Power Electronics Market: Information by Type (Power Module, and Power ICs), Industry Vertical (Consumer, Transportation, and Defense), and Region — Forecast till 2029

Mar 25, 2020   Market Overview and Impact of COVID-19 Power electronics are circuitry devices that control electrical energy from the source to the load. They enable power management to improve energy conservation. Power electronics devices are capable of regulating the energy flow in uni-direction and bi-direction, depending on the application and usage. Furthermore, they are used across various verticals, including automotive, consumer electronics, energy and power, aerospace, and defense. The global power ...
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Report Description

Market Overview and Impact of COVID-19

Power electronics are circuitry devices that control electrical energy from the source to the load. They enable power management to improve energy conservation. Power electronics devices are capable of regulating the energy flow in uni-direction and bi-direction, depending on the application and usage. Furthermore, they are used across various verticals, including automotive, consumer electronics, energy and power, aerospace, and defense. The global power electronics market is foreseen to grow at a significant CAGR owing to the increased use of renewable power sources and the rising adoption of power electronics in the consumer electronics sector.

Industrial growth has incremented the demand for the use of GaN and SiC products in various applications. Developing economies such as India and China are focused on Industry 4.0 and are projected to create money-spinning opportunities for the players in the upcoming years.

Government regulations, such as travel restrictions and the complete shutdown of manufacturing facilities to deal with the COVID-19 pandemic are expected to affect the growth of the power electronics market in 2020. However, increasing demand for energy-efficient and battery-powered devices in the industrial and automotive sectors is expected to drive the global market during the forecast period. With an urge to enhance their power infrastructure, governments worldwide are shifting their attention toward renewable energy sources, and innovative energy harvesting technologies.

Drivers: Growth in Industry Verticals and Government Incentives

Rising awareness about the benefits of renewable sources of energy, an increase in the adoption of electric cars, and the growth of hospitals and healthcare technologies are some of the major factors driving the global power electronics market. In addition to this, national and regional government organizations are launching initiatives and proactive promotions, which are further expected to boost opportunities in the market. RandD activities by key vendors in the electronics sector, followed by valuable public-private partnerships, are expected to increase the overall market growth during the estimated duration.

Restraint: Costly Implementation of Power Electronic Devices

Challenges faced by the global power electronics sector, such as high initial costs of deployment, deposition of GaN on silica materials that are difficult to reach in high voltage ranges, and expensive and time-consuming manufacturing of power electronics are posing a restraint to the global power electronics market.

Opportunity: Surging Automotive Industry in the Rising Economies

With many global automotive companies increasing their business foothold in Asia, South America, and the Middle East and many roads, the developing regions of the world are anticipated to pose lucrative growth opportunities in the power electronics market. Further, the rise in an autonomous and electric vehicle with the integration of advanced driver assistance, safety, and convenience systems will be a significant factor in boosting the demand for power electronics in the forthcoming years.

Power electronics circuits used for control of lights, motors, and air conditioning also transform the automotive sector. The regional governments invest heavily in aerospace and defense technologies that are expected to boost the market economy. The dominance of consumer electronics in the tech-savvy populations in the Asia Pacific will hold a significant share in the power electronics market.

Segmental Outlook

Power Modules Segment to Grow at Highest CAGRduring the Forecast Period

Rising industrialization has augmented the demands of power efficiency in all industry verticals. Adopting electric and hybrid electric vehicles, electrification in the automotive industry, and inclination towards renewable energy generation has risen the number of charging stations supporting the power modules segment growth in the market. The segment growth is further supported by the growing adoption of intelligent modules in consumer appliances and industrial automation in various applications, such as motor control and drives, hybrid-electric solutions for construction, commercial, and agricultural vehicles, and much more.

The discrete devices segment accounted for the largest market size in 2016 and is anticipated to dominate in the near future due to the extensive adoption of diodes, thyristors, and transistors in the electronic circuitry. The increased application of ICs across wireless communication, RADAR systems, satellite communication, and Radio Frequency electronic warfare has brought about extensive opportunities to electronic ICs.

The Automotive and Transportation Vertical to Witness Incredible Growth

The automotive vertical is expected to dominate the global power electronics segment market as the manufacturing and sales of electric vehicles (EV), and hybrid electric vehicles (HEVs) are increasing. There is a growing concern regarding environmental pollution and sustainable growth, demanding government support in several countries to boost electric vehicle production. The increasing necessity to conserve the environment and natural resources has increased the adoption of such energy-efficient resources. This paves the way for the adoption of power electronic devices across the automotive sector, owing to its ability to optimize and reduce energy consumption.

