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The global insulated gate bipolar transistor market size was USD 5.40 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with insulated gate bipolar transistors witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 8.0% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 5.86 billion in 2021 to USD 11.24 billion in 2028 at a CAGR of 9.8% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Insulated gate bipolar transistor module functions as a voltage-controlled power electronic device. Due to higher switching frequency, they are widely accepted in high-voltage applications requiring lower conduction losses. It is witnessing rapid demand across automotive, rail, energy & power, and consumer electronics industries. Key players in the market are highly focused on business expansion through the new innovative applications. For instance,
Disruption in Supply of Hardware and Components to Impact Market Growth Amid COVID-19
The outbreak of coronavirus significantly impacted the entire semiconductor sector. The global disruption in the supply chain owing to the closure of international boundaries has highly affected the production of semiconductor products. As per the Accenture Plc report, the annual revenue growth of the semiconductor industry was projected to reach 12.5%, but due to pandemic crises, it turned out to reach only 9% in the year 2020. Similarly, insulated gate bipolar transistor manufacturing has been extremely disturbed due to the lack of components availability. Moreover, the permission of 50% of the total workforce is also negatively impacting the insulated gate bipolar transistor production capacity. Thus, in the year 2020, the market experienced slow growth rate as compared to earlier estimations.
In the long term, every aspect of the business model could be subject to change, including the capital expenditures, the composition of product portfolios, demand forecasts, R&D strategy, supply-chain footprints, options for mergers and acquisitions (M&A), and production decisions. The market players are required to establish a solid baseline to move forward. With this foundation, the companies can chart a path to the next normal. Further, post-pandemic, the market is expected to gain significant growth due to rapid adoption of renewable energy, growing demand for electric vehicles, and growing implementation of automation and industrialization. Also, an increase in demand for cloud and data centers due to increased remote working is likely to drive market growth post-pandemic.
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Rising Awareness Regarding Renewable Energy Sources to Boost the Market
The requirement to boost the renewable energy foundations will boost up the IGBT market growth. As per International Renewable Energy Agency (IRENA), renewable energy is expected to gain 85% of the share in the total power sector by the year 2050. As per the IRENA report, electric vehicles and heat pump adoption are expected to become more common across the globe. Governments across several countries are counting renewable energy as a major part of their long-term strategic investment development.
Also, with the technological enhancements and economies of scale, there is a drop in the costs of renewable sources like solar and wind energy by more than 50 percent over the past decade. This tremendous rise in the implementation of renewable electricity sources is encouraging business opportunities. Sensing the potential opportunity in the market, key companies such as Infineon Technologies AG, ABB Ltd., Fuji Electric Ltd., and others are designing IGBT products precisely for renewable energy sources. For instance,
Surging Demand for Electric Vehicles is Driving the Market Growth
IGBT is an important component of electric vehicles. Power semiconductor devices and modules are the key modules of each power converter. Because of the high voltage and current capability, insulated-gate bipolar transistor modules are frequently used for mid-to high-power applications such as electric vehicle inverters. For instance,
Also, the increasing climate changes and global warming are creating awareness regarding energy resources in every field. The automotive sector is one of them, and moving ahead in energy-saving mode. There is an increasing demand for manufacturing electric and hybrid vehicles. Major manufacturers in the automotive industry are planning to invest in advanced EV cars considering government guidelines. Similarly, the rising fuel prices are also compelling users to shift from traditional vehicles to electric vehicles. This is expected to drive the growth for insulated gate bipolar transistor market growth.
Design Complexities to Hamper Market Growth
Latch-up associated with the gate control of an insulated gate bipolar transistor can easily break, causing failure of the device. A slight decrease in the latching current density causes an increase in the ambient temperature and increases the turnoff time.
As the transistor enters the latch-up, the gate no longer has any control over the drain current. The forced commutation of the current can be the only way to turn off the IGBT in this situation.
If latch-up is not terminated quickly, the excessive power dissipation is likely to destroy the bipolar transistor. This is expected to hamper the market potential.
Growing Applications in Various Sector to Fuel High Voltage Market Share
Based on the voltage, the market has been divided into low voltage, medium voltage, and high voltage. High voltage is expected to gain the maximum share during the forecast period. In industry, high voltage insulated gate bipolar transistors offer the high-current-carrying ability, gate control using voltage, and others. The high voltage is gaining increasing application in various sectors such as automotive, aircraft, UAVs, and industrial.
Medium Voltage is likely to gain rapid growth during the forecast period. The increasing demand for 1700 V–2500 V transistors across manufacturing industries for automation processes is expected to drive medium voltage demand. The low voltage is expected to gain steady growth with its significantly growing adoption in electric vehicle and renewable applications.
