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The global power electronics market size was valued at USD 52.70 billion in 2022. The market is projected to grow from USD 61.94 billion in 2023 to USD 153.30 billion by 2030, registering a CAGR of 13.8% during the forecast period.
Power electronics help in controlling and transforming electric power through switching devices such as Metal–Oxide–Semiconductor Field-Effect Transistor (MOSFET), Insulated Gate Bipolar Transistor (IGBT), diode, and thyristor. These devices have found their applications across multiple domains such as aerospace, automotive, defense, healthcare, residential, industrial, and space. They are made of various materials such as silicon, silicon carbide, and gallium nitride, among others.
Different types of power electronic conversion systems, such as AC to DC, DC to AC, DC to DC, and AC to DC, are popularly used in various applications. However, AC to DC converter, also known as rectifier, is the most common type of power electronic device. It is majorly used in consumer electronic gadgets such as TVs, personal computers, and battery chargers. The rising demand for consumer electronic devices is set to boost the usage of power electronics.
COVID-19 Hampered Supply Chain System and Reduced the Adoption of Power Electronic Devices
The COVID-19 pandemic had a negative impact on the global market due to major shortage of raw materials to manufacture semiconductors. This had an adverse influence on the daily operations of the chip manufacturing sector. Chip shortage also hampered the production of microwave devices, further dampening the adoption of power electronics.
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Power Electronics to Extensively Use Gallium Nitride (GaN) Materials Due to their Beneficial Features
The power electronics industry majorly relies on semiconductor devices (diodes and transistors) and other electrical components (resistors, capacitors, inductors, and transformers) to control the flow of electrical power. New high-bandgap semiconductor materials, such as silicon carbide (SiC) and gallium nitride (GaN), offer higher breakdown fields than silicon and enable the fabrication of components with much smaller and compact dimensions.
Moreover, GaN and GaAs power semiconductors offer a wide range of advantages over the traditional silicon ones such as higher switching speed, lower current loss, and higher power density. Material suppliers are implementing new manufacturing solutions to reduce costs and ease adoption, further enhancing the inclusion of GaN materials to produce semiconductors and other components for power electronic devices.
Rising Advancements and Applications of 5G Communication to Boost Opportunities for the Market
With the rapid development of power systems and the growing smart grid construction, 5G communication technology is gaining popularity in many fields due to its ultra-low latency, high reliability, deep coverage, extreme capacity, and ultra-low power consumption. It has become a key technology for promoting scientific and technological innovations and accelerating the sustainable development of energy systems.
5G communication refers to a fifth generation communication technology, with its network structure consisting of a core network, micro base station, and macro base station. With the growing deployment in 5G technologies and communication networks, the need for higher power density will boost the market.
Rising Focus on EV and Fast Charging Stations to Propel the Market Growth
Vehicle power electronic components primarily process and control the flow of electrical energy in hybrid and plug-in Electric Vehicles (EVs). They also control an engine’s speed and torque. Some of these components include inverters, DC/DC converters, and chargers (for plug-in electric vehicles).
Such electronics are being widely used in EVs as these automobiles require high power electric energy to rotate the electric motors. Power components, such as MOSFETS and IGBT, are used as power electronic switches in powertrain systems, which help in reducing the overall size. Owing to such advantages, the market is projected to grow at a notable rate during the forecast period.
Tedious and Expensive Integration Methods to Hamper the Market Development
Some of the major players in the market are trying to improve their integrated circuits in a single chip, resulting in the creation of complex designs. Furthermore, the process of integration of such technologies is quite arduous and requires high investments. Integrating all systems on a single chip increases complexity. The system also raises the need for reducing power consumption, which makes it unsuitable for power-intensive applications. Such factors are expected to restrain the power electronics market growth during the analysis period.
Extensive Usage in Portable Devices to Boost Adoption of DC to DC Conversion System
Based on conversion, the market is segmented into AC to AC, DC to DC, DC to AC, and AC to DC. The DC to DC segment is expected to dominate the industry due to the growing telecommunication sector. DC to DC converters are prominently used in several devices including computers, laptops, space vehicles, buses, and others.
The AC to AC segment is also set to witness moderate growth during the forecast period owing to the wide usage of these converters in critical applications, which require low frequency, speed control, and variable voltage.
Isolated Converters to Find Robust Use in Several Power Electronics Applications
By isolation, the market is bifurcated into isolated and non-isolated. The isolated segment held a dominant industry share in 2022. An isolated DC-DC converter uses a transformer to eliminate the DC path between electrical input and output. These isolators are gaining immense traction due to the increasing adoption of power electronic devices in applications such as factory automation, building automation, healthcare, aerospace, and automotive.
