Power Electronics Market Size, Share, Trends, Growth and Forecast 2032

Global Power Electronics Market Size Analysis

The global Power Electronics Market size was worth around USD 45.06 Billion in 2023 and is predicted to grow to around USD 74.23 Billion by 2032 with a compound annual growth rate (CAGR) of roughly 5.7% between 2024 and 2032.

The global Power Electronics Market. The report offers valuation and analysis of Power Electronics market on a global as well as regional level. The study offers a comprehensive assessment of the industry competition, limitations, sales estimates, avenues, current & emerging trends, and industry-validated market data. The report offers historical data from 2018 to 2022 along with a forecast from 2023 to 2032 based on value (USD Billion).

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Introduction

Power electronics is the application of solid state electronics and is utilized for controlling & transforming electric power. It is a branch of electronics that encompasses the analysis and designing of myriad circuits capable of transforming electrical energy into other form of energy. Additionally, power electronics make use of various equipment including semiconductor equipment, inductors, and capacitors. Furthermore, it assists the power management sector in improving the power conservation in consumer electronics, industrial systems, and electric vehicles. Additionally, power electronics has myriad applications in transport, automotive, defense & aviation, and consumer electronics goods sectors.

Global Power Electronics Market Dynamics

The key market dynamics that are shaping the global power electronics market include:

Key Market Drivers

• Rising Demand for Energy Efficiency: Energy efficiency is becoming a top priority for businesses and people alike to cut down on usage and environmental effect. Power electronics are essential for accomplishing these objectives because they convert and regulate electrical power effectively. Technological developments in power electronics reduce energy losses in transmission and conversion, which in turn results in overall energy savings.
• Growth of Renewable Energy Sources: Energy Effective power conversion and management are required due to the growing popularity of renewable energy sources like solar and wind power. The conversion of variable renewable energy output into stable grid-compatible AC power using power electronics equipment like inverters and converters is necessary to enable a smooth integration of renewable energy sources into the current energy infrastructure.
• Electric Vehicle Revolution: The market for power electronics is also being significantly influenced by the electric vehicle (EV) revolution. Power electronics are essential for numerous applications as EVs grow more common. battery management systems, onboard chargers, and inverters—which transform DC battery power into AC motor power—are among the features seen in these cars. The demand for power electronics solutions catered to the needs of this emerging industry is accelerated by the spike in EV sales.
• Smart Grid Development: Advanced power management and control technologies are critical to the development of smart grids. Power electronics devices facilitate the shift to more intelligent and efficient energy networks by enabling smart grid functionalities including demand-side control, integration of dispersed generation, and increased grid resilience.
• Industrial Automation and Internet of Things (IoT): The necessity of effective power management solutions is highlighted by the development of the Internet of Things (IoT) and industrial automation. In many different industries, power electronics devices are essential for powering and managing linked equipment and automated systems resulting in enhanced operational performance, productivity, and efficiency.

Key Challenges

• High Initial Investment Costs: High initial investment costs of power electronics devices, especially those that incorporate cutting-edge technology like Wide Bandgap (WBG) semiconductors. Potential users may be discouraged by the significant up-front costs associated with acquiring and integrating these devices, especially in applications where money is tight.
• Shortage of Skilled Workforce: The lack of qualified workers in the power electronics sector is another issue. Power conversion, control systems, and thermal management are among the fields where knowledge is essential due to the intricacy of power conversion systems. But there aren’t enough experts in the field, which makes it difficult to create, integrate, and maintain sophisticated power electronics systems.
• Limited Standardization: The difficulties in the power electronics sector due to the absence of total standardization among all parts and systems. This may lead to incompatibilities between gadgets made by various manufacturers and make engineering design more difficult. Even if initiatives are being made to address this issue, it might take some time and coordinated effort to achieve broad standardization.
• Thermal Management Challenges: The thermal management is posing as restraints for power electronics market. When operating, these devices produce a lot of heat, therefore effective cooling solutions are needed to maintain performance and dependability. Power electronics systems may become more complicated and expensive because of the development and application of efficient heat management techniques.
• Geopolitical Instability and Supply Chain Disruptions: Supply chain interruptions and geopolitical unrest continue to be problems for the power electronics industry. Trade conflicts and geopolitical concerns can cause major disruptions to the global supply chain for components and raw materials. Production may be impacted by such disruptions if essential materials and components become scarce schedules and maybe raise expenses.

