Power Electronics Market

Power Electronics Market Overview

As per the updated reports of Future Market Insights, our lead analyst gives a detailed analysis of the technology market. As per the analysis, sales of power electronics hold a current valuation of USD 30.70 billion in 2024.

Reflecting on consumers’ expectations, power electronics manufacturers work on simpler labels with understandable ingredients, reinforcing continuous demand. Going by this pattern, demand could rise and equate to a market valuation of USD 51.30 billion, with a sluggish CAGR of 5.3% by 2034.

Attributes	Details
Market Value for 2024	USD 30.7 billion
Market Value for 2034	USD 51.3 billion
Market Forecast CAGR for 2024 to 2034	5.3%

Historical Performance and Future Growth of the Power Electronics Market

In 2019, the global power electronics market showed a potential worth USD 26.24 billion, according to a report from Future Market Insights (FMI). The power electronics market witnessed significant growth, registering a CAGR of 3.10% from 2019 to 2023.

Historical CAGR	3.10%
Forecast CAGR	5.3%

Preference in technology, particularly in semiconductor devices and power management systems, contributed to the expansion of the market. The boom in demand for energy-efficient solutions and the need for power optimization further augmented the uptake of power electronics worldwide.

The market performance during this period underscored its importance by enabling efficient power conversion, control, and management across diverse applications.

The power electronics market is forecasted to experience accelerated growth, with a projected CAGR of 3.1% from 2019 to 2023. Several factors are expected to drive this growth, including improvement in industries requiring power electronics solutions, such as electric vehicles, renewable energy systems, and smart grids.

The boost on energy conservation, electrification, and the transition towards sustainable energy sources fuel the global adoption of power electronics solutions.

Beacons to Guide the Power Electronics Market Forward

• Continuous innovations in power semiconductor devices, such as silicon carbide (SiC) and gallium nitride (GaN), guide the power electronics market forward.
• The boom in advancements enables higher efficiency, compact designs, and improved performance, propelling the adoption of power electronics across various industries, including automotive, renewable energy, and consumer electronics.
• The push in demand for energy-efficient solutions in applications like electric vehicles, renewable energy systems, and smart grids is a beacon propelling the power electronics market.
• Power electronics play an important role in optimizing power conversion and management, reducing energy consumption, and minimizing environmental impact, aligning with global efforts toward sustainability.

Key Factors Hampering the Power Electronics Market

• High initial investment and manufacturing costs associated with advanced power semiconductor materials, packaging technologies, and production processes hinder the widespread adoption of power electronics.
• The cost sensitivity of end-users, especially in price-sensitive markets, poses a challenge to market penetration and limits the scalability of power electronics solutions.
• Thermal management issues, such as heat dissipation and temperature control, present significant challenges in power electronics applications.
• As power densities boom and devices operate under higher voltages and currents, managing thermal dissipation becomes difficult to ensure device reliability and performance.
• Inadequate thermal management solutions lead to device failures, reduced lifespan, and higher maintenance costs, hampering market growth and adoption.

Category-wise Insights

The below section shows the leading segment. Based on the device type, the module segment is accounted to hold a market share of 61.2% in 2024. Based on material, the silicon carbide segment is accounted to hold a market share of 34.2% in 2024.

Modules integrate various components into a single package, including power semiconductors, gate drivers, and protection features.

Silicon carbide (SiC) offers superior electrical properties to traditional silicon-based semiconductors, including higher breakdown voltage, lower switching losses, and higher thermal conductivity.

Category	Market Share in 2024
Module	61.2%
Silicon Carbide	34.2%

Module Segment to Hold a Significant Share in the Market

Based on the device type, the module segment stands out, capturing a significant market share of 61.2%.

With the increasing complexity of power electronic systems and the demand for compact and reliable solutions, modules provide an integrated approach that simplifies design, reduces development time, and improves system performance.

Modules integrate multiple components, such as power semiconductors, gate drivers, and protection circuitry, into a single package, offering convenience and efficiency for power electronic system designers.

Silicon Carbide Segment to Hold a Dominant Share in the Market

Based on material, the silicon carbide segment is accounted to hold a market share of 34.2% in 2024.

Silicon carbide (SiC) offers superior electrical properties compared to traditional silicon-based semiconductors where such advantages make SiC an attractive choice for high-performance power electronic applications, such as electric vehicles, renewable energy systems, and industrial automation.

The boom in demand for energy-efficient and high-power-density solutions further propels the adoption of SiC-based power devices. Industries strive to improve efficiency, reduce emissions, and meet stringent performance requirements.

The silicon carbide segment continues to extend its presence in the market, offering advanced semiconductor solutions for the next generation of power electronics.

Country-wise Insights

The table describes the top five countries ranked by revenue, with Australia holding the top position.

The rapid adoption of renewable energy solutions and the robust mining sector boost the market in Australia. With significant investments in solar, wind, and battery storage projects and advanced power electronics in mining operations, Australia showcases leadership in energy efficiency and sustainability-driven applications.

