Power Electronics Market Size, Share & COVID-19 Impact Analysis, By Conversion (AC to AC, DC to DC, DC to AC, and AC to DC), By Isolation (Isolated and Non-isolated), By Operation (Power Generation, Power Transmission, Power Distribution, and Power Control), By End-user (Automotive, Consumer Electronics, Aerospace and Defense, Energy, and Others), and Regional Forecast, 2023-2030

The global power electronics market size was valued at USD 52.70 billion in 2022 and 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 IMPACT

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.

LATEST TRENDS

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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.

DRIVING FACTORS

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.

RESTRAINING FACTORS

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.

SEGMENTATION

By Conversion Analysis

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.

By Isolation Analysis

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.

By Operation Analysis

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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.

By End-user Analysis

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.

REGIONAL INSIGHTS

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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.

KEY INDUSTRY PLAYERS

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).

LIST OF KEY COMPANIES PROFILED:

• Texas Instruments (U.S.)


• Infineon Technologies (Germany)


• On Semiconductor (U.S.)


• Analog Devices Inc. (U.S.)


• TDK (Japan)


• Qualcomm (U.S.)


• STMicroelectronics (Switzerland)


• Murata Manufacturing (Japan)


• Vishay Intertechnology (U.S.)


• ROHM (Japan)

KEY INDUSTRY DEVELOPMENTS:

• August 2021– STMicroelectronics launched the new 45W and 150W MasterGaN devices to facilitate high efficiency power conversion. ST's MasterGaN concept claims to simplify the transition from regular silicon MOSFETs to GaN wide bandgap power technology. The device integrates two 650V power transistors with an optimized high voltage gate driver and associated safety and protection circuitry, eliminating gate driver and circuit layout challenges.


• June 2021– Mitsubishi Electric Corporation announced the launch of the T-series 2.0 kV industrial IGBT module, the world's first 2.0 kV withstand voltage IGBT1. This module can increase the efficiency and reduce the size of power converters for renewable energy, which are in high demand due to the robust use of green power sources.


• February 2022- SL Power Electronics declared the launch of the GB130Q-C family of 130W quad output power supplies in a 3 in.-by-5 in. open-frame form factor. According to the company, this product line is specifically designed for next-generation applications, with a screw-less design and no top-side heatsink, enabling more automated assembly, improving system reliability, and reducing system cost.


• May 2022- Hitachi Energy announced the global launch of its power semiconductor module called “RoadPak”. This module will be extensively used for electric vehicles at PCIM Europe. The launch took place at the world’s leading power electronics trade fair in Nuremberg, Germany.


• August 2022- II-VI Incorporated signed a multi-year contract with Infineon Technologies AG to produce 150 mm silicon carbide (SiC) substrates for power electronics. These substrates will be used in EVs.

REPORT COVERAGE

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.

Report Scope & Segmentation