppliers. Makers’ product development strategy relies mostly on the type of customers they cater to, with most companies able to customize products based on buyer specifications.

KVM switches designed for the entry-level market have fewer ports than models targeted at enterprises. Low-end and midrange KVM switches are usually two-port and four-port models suitable for small-scale enterprises and personal users. Most KVM switches designed for enterprises have eight to 16 ports. Some of these high-end models feature built-in IP modules.

Most companies that have set their sights on the enterprise sector are large players. As of 2008, there were about 10 China suppliers providing IP KVM switches.

In addition to IP capability and support for more ports and devices, more companies are gearing toward better resolution and product compatibility. In 2009, most suppliers will focus on upgrading applications and OS. Some companies will also be enhancing industrial design and product features to be able to support new services. Shenzhen CKL Technology Co. Ltd, whose products cater to small- and medium-scale enterprises and personal users, said it will continue upgrading its midrange offerings and improve product compatibility and stability. The company supplies two-port and four-port KVM switches.

Models with built-in LCD monitors are also becoming a trend. 17in LCD monitors were used in most KVM switches with screens in 2008. Makers plan to release units with widescreen 19in LCD monitors in 2009.

Some companies are emphasizing ease of installation in their new designs. High-end KVM switches provider Evak, for instance, has released models with easy-installation rack mount kits. Most of the KVM switches from the company are 1U high rack-mountable kits with slide rails. Some of its models have slide rails with automatic unlock function.

	The 84UP from Shenzhen CKL supports DOS, Win 3X, Win95/98/98SE/2000ME/XP, WinNT, Netware, Unix and Linux. Its maximum resolution is 1920x1440 pixels.

China makers of IP KVM switches directly purchase the IP module from suppliers or buy the chip and finish the circuit design in-house. Chips are generally sourced from the US, the United Kingdom and Germany. Most makers use chipsets from German Raritan Inc. and US’ Analog Devices. German Raritan also provides IP modules.

Since the IP module is a standalone PCB, one IP KVM switch combines one traditional PCB and one IP module. So companies normally conduct compatibility tests between the traditional PCBs and IP modules.

Makers source IP modules from the US and Europe. There are a few IP module suppliers in China, but technology considerations drive most KVM switch makers to source from overseas suppliers. Some companies, such as Databay, purchase the chip and develop the IP module in-house.

The IP module accounts for about 40 percent of the cost of making an IP KVM switch without an LCD monitor. As of H2 2008, the cost of an IP module ranged from $300 to $350. Makers project prices will be stable in 2009.

In terms of industrial LCD panels, cost dropped by 25 percent in Q2 and Q3 2008, which encouraged makers of KVM switches with built-in LCD monitors.

Taiwan, one of the major supply centers for KVM switches, supplies rack-type units and models with LCD monitors. Makers are setting their sights on the enterprise, SOHO and home market segments.

Among the leading suppliers of KVM switches in Taiwan is Aten Technology Inc., which has in-house ASIC and chipset design capability to ensure product compatibility with multiple devices. According to Aten, supply of high-end models for enterprises is growing.

KVM switches for enterprise use support multiple users, remote control and expansion flexibility. Graphic OSD is widely adopted to enable a user-friendly interface. Most models, including units for SME applications, have eight to 16 ports. Two- and four-port KVM switches are mostly targeted at the SOHO segment.

These two- and four-port models are generally positioned as entry-level KVM switches. Entry-level models also support A/V connectivity or other value-added features such as P/S2, USB and audio interfaces. Midrange models are typically equipped with eight to 16 ports. High-end models have 16 to 32 ports. These units support IP connectivity and multiple administrators. Many high-end models come with LCD monitors.

Strong demand for remote applications on servers is driving the IP KVM switch sector in Taiwan. IP-based KVM switches, which are now mostly used in SMEs, enterprises and data servers, can support up to 32 ports. High-end models in this category can support up to 512 computers.

Upcoming value-added features being emphasized by makers include 1080p resolution to support home multimedia. Available KVM switches feature 1600x1200 pixels at 60Hz and 1280x1024 pixels at 75Hz.

Europe, North America and Asia are the major export markets. Due to the global economic crisis, makers expect growth in these regions to slow down. To maintain strong sales, they are eyeing expansion to Eastern Europe, mainland China, India and the Middle East, where demand is expected to remain on an upward trend.