Power Electronics Market Forecasts to 2028 – Global Analysis By Material (Silicon/Germanium, Gallium Nitride (GaN), Silicon Carbide (SiC) and Other Materials), Component (Discrete, Modules and Power IC), Voltage (High Voltage, Medium Voltage and Low Volta

Power Electronics Market Forecasts to 2028 – Global Analysis By Material (Silicon/Germanium, Gallium Nitride (GaN), Silicon Carbide (SiC) and Other Materials), Component (Discrete, Modules and Power IC), Voltage (High Voltage, Medium Voltage and Low Voltage)Application, End User and By Geography

According to Stratistics MRC, the Global Power Electronics Market is accounted for $37.79 billion in 2022 and is expected to reach $63.39 billion by 2028 growing at a CAGR of 9.0% during the forecast period. Power electronics are a class of solid-state electronic equipment used to efficiently and legally control and modify electricity from the source to the load. It enables power management in a variety of applications, including client natural philosophy, electrical vehicles, automotive, and industrial systems, to strengthen energy conservation. The power electronics industry is the increasing use of power electronics in the production of electric vehicles as a result of rising need for power infrastructure, battery-powered portable devices with improved energy efficiency.

According to Stockholm International Peace Research Institute (SIPRI), the United States, China, India, the United Kingdom, and Russia are the top 5 countries that have to spend close to USD 100 billion and more for their military in 2021.

Market Dynamics

Driver

Rising 5G communication advancements

Due to its ultra-low latency, high reliability, deep coverage, extreme capacity, and ultra-low power consumption, 5G communication technology is becoming more and more popular in a variety of fields as power systems evolve quickly and smart grid construction expands. It has emerged as a crucial technology for fostering scientific and technological advancements and quickening the development of sustainable energy systems, the network's core system, micro base stations, and the industry will experience growth as a result of the expanding use of 5G technologies and communication networks.

Restraint

Process of complex design and integration

The power electronics industry's companies are concentrating on combining various functionality onto a single chip, which leads to a complicated design and the designing and integration of complicated devices requires specialised knowledge, a solid methodology, and a specific toolkit, all of which raise the price of the devices as a whole. As a result, it is anticipated that the transfer to more modern technical equipment will be hindered by the high cost of the products.

Opportunity

Widespread use of renewable energy sources

Currently, a number of nations are switching from the use of fossil fuels like coal and gas to generate power to renewable energy sources. As a result, new installations of renewable energy sources have been growing steadily while non-renewable energy sources have been declining at the same time. Power electronics are crucial in the transition of electrical energy patterns to more energy-efficient renewable energy sources. As wind and solar energy systems are the most potential renewable energy sources for generating electricity, power electronics-based power converters are also frequently used in these renewable energy systems. These systems can incorporate several power sources creating wide range of opportunities for the growth of the market.

Threat

A constantly shifting need for small, highly effective, and affordable devices

Significant opportunities are created by the rising need for portable and compact gadgets, but producers must constantly adapt to consumers' shifting demands for smaller devices. Miniaturisation of systems and components is required to meet the need for small, portable, and multifunctional products while also reducing production costs. Manufacturers are actively investing in research and development (R&D) to create products and improve their product offerings in order to maintain market competitiveness. Due to the uncertainty surrounding the life cycle of created technologies or goods, the ongoing desire for smaller devices may therefore function as a barrier because it does not justify the return on investments.

Covid-19 Impact

Due to a severe lack of raw materials needed to produce semiconductors, the COVID-19 pandemic had a devastating effect on the global market. The regular operations of the chip manufacturing industry suffered as a result. The development of microwave devices was further impeded by a chip scarcity, which further slowed down the uptake of power electronics.

The gallium nitride (GaN) segment is expected to be the largest during the forecast period

The gallium nitride (GaN) segment is estimated to have a lucrative growth, due to the industrial, transportation, energy and power, and ICT verticals are the main consumers of GaN-based semiconductor devices. These materials are now being used by makers of power electronics devices to create a variety of power discrete devices, including MOSFETs, diodes, rectifiers, and other FETs. GaN-based semiconductor and electronic devices have recently begun to be developed by makers of semiconductor products, devices, and systems. GaN is seen as a substitute for the sapphire- and silicon-based materials SiC used in power electronics.

The low voltage segment is expected to have the highest CAGR during the forecast period

The low voltage segment is anticipated to witness the highest CAGR growth during the forecast period, due to they are being used in application areas like consumer electronics and automotive, are made possible by low power consumption, energy harvesting, and wireless connection. Since wireless gadgets often run on batteries, they must deal with more compact energy storage systems. Low voltage power electronics have also emerged as a result of improvements in energy harvesting methods in electronics and historically been utilised in the automotive industry to create standardised power, thermal, and control interfaces with the aid of converters.

Region with highest share

Asia Pacific is projected to hold the largest market share during the forecast period owing to the biggest producer of a range of consumer electronics, including smartphones, tablets, laptops, wearable technology, and other connecting gadgets. The nation is also rapidly embracing electric vehicles, and it is anticipated that it will continue to be the world's largest EV market for the duration of the prediction. As a result, numerous multinational automakers have established production and assembly facilities in China, which is anticipated to increase demand for power electronics among local suppliers.

Region with highest CAGR

South America is projected to have the highest CAGR over the forecast period, owing to the expansion of the energy and automotive industries in Brazil and Argentina. The Brazilian government claims, the country's ability to produce renewable energy was 84%, above the global average of 38% thanks to significant investments in this area. Such advancements will aid in the expansion of the local market.

Key players in the market

Some of the key players profiled in the Power Electronics Market include Infineon Technologies, Vishay Intertechnology, Renesas Electronics, Toshiba, Maxim Integrated, ROHM, Hitachi, SEMIKRON, STMicroelectronics, ON Semiconductor, Mitsubishi Electric, ABB, NXP Semiconductors, Littelfuse, GaN Systems and Texas instruments Inc.

Key Developments

In May 2023, Infineon acquires Tiny Machine Learning leader Imagimob to strengthen its offering in embedded AI solutions, With this acquisition Infineon advances its position to offer a world-class Machine Learning (ML) solution and significantly complements its AI offerings.

In May 2023, Infineon announces supplier agreement on wafers and boules with Chinese silicon carbide supplier TanKeBlue to diversify its supply base even further the agreement between Infineon and TanKeBlue contributes to general supply chain stability, also with regard to the growing demand for SiC semiconductor products for automotive, solar and EV charging applications and energy storage systems in the Chinese market.

Materials Covered
• Silicon/Germanium
• Gallium Nitride (GaN)
• Silicon Carbide (SiC)
• Other Materials

Components Covered
• Discrete
• Modules
• Power IC

Voltages Covered
• High Voltage
• Medium Voltage
• Low Voltage

Applications Covered
• Renewable
• Power Management
• UPS
• Other Applications

End Users Covered
• Consumer Electronics
• Industrial
• Energy & Power
• Military & Aerospace
• Automotive
• IT & Telecommunication
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements