Power Discrete and Module Market

Market Overview

The global power discrete and module market size was valued at USD 29.45 billion in 2023. It is estimated to reach USD 47.65 billion by 2032, growing at a CAGR of 6.2% during the forecast period (2024–2032).

Power modules, called power electronic modules, provide physical containment for multiple power components, typically power semiconductor devices, whereas discrete power supplies permit greater application customization. The electronic power substrate, which carries the power semiconductors and offers electrical and thermal contact and electrical insulation where appropriate, is commonly soldered or sintered on top of these power semiconductors, also known as dies. Regarding dependability and power density, power packages frequently perform better than discrete power.

Power packages are frequently more reliable and have a higher power density than discrete power semiconductors housed in plastic housings. Classical power modules, as opposed to those that include a single power electronic switch (such as a MOSFET, IGBT, BJT, Thyristor, GTO, or JFET) or diode, have numerous semiconductor dies coupled together to create an electrical circuit with a certain structure known as a topology. In addition, ceramic capacitors that lower switching voltage overshoots and NTC thermistors that track the substrate temperature of the module are found in modules.

Market Dynamics

Global Power Discrete and Module Market Drivers

Increasing Demand for Power Electronics Modules across Various Industry Verticals

The branch of electronics known as "power electronics" is concerned with converting and controlling electrical power. The properties of silicon carbide semiconductors, such as a higher breakdown electric field strength and a wider band gap, allow for their use in power electronics. For example, these components are extremely important in controlling automotive electronics, including the main inverter for hydroelectric vehicles, the seat control, the braking system, etc.

SiC power electronics also facilitate energy conversion in generators and actuators integrated into aircraft. Power electronics are expanding because they are used more frequently in various industries, such as consumer electronics, industrial motor drives, and aviation and automotive. It is, therefore, appropriate for various industry verticals due to its effective power control and management feature for industrial processes or the operation of electrical and electronic devices. Such factors drive market growth.

Growing Demand for Electric Vehicles, Plug-In Electric Vehicles, and Hybrid Electric Vehicles

The efficiency of conventional power electronics, based on silicon semiconductor technologies, generally varies between 85% and 95%. This results in the loss of approximately 10% of the electrical energy in the form of heat. The electrical field strength of SiC devices is nearly ten times higher (2.8MV/cm vs. 0.3MV/cm) than silicon semiconductors. This higher electric field strength makes applying a thinner layer structure to the SiC substrate possible. Moreover, high-frequency switching of SiC leads to lesser power dissipation in electric vehicles.

SiC offers three times higher thermal conductivity than pure Si-based semiconductor devices, enabling operation at higher temperatures. Various market vendors have been making considerable investments to produce SiC-based solutions, owing to the rise in demand for electric and hybrid vehicles. Major companies, such as Infineon Technologies, have been making significant investments in the production of power devices, owing to growth in the electro-mobility and photovoltaic inverters market. For instance, Infineon Technologies and Cree, Inc. signed a strategic long-term supply agreement to provide silicon carbide (SiC) wafers in February 2018. Therefore, growth in demand for electric vehicles boosts the market growth.

Global Power Discrete and Module Market Restraint

Lack of Availability of GaN material

GaN-based power components are more popular on the market because they can be built into more compact devices than silicon ones for a given resistance value and breakdown voltage. However, the biggest hurdle in the wide-scale commercialization of GaN power devices is a general lack of availability. Although some GaN devices are easily available, the selection is constrained to a limited range. In particular, the devices used over 600 voltages required for offline power supplies are fewer. In addition, the lack of standardized device ratings and characteristics limits the wide-scale adoption of GaN power devices. There are no real second sources for any of the devices in the market, which is the biggest challenge to the extensive adoption of GaN devices.

Global Power Discrete and Module Market Opportunities

Government Initiatives in HVDC and Smart Grid

High-voltage direct current (HVDC) electric power transmission systems and smart grids use GaN power devices. These are more reliable, provide a flexible network topology, have better load adjustment, and enable real-time troubleshooting. Power devices can control high voltage as it enables high-frequency switching with enhanced efficiency. In addition, power modules are used in modular multilevel converters (MMC), which enable reduced power loss. Therefore, converters with GaN power device modules are popularly used in HVDC systems.

In addition, governments of various countries such as China, Japan, and the U.S. invest heavily in smart grid technology to enhance their electrical networks. Hence, all these factors are expected to provide lucrative opportunities for power discrete and module market growth.

Regional Analysis

Based on region, the global power discrete and module market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global power discrete and module market shareholder and is estimated to exhibit a CAGR of 7.2% over the forecast period. Asia-Pacific is the most lucrative region in terms of growth rate for the power discrete and modules market due to the availability of huge power stations for high-voltage power, increased demand for power modules, and population growth. Moreover, around 70% of the total electrical energy is estimated to be processed by power electronics systems incorporating power components. These devices are extensively adopted in applications such as automotive, renewable energy stations, and electric grid infrastructures. In addition, these organizations take various initiatives to build power infrastructure with advanced technologies. Organizations across verticals have realized the importance of power devices to ensure power management. High demand for automated switching devices and power modules will also boost market growth.

Europe is expected to exhibit a CAGR of 6.5% over the forecast period. Europe is the second most productive market for power discrete and modules globally. An increase in the adoption of power management devices in the automotive industry boosts market growth. Moreover, European companies have proactively increased awareness about power electronic devices, thus driving the market. The increase in digital electronic devices and the high adoption of advanced electronic vehicles and advanced virtual systems have provided several growth opportunities for power discrete and modules in Europe. The market is expected to exhibit fast growth in European countries soon, owing to the demand for advanced electric vehicles. Proactive government initiatives in the form of subsidiaries, acquisition of smaller companies, and adoption of low-power consumption devices fuel the market's overall growth.