Significant markets for the production of electric vehicles are scaling up the production by implementing new policies and subsidies aimed at automobiles. In May 2020, the Chinese government announced the extension of NEV subsidies and tax policies by about two years, along with high capital investment for battery charging infrastructure by approximately USD 38 million.

Regional Outlook

North-America-Lead-Power-Electronics-Market

North America to Hold the Strongest Market Share

The presence of key manufacturers, a high rate of new technology adoption, and a robust financial position enable North America to invest heavily in power and electronics technologies. The U.S. and Canada are anticipated to emerge as significant investors in the global electric vehicle market. Moreover, the region shelters established vendors who are partnering with their counterparts in the research and development of advanced power electronics systems and consumer electronics are also expected to contribute their significant share to the regional market growth

Europe to Witness the Second Largest Market Growth

France is among the leading European electric vehicles market with plug-in hybrid and pure electric vehicle sales sharing a deficient percentage of 0.9% of total vehicle sales in the country. There are more than 13,000 EV charging points in France, which are attracting automakers to produce more plug-in electric vehicles. The government incentivizes customers by providing purchase subsidiaries and ownership benefits, such as annual tax reduction and electricity cost reduction. Government support for the development of discrete power modules for the ICT and industrial sector is further propelling the European power electronics market growth

APAC Is Expected to Emerge as the Fastest Growing Region

APAC is the fastest-growing region in the power electronics market due to the rapid development of consumer electronics products and upgrades in the industrial, automotive, and telecommunication sectors, driving the power IC market. APAC governments are also focusing on renewable energy generation due to the rising levels of pollution and climate change. This has enabled regional producers and manufacturers to shift towards photovoltaic or solar power generation.

Increased adoption of electric vehicles across the region is a crucial factor driving the power electronics market growth. China has announced its plans to raise its 2025 sales target for electrified cars, with about 25% of new vehicles sold by 2025 to be electrified. Japan aims to make all its cars electric or hybrid vehicles by 2050. South Korea has already implemented many new electric buses with automatic charging stations recently.

The government is also working to achieve the electrification of 33% of new vehicles by 2030. These factors are bolstering the region’s power electronics market in the automotive and transportation sector. Younger populations in India, China, South Korea, and Australia inclined towards gaming and other technologies are driving the region’s ICT and consumer electronic market. Thus, Asia Pacific is emerging as a promising manufacturing hub, particularly for the consumer electronics and automotive sectors. This has led to a notable rise in production across the region by different leading manufacturers of the respective verticals.

Southeast Asian nations such as Thailand, Indonesia, Philippines, and Singapore, are attracting foreign investors and industry leaders to establish their manufacturing units in these new markets. All these factors are expected to drive the growth power electronics industry in the Asia Pacific region.

Recent Developments

  • In February 2018, NXP Semiconductors, a semiconductor manufacturing company, announced the launch of its new IoT-on-a-Chip, for the future of edge computing. The scalable offering packs NXP’s ARM-based i.MX applications processor, Wi-Fi, and Bluetooth into a much smaller size, offering a broad range of functionality, security, and connectivity to IoT devices.

Industry Participants

Key players in the global power electronics market include Infineon Technologies, ON Semiconductor, STMicroelectronics, Mitsubishi Electric, Vishay Intertechnology, Fuji Electric, NXP Semiconductors, Renesas Electronics, Texas Instruments, Toshiba, ABB, GaN Systems, Littelfuse, Maxim Integrated, Microchip, ROHM, SEMIKRON, Transphorm, and UnitedSiC, among others.

Power Electronics Market: Segmentation

By Device Type

  • Power Discrete
  • Power Module
  • Power ICs

By Industry Vertical

  • ICT
  • Consumer Electronics
  • Industrial
  • Automotive and Transportation
  • Aerospace and Defense

By Region

  • North America
  • Europe
  • Asia Pacific
  • SAMEA

Frequently Asked Questions (FAQs)

Infineon Technologies, ON Semiconductor, STMicroelectronics, Mitsubishi Electric, Vishay Intertechnology, Fuji Electric, NXP Semiconductors, Renesas Electronics, Texas Instruments, Toshiba, ABB, GaN Systems, Littelfuse, Maxim Integrated, Microchip, ROHM, SEMIKRON are the top players in Power Electronics Market.
Power Modules Segment is expected to be a leading segment in Power Electronics Market during the forecast period.
North America is expected to hold the highest market share in Power Electronics Market.
increasing innovations and technological advancements, the demand for power electronic devices are the key factors expected to drive Power Electronics Market during the forecast period.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically, choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.

Market Overview and Impact of COVID-19

Power electronics are circuitry devices that control electrical energy from the source to the load. They enable power management to improve energy conservation. Power electronics devices are capable of regulating the energy flow in uni-direction and bi-direction, depending on the application and usage. Furthermore, they are used across various verticals, including automotive, consumer electronics, energy and power, aerospace, and defense. The global power electronics market is foreseen to grow at a significant CAGR owing to the increased use of renewable power sources and the rising adoption of power electronics in the consumer electronics sector.

Industrial growth has incremented the demand for the use of GaN and SiC products in various applications. Developing economies such as India and China are focused on Industry 4.0 and are projected to create money-spinning opportunities for the players in the upcoming years.

Government regulations, such as travel restrictions and the complete shutdown of manufacturing facilities to deal with the COVID-19 pandemic are expected to affect the growth of the power electronics market in 2020. However, increasing demand for energy-efficient and battery-powered devices in the industrial and automotive sectors is expected to drive the global market during the forecast period. With an urge to enhance their power infrastructure, governments worldwide are shifting their attention toward renewable energy sources, and innovative energy harvesting technologies.

Drivers: Growth in Industry Verticals and Government Incentives

Rising awareness about the benefits of renewable sources of energy, an increase in the adoption of electric cars, and the growth of hospitals and healthcare technologies are some of the major factors driving the global power electronics market. In addition to this, national and regional government organizations are launching initiatives and proactive promotions, which are further expected to boost opportunities in the market. RandD activities by key vendors in the electronics sector, followed by valuable public-private partnerships, are expected to increase the overall market growth during the estimated duration.

Restraint: Costly Implementation of Power Electronic Devices

Challenges faced by the global power electronics sector, such as high initial costs of deployment, deposition of GaN on silica materials that are difficult to reach in high voltage ranges, and expensive and time-consuming manufacturing of power electronics are posing a restraint to the global power electronics market.

Opportunity: Surging Automotive Industry in the Rising Economies

With many global automotive companies increasing their business foothold in Asia, South America, and the Middle East and many roads, the developing regions of the world are anticipated to pose lucrative growth opportunities in the power electronics market. Further, the rise in an autonomous and electric vehicle with the integration of advanced driver assistance, safety, and convenience systems will be a significant factor in boosting the demand for power electronics in the forthcoming years.

Power electronics circuits used for control of lights, motors, and air conditioning also transform the automotive sector. The regional governments invest heavily in aerospace and defense technologies that are expected to boost the market economy. The dominance of consumer electronics in the tech-savvy populations in the Asia Pacific will hold a significant share in the power electronics market.

Segmental Outlook

Power Modules Segment to Grow at Highest CAGRduring the Forecast Period

Rising industrialization has augmented the demands of power efficiency in all industry verticals. Adopting electric and hybrid electric vehicles, electrification in the automotive industry, and inclination towards renewable energy generation has risen the number of charging stations supporting the power modules segment growth in the market. The segment growth is further supported by the growing adoption of intelligent modules in consumer appliances and industrial automation in various applications, such as motor control and drives, hybrid-electric solutions for construction, commercial, and agricultural vehicles, and much more.

The discrete devices segment accounted for the largest market size in 2016 and is anticipated to dominate in the near future due to the extensive adoption of diodes, thyristors, and transistors in the electronic circuitry. The increased application of ICs across wireless communication, RADAR systems, satellite communication, and Radio Frequency electronic warfare has brought about extensive opportunities to electronic ICs.

The Automotive and Transportation Vertical to Witness Incredible Growth

The automotive vertical is expected to dominate the global power electronics segment market as the manufacturing and sales of electric vehicles (EV), and hybrid electric vehicles (HEVs) are increasing. There is a growing concern regarding environmental pollution and sustainable growth, demanding government support in several countries to boost electric vehicle production. The increasing necessity to conserve the environment and natural resources has increased the adoption of such energy-efficient resources. This paves the way for the adoption of power electronic devices across the automotive sector, owing to its ability to optimize and reduce energy consumption.

Significant markets for the production of electric vehicles are scaling up the production by implementing new policies and subsidies aimed at automobiles. In May 2020, the Chinese government announced the extension of NEV subsidies and tax policies by about two years, along with high capital investment for battery charging infrastructure by approximately USD 38 million.

