USD 43.25 billion
Report ID:
SQMIG45J2199 |
Region:
Global |
Published Date: September, 2024
Pages:
197
|Tables:
65
|Figures:
75
Power Electronics Market size was valued at around 43.5 billion in 2022 and is expected to rise from USD 46.1 billion in 2023 to reach a value of USD 71.3 billion by 2031, at a CAGR of 5.6% over the forecast period (2024–2031).
The global power electronics market is a rapidly growing industry encompassing a range of electronic components and systems designed to efficiently convert and regulate power in various applications. The purpose of the market is to provide innovative solutions for power management in industries such as automotive, aerospace, energy, and healthcare, among others. One of the key drivers of the power electronics market is the growing demand for energy-efficient solutions, which is being driven by the need to reduce carbon emissions and combat climate change. The use of power electronics in various industries can significantly improve energy efficiency, reduce energy consumption, and lower operational costs, thereby creating a strong demand for these products. Another important driver of the market is the increasing adoption of renewable energy sources, such as solar and wind power, which require sophisticated power management systems to ensure reliable and efficient operation. As the demand for renewable energy continues to grow, so does the demand for power electronics solutions. However, the market also faces some significant challenges, including the high cost of some power electronics components and the complexity of designing and implementing these systems. The lack of standardization and regulatory frameworks can also pose barriers to market growth. Despite these challenges, several key trends drive growth in the power electronics market. One such trend is the increasing use of wide bandgap semiconductors, which offer superior performance and efficiency compared to traditional silicon-based devices. Another important trend is the integration of power electronics into the Internet of Things (IoT) ecosystem, enabling smart, connected devices that can monitor and manage power consumption in real time.
Global Market Size
USD 43.25 billion
Largest Segment
Module
Fastest Growth
Module
Growth Rate
6.8% CAGR
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Global Power Electronics Market is segmented by Device type, Material, Voltage, current level, Wafer Size, Application, Vertical, and region. Based on Device type, the market is segmented into Power Discrete (Diode, Transistors, Thyristor), Power Module (Intelligent Power Module, Standard and Power Integrated Module (MOSFET Module, IGBT Module), Other Modules, Power IC (Power Management IC, Application Specific IC). Based on Material, the market is segmented into Silicon (SI), Silicon Carbide (SIC), Gallium Nitride (GAN). Based on Voltage, the market is segmented into Low Voltage, Medium Voltage, High Voltage. Based on Current Level, the market is segmented into Up To 25A, 25A To 40A, Above 40A. Based on Wafer Size, the market is segmented into 200 mm and Less Than 200 mm, Above 200 mm. Based on Application, the market is segmented into Power Management, Drives, UPS, Rail Traction, Transportation, Renewables, Others. Based on Vertical, the market is segmented into ICT, Consumer Electronics, Industrial, Automotive & Transportation, Aerospace & Defense, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Power Electronics Market Analysis By Type
The module type dominated the power electronics market. In 2022, the module type accounted for over 50.4% of the total market share. Power electronics modules are widely used in various applications such as renewable energy systems, electric vehicles, and industrial automation. The module type offers several advantages over other types, including high efficiency, low thermal resistance, and a smaller form factor. These features make power electronics modules preferred for high-power and high-voltage applications.
Now moving on to the fastest-growing segment, the IC (integrated circuit) type is expected to witness significant growth in the coming years. The IC type is projected to grow at a CAGR of around 10.2% between 2023 and 2030. ICs offer several benefits over other types, such as reduced complexity, higher efficiency, and improved reliability. The increasing demand for power electronics in consumer electronics, automotive, and industrial sectors is driving the growth of the IC type. Moreover, the rising trend of electric and hybrid vehicles is expected to further boost the demand for ICs in the power electronics market.
Global Power Electronics Market Analysis By Application
The automotive sector dominated the power electronics market, accounting for a substantial portion of its revenue. As the automotive industry continues to undergo a major transformation, power electronics plays a pivotal role in the development of electric vehicles (EVs) and hybrid electric vehicles (HEVs). The demand for cleaner and more efficient transportation solutions has surged in recent years, and power electronics have emerged as a key enabler in this transition. With the increasing adoption of EVs and HEVs, power electronics components such as inverters, converters, and motor drives have become integral to these vehicles' functionality. These components manage power flow, convert and control electrical energy, and optimize the performance of the vehicle's electric powertrain. The automotive segment's reliance on power electronics is expected to escalate further as governments worldwide implement stringent emissions regulations and promote sustainable mobility solutions.
Consumer electronics is the fastest-growing segment of the power electronics market. This segment has witnessed remarkable growth in recent years, driven by the proliferation of smartphones, tablets, wearables, and other portable devices. Power electronics technology plays a vital role in enhancing these consumers’ electronic devices' performance, battery life, and charging capabilities. The escalating demand for high-performance and energy-efficient consumer electronics, coupled with the rising adoption of emerging technologies such as 5G connectivity, artificial intelligence (AI), and the Internet of Things (IoT), has created a significant surge in the consumption of power electronics. These devices require efficient power management systems, voltage regulation, and power conversion capabilities to meet the demands of modern consumers. Furthermore, the increasing integration of advanced features and functionalities in consumer electronics products necessitates sophisticated power electronics solutions. These solutions ensure optimal power utilization, enable fast-charging capabilities, and enhance overall user experience. The consumer electronics segment's rapid growth is fueled by the ever-evolving consumer preferences, the constant need for technological innovation, and the expanding global consumer base.
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Asia Pacific stands out as the dominating region in the global power electronics market. With its robust industrial base, technological expertise, and vast consumer market, the region has established itself as a powerhouse in the industry. Countries such as China, Japan, and South Korea have been at the forefront of driving the growth in power electronics. Asia-Pacific's dominance can be attributed to several factors. First, the region has witnessed a surge in manufacturing activities, particularly in sectors like automotive, consumer electronics, and renewable energy. Power electronics play a critical role in these industries, contributing to the overall demand. Furthermore, the region's rapid urbanization and infrastructure development have increased the need for efficient power management and distribution systems, driving the demand for power electronics solutions. With a growing emphasis on energy efficiency and sustainability, governments in the region are actively promoting the adoption of power electronics technology to optimize energy consumption and reduce carbon emissions.
While Asia-Pacific dominates the global power electronics market, North America emerges as the fastest-growing region. The region's advanced economies, technological innovation, and a strong focus on research and development contribute to its accelerated growth in the power electronics industry. North America's fast-paced growth is fueled by various factors. First, the region has a thriving automotive sector, particularly in electric vehicles (EVs) and hybrid electric vehicles (HEVs), where power electronics systems are integral components. The increasing adoption of EVs and HEVs, driven by environmental concerns and government incentives, has created a robust demand for power electronics solutions. Moreover, North America has a well-established renewable energy sector, with a significant emphasis on solar and wind power generation. Power electronics play a crucial role in integrating renewable energy sources into the grid and ensuring efficient power conversion and distribution. The region's push towards clean energy has resulted in a surge in demand for power electronics solutions. Additionally, the growing digitization and automation trends in industries such as manufacturing, healthcare, and information technology are driving the need for advanced power electronics systems. These systems enable efficient power management, control, and protection, ensuring optimal performance and reliability in complex applications.
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Global Power Electronics Market Drivers
Increasing demand for energy-efficient solutions
Growing adoption of renewable energy sources
Global Power Electronics Market Restraints
High development and manufacturing costs
Thermal management challenges
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The Global Power Electronics Market is highly competitive and consists of a diverse range of companies operating in various segments of the industry. Some of the key players in the global power electronics market are involved in the development, manufacturing, and distribution of power electronic components, systems, and solutions. They compete on factors such as product performance, reliability, cost-effectiveness, and innovation. In addition to these established players, there are also several emerging companies and startups that are actively participating in the power electronics market. These companies often focus on specific niches or offer novel technologies, contributing to the competitive landscape. The competition in the power electronics market is driven by various factors, including technological advancements, increasing demand for energy-efficient devices, government regulations promoting renewable energy sources, and the growing adoption of electric vehicles. Companies strive to differentiate themselves by offering advanced power semiconductor devices, power management solutions, and customized power electronics solutions to meet the specific needs of different industries. Partnerships, collaborations, and acquisitions are common strategies employed by companies in the power electronics market to expand their product portfolios, enhance their technological capabilities, and gain a competitive edge. Additionally, companies invest significantly in research and development activities to develop new products and improve existing ones.
