The power electronics market was valued at $41.8 billion in 2023 and is estimated to reach $71.7 billion by 2033, exhibiting a CAGR of 5.8% from 2024 to 2033.
Power electronics deals with the conversion and control of electric power using electric converters based on the switch of semiconductors. The power converter has four major categories such as DC/DC converters, AC/DC converters, DC/AC converters, and AC/AC converters. Each converter is composed of fundamental electronic components, including resistors, capacitors, and inductors, as well as semiconductor devices such as diodes, thyristors, and transistors. Power electronics are crucial in electrified vehicle applications, offering compact and efficient solutions for power conversion. These devices manage the transfer of power from a source to a load in a robust, efficient, and compact manner, facilitating optimal utilization.
By employing components such as diodes, transistors, and thyristors, power electronics control the conversion of electric power between different forms. They excel in high-voltage and highcurrent operations due to their rapid switching capabilities and high efficiency. Additionally, power electronics can manage both unidirectional and bidirectional energy flows, allowing regenerated energy to be returned to the grid.
These devices are anticipated to be key technologies for enhancing system efficiency and performance in automotive and energy-saving applications. Power modules, or power electronic modules, integrate multiple power components, such as power semiconductors, into a single package, offering higher power density and reliability compared to discrete components.
Power metal oxide semiconductor field effect transistors (MOSFETs) play a critical role as electronic switches, controlling loads with very low resistance and high-frequency switching. These attributes are leveraged in high-efficiency power supplies, electric and hybrid vehicles, photovoltaic inverters, RF switching, and IT equipment power supplies. Advancements in automotive electronics are a key driver for the power electronics market. Modern vehicles increasingly depend on sophisticated electronic systems for enhanced performance, safety, and efficiency, creating a rising demand for advanced power electronics components.
Innovations such as electric powertrains, advanced driver-assistance systems (ADAS), and state-of-the-art infotainment require high-performance power converters, inverters, and battery management systems. These technological improvements not only boost vehicle functionality but also escalate the need for reliable and efficient power electronics solutions. As automotive technology evolves, the need for cutting-edge power electronics components accelerates, thus driving market growth and fostering technological advancements in the sector. Moreover, surge in demand for SiC-based photovoltaic cells in the developing countries, including China, Brazil, and India fuels the growth of the global market.
However, one of the major restraints is the complex integration process for advanced electronics devices. Designing complex devices requires robust methodology, skillsets, and different toolsets for integration, which also raises the cost of the devices. This high cost of devices restrains users from switching to new innovative technologies devices. On the contrary, rise in demand for plug-in electric vehicles (PEVs) and innovation in power metal-oxide- semiconductor field effect transistor (MOSFET) is anticipated to provide lucrative opportunities for the expansion of the power electronics market during the forecast period.
The power electronics market is segmented into device type, material, application, end use, and region. On the basis of device type, the market is classified into power discrete, power module, and power IC. By material, it is categorized into silicon carbide, gallium nitride, sapphire, and others. By application, it includes power management, uninterruptible power supply (UPS), renewable, and others.
By end use, the market is fragmented into telecommunication, industrial, automotive, renewable, consumer & enterprise, military & defense, energy & power, and others. Region wise, the market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of AsiaPacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the report include Infineon Technologies AG, Mitsubishi Electric Corporation, ABB, Ltd, FUJI ELECTRIC CO, LTD., Microsemi Corporation, Rockwell Automation, Inc., Renesas Electronics Corporation, Texas Instruments Incorporated, STMicroelectronics N.V., and Toshiba Corporation. Market players have adopted various strategies such as product launch, expansion, collaboration, partnership, innovation, investment, new product development, and acquisition to strengthen their foothold in the power electronics industry.
Power electronics deals with the conversion and control of electric power using electric converters based on the switch of semiconductors. The power converter has four major categories such as DC/DC converters, AC/DC converters, DC/AC converters, and AC/AC converters. Each converter is composed of fundamental electronic components, including resistors, capacitors, and inductors, as well as semiconductor devices such as diodes, thyristors, and transistors. Power electronics are crucial in electrified vehicle applications, offering compact and efficient solutions for power conversion. These devices manage the transfer of power from a source to a load in a robust, efficient, and compact manner, facilitating optimal utilization.
By employing components such as diodes, transistors, and thyristors, power electronics control the conversion of electric power between different forms. They excel in high-voltage and highcurrent operations due to their rapid switching capabilities and high efficiency. Additionally, power electronics can manage both unidirectional and bidirectional energy flows, allowing regenerated energy to be returned to the grid.