The low, medium and high voltages are further segmented in Up to 600 V & 601 - 1200 V, 1700 V & 2500 V and 3300 V & 4500 V above, respectively.
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Rapid Adoption of Automation to Boost IGBT Application in Industrial Manufacturing
Based on the application, the market is classified into consumer electronics, industrial manufacturing, automotive (EV/HEV), inverters/UPS, railways, renewables, and others. Industrial manufacturing is expected to dominate the segment in revenue share. The growing factory automation and industrial IoT adoption in manufacturing plants are likely to fuel the demand for insulated gate bipolar transistors.
Its demand in the automotive sector for electric vehicles is mainly growing as it offers smooth operations of electric cars in transferring power at a steady rate to the grid. For reliability, increasing power, and prolonging lifetime, insulated gate bipolar transistor and FWD chips are packaged to the module with multiple devices, isolation layer, and protection parts. These modules can work in harsh environments of high temperature, mechanical vibration, humidity, and shock, and the possibility of chemical contamination.
Another trending industry for market opportunities is consumer electronics. With the rising advancement and decreasing sizes, the transistor is gaining traction in devices of consumer electronics. In-home appliances, it is used extensively for control of power. It empowers efficient and cost-effective operation for major appliances, such as air conditioners, refrigerators, microwave ovens, dishwashers, and washing machines. It also controls power to obtain versatile performance from small appliances.
Asia Pacific Insulated Gate Bipolar Transistor Market Size, 2020 (USD Billion)
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Asia Pacific is expected to gain top market share along with the highest CAGR during the forecast period. The highest growth is attributed to the presence of many electronic and semiconductor manufacturers in China, South Korea, and India. China is expected to gain maximum revenue share as it is the leading country in electric vehicle manufacturing. The rising application in electric vehicles is driving the market growth in the country. Japan and India are also witnessing the increasing demand for energy-saving resources along with the advancement of technology.
North America is expected to gain significant growth during the forecast period. The region’s market is expected to witness vast opportunities with rising awareness and implementation of renewable resources. As it is a low power-consuming component, it is highly recommended for energy saving in North America. Similarly, Europe is expected to gain the second-most revenue share after the Asia Pacific. Europe is the first region to implement insulated gate bipolar transistor-based traction systems in the railway sector. Further, Europe is the leading region in producing electric vehicles, and the region also leads in overall automotive industries across the globe. This is expected to drive the demand for the products in the region.
Similarly, Latin America and the Middle East & Africa are projected to exhibit healthy growth. Companies in LATAM and MEA have started focusing on adopting IGBT devices across diverse industries, including consumer electronics, railways, renewable, among others. This is expected to fuel the market opportunities in the regions.
Emphasis on New Launches by Prominent Companies to Strengthen Market Position
Expansion of product portfolio is another key market growth strategy adopted by market players. Expansion of the product portfolio includes offering updated hardware and software and a new process model to ease down the manufacturing hustle. Major manufacturers are adopting innovative technologies to develop advanced transistors to fulfill rising demands in automotive and high-power devices. Companies such as Infineon Technologies AG and Fuji Electric Co., Ltd are focused on the development of advanced industrial IGBT based on medium and high-power modules
July 2020 – ABB Ltd and Hitachi, Ltd launched a joint venture worth around USD 11 billion, as “Hitachi ABB Power Grids Ltd”. The company will operate in applications such as electric mobility, industry and Information Technology (IT) and smart life.
August 2020 – Mitsubishi Electric Corporation launched LV100-type T-series IGBT module for industrial applications. The module assists in decreasing the power and size loss of power converters and inverters. These converters and inverters are used for renewable energy applications such as wind-power generation, photovoltaic, and high-capacity motor drives.
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The IGBT market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed rapidly at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
Value (USD Billion)
Voltage; Application; and Geography
The market is projected to reach USD 11.24 billion by 2028.
In 2020, the market size stood at USD 5.40 billion.
The market is projected to grow at a CAGR of 9.8%.
The high voltage segment is likely to lead the market.
Surging demand for electric vehicles is likely to drive the market growth.
Infineon Technologies AG, ABB Ltd., Mitsubishi Electric Corporation, Danfoss Group, Fuji Electric Co., Ltd., Hitachi, Ltd., Toshiba Corporation, ROHM CO., LTD among others, are the top players in the market.
The Asia Pacific region is expected to hold the highest market share.
Automotive (EV/HEV) is expected to grow with the highest CAGR.
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