Intelligent Power Module (IPM) Market Size, Share, Trends, Growth 2032

Intelligent Power Module (IPM) Industry Prospective:

The global intelligent power module (IPM) market size was worth around USD 3.45 billion in 2023 and is predicted to grow to around USD 7.88 billion by 2032 with a compound annual growth rate (CAGR) of roughly 9.60% between 2024 and 2032.

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Intelligent Power Module (IPM) Market: Overview

An intelligent power module (IPM) is a power-switching component of a machinery or equipment. Traditionally power modules when integrated with additional protection circuitry and control systems become intelligent counterparts. The primary objective of an IPM in a device is to optimize overall product performance and also simplify the overall design of the equipment. The main components of an intelligent power module are power transistors, control circuitry, and protection features.

Intelligent power modules are widely applied in everyday home appliances such as air conditioners, refrigerators, and washing machines. On the other hand, they are also a crucial component of renewable energy solutions such as solar panels. The changing supply chain of the products and raw materials may impact the overall revenue in the long run.

Key Insights:

• As per the analysis shared by our research analyst, the global intelligent power module (IPM) market is estimated to grow annually at a CAGR of around 9.60% over the forecast period (2024-2032)
• In terms of revenue, the global intelligent power module (IPM) market size was valued at around USD 3.45 billion in 2023 and is projected to reach USD 7.88 billion, by 2032.
• The market is projected to grow at a significant rate due to the growing demand for air-conditioners worldwide.
• Based on the vertical, the industrial segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the power devices, the insulated Gate Bipolar Transistors (IGBTs) segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Intelligent Power Module (IPM) Market: Growth Drivers

Growing demand for air-conditioners worldwide to drive market demand rate in the coming years

The global intelligent power module (IPM) market is expected to grow due to the rising demand for air-conditioners (ACs) across the globe. Climate change has had a drastic impact on the earth’s temperature. Countries worldwide are reporting intense waves of heat for the majority of months of the year as a result of global warming. Colder countries are registering melting ice caps further leading to increased temperatures.

According to official reports, Europe registered widespread heatwaves in 2023 with 11 months recording temperatures above average. Similarly, other nations including Middle Eastern countries, Asian regions, and North America registered the impact of climate change.

In addition to this, the purchasing power of ordinary citizens is growing steadily resulting in greater demand for air conditioners to mitigate the impact of higher temperatures on quality of life. Furthermore, AC manufacturers have invested in several innovation-based strategies such as the development of energy-efficient modules, availability of financial assistance, and equated monthly installment (EMI) schemes.

In 2021, the US Department of Energy (DOE) announced the launch of the Residential Cold Climate Heat Pump Challenge which aims to create a collaborative environment for utilities, manufacturers, and other stakeholders to develop cutting-edge heat pump technology to meet the needs of extreme temperatures with higher efficiency.

Surging applications in renewable energy solutions to generate massive response among industry players

IPMs are widely popular among manufacturers of renewable energy solutions such as solar panels. The solutions available in the global intelligent power module (IPM) market are used in the inverters of wide turbines and solar panels. The growing inclination of global leaders toward harnessing renewable energy and reducing dependence on environmentally damaging non-renewable energy sources will help the industry for IPM thrive in the coming years.

According to the US DOE, more than USD 10 billion have either been invested or announced in the country's offshore wind supply projects since 2021. In addition to this, emerging economies such as India and China are also investing heavily in the development of renewable energies, increasing the application of IPMs.

Intelligent Power Module (IPM) Market: Restraints

High cost of IPMs to limit the industry’s growth rate along with supply chain disruptions

The global industry for intelligent power module (IPM) is projected to be restricted due to the high cost of the technology as compared to traditionally used power modules. Since IPMs have built-in advanced features including protection technology and improved control systems, these devices are more expensive. Furthermore, the disruption in the supply chain of IPMs caused due to the changing environment surrounding the semiconductor industry is likely to affect the production and supply of IPMs.

Intelligent Power Module (IPM) Market: Opportunities

Increasing the rate of innovation in the industry to generate growth opportunities

The global intelligent power module (IPM) market is expected to generate growth opportunities due to the growing rate of innovation adopted in the industry. In August 2023, Fuji Electric, one of the most significant players in the IPM sector, announced the launch of third-generation small IPMs. The company announced the introduction of the P633C Series 3rd-generation which assists in reducing power consumption in the equipment it is mounted on.