In addition, factors such as enhanced efficiency, durability, and minimum distortion propel the demand for compact power modules. Moreover, the rise in demand for automated applications and real-time monitoring is another factor navigating the demand for power components in the region.

North America secures a significant share in the revenue of the power discrete and modules market. This is attributed to the presence of countries such as the U.S. and Canada, where the governments are extending their involvement to curb pollution by promoting the use of EVs and HEVs, which incorporate power components on a large scale. Furthermore, the highest defense budget of the U.S. is yet another factor for the growth of the region's power discrete and modules market. The U.S.-based power components companies benefit from international military politics as the power components become a preferable choice in electronic warfare and advanced RADARs. In addition, the increase in the adoption of power modules and the rise in the sale of electronic devices in North America drive the growth of the power discrete and modules market. Furthermore, the rise in demand for durable power modules in the power and energy sector fuels market growth. For instance, in October 2018, Delta Electronics, Inc., a power and thermal management company, announced the research program to develop a fast electronic-vehicle (EV) charger using silicon carbide (SiC) MOSFET devices.

LAMEA includes Brazil, Saudi Arabia, South Africa, and the rest of LAMEA. LAMEA accounts for a small market share of the global power discrete and modules market and thus has potential investment opportunities. An increase in demand for advanced technology and electronic applications and a rise in awareness about compact power modules and ICs are projected to boost the adoption of the region's power discrete and modules market.

Segmental Analysis

The global market is bifurcated into type, component, material, and industry vertical.

Based on type, the global market is bifurcated into power discrete and power module. 

The power module segment owns the highest market share and is predicted to exhibit a CAGR of 5.3% over the forecast period. A power module consists of multiple semiconductor chips mounted on an isolated substrate, which is mounted on a heat-sinking copper base plate. These modules are available in different configurations, including half-bridge, full-bridge, and chopper. IGBT modules are widely used in high-power industrial applications and traction. Power modules have witnessed an increase in demand over the past few years owing to unmatched efficiency and durability. They are the next evolutionary step for power management.  

In addition, numerous industries adopt IGBT and MOSFET modules to operate high-voltage applications, such as welders, rolling mills, and water pumps. IGBT-based technology is adopted in trolleys in European countries to reduce current leakage and enhance efficiency. The IGBT module is preferred in the present business scenario as it is cost-efficient and can be easily controlled at high voltage, resulting in the market's growth.

Based on components, the global market is divided into thyristor, diode, rectifier, MOSFET, IGBT, and others. 

The IGBT segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 7.81% over the forecast period. IGBT is a type of power semiconductor that is used as an electronic switch device. It is also a minority carrier device that enables a faster switching rate and offers greater efficiency. It combines MOSFET and Bipolar Junction Transistor (BJT) in a monolithic form. It enhances switching speed and prevents power loss in renewable energy sources and electric cars.

Additionally, the growth of power electronics in smart gadgets is propelled by extensive R&D and product launches by key players. IGBT device is widely used in electric vehicles and industrial systems owing to their high efficiency. The surge in demand for EVs and the rise in the need for high-voltage operating devices boost the adoption of IGBT in energy and power, automotive, consumer electronics, and industrial sectors.

Based on material, the global market is bifurcated into silicon carbide (SiC), gallium nitride (GaN), and others. 

The GaN segment dominates the market and is predicted to develop at a CAGR of 3.2% during the forecast period. Gallium nitride (GaN) transistors have evolved as an enhanced performance substitute for silicon-based transistors. They can fabricate more compact devices for a given resistance value and breakdown voltage than silicon devices. These power components can attain extremely low resistance and high-frequency switching. These properties are exploited in high-efficiency power supplies, electric vehicles (EVs), hybrid electric vehicles (HEV), photovoltaic inverters, and RF switching. They are applicable in power supplies for servers, IT equipment, high-efficiency and stable power supplies, and EV and HEV devices.

The increase in demand for GaN in radio frequency equipment; the rise in adoption in the telecommunication industry; and the surge in demand for AC fast chargers, LiDAR, and wireless power drive the growth of the GaN power components in the market. Moreover, these devices are more advantageous as compared to silicon devices.

Based on industry verticals, the global power discrete and module market is segmented into telecommunication, industrial, automotive, renewable, consumer and enterprise, military, defense, and aerospace, and medical. 

The industrial segment is the highest contributor to the market and is projected to exhibit a CAGR of 6.5% over the forecast period. Significant transformation has been taking place in the global industrial sector. Leveraging the power of cloud infrastructure, technological advancement, and supply chain analytics, the industries in this sector have been experiencing strong growth. In addition, industrial manufacturing remains critically important to both the developing and the advanced world, owing to its huge contribution to the world's GDP. The increase in usage of power modules in high-power industrial switched-mode power supplies (SMPS), uninterruptible power supplies (UPS), variable frequency drives (VFD) for industrial motor drives, and large solar inverters drives the growth of power discrete and modules for industrial applications.

Recent Developments

• October 2022- VisIC Technologies, a world leader in Gallium Nitride (GaN) solutions, and KYOCERA AVX Salzburg, a leading global manufacturer and supplier of advanced electronic components for the automotive industry with manufacturing facilities, expanded their collaboration. The partners combined their expertise in packaging, assembly, and GaN wafer technologies to develop high-current components for high-voltage applications like charging and e-drivetrain.
• January 2023- Volkswagen entered into a strategic procurement agreement with Onsemi. Volkswagen desires to secure power semiconductors for the next generation of its electric vehicles through this "strategic" supply agreement. Onsemi's SiC modules and transistors for VW's drive converters focus on modules and transistors.