These devices are anticipated to be key technologies for enhancing system efficiency and performance in automotive and energy-saving applications. Power modules, or power electronic modules, integrate multiple power components, such as power semiconductors, into a single package, offering higher power density and reliability compared to discrete components.
Power metal oxide semiconductor field effect transistors (MOSFETs) play a critical role as electronic switches, controlling loads with very low resistance and high-frequency switching. These attributes are leveraged in high-efficiency power supplies, electric and hybrid vehicles, photovoltaic inverters, RF switching, and IT equipment power supplies. Advancements in automotive electronics are a key driver for the power electronics market. Modern vehicles increasingly depend on sophisticated electronic systems for enhanced performance, safety, and efficiency, creating a rising demand for advanced power electronics components.
Innovations such as electric powertrains, advanced driver-assistance systems (ADAS), and state-of-the-art infotainment require high-performance power converters, inverters, and battery management systems. These technological improvements not only boost vehicle functionality but also escalate the need for reliable and efficient power electronics solutions. As automotive technology evolves, the need for cutting-edge power electronics components accelerates, thus driving market growth and fostering technological advancements in the sector. Moreover, surge in demand for SiC-based photovoltaic cells in the developing countries, including China, Brazil, and India fuels the growth of the global market.
However, one of the major restraints is the complex integration process for advanced electronics devices. Designing complex devices requires robust methodology, skillsets, and different toolsets for integration, which also raises the cost of the devices. This high cost of devices restrains users from switching to new innovative technologies devices. On the contrary, rise in demand for plug-in electric vehicles (PEVs) and innovation in power metal-oxide- semiconductor field effect transistor (MOSFET) is anticipated to provide lucrative opportunities for the expansion of the power electronics market during the forecast period.
The power electronics market is segmented into device type, material, application, end use, and region. On the basis of device type, the market is classified into power discrete, power module, and power IC. By material, it is categorized into silicon carbide, gallium nitride, sapphire, and others. By application, it includes power management, uninterruptible power supply (UPS), renewable, and others.
By end use, the market is fragmented into telecommunication, industrial, automotive, renewable, consumer & enterprise, military & defense, energy & power, and others. Region wise, the market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, Italy, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of AsiaPacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the report include Infineon Technologies AG, Mitsubishi Electric Corporation, ABB, Ltd, FUJI ELECTRIC CO, LTD., Microsemi Corporation, Rockwell Automation, Inc., Renesas Electronics Corporation, Texas Instruments Incorporated, STMicroelectronics N.V., and Toshiba Corporation. Market players have adopted various strategies such as product launch, expansion, collaboration, partnership, innovation, investment, new product development, and acquisition to strengthen their foothold in the power electronics industry.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the power electronics market analysis from 2023 to 2033 to identify the prevailing power electronics market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the power electronics market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global power electronics market trends, key players, market segments, application areas, and market growth strategies.
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- Market share analysis of players by products/segments
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Key Market Segments
By Device Type
- Power Discrete
- Power Module
- Power IC
By Material
- Silicon Carbide
- Gallium Nitride
- Sapphire
- Others
By Application
- Power Management
- Uninterruptible Power Supply
- Renewable
- Others
By End Use
- Telecommunication
- Industrial
- Automotive
- Consumer Electronics
- Military and Defense
- Energy and Power
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- ABB, Ltd
- FUJI ELECTRIC CO, LTD.
- Infineon Technologies AG
- Microsemi Corporation
- Mitsubishi Electric Corporation
- Renesas Electronics Corporation
- Rockwell Automation, Inc.
- STMicroelectronics N.V.
- Texas Instruments Incorporated
- Toshiba Corporation
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: POWER ELECTRONICS MARKET, BY DEVICE TYPE
CHAPTER 5: POWER ELECTRONICS MARKET, BY MATERIAL
CHAPTER 6: POWER ELECTRONICS MARKET, BY APPLICATION
CHAPTER 7: POWER ELECTRONICS MARKET, BY END USE
CHAPTER 8: POWER ELECTRONICS MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Executive Summary
According to the report, the power electronics market was valued at $30.9 billion in 2022, and is estimated to reach $52.8 billion by 2032, growing at a CAGR of 5.5% from 2023 to 2032.Power electronics is a branch of electronics that deals with the conversion, control, and management of electrical power. This field employs solid-state electronics for the efficient conversion and regulation of electrical energy. Power electronics plays a vital role in various applications, including renewable energy systems, electric vehicles, and industrial machinery, ensuring the seamless transformation of electrical energy from one form to another, improving efficiency, and optimizing power usage.
