Power Converter Market Size, Share, and Industry Analysis, By Type (AC to DC Converter, DC to AC Converter, DC to DC Converter, and AC to AC Converter), By Application (Renewable Energy, Transportation, Industrial, Consumer Electronics, and Others), and Regional Forecast, 2024-2032

A power converter is an electronic device that changes electrical energy from one form to another form. It encompasses a variety of devices designed for different applications and needs. The global transition toward renewable energy sources, such as solar and wind power, is a significant driver. Power converters are essential in these systems to change DC power from solar panels and wind turbines into AC power for grid use and other applications. This trend is promoted by government policies and incentives anticipated to reduce greenhouse gas emissions and promote clean energy.

In June 2021, ABB supplied 95 devices to GE Renewable Energy. The converters will be installed on the world's most powerful offshore wind turbines at the U.K.'s Dogger Bank wind farm, which will play a key role in achieving the country's net zero target. The transformers are ABB's first significant order under a long-term supply agreement (LTSA) with GE Renewable Energy.

Innovations in power conversion technology, such as the development of wide-bandgap semiconductors, such as silicon carbide and gallium nitride, are enhancing the efficiency and performance of power converters. These advancements are significant for high-efficiency applications in both industrial and consumer electronics sectors.

In the power converter market, companies are actively signing contracts and forming partnerships to enhance their technological capabilities, expand their market presence, and drive innovation. These collaborations are crucial for addressing the increasing demand for advanced and effective power conversion solutions.

In December 2023, Iraq's leading electricity transmission company signed a strategic agreement with Germany's Siemens to build five high-voltage direct current (HVDC) transformer stations. According to a strategic agreement sponsored by Iraqi Minister of Electricity Ziyad Ali Fadel, Siemens will build five HVDC converter stations with a total capacity of ~7,500 megavolts in the governorates of Baghdad, Basra, Karbala, Najaf and Diyala, as the Iraqi Ministry of Electricity mentioned in a statement.

The COVID-19 outbreak led to factory shutdowns and production halts, particularly in China, which is a major hub for electronic components. This created problems in the manufacturing activities of some of the manufacturers. However, the pandemic accelerated the shift toward renewable energy as countries aimed to build more resilient and sustainable energy systems. This trend increased the demand for power converters used in solar and wind energy projects.

KEY INSIGHTS

The report covers the following key insights:

• Recent Advancements in the Power Converter Market

• Key Industry Trends

• Regulatory Landscape for the Power Converter Market

• Key Industry Developments (Mergers, Acquisitions, and Partnerships)

•Impact of COVID-19 on the Market

 SEGMENTATION

 ANALYSIS BY TYPE

Based on type, the market is segmented into AC to DC Converter, DC to AC Converter, DC to DC Converter, and AC to AC Converter. The AC to DC Converter dominates the market and is anticipated to grow remarkably during the predicted period. AC to DC converters, also known as rectifiers, are crucial in solar power systems to convert the AC power produced by solar panels into DC power for storage in batteries or for direct use. The rapid adoption of solar energy worldwide is driving the demand for efficient and reliable AC to DC converters.

Inverters are essential in converting the DC power produced by solar panels and wind turbines into alternating power for use in homes, businesses, and the electrical grid. The growing global adoption of renewable energy sources is driving the demand for efficient and dependable inverters.

ANALYSIS BY APPLICATION

Based on the application, the market is categorized into renewable energy, transportation, industrial, consumer electronics, and others. The renewable energy segment is expected to grow significantly during the forecast period. The increasing deployment of solar panels and wind turbines necessitates efficient power converters. Solar panels generate DC power, which must be converted to AC power for grid compatibility using inverters. Similarly, wind turbines often require converters to match the generated power with grid requirements.

The increasing popularity of electric vehicles, including cars, buses, and trucks, is a significant driver for the transportation segment. EVs require efficient power converters to manage the conversion of DC power from batteries to AC power for electric motors. The expanding EV market is boosting demand for these converters​.

REGIONAL ANALYSIS

The power converter market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Asia Pacific is anticipated to dominate the market and grow at a considerable growth rate during the predicted period. In the region, China, India, and Southeast Asian nations are experiencing considerable growth in the transportation and renewable energy sector. For example, as per the International Energy Agency, China continues to dominate in terms of wind capacity inclusion, with ~37 GW installed in 2022, comprising 7 GW in offshore farms.

European countries have set determined renewable energy targets to counter climate change and lower dependency on fossil fuels. The European Union's commitment to attaining 32% of its energy from renewable sources by the year 2030 is a major driver.

The generation of electronic devices, ranging from smartphones to household appliances, contributes to the demand for smaller, more efficient power converters for various applications in North America. The modernization of electrical grids to smart grids requires advanced power conversion technologies to manage power flow, voltage levels, and grid stability effectively.

KEY PLAYERS COVERED

Some major companies in the power converter market are Siemens, ABB Group, Schneider Electric, Delta Electronics, Emerson Electric, Eaton, Vicor Corporation, Texas Instruments, General Electric, and Rockwell Automation.

KEY INDUSTRY DEVELOPMENTS

• In December 2023, as electronics shrink, Texas Instruments' latest GaN chips declared plans to keep pace, reducing the size of power electronics, such as portable AC-DC adapters. Texas Instruments recently declared three new members of its GaN portfolio with a smaller overall footprint. As designers strive to improve the power management capabilities of AC-DC converters, low-power GaN technology offers smaller and lighter solutions that improve converters' thermal performance.


• In July 2023, AcBel Polytech Inc. acquired ABB's power conversion division at ~USD 500 to 600 million. The power conversion division is located in Plano, Texas, U.S., and employs ~1,500 people globally. In 2022, it had sales of around USD 440 million and operating income of ~USD 50 million.