Power electronics is referred to as the application that helps management and control of electric power in circuit and systems. Power electronics components include power switches like transistors, thyristors, rectifiers and various other components that help convert electric power efficiently. Power electronics has significant applications in renewable energy systems, electric vehicles, consumer electronics, industrial equipment and various other sectors. Power electronics allows controlling, managing and conditioning electric energy for more efficient conversion between sources and loads of electrical power.
The Global Power Electronics Market is estimated to be valued at US$ 48.16 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Power Electronics Market are Infineon Technologies, ON Semiconductor, STMicroelectronics, Mitsubishi Electric Corp, Fuji Electric, Renesas Electronics, NXP Semiconductors, Texas Instruments, Semikron, and Microsemi. The increasing demand for energy-efficient systems across industries is pushing the adoption of power electronics. Advancements in wide bandgap materials such as silicon carbide and gallium nitride is allowing power modules to operate at higher frequencies and temperatures, enabling more compact equipment designs.
Growing Power Electronics Market Demand for renewable energy systems is a key driver. Power electronics helps efficiently convert and manage power from solar panels and wind turbines. The demand is rising due to increasing focus on clean and green energy globally. Electric vehicles are also a fast-growing area driving power electronics demand. Power electronics components such as inverters, electric motor controllers and onboard chargers are key elements of any EV powertrain. Technological advancements are enabling higher efficiency, faster switching, and compact form factors well-suited for EVs.
Market Trends
1. Wide Bandgap (WBG) Semiconductors: Use of WBG materials such as silicon carbide and gallium nitride offers higher efficiencies compared to conventional silicon. They also allow smaller passive components and operate at much higher voltages and temperatures. This is enabling more compact equipment designs across industries.
2. Integration of Power and Control Functions: Ongoing miniaturization is allowing integrating power stage components and related driver/controller ICs into single package solutions. This offers reduced size and simplified designs. Monolithic integration of power devices, drivers, and controllers on the same die will be a future trend.
Market Opportunities
1. Electric Vehicles: Mass adoption of EVs globally in the coming years opens massive opportunities for power electronics players. All key EV components such as motors, on-board chargers, and power converters rely on power electronics.
2. Renewable Energy Integration: Power electronics has a critical role in managing the power generated from renewable sources and integrating it into the electric grid or other applications efficiently. Global solar and wind installed capacity additions are driving opportunities.
The Impact of COVID-19 on Power Electronics Market:
The COVID-19 pandemic has severely impacted the growth of the global Power Electronics Market. Due to lockdowns imposed worldwide to curb the spread of the virus, manufacturing facilities and supply chains were disrupted substantially. This resulted in reduced demand for power electronics from end-use industries like automotive, consumer electronics and industrial.
In the pre-COVID period, the market was growing steadily at a CAGR of 5.7% driven by increased adoption of renewable energy, investments in smart grid infrastructure and rising demand for energy-efficient power management solutions. However, in 2020 the market registered a steep decline of around 12-15% as production and sales came to a virtual standstill during lockdowns.
The post-COVID recovery of the market has been slow and gradual. While manufacturing and supply chains are getting back on track, demand revival from pandemic-hit sectors remains a challenge. However, investments in renewable energy projects and government stimulus for green recovery are providing support. Focus on digital transformation across industries is also boosting demand for server power supplies and data center infrastructure.
Going forward, Power Electronics Market Companies must focus on bolstering online sales and service channels to reduce reliance on physical infrastructure. They should also explore opportunities in the healthcare sector for products like medical devices and diagnostic equipment. R&D investments in areas like EV charging infrastructure, energy storage solutions and renewable integration technologies will help power electronics companies participate in post-pandemic green growth. Diversification into new application areas will be critical for sustained recovery and growth in the long run.
The Power Electronics Market in Asia Pacific region is currently the largest in terms of value. Countries like China, Japan, South Korea and India constitute a major share of the global production and consumption. This is due to availability of low-cost manufacturing facilities, presence of key power electronics companies and growing investments in renewable energy and electric vehicles sector.
North America is projected to be the fastest growing regional market during the forecast period. This is attributed to increasing energy efficiency regulations, rising adoption of EVs and strategic initiatives like the US Infrastructure Plan focusing on clean energy transition. Investments in modernizing the aging power grid also presents opportunities for power electronics companies in the region.
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