23 Jul, 2026
According to Straits Research, the global power semiconductor market was valued at USD 59.06 billion in 2025. The market is projected to grow from USD 62.14 billion in 2026 to USD 93.30 billion by 2034 at a CAGR of 5.21% during the forecast period (2026–2034). Growing demand for electric vehicles, renewable energy systems, industrial automation, and energy-efficient electronics is driving market expansion.
Power semiconductors are electronic devices that control and convert electrical power efficiently. They are essential in electric vehicles, renewable energy systems, industrial machinery, consumer electronics, data centers, and smart grids because they help reduce energy loss and improve overall performance.
The market is expanding steadily as industries focus on energy efficiency and low-carbon technologies. Governments around the world are investing in electric mobility, renewable energy, and smart infrastructure, increasing the need for advanced power semiconductor devices. The growing use of silicon carbide (SiC) and gallium nitride (GaN) materials is improving efficiency, thermal performance, and power density. Asia-Pacific remains the leading regional market because of its strong electronics manufacturing industry, expanding automotive sector, and significant investments in semiconductor production.
Asia-Pacific accounted for the largest market share and is estimated to grow at a CAGR of 3.6% during the forecast period. Due to the region's dominance of the global semiconductor business and the support of government regulations, the Asia-Pacific region is predicted to dominate the market for power semiconductors. China, Japan, Taiwan, and South Korea collectively account for around 65% of the world's discrete semiconductor market. Other countries, including Vietnam, Thailand, Malaysia, and Singapore, contribute significantly to the region's market domination. The Indian Electronics and Semiconductor Association claims that India is a desirable location for international R&D facilities. Thus, it is anticipated that investments in the semiconductor business will arise from the government's ongoing Make In India push. Additionally, the area is a manufacturing powerhouse for electronics, producing millions of electrical products annually for both local use and export. The market share of the Industry under study is greatly influenced by the rising production of electronic goods and parts.
North America is the second largest region. It is estimated to reach an expected value of USD 8.5 billion by 2030, registering a CAGR of 2.6%. The North American region is the early adopter of new technology in manufacturing, design, and research in the semiconductor industry. The growth in the power semiconductor market in North America strongly correlates with the growth of end-user industries, such as automotive, IT and telecommunications, military and aerospace, consumer electronics, and others. According to the Semiconductor Industry Association (SIA), the semiconductor industry directly recognized sales of USD 40.0 billion for January 2021, an increase of 13.2% over the January 2020 total of USD 35.3 billion. The SIA represents 98% of the US semiconductor industry by revenue and nearly two-thirds of non-US chip firms. A shortage in the supply of semiconductors in the region aided by US Policy alterations is also expected to boost domestic manufacturing and equipment investments.
By Material:• Silicon• Silicon Carbide (SiC)• Gallium Nitride (GaN)
By End-user Industry:• Automotive• Consumer Electronics• Industrial• IT & Telecommunications• Energy & Power• Others
sales@straitsresearch.com