Key Trends

• Advancement in Wide Bandgap (WBG) Semiconductors: Wide Bandgap (WBG) semiconductors, especially Gallium Nitride (GaN) and Silicon Carbide (SiC), have made significant progress. Compared to conventional silicon, these materials have better qualities like increased efficiency, quicker switching rates, and better thermal performance. It is anticipated that once WBG semiconductors are widely used, more compact, dependable, and efficient power electronics devices would be created for a range of uses.
• Integration of Artificial Intelligence (AI) and Machine Learning (ML): Power electronics are being revolutionized by the combination of machine learning (ML) and artificial intelligence (AI). Real-time optimization, predictive maintenance, and intelligent control algorithms are just a few of the applications that make use of AI and ML technologies. Power electronics systems’ efficiency, dependability, and capacity for self-healing are improved by this integration, opening the door for more intelligent and adaptable gadgets.
• Miniaturization and Integration: Increasing focus on integration and downsizing in the power electronics sector. Space limitations in applications like consumer electronics and electric vehicles (EVs) as well as the need for increased power density are driving the need for smaller, more compact devices. This trend cannot be achieved without advancements in packaging technologies and component downsizing.
• Focus on Digitalization and Connectivity: Power electronics devices are progressively becoming digitalized and connected. Network connectivity makes it possible to monitor, diagnose, and control systems remotely, which helps with preventative maintenance and enhances system performance. The demand for linked power electronics in industrial applications is being further driven by the growth of the Industrial Internet of Things (IIoT), which will result in more responsive and efficient systems.
• Sustainability and Green Power Electronics: The power electronics sector is starting to prioritize sustainability. An increasing focus on creating environmentally responsible solutions, such as employing recycled materials, energy-efficient design, and reducing environmental effects across the whole lifecycle of the product. There is an increasing focus on green power electronics, which is reflected in the research into bio-based or biodegradable materials for power electronics components.

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Market Growth Dynamics

Escalating demand for power-efficient device as well as battery-charged equipment is projected to impel the overall industry growth over the forecast timespan. Surge in acceptance of power electronics can be attributed to the introduction of electric cars as well as hybrid cars along with the use of internet of things & sensor technology in the automotive sector. Large-scale utilization of power electronics in consumer electronics, defense & aerospace, and energy & power sectors will steer the business trends.

Furthermore, massive popularity of silicon-based PV cells across emerging economies like China, India, and Brazil will propel the business growth. However, the huge costs of power electronics equipment will impede the expansion of power electronics industry over the forthcoming years. However, escalating use of plug-in electric automobiles along with adding of new features to power metal oxide semiconductor field effect transistors will offset the negative impact of the hindrances on the market by creating humungous product demand across the globe.

Europe Power Electronics Market Size To Witness Mammoth Growth By2032

The expansion of industry in the sub-continent over the forecast timespan is attributed to allocation of large funds by the government for electric vehicle producers along with subsidies for the vehicle purchasers. Countries like Germany, France, and the UK are expected to steer the regional market growth both in terms of value and size. Apart from this, large number of the vehicle manufacturers in Germany, Italy, UK, and France are focusing on production of electric vehicles to reduce fuel emissions from vehicles as per guidelines stated in the Paris accord and due to stringent EU environmental laws. This, in turn, will enlarge the penetration of power electronics devices in the automotive sector of Europe, thereby impelling the regional industry trends.

Power Electronics Market: Report Scope

Key participants profiled in the report are:

• Renesas Electronics Corporation
• ABB Group
• Infineon Technologies AG
• Microsemi Corporation
• Mitsubishi Electric Corp.
• STMicroelectronics
• Rockwell Automation, Inc.
• Toshiba Corporation
• Fuji Electric Co. Ltd.
• Texas Instruments, Inc.

This report segments the global power electronics market as follows:

Power Electronics Market: Device Analysis

• Power Diodes
• Metal-Oxide-Semiconductor Field-Effect Transistor
• Bipolar-Junction Transistor
• Insulated-Gate Bipolar Transistor
• Thyristor

Power Electronics Market: Type Analysis

• Power IC
• Power Module
• Power Discrete

Power Electronics Market: Application Segment Analysis

• Consumer Electronics
• Energy & Power
• Industrial System
• Inverter & UPS
• Industrial System
• 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