A non-isolated converter has a DC path between its input and output. These devices generally use specialized integrated circuits and are deployed in industrial applications where high power output is required. These factors are predicted to drive the installation of non-isolated converters during the forecast period.
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Wider Applications in Aerospace, Automotive, and Energy to Improve Usage of Power Control Operation
In terms of operation, the market is segmented into power generation, power transmission, power distribution, and power control. The power control segment is projected to dominate the market during the forecast period due to its high application in a variety of industry verticals such as energy, aerospace, and defense.
The power transmission segment has the second largest share in the market. This type of operation is extensively used in fuel-free-electric vehicles, fuel-free airplanes, fuel-free rockets, and moving robots. The rise in demand for electric vehicles and fast charging stations is anticipated to boost the adoption of power transmission operations.
Notable Usage of Power Electronic Devices in Renewable Energy Systems to Make Energy Sector a Major End-user
Based on end-user, the market is divided into automotive, consumer electronics, aerospace & defense, energy, and others. The energy segment is anticipated to capture a sizable industry share during the forecast period due to the rising acceptance of power electronic devices in renewable energy systems, such as solar power plants and wind mills. Such systems can be integrated with power electronics to handle low, high, and variable power requirements.
The automotive segment will also witness significant growth during the forecast period owing to the increasing demand for such electronics in EVs, fast charging stations, and battery systems. Additionally, silicon-based components, such as power MOSFETs and IGBTs, are used as power electronic switches in automotive powertrain, electrical & electronic systems to reduce the overall size. These characteristics will make power electronic devices a popular product in the automotive sector.
North America Power Electronics Market Size, 2022 (USD billion)
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In terms of region, the market is analyzed across North America, Europe, Asia Pacific, South America, and the Middle East & Africa. North America dominated the market and was valued at USD 11.43 billion in 2022. The region is witnessing a robust rise in R&D spending to make cutting-edge semiconductors. According to a report by the Semiconductor Industry Association (SIA), in 2022, the semiconductor sector in the U.S. was focused on boosting its investments to meet the long-term demand for chips. The total spending was estimated to be around USD 166 billion for the year 2022.
Europe holds the second-largest power electronics market share due to a notable increase in production capacity and rise in investments by key players for improving the technologies used to make power electronic devices.
Asia Pacific is predicted to contribute to the market growth due to the adoption of high-end technology devices and increase in consumer spending on electronics as well as household appliances. Furthermore, several advanced technologies are being developed in the field of Internet of Things (IoT), LTE, and electronics products, which will drive the market development in the region.
The Middle East market is expected to witness substantial growth during the forecast period. The strong demand for advanced industrial electronics and high-tech computing solutions in the Middle East & Africa region is set to accelerate the market progress.
South America is anticipated to hold a sizable share in the market during the analysis time frame. The expansion of the automotive and energy sectors in Brazil and Argentina will propel the market growth. According to the Brazilian government, in 2022, the capacity to generate renewable energy stood at 84% in the country, which was higher than the global average of 38% due to massive investments in this region. Such developments will help the regional market to grow.
Leading Companies to Adopt Advanced Technologies for Higher Processing Capacity
The global market has a vast presence of various key companies such as Infineon Technologies, Texas Instruments, ROHM, STMicroelectronics, and many others. These players are focusing on providing technologically advanced integrated circuits and using wide bandgap semiconductor materials, such as GaN and Sic, to improve the efficiency of power electronic devices. For example, in February 2022, Kubos Semiconductors Ltd. launched the first commercial compact LED based on the cubic crystal phase of Gallium Nitride (GaN).
An Infographic Representation of Power Electronics Market
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The research report provides a detailed analysis of the market. It comprises all major aspects, such as R&D capabilities, and optimization of the manufacturing process. Moreover, the report offers insights into the power electronics market trends and highlights key industry developments. In addition to the above-mentioned factors, it focuses on several factors that have accelerated the global market growth in recent years.
CAGR of 13.8% from 2023 to 2030
Value (USD Billion)
By Conversion, Isolation, Operation, End-user, and Geography
As per a study by Fortune Business Insights, the market size was USD 52.70 billion in 2022.
The market is likely to grow at a CAGR of 13.8% over the forecast period of 2023-2030.
The AC to AC segment is expected to lead the market due to robust growth of the global electronics sector.
The market size in France stood at USD 3.00 billion in 2022.
Rising focus toward EVs and fast charging stations to propel the market growth.
Some of the top players in the market are Infineon Technologies, Texas Instruments, ROHM, and STMicroelectronics.
The U.S. dominated the market in terms of growth in its semiconductor sector in 2022.
Integration methods, such as System-on-Chip (SoCs) and Chip-on-Board, hamper the deployment of the product.
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