The company offered excellent trade-off characteristics between electromagnetic noise and power loss. As compared to conventional products, the solution launched by Fuji Electric reduced power loss by 10%, and electromagnetic noise was reduced to around one-third of its counterparts.

In February 2024, Onsemi, a semiconductor manufacturing company, introduced the 7th generation IGBT-based IPM. According to market research, the new solution offers reduced package size along with improved power density. The FS7 1200 V SPM31 is the latest innovation offered by Onseni to its consumers. The changing demand from end-user industries such as electric vehicles (EVs) and consumer electronics will encourage the adoption of IPM in the future.

Intelligent Power Module (IPM) Market: Challenges

Competition from regular alternatives and design complexities challenge the industry’s growth rate

The global industry for intelligent power module (IPM) is projected to be challenged by the high competition the industry faces from regular alternatives. The emerging markets continue to be dominated by regular power modules. In addition to this, intelligent power modules are complex in design and require the assistance of skilled experts.

Intelligent Power Module (IPM) Market: Report Scope

Intelligent Power Module (IPM) Market: Segmentation

The global intelligent power module (IPM) market is segmented based on industrial vertical, current rating, power device, and region.

Based on the industrial vertical, the global market segments are IT & telecommunications, industrial, transportation, consumer electronics, and others. In 2023, the highest growth was listed in the industrial segment. The growing adoption of robotics and automation across industrial units in the form of conveyor belts and machines is responsible for fueling the segmental demand. In addition to this, industrial facilities are under pressure to improve energy efficiency in the backdrop of intensifying regulatory requirements. According to market analysis, more than 65% of companies worldwide are using automation in some form.

Based on the current rating, the global intelligent power module industry is divided into 600A, 101A to 600A, and up to 100A.

Based on the power devices, the global market divisions are metal-oxide-semiconductor field-effect transistors (MOSFET), insulated Gate Bipolar Transistors (IGBTs), and others. In 2023, the highest demand was listed in the insulated Gate Bipolar Transistors (IGBTs) segment. The criticality of IGBTs in controlling electrical power flow is the reason for higher segmental demand. In 2023, the global IGBT market was valued at over USD 8.1 billion and has shown promising signs of growth in the future.

Intelligent Power Module (IPM) Market: Regional Analysis

North America to emerge as a leading player during the forecast period

The global intelligent power module (IPM) market is expected to be led by North America during the forecast period. The US will emerge as a leading revenue generator due to the growing adoption of IPMs across major industries. For instance, industrial units in the US and Canada have shown excellent adoption rates of high-end automation systems fueling the demand for intelligent power modules.

In addition to this, the demand is significantly high for IPM due to the growing use of heating, ventilation, and air conditioning (HVAC) systems across North America. According to the 2020 Residential Energy Consumption Survey conducted by the US Energy Information Administration (EIA), more than 88% of homes in the US are equipped with an air conditioner.

Europe is a prominent market for IPM. The regional market growth rate is a result of increased emphasis by European nations on achieving energy efficiency. For instance, in September 2023, the German parliament launched the German Energy Efficiency Act (EnEfG) to achieve higher energy efficiency across the country. The rising adoption of renewable energy solutions will further help the region grow in the coming years.

Intelligent Power Module (IPM) Market: Competitive Analysis

The global intelligent power module (IPM) market is led by players like:

• Semikron Elektronik GmbH & Co. KG
• Mitsubishi Electric Corporation
• ON Semiconductor Corporation
• Microchip Technology Inc.
• Fairchild Semiconductor (now part of ON Semiconductor)
• Infineon Technologies AG
• NXP Semiconductors
• Fuji Electric Co. Ltd.
• Cree Inc. (now Wolfspeed)
• STMicroelectronics NV
• Toshiba Corporation
• ROHM Semiconductor
• Sensitron
• Vincotech GmbH
• Powerex Inc.

The global intelligent power module (IPM) market is segmented as follows:

By Industrial Vertical

• IT & Telecommunications
• Industrial
• Transportation
• Consumer Electronics
• Others

By Current Rating

• Above 600A
• 101A to 600A
• Up to 100A

By Power Device

• Metal-Oxide-Semiconductor Field-Effect Transistor (MOSFET)
• Insulated-Gate Bipolar Transistor (IGBT)
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa