Power Semiconductor Market Size, Share, Growth Analysis, By Component(Discrete, Module, Power Integrated Circuits), By Material(Primary [Silicon, Germanium], Compound [Silicon Carbide, Gallium Nitride), By Application(IT and Telecommunication, Consumer Electronics, Automotive, Aerospace and Defense), By Region - Industry Forecast 2024-2031

Drivers

Electrification of the Automotive Industry 

• Popularity of electric vehicles and the growing use of electronics in the automotive industry are projected to be key factors driving up the demand for power semiconductors. Power semiconductors play a crucial role in managing power conversion, distribution, and motor control in electric vehicles, improving energy efficiency and driving performance. 

Rising Demand for Renewable Energy 

• Growing emphasis on sustainability around the world and rising energy costs and demand have led to a high demand for renewable energy. Power semiconductors play a vital role in the generation, transmission, and distribution of renewable energy thereby creating new opportunities for power semiconductor companies as investments in renewable energy infrastructure increases globally.  

Restraints 

Supply Chain Disruptions 

• Power semiconductor manufacturers can face issues in fulfilling the rising demand due to disruptions in the supply chain. Raw materials required for the production of power semiconductors are subject to these disruptions that lead to higher costs and reduced demand as well. These disruptions can slow down the overall power semiconductor market growth potential going forward. 

Thermal Management Issues 

• Power semiconductors generate a significant amount of heat during operation in high-power applications such as EVs and industrial equipment. Managing heat dissipation in increasingly compact and high-performance power semiconductor is still a challenge that companies are trying to resolve, which limits the application scope of power semiconductor and hurts market development as well.