Power Electronics Market Size

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.

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.