Power Electronics Market Analysis

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.