The growing use of renewable energy significantly propels the power electronics market forward. As the global community vigorously moves towards cleaner and sustainable energy sources like wind and solar power, the demand for power electronics escalates concurrently. Power electronics play a vital role in renewable energy systems by facilitating efficient energy conversion and enhancing control mechanisms. In solar power systems, for instance, inverters convert the direct current (DC) produced by solar panels into alternating current (AC), making the energy usable in homes and businesses. Similarly, wind energy systems rely on power electronics for optimizing power generation and ensuring the efficient distribution and utilization of generated energy. The close link between renewable energy and power electronics highlights the growth of the power electronics market.
However, the complexity in the design of power electronics systems, particularly for high-power applications, acts as a potential barrier to market growth. Crafting such advanced systems necessitates a profound understanding of multiple disciplines, including electrical engineering, thermal management, and control systems. The intricacy involved in developing efficient, reliable, and robust power electronics systems means that specialized knowledge and skills are essential. This complexity can lengthen the development time, increase the cost, and heighten the risk of design errors, which can deter companies from investing in new projects or technology. The limited availability of such expert resources can further constrain the growth and innovation in the power electronics market.
Nevertheless, the development of microgrid and smart grid technologies stands as a source of opportunity for the power electronics market. Microgrids and smart grids require sophisticated control and efficient energy conversion, roles perfectly suited for power electronics. With the integration of power electronics, microgrids, and smart grids can achieve enhanced reliability, toughness, and efficiency in energy distribution and usage. Power electronics components like inverters, converters, and controllers enable seamless energy flow, optimal energy storage, and efficient energy management within these advanced grid systems. The growing development and use of microgrids and smart grids worldwide highlights the growing need for power electronics, making way for big growth in this area.
The global power electronics market is segmented into device type, material, application, end user, and region. On the basis of device type, the market is classified into power discrete, power module, and power IC. By material, it is categorized into silicon carbide, gallium nitride, sapphire, and others. The applications covered in the market include power management, uninterruptible power supply (UPS), renewable, and others. Depending on industry vertical, the market is fragmented into telecommunication, industrial, automotive, renewable, consumer & enterprise, military & defense, energy & power, and others.
Region wise, the market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Competitive analysis and profiles of the power electronics market players that have been provided in the report include ABB Group, Fuji Electric Co. LTD, Infineon Technologies AG, Microsemi Corporation, Mitsubishi Electric Corporation, Renesas Electronics Corporation, Rockwell Automation, Inc., STMicroelectronics, Texas Instruments Incorporated, and Toshiba Corporation. The market players have adopted various strategies, such as investment, new product development, product launch, expansion, collaboration, partnership, innovation, divestment, and acquisition strategy to expand their foothold in the power electronics market.
Key Market Insights
In 2022, by device type, the power module segment was the highest revenue contributor, accumulating $13.64 billion, while the power discrete segment is anticipated to be the fastest growing, expanding at a CAGR of 6.6% to reach $19.46 billion by 2032.By material, the others segment led in revenue in 2022 with $9.66 billion, whereas the gallium nitride and sapphire segments are projected to experience considerable growth, with CAGRs of 7.0% and 6.2% respectively.
By application, the other segment was the top revenue generator in 2022, with a contribution of $9.98 billion. The UPS and power management segments are foreseen to observe notable growth, with CAGRs of 6.8% and 6.2% respectively.
By end-use, the automotive segment was the premier revenue contributor in 2022, bringing in $5.86 billion. The automotive, military and defense segments are set to see significant growth, forecasting CAGRs of 7.5% and 6.8%, respectively.
By region, Asia-Pacific was the dominant revenue-contributing region in 2022, accounting for $15.02 billion. Meanwhile, LAMEA and Asia-Pacific are predicted to be the fastest-growing regions, with CAGRs of 7.1% and 6.0% respectively.
Companies Mentioned
- ABB, Ltd
- FUJI ELECTRIC CO, LTD.
- Infineon Technologies AG
- Microsemi Corporation
- Mitsubishi Electric Corporation
- Renesas Electronics Corporation
- Rockwell Automation, Inc.
- STMicroelectronics N.V.
- Texas Instruments Incorporated
- Toshiba Corporation
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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