Forecast CAGRs from 2024 to 2034

Countries	CAGR through 2034
United States	4.1%
Germany	2.7%
Japan	2%
China	5.8%
Australia	8.8%

Technological Innovation and Industrial Automation Improves the United States Market

The United States market strongly emphasizes technological innovation and industrial automation. Power electronics are vital in various sectors, such as automotive, aerospace, and renewable energy.

The United States is a leader in electric vehicle adoption, requiring advanced power electronics for vehicle propulsion systems and charging infrastructure. The country mainly focuses on renewable energy sources like solar and wind power that boost demand for power electronics solutions for grid integration and energy storage systems.

Manufacturing Sector Dominates the Economic Growth in Germany

Germany is renowned for its engineering prowess and high-tech industries. Power electronics are integral to automotive manufacturing, machinery, and industrial automation sectors in Germany.

With a strong emphasis on energy efficiency and sustainability, the industries in Germany rely on advanced power electronics for optimizing energy consumption and improving process efficiency.

Japan Sees a Boom in the Power Electronics Market

Japan is known for its advanced technology and innovation-driven economy. Power electronics are important for the automotive industry, particularly in hybrid and electric vehicles in Japan.

Power electronics find extensive applications in consumer electronics, industrial automation, and renewable energy systems, reflecting a commitment to technological advancement and energy sustainability.

Clean Energy and Electrified Composition Boosts the Market in China

China has one of the largest electric vehicles, renewable energy installations, and consumer electronics markets. Power electronics in China is pivotal in transitioning towards clean energy and electrified transportation.

Government initiatives promoting energy conservation and technological innovation, are taken where China presents significant opportunities for power electronics manufacturers catering to diverse applications and industries.

Australia Holds a Prominent Position in the Market

Australia has abundant solar and wind resources, leading to significant investments in renewable energy projects. Power electronics enable efficient energy conversion, grid integration, and energy storage solutions in the renewable energy sector.

The mining industry relies on power electronics for equipment automation, energy management, and operational efficiency improvements, contributing to the dominance of the market in the country.

Competitive Landscape

The competitive landscape of the power electronics market is dynamic, featuring a mix of established players and emerging companies. Niche players widely focus on specific segments, like power modules or wide bandgap semiconductors, contributing to the competitive intensity.

Technological innovation, product differentiation, and strategic partnerships are vital for maintaining market share in this highly competitive environment. Factors such as quality, reliability, and cost-effectiveness play crucial roles in determining the competitive positioning of companies within the power electronics market.

Some of the key developments are

• In May 2023, Vishay Intertechnology, Inc. unveiled 17 new third-generation 650V silicon carbide Schottky diodes (SiC). These devices from Vishay Semiconductors feature a merged pin Schottky (MPS) design, combining high surge current capability with low forward voltage drop, capacitive charging, and reverse leakage current.
• In May 2023, Toshiba Electronics Europe introduced the TPH9R00CQ5, a new 150V N-channel power MOSFET. Based on Toshiba's latest generation U-MOS X-H Trench process, this MOSFET is tailored for high-performance switching power supplies, including communication base stations and industrial applications.

Key Coverage in the Power Electronics Industry Report

• Adjacent Study on Power Electronics Market
• Australia Power Electronics Market
• Power Electronics Market Size, Current Insights, and Demographic Trends
• Global Power Electronics Sales Market
• Key Opportunities of the Global Power Electronics Market

Report Scope

Attributes	Details
Estimated Market Size in 2024	USD 30.70 billion
Projected Market Valuation in 2034	USD 51.3 billion
Value-based CAGR 2024 to 2034	5.3%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	Value in USD billion
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; Middle East and Africa
Key Market Segments Covered	Device Type, Material Type, Application, Region
Key Countries Profiled	The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, Rest of Eastern Europe, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Key Companies Profiled	Qualcomm; ABB Ltd.; Infineon Technologies AG; Texas Instruments Inc.; ROHM Co. Ltd; STMicroelectronics NV; Renesas Electronics Corporation; Vishay Intertechnologies Inc.; Toshiba Corporation; Mitsubishi Electric Corporation

Key Segments

By Device Type:

• Power Discrete
• Power Module
• Power IC

By Material Type:

• Silicon
• Germanium
• Silicon Carbide (SiC)
• Gallium Nitride (GaN)

By Application:

• Consumer Electronics
• Automotive
• IT & Telecommunication
• Energy & Power
• Industrial
• Military & Aerospace

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• Middle East and Africa

Frequently Asked Questions

What is the expected worth of the power electronics market in 2024?

As of 2024, the market for power electronics is expected to be valued at USD 30.7 billion.

What is the market potential for power electronics?

The power electronics market is projected to expand at a CAGR of 5.3% between 2024 and 2034.

Which device type segment dominates the power electronics market?

The module segment is projected to dominate the industry.

What is the anticipated market value for power electronics in 2034?

By 2034, the market value of power electronics is expected to reach USD 51.3 billion.

Which country is likely to dominate the power electronics market?

Australia is likely the top-performing market, with a CAGR of 8.8%.