Top Player’s Company Profiles in Global Power Electronics Market
Global Power Electronics Market Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our Global Power Electronics Market analysis, the market is experiencing robust growth and is expected to continue expanding in the coming years. The market is being driven by factors such as the increasing demand for energy-efficient devices, the growing adoption of renewable energy sources, and the rising need for power management in various industries. The proliferation of electric vehicles, the development of smart grids, and the deployment of advanced power systems in aerospace and defense sectors are also contributing to the market's growth. Additionally, technological advancements, such as the integration of power electronics in consumer electronics, industrial machinery, and healthcare equipment, are further fueling market expansion. However, the market faces challenges related to high initial costs and complex design requirements. Overall, the power electronics market is poised for significant growth opportunities, driven by the need for efficient power management solutions across various sectors.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 43.5 billion |
Market size value in 2031 | USD 71.3 billion |
Growth Rate | 5.6% |
Base year | 2023 |
Forecast period | 2024–2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Power Electronics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Power Electronics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Power Electronics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Power Electronics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Power Electronics Market size was valued at around USD 43.5 billion in 2022 and is expected to rise from USD 46.1 billion in 2023 to reach a value of USD 71.3 billion by 2031, at a CAGR of 5.6% over the forecast period (2024–2031).
The Global Power Electronics Market is highly competitive and consists of a diverse range of companies operating in various segments of the industry. Some of the key players in the global power electronics market are involved in the development, manufacturing, and distribution of power electronic components, systems, and solutions. They compete on factors such as product performance, reliability, cost-effectiveness, and innovation. In addition to these established players, there are also several emerging companies and startups that are actively participating in the power electronics market. These companies often focus on specific niches or offer novel technologies, contributing to the competitive landscape. The competition in the power electronics market is driven by various factors, including technological advancements, increasing demand for energy-efficient devices, government regulations promoting renewable energy sources, and the growing adoption of electric vehicles. Companies strive to differentiate themselves by offering advanced power semiconductor devices, power management solutions, and customized power electronics solutions to meet the specific needs of different industries. Partnerships, collaborations, and acquisitions are common strategies employed by companies in the power electronics market to expand their product portfolios, enhance their technological capabilities, and gain a competitive edge. Additionally, companies invest significantly in research and development activities to develop new products and improve existing ones. 'Infineon Technologies AG ', 'ON Semiconductor (Semiconductor Components Industries, LLC) ', 'STMicroelectronics ', 'Mitsubishi Electric Corporation ', 'Vishay Intertechnology, Inc. ', 'Fuji Electric Co., Ltd. ', 'NXP Semiconductors ', 'Renesas Electronics Corporation ', 'Texas Instruments Incorporated ', 'Toshiba Corporation ', 'ABB ', 'Littelfuse, Inc. ', 'Analog Devices, Inc. ', 'Microchip Technology Inc. ', 'ROHM Co., Ltd. ', 'Transphorm Inc. ', 'Qorvo, Inc. ', 'Wolfspeed, Inc. ', 'Navitas Semiconductor ', 'Efficient Power Conversion Corporation'
One of the major drivers of the power electronics market is the growing demand for energy-efficient products and solutions. With a focus on reducing energy consumption and minimizing carbon emissions, industries and consumers are adopting power electronics devices that optimize power usage and improve energy efficiency. For example, in the automotive sector, the rising demand for electric vehicles (EVs) has fueled the need for power electronics systems, including inverters and converters, which efficiently manage the flow of electrical energy from the battery to the motor, enhancing the overall energy efficiency of the vehicle.
Wide bandgap (WBG) semiconductor materials: Wide bandgap materials such as silicon carbide (SiC) and gallium nitride (GaN) are gaining prominence in power electronics applications. WBG semiconductors offer advantages over traditional silicon-based devices, including higher breakdown voltage, faster switching speeds, lower power losses, and higher operating temperatures. These properties enable the development of more compact, efficient, and high-performance power electronics systems. For example, WBG-based power devices are being used in electric vehicle charging infrastructure, renewable energy inverters, and industrial motor drives.
Asia Pacific stands out as the dominating region in the global power electronics market. With its robust industrial base, technological expertise, and vast consumer market, the region has established itself as a powerhouse in the industry. Countries such as China, Japan, and South Korea have been at the forefront of driving the growth in power electronics. Asia-Pacific's dominance can be attributed to several factors. First, the region has witnessed a surge in manufacturing activities, particularly in sectors like automotive, consumer electronics, and renewable energy. Power electronics play a critical role in these industries, contributing to the overall demand. Furthermore, the region's rapid urbanization and infrastructure development have increased the need for efficient power management and distribution systems, driving the demand for power electronics solutions. With a growing emphasis on energy efficiency and sustainability, governments in the region are actively promoting the adoption of power electronics technology to optimize energy consumption and reduce carbon emissions.
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Report ID: SQMIG45J2199
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