Power Management Integrated Circuit Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Power Management Integrated Circuit Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The power Management Integrated Circuit market is expected to register a CAGR of around 4.9% during the forecast period. The power management IC market is primarily driven by factors such as increasing demand for energy-efficient devices.​ Globally, the significant rise in energy consumption and cost has forced consumers to save energy and devise methods to minimize environmental impacts caused by carbon emissions. This has increased the demand for power-saving electronic products in the market, such as power ICs.​

Key Highlights

• Power management ICs play an important role in supplying power to all essential electronic components of the vehicle optimally. The emergence of advanced consumer products and the Internet of Things (IoT) further aid the market's growth. Additionally, the rapid growth in smart homes and smart grid technology, the increasing processing power in computing and mobile devices, and the growing adoption of smartphones and tablets are also leading to a favorable market scenario for the power management IC market to grow further.
• The increasing processing power in several electronic devices has generated the need for acute power management. This has propelled the major electronics manufacturers to produce specific, sophisticated power management chipsets with specialized power management ICs designed for specific consumer needs.
• Furthermore, the demand for power management ICs is also scaled by the improvement in the demand for communication devices, such as call-enabled tablets and portable navigational devices (PNDs). ​Consumer electronic products have also transformed substantially in recent times, with vendors introducing advanced electronic gadgets with smart features, such as touchscreen displays, keypads, and in-built memory, which in turn has increased the need for power management ICs in the market.​
• Vendors operating in the market are increasingly focusing on developing innovative solutions and introducing new products to gain a competitive edge and are also involved in strategic mergers and acquisitions. For instance, in August 2021, Analog Devices acquired Maxim Integrated Products, Inc., a notable name in the power management IC market.
• However, the cyclical nature of the semiconductor industry and the reduction in the size of printed circuit boards are expected to hinder market growth. For instance, the shift toward 300-mm wafers from 200-mm wafers and the introduction of 450- mm wafers is expected to increase the production of chips per wafer. This is likely to result in low ASP of power management ICs, increasing their adoption across all application sectors.
• Since the outbreak of COVID-19, the integrated circuits manufacturing industry has been hit severely with a major influence on its supply chain and production facilities as the production came to a standstill in China and Taiwan especially during the initial phase, which influenced the production of various OEMs across the globe. However, a significant share of major vendors stocked up on electronics due to the Chinese new year, which helped mitigate the risk. ​

Key Market TrendsCommunications Sector to Witness Significant Growth

• The advancement of wireless communication and its devices and equipment is a significant factor driving the PMIC market in the communication sector. The growing demand for wired and wireless connections and their increasing industrial applications also fuel advancement in infrastructure, hence developing space for PMICs.
• Increased use of next-generation mobile networks, such as 4G and 5G, is expected to become an important driving factor for market growth. Also, with the rollout of the 5G market, new devices need to be installed, which is expected to expand the market's scope further. For instance, according to Ericsson, the number 5G connections are expected to reach 4.4 billion by 2027.
• Carrier Ethernet switches and routers, communication battery chargers, enterprise Ethernet switches, and routers, enterprise networks, and Low-tier Consumer/SOHO Routers are some of the primary devices wherein power management integrated circuits are used primarily.
• Furthermore, the arrival of 5G technology has significantly increased the investment in telecom base stations, which is driving the demand for power management integrated circuits. Countries across the globe are making significant efforts to upgrade their telecommunication infrastructures. For instance, in July 2022, Nokia won a five-year deal with Norwegian mobile operator Ice to upgrade and expand its 5G radio network infrastructure nationwide. As part of the agreement, about 3200 base stations will be modernized, and an additional 3900 new base stations will be deployed in the country.

North America to Hold Significant Market Share

• North America is one of the world's largest consumer electronics consumers. Electronic gadgets see a high adoption rate in the region. As the United States is one of the most technologically advanced nations in the world, the country's population buys consumer electronics regularly.
• Smartphones, tablets, portable speakers, and AI-assisted electronics are experiencing high growth in the region. This is influencing the development of power management ICs in the area. According to the Consumer Technology Association (CTA), over 80% of households in the United States have smartphones, and over 96% of households have at least one television installed.
• Furthermore, according to Cisco Systems, the wearable market is promising in the United States, as the number of connected wearable devices in North America is expected to grow to over 439 million in 2022. Additionally, North America is forecasted to make the most 5G connections using wearable devices in 2022. The 439 million North American connections would be 222 million more than those made to 4G networks in 2017.
• Canada is also among the major markets wherein the demand for power management integrated circuits has been increasing. Consumer electronics, automotive, and telecommunication are among the major sectors driving the demand for power management ICs. This is evident from the fact that, since the launch of 5G services, the investment in base stations has grown significantly. For instance, in March 2022, Rogers Communications launched the first commercial 5G standalone (SA) network in Canada. Such trends are expected to augment the growth of the studied market during the forecast period.

Competitive Landscape

The power management integrated circuit market is moderately competitive and consists of several major players. However, in terms of market share, few of the major players currently dominate the market. Major players in the market include Texas Instruments Inc., ON Semiconductor Corporation, Analog Devices Inc., Renesas Electronics Corporation, etc. The vendors focus on introducing new products, partnerships, and acquisitions to expand their market presence further.

• September 2022 - Allegro MicroSystems, Inc., a leading sensor and power semiconductor solutions provider for motion control and energy-efficient systems, completed its previously-announced acquisition of Heyday Integrated Circuits (Heyday). The acquired company specializes in compact, fully integrated isolated gate drivers that enable energy conversion in high-voltage silicon carbide (SiC) and gallium nitride (GaN) wide-band gap (WBG) semiconductor designs.
• April 2022 - The research team from the School of Microelectronics, University of Science and Technology of China (USTC) of the Chinese Academy of Sciences (CAS), announced that they've developed two power management integrated circuits with low electromagnetic interference and fast transient responses. Both circuits were presented at the IEEE International Solid-State Circuits Conference (ISSCC), which is among the top conference in integrated circuit design.

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