Power Electronics Market Share, Opportunities, Industry 2031

Report Description

Power Electronics Market Outlook 2031

The global power electronics market size was valued at USD 38.48 Billion in 2022 and is likely to reach USD 58.18 Billion by 2031, expanding at a CAGR of 4.7% during the forecast period, 2023–2031. Power electronics refer to processing of voltage currents for specified applications. It aids in the conversion of DC power to AC power with maximum output efficiency.

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Power Electronics Market Trends, Drivers, Restraints, and Opportunities

• Growing focus on the use of renewable energy sources across the globe, expanding usage of power electronics in the manufacturing of electric cars, and rising use of power electronics in consumer devices are major drivers of the market.
• Increased use of power electronics in a variety of applications, such as industrial motor drives, electric grid stabilization, and consumer electronics, is driving the market growth.
• Expanding use of high-voltage operational devices and requirement for power management devices in automotive, consumer electronics, and energy & power is anticipated to fuel the market growth.
• The complex integration procedure of the advanced electronics devices is one of the major restraints of the market.
• Complex device design necessitates a rigorous methodology, skillsets, and many toolsets for integration, all of which incur additional expenses. As a result, the expensive cost of these gadgets discourages people from adopting them, limiting the global market’s growth.
• Rising demand for plug-in electric vehicles (PEVs) and advancements in power metal–oxide–semiconductor field effect transistor (MOSFET) technology are expected to provide lucrative opportunities for the power electronics market.

Scope of Power Electronics Market Report

The report on power electronics market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Power Electronics Market Segment Insights

Devices Segment Analysis

Based on devices, the market can be segmented into power discrete, power module, and power IC. The power discrete segment can be further divided into diode, transistors, and thyristor. 

The power modules segment can be classified as intelligent power module, standard & power integrated module, and others. The transistors sub-segment can be divided into bipolar junction transistor (BJT), field effect transistor (FET), and insulated gate bipolar transistor (IGBT The latter segment is estimated to expand at a high CAGR during the forecast period.). Power modules are in high demand due to the high-power efficiency requirements of various applications.

Government initiatives to increase EV/HEV adoption, rising electrification in the automotive industry, inclined trends of clean energy generation (renewable energy generation), increasing number of charging stations, rapid industrialization, growing adoption of intelligent modules in consumer appliances, and industrial automation & Industry 4.0 applications are among the major factors driving the growth of the market segment.

Few applications of power electronics include motor control and drives, hybrid-electric solutions for construction, commercial, and agricultural vehicles, solar energy solutions, uninterruptible power supply (UPS), room air conditioners, high frequency & switching applications, DC/DC converters, auxiliary inverters, hybrid electrical vehicles, and inductive heating.

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End-User Segment Analysis

On the basis of end-users, the market can be divided into telecommunication, industrial, automotive, consumer electronics, military & defense, energy & power, and others.

The automotive segment is expected to dominate the market in the coming years due to the increased focused on hybrid electric vehicles (HEVs), electric vehicles, and increased demand for passenger vehicles in developing regions.

Moreover, concerns about pollution and long-term growth have prompted governments in various nations to enhance government support for electric car manufacture, which is aided by incentives. This is anticipated to help develop and expand the charging infrastructure, as well as generate market prospects.

China is one of the world's prominent markets for electric vehicles, and the country has increased manufacturing by enacting new rules and incentives directed at automobiles, notably new energy vehicles.

• In May 2020, the government of China announced a two-year extension of NEV subsidies and tax policies, as well as a USD 38 million capital investment in battery charging infrastructure. Such measures are intended to strengthen the country's vehicle market as well as the power electronics business.

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Material Segment Analysis

In terms of material the market can be classified as Silicon (Si), Silicon Carbide (SiC), and Gallium Nitride (GaN).

The SiC segment is estimated to account for a significant market share during the forecast period. Rising use of SiC products in different applications, as well as growing industrialization in developing economies, are expected to provide profitable possibilities for market players.

Regional Analysis

Based on regions, the market can be segregated into Asia Pacific, North America, Europe, Latin America, and Middle East & Africa.

The market in Asia Pacific is estimated to expand at a rapid pace during the forecast period. Renewable energy generation is one of the market's most lucrative revenue streams in Asia Pacific.

Various offers and incentives are being made by governments in a number of countries in the region to encourage users to change to renewable energy generation, mostly photovoltaics or solar.

The rapid use of electric vehicles throughout the region is also propelling the power electronics market. Several countries in region have established goals to boost the usage of electric vehicles in order to minimize pollution.

For instance, China increased its electrified car sales target for 2025; the country now wants around 25% of new automobiles produced to be electrified. By 2050, the government of Japan expects all new automobiles sold in the country to be electric or hybrid. Similarly, the government of Korea expects to electrify 33% of new automobiles by 2030. All of these factors are projected to fuel the expansion of the Asia Pacific power electronics market.

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