Power Electronics

Power Electronics

Global Power Electronics Market to Reach US$61.8 Billion by 2030

The global market for Power Electronics estimated at US$42.4 Billion in the year 2023, is expected to reach US$61.8 Billion by 2030, growing at a CAGR of 5.5% over the analysis period 2023-2030. Power ICs, one of the segments analyzed in the report, is expected to record a 5.4% CAGR and reach US$32.0 Billion by the end of the analysis period. Growth in the Power Modules segment is estimated at 6.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$11.2 Billion While China is Forecast to Grow at 8.2% CAGR

The Power Electronics market in the U.S. is estimated at US$11.2 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$13.7 Billion by the year 2030 trailing a CAGR of 8.2% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.6% and 4.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.2% CAGR.

Global Power Electronics Market – Key Trends & Drivers Summarized

How Is the Growing Demand for Energy Efficiency Impacting the Power Electronics Market?

The global push for energy efficiency and sustainability is significantly driving the growth of the power electronics market. Power electronics systems are central to reducing energy consumption in industrial, commercial, and residential applications, enabling efficient power conversion, management, and distribution. Industries such as manufacturing, automotive, and consumer electronics are increasingly adopting power electronics technologies to enhance the efficiency of their systems, reduce energy waste, and meet stringent regulatory standards for energy use. Governments worldwide are implementing energy efficiency mandates and providing incentives for industries to adopt cleaner, more efficient technologies, which has created a surge in demand for power electronics in energy-intensive sectors. Additionally, the rapid shift towards electric vehicles (EVs) and renewable energy sources, such as solar and wind power, has further fueled the market, as these applications depend on efficient power electronics devices for converting and managing electrical energy.

What Role Do Technological Advancements Play in Shaping the Future of Power Electronics?

Technological advancements, particularly in semiconductor materials and device design, are shaping the future of the power electronics market. The introduction of wide-bandgap (WBG) semiconductors such as silicon carbide (SiC) and gallium nitride (GaN) has dramatically improved the performance of power electronics devices. These materials offer higher thermal conductivity, faster switching speeds, and greater energy efficiency compared to traditional silicon-based devices, making them highly suitable for high-voltage and high-frequency applications. WBG semiconductors are increasingly being used in electric vehicles, industrial machinery, and renewable energy systems due to their ability to reduce energy losses and enhance power density. Furthermore, advancements in packaging and thermal management technologies are enabling power electronics to operate in more demanding environments, improving reliability and extending device lifespan. The development of smart power electronics with embedded sensors, real-time monitoring, and artificial intelligence (AI)-driven analytics is also revolutionizing the industry by allowing predictive maintenance, optimizing energy use, and reducing operational costs across various sectors.

What Are the Key Applications Driving Demand for Power Electronics?

Power electronics are integral to a wide range of applications, with each sector driving demand based on its unique needs for efficiency and performance. The automotive sector, particularly the rapid growth of electric vehicles (EVs) and hybrid electric vehicles (HEVs), is a key driver of the power electronics market. Power electronics are critical for battery management, inverters, converters, and charging infrastructure in EVs, enabling efficient energy conversion and extending vehicle range. As governments around the world set ambitious targets for EV adoption and carbon reduction, the demand for high-efficiency power electronics in automotive applications is expected to grow exponentially. In addition to the automotive sector, the renewable energy industry relies heavily on power electronics for energy conversion in solar and wind power systems, where inverters and converters are essential for integrating renewable energy into the grid. The industrial sector also represents a significant market for power electronics, with applications in electric motor control, industrial automation, and power management systems. The growing demand for energy-efficient motors, variable speed drives, and robotics in manufacturing is further fueling market growth. Consumer electronics, including smartphones, laptops, and wearables, continue to drive demand for compact, efficient power electronics components as devices become more power-hungry and feature-rich.

Factors Driving the Growth of the Power Electronics Market

The growth in the power electronics market is driven by several key factors, including technological advancements, rising demand for electrification, and the push for renewable energy integration. The widespread adoption of electric vehicles (EVs) is a major driver, as power electronics are essential for managing the power flow between batteries, inverters, and motors in EVs, as well as supporting fast-charging infrastructure. As global EV sales continue to rise, so does the demand for advanced power electronics systems that can improve energy efficiency and reduce charging times. Additionally, the increasing deployment of renewable energy sources like solar and wind power is fueling demand for power electronics devices, such as inverters and converters, which are needed to convert the variable output of renewable energy into stable grid-compatible electricity. Technological advancements in wide-bandgap semiconductors (SiC and GaN) are transforming the industry by offering higher efficiency, reduced energy losses, and more compact device designs, which are particularly beneficial in applications where space and thermal management are critical, such as in EVs and renewable energy systems.

The industrial sector is another major driver, where the push for energy efficiency in electric motors, automation systems, and power grids is expanding the use of power electronics in applications like motor drives, industrial automation, and power distribution systems. In addition, the growing trend of smart grids and distributed energy resources (DERs) is increasing the need for advanced power electronics to manage energy flow, improve grid stability, and enable demand-response capabilities. Consumer electronics also contribute to market growth, with the demand for smaller, faster, and more efficient devices driving the need for advanced power management solutions. Moreover, the increasing focus on sustainability and reducing the carbon footprint in manufacturing and energy production is accelerating the adoption of energy-efficient power electronics across all industries, ensuring sustained growth in the years to come.

SCOPE OF STUDY:

The report analyzes the Power Electronics market in terms of US$ Million by the following Device Type; Material; Vertical, and Geographic Regions/Countries:

Segments:
Device Type (Power ICs, Power Modules, Power Discrete); Material (Silicon, Silicon Carbide, Gallium Nitride); Vertical (Consumer Electronics, Industrial, Automotive & Transportation, ICT, Aerospace & Defense, Other Verticals)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 93 Featured) -

• ABB Group
• Fuji Electric Co. Ltd.
• Infineon Technologies AG
• Maxim Integrated Products, Inc.
• Microsemi Corporation
• Mitsubishi Electric Corp.
• NXP Semiconductors N.V
• ON Semiconductor Corp.
• Qualcomm, Inc.
• Renesas Electronics Corporation
• Rockwell Automation
• STMicroelectronics
• Texas Instruments Incorporated
• Toshiba Corporation
• Vishay Intertechnology, Inc.

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