Regional Outlook

North-America-Lead-Power-Electronics-Market

North America to Hold the Strongest Market Share

The presence of key manufacturers, a high rate of new technology adoption, and a robust financial position enable North America to invest heavily in power and electronics technologies. The U.S. and Canada are anticipated to emerge as significant investors in the global electric vehicle market. Moreover, the region shelters established vendors who are partnering with their counterparts in the research and development of advanced power electronics systems and consumer electronics are also expected to contribute their significant share to the regional market growth

Europe to Witness the Second Largest Market Growth

France is among the leading European electric vehicles market with plug-in hybrid and pure electric vehicle sales sharing a deficient percentage of 0.9% of total vehicle sales in the country. There are more than 13,000 EV charging points in France, which are attracting automakers to produce more plug-in electric vehicles. The government incentivizes customers by providing purchase subsidiaries and ownership benefits, such as annual tax reduction and electricity cost reduction. Government support for the development of discrete power modules for the ICT and industrial sector is further propelling the European power electronics market growth

APAC Is Expected to Emerge as the Fastest Growing Region

APAC is the fastest-growing region in the power electronics market due to the rapid development of consumer electronics products and upgrades in the industrial, automotive, and telecommunication sectors, driving the power IC market. APAC governments are also focusing on renewable energy generation due to the rising levels of pollution and climate change. This has enabled regional producers and manufacturers to shift towards photovoltaic or solar power generation.

Increased adoption of electric vehicles across the region is a crucial factor driving the power electronics market growth. China has announced its plans to raise its 2025 sales target for electrified cars, with about 25% of new vehicles sold by 2025 to be electrified. Japan aims to make all its cars electric or hybrid vehicles by 2050. South Korea has already implemented many new electric buses with automatic charging stations recently.

The government is also working to achieve the electrification of 33% of new vehicles by 2030. These factors are bolstering the region’s power electronics market in the automotive and transportation sector. Younger populations in India, China, South Korea, and Australia inclined towards gaming and other technologies are driving the region’s ICT and consumer electronic market. Thus, Asia Pacific is emerging as a promising manufacturing hub, particularly for the consumer electronics and automotive sectors. This has led to a notable rise in production across the region by different leading manufacturers of the respective verticals.

Southeast Asian nations such as Thailand, Indonesia, Philippines, and Singapore, are attracting foreign investors and industry leaders to establish their manufacturing units in these new markets. All these factors are expected to drive the growth power electronics industry in the Asia Pacific region.

Recent Developments

  • In February 2018, NXP Semiconductors, a semiconductor manufacturing company, announced the launch of its new IoT-on-a-Chip, for the future of edge computing. The scalable offering packs NXP’s ARM-based i.MX applications processor, Wi-Fi, and Bluetooth into a much smaller size, offering a broad range of functionality, security, and connectivity to IoT devices.

Industry Participants

Key players in the global power electronics market include Infineon Technologies, ON Semiconductor, STMicroelectronics, Mitsubishi Electric, Vishay Intertechnology, Fuji Electric, NXP Semiconductors, Renesas Electronics, Texas Instruments, Toshiba, ABB, GaN Systems, Littelfuse, Maxim Integrated, Microchip, ROHM, SEMIKRON, Transphorm, and UnitedSiC, among others.

Power Electronics Market: Segmentation

By Device Type

  • Power Discrete
  • Power Module
  • Power ICs

By Industry Vertical

  • ICT
  • Consumer Electronics
  • Industrial
  • Automotive and Transportation
  • Aerospace and Defense

By Region

  • North America
  • Europe
  • Asia Pacific
  • SAMEA

Frequently Asked Questions (FAQs)

Infineon Technologies, ON Semiconductor, STMicroelectronics, Mitsubishi Electric, Vishay Intertechnology, Fuji Electric, NXP Semiconductors, Renesas Electronics, Texas Instruments, Toshiba, ABB, GaN Systems, Littelfuse, Maxim Integrated, Microchip, ROHM, SEMIKRON are the top players in Power Electronics Market.
Power Modules Segment is expected to be a leading segment in Power Electronics Market during the forecast period.
North America is expected to hold the highest market share in Power Electronics Market.
increasing innovations and technological advancements, the demand for power electronic devices are the key factors expected to drive Power Electronics Market during the forecast period.
We will send you an email with login credentials to access the report. You will also be able to download the pdf.
Basically, choose Pay by Purchase Order when you are checking out. We will connect with you via email to set up your order.
Call us, email us, or chat with us! We encourage your questions and feedback. We have a research concierge team available at all times and included in every purchase.