by The power electronics market involves products such as power devices, IGBT modules, power modules, thyristors, diodes and rectifiers that are used in applications such as consumer electronics, industrial systems, automotive systems, communication systems, renewable energy systems and others. Power electronics enhances the performance of electronic systems and improves their energy efficiency. It helps in controlling and managing the flow of electric power effectively using solid-state switches. Advancements in power semiconductors especially silicon carbide and gallium nitride have made power electronic circuits more efficient and compact. The growing adoption of energy efficient systems in sectors such as automotive, consumer electronics and industrial is expected to drive the demand for power electronics in the coming years.
The Global power electronics market is estimated to be valued at US$ 71.13 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 ABB, Analog Devices, Inc., Efficient Power Conversion Corporation, Euclid Techlabs, Fuji Electric Co., Ltd., Infineon Technologies AG, Littelfuse, Inc., Microchip Technology Inc., Mitsubishi Electric Corporation, Navitas Semiconductor, NXP Semiconductors, ON Semiconductor, Qorvo, Inc., Renesas Electronics Corporation, and ROHM CO., LTD. Majority of these players are focusing on developing innovative silicon carbide and gallium nitride based power semiconductor devices to drive growth opportunities.
The Power Electronics Market Size for energy efficient systems is increasing across industries like consumer electronics, automotive, industrial and renewable energy which is expected to open new revenue streams for power electronics manufacturers. With growing adoption of electric vehicles worldwide, power electronics for EV charging and on-board charging is projected to be a key growth opportunity.
Geographic expansion into emerging markets of Asia Pacific and Latin America through partnerships will be a key focus area for major power electronics companies over the forecast period. Countries like China, India are expected to drive the demand owing to rapidly growing electronics and automotive industries.
Market Drivers
The primary driver for the Power Electronics Market Size and Trends is the increasing adoption of energy efficient systems across industries. Power electronic systems help improve overall efficiency and reduce power loss compared to traditional solutions. Growing sales of consumer electronics and adoption of renewable energy is contributing significantly to the demand. The fast growing market for electric vehicles is likely to accelerate the adoption of silicon carbide and other wide bandgap based power modules for EV applications. Stringent government regulations pertaining to fuel efficiency and emissions is prompting automakers to increasingly use power electronics in vehicles.
PEST Analysis
Political: Power electronics market is regulated by government environmental standards regarding energy efficiency. Subsidies and tax incentives promote adoption of power electronics in renewable energy applications.
Economic: Conversion of electricity using power electronics helps reduce power wastage leading to economic savings. Adoption of power electronics increases efficiency of power grids and lowers electricity bills.
Social: Power electronics enable more sustainable use of energy resources and help address environmental concerns around electricity consumption. More efficient appliances powered by power electronics are becoming popular consumer choices.
Technological: Advancements in wide bandgap materials like silicon carbide and gallium nitride allow power devices to operate at higher voltages, frequencies and temperatures. This improves performance factors like power density and switching frequency.
The geographical regions where the power electronics market is concentrated in terms of value include North America, Europe and Asia Pacific. North America and Europe account for the bulk of the market currently due to high demand for power electronics in industrial motor drives, renewable energy integration and electric vehicles. Asia Pacific is also a major market driven by growing infrastructure development and industrialization in China, India and Southeast Asian countries.
The fastest growing regional market for power electronics is expected to be Asia Pacific from 2024 to 2031. This is because many countries in the region are focusing on expanding their renewable energy generation capacity as part of their climate change commitments. Moreover, the demand for efficient industrial equipment and power management solutions is on the rise with the ongoing industrialization. Countries like China and India also offer a large consumer market for power electronics used in applications like consumer appliances, smartphones, and home infrastructure like smart homes. Coupled with government support policies, Asia Pacific will likely see strong double digit CAGR for the power electronics market during the forecast period.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
