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Power Electronics Market Size
Power Electronics Market size crossed USD 25 billion in 2022 and is anticipated to expand at over 5.5% CAGR from 2023-2032. The growing emphasis on renewable energy for power generation due to increasing concerns associated with climate change and fossil fuel emissions will influence the power electronics industry dynamics.
Leading power generation companies worldwide are undertaking aggressive steps to accommodate renewable technologies and achieve zero-emission targets, offering lucrative business prospects for the manufacturers of power electronics. These industry players are also spearheading innovations and advancements to offer superior efficiency.
The rapid adoption of photovoltaic (PV) systems and grid-tied renewable energy setups is accelerating the need for power models capable of supporting high-efficiency power inverters. This increasing dependence on power modules can be attributed to their ability to cut down costs per watt and optimize power extraction from solar panels. They also offer fault detection and help in managing the control over converters and inverters efficiently.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 25 billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 5.5% |
| 2032 Value Projection: | USD 40 billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 250 |
| Tables, Charts & Figures: | 203 |
| Segments covered: | Product, Application |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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High complexity of power electronics may impede product demand
Manufacturing of power discrete components and modules is a highly complex process and increases the risk of technical errors, hampering further developments in the power electronics market. Certain procedures, such as the deposition of Gallium Nitride (GaN) on silicon materials is difficult to achieve under high-voltage conditions. However, the growing preference for GaN and Silicon Carbide (SiC) for low power losses, as well as higher switching frequency and temperature, will offer the potential for improved manufacturing processes. The increasing efforts essayed by market participants to simplify operations through technological interventions could help the industry overcome the current limitations.
Power Electronics Market Analysis
Power electronics market size from industrial applications is expected to exhibit over 5.5% CAGR between 2023-2032. Power modules have extensive industrial applications considering their significant usage in energy-intensive operations that involve moving cranes, Voltage/Current (V/I) monitoring in conveyor belts, industrial rollers, motor drives, smart meters, and forklift trucks. The rising adoption of electrically-powered forklift trucks and mobile cranes is also expected to favor segment growth over the projected timeframe. Furthermore, industrial facilities rely heavily on heavy machinery for day-to-day operations and showcase massive energy needs, representing a higher demand for power electronic products.
Power electronics market size from discrete product segment is poised to record a 4.5% CAGR from 2023-2032. Power discrete devices are widely used across the transportation, power grid, energy, and automotive sectors to reduce power consumption across different industrial applications to facilitate low-noise operations. The rapid adoption of these products can also be accredited to their high efficiency, lower heat generation, voltage regulation, and robust protection from short circuits and electrocution. The introduction of next-generation high-voltage power discrete devices for automotive applications will positively influence the industry outlook.
The discrete segment is classified into rectifiers, metal-oxide-semiconductor field-effect transistors (MOSFET), bipolar junction transistors (BJT), thyristors, and insulated-gate bipolar transistors (IGBT). The industry share from MOSFET is anticipated to reach over 30% by 2032. MOSFET devices are increasingly employed and are experiencing significant technological evolution as they offer improved energy efficiency, low noise operations, and compact package size.
Asia Pacific recorded more than 55% of the total market share in 2022 and is expected to emerge as a major hub for power electronics due to the increasing penetration of electric cars across countries such as Japan, China, and India. For instance, in 2021, the EV penetration in China soared from 6% in 2020 to 13%. The country also recorded the strongest EV sales in 2021, as per the International Energy Agency (IEA).
The advent of electrification in the automotive sector is emphasizing the need for modules required for power controllers, electric traction motors, DC-DC converters, and onboard chargers. Furthermore, the expanding IT sector, surging number of internet users and the ongoing developments in the field of 5G networks are propelling the demand for new data centers, indicating the substantial need for power electronics.
Power Electronics Market Share
Some of the leading companies in the global power electronics industry include
- Fuji Electric Co. Ltd.
- NXP Semiconductor N.V.
- Mitsubishi Electric Corporation
- ON Semiconductor Corporation
- STMicroelectronics N.V.
- Texas Instruments Incorporated
- Infineon Technologies AG
- TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION
These companies are focusing on the expansion of their business footprint and production capacities to better meet the soaring customer needs.
Impact of the COVID-19 pandemic
COVID-19 crisis affected the power electronics market significantly with a sudden decline in demand for consumer electronics. It introduced several hurdles like massive supply chain disruptions and industrial uncertainties due to the imposition of stringent lockdowns worldwide. Electronics manufacturers reported continued delays in shipment due to the hampered global as well as domestic trade, negatively affecting the business. Furthermore, logistical delays in the renewable sector, plunging energy demand, and challenges in performing just-in-time deliveries were some of the major indicators of pandemic-induced hindrances in the power electronics industry.
The power electronics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:
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By Product:
- Discrete
- Thyristors
- Rectifiers
- Insulated-Gate Bipolar Transition (IGBT)
- Bipolar Junction Transistor (BJT)
- Metal-Oxide-Semiconductor Field-Effect Transistor (MOSFET)
- Module
By Application:
- Automotive & Transportation
- Consumer electronics
- ICT
- Industrial
- Energy
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Latin America
- Brazil
- Mexico
- MEA
- Saudi Arabia
- UAE
- South Africa
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