The global power semiconductor market was valued at USD 40 billion in 2020. It is estimated to reach an expected value of USD 55 billion by 2030, registering a CAGR of 3.3 % during the forecast period. (2022-2030).
Power semiconductors are used to correct and amplify electrical signals and turn the flow of electricity on and off, like all semiconductor devices. The transmission and distribution of power across great distances are two common uses. Regular semiconductors carry out the same functions, albeit much smaller than power semiconductors. These high-performance components can handle several gigawatts of electrical current, voltage, and frequency.
Semiconductors use SiC in solar and wind energy power converters to reduce energy loss and extend their lifespan. SiC (Silicon Carbide) is used for high-power applications because of the wide bandgap offered. While a variety of polytypes (polymorphs) of SiC exists, 4H-SiC is the most ideal for power devices. The increase in R&D activities that target enhanced material capabilities is expected to provide a strong impetus for market growth.
The increasing consumption of consumer electronics devices worldwide drives the market’s growth positively. A massive range of consumer products requires semiconductors today, including communications devices (Smartphones, tablets, smartwatches, and other devices), Computers (computers for both personal and business feature PCBs), entertainment systems, and home appliances.
The primary consumer of semiconductors in this market is the smartphone. In recent years, there has been intense competition in the smartphone sector. It is also projected that rising mobile phone usage will propel the global market. For instance, according to Ericsson, global smartphone data traffic is anticipated to increase from 32 exabytes in 2019 to 221 exabytes monthly by 2026.
According to the India Brand Equity Foundation (IBEF), the Indian appliances and consumer electronics (ACE) market is expected to register a 9% CAGR to reach INR 3.15 trillion (USD 48.37 Billion) in 2022. This is anticipated to boost market growth over the forecast period.
In addition to the increasing demand for consumer electronics and wireless communications, other factors, such as the growing demand for energy-efficient battery-powered portable devices, are expected to drive the demand and positively impact market growth.
Consumer gadgets are powered by lithium-ion technology, the most acceptable power source. Some restrictions present a difficulty for these modern batteries. Increasing the device's battery life has become popular in this market. Superior solutions are being developed worldwide to create batteries that use less energy. The market expansion in this sector is driven by manufacturers improving their products' battery capacity, leading to consumer desire for quicker charging times.
The pattern has persisted across all wearable and portable gadgets. Manufacturers like OPPO, one plus, Motorola, Samsung, and Apple include fast charge adapters right out of the box. Fast charging is a crucial component of their marketing strategies since they want their users to spend less time plugged in. The increasing need for energy-efficient battery technology is anticipated to foster market growth during the forecast period.
While factors like rising consumer electronics and wireless communication demand and increasing demand for battery-powered, energy-efficient portable devices are fueling the market's expansion, factors like the anticipated global silicon wafer shortage in combination with ROI metrics are predicted to pose a threat to that growth.
Besides, SiC devices are challenged with their driving requirements. The main goal of SiC-based devices is to replace IGBTs; however, the driving requirements vastly vary for these two devices. Most transistors typically have driving requirements that use symmetric rails (such as ±5V). In contrast, SiC devices require asymmetric rails (such as -1V to -20V) owing to the requirement for a small negative voltage to ensure that they are fully off. This could challenge their application in portable equipment as additional DC-DC drivers or specialized batteries with three connections (+, 0V, and -) will be needed. Hence such factors impede market growth.
The adoption of power semiconductors in the IT & consumer electronics, automotive, power distribution, and rail transportation sectors is expected to be driven by a steady rise in non-conventional energy sources. Rising demand for more efficient power management and new consumer safety features is driving the automotive Industry's adoption. For instance, some EV applications have already started using SiC technology for low-power applications, such as battery chargers, auxiliary DC-DC converters, and solid-state circuit breakers. Currently, more efficient drivetrains that use semiconductor technologies such as Silicon Carbide (SiC) enable engineers to achieve high voltage and power demands cost-effectively. Hence, such applications provide lucrative growth opportunities.
By component, the global power semiconductor market is segmented into discrete, module, and power-integrated circuits. The power integrated circuits segment accounts for the largest market share and is estimated to grow at a CAGR of 1.9% during the forecast period. Power integrated circuits (ICs) are used as rectifiers or switches in high-voltage applications, including power supply, automobiles, solar panels, and trains. The on the state of the ICs permits electricity to flow, and the off state stops it. They increase system efficiencies and reduce energy losses. Power ICs are used in various power supply applications because they have a much smaller overall physical size than discrete circuits. Their smaller size results in lower power consumption, which increases demand.
The discrete segment is the second largest. Power semiconductors employed in power management systems consist of power switches and rectifiers (diodes). Power switches include MOSFETs, IGBTs, and BJTs (bipolar junction transistors). IGBTs, MOSFETs, and BJTs are found in discrete forms, only a single type housed in a single package. One of the significant trends in discrete semiconductors is efficient power management. The smartphone is one of the major consumers of discrete semiconductors. These semiconductors in the adapter play a critical role in maintaining the required current and voltage levels as companies are developing smartphone chargers that could charge the device significantly shorter in duration, due to which the current rating for these has gone substantially up. This factor is expected to develop more robust discrete power semiconductors.
By material, the global power semiconductor market is segmented into silicon/germanium, silicon Carbide (Sic), and gallium nitride (Gann). The silicon/germanium segment accounted for the largest market share and is estimated to grow at a CAGR of 1% during the forecast period. The segment is witnessing several product innovations that drive the segment's growth. For instance, in May 2020, Nexperia announced a range of new silicon-germanium (SiGe) rectifiers with 120 V, 150 V, and 200 V reverse voltages that combine the high efficiency of their Schottky counterparts with the thermal stability of fast recovery diodes. Targeting automotive, communications infrastructure, and server markets, the 1-3 A SiGe rectifiers are particularly beneficial in high-temperature applications like LED lighting, engine control units, or fuel injection.
The silicon Carbide (Sic) segment is the second largest. Semiconductors made of silicon carbide (SiC) set high standards for heat loss, switching speed, and size. Power electronics ensure that 50% less energy is lost in the form of heat. This saving translates into more energy for the electric motor and more efficient power electronics, and therefore, for the battery range. Motorists can drive further on a single battery charge. SiC, wide-bandgap technologies, which are faster and more efficient than silicon-based devices, find use and compete with IGBTs and MOSFETs in various segments. All the factors mentioned above contribute to the seent growth.
By end-user Industry, the global power semiconductor market is segmented into automotive, consumer electronics, IT and telecommunication, military and aerospace, power, industrial, and other industries. Consumer electronics accounted for the largest market share and is estimated to grow at a CAGR of 2% during the forecast period. Companies have included various new sensors in the past that are battery-intensive. The manufacturers are developing smartphone chargers that are expected to charge the device concisely, due to which the current rating has gone from 0.5 milliamp to 5 milliamp. The adoption of power semiconductors is anticipated to be significantly influenced by such market trends. Both the PC and wearable gadget markets have followed the same pattern. The makers desire shorter charging times from their customers. The cornerstone of their marketing approach is the provision of these fast-charging adapters by manufacturers like OPPO, one plus, Motorola, Samsung, and Apple. These elements aid in the segment's expansion.
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.
Europe is the third largest region. The European region is home to some of the most crucial tech hubs globally and a significant driver and adopter of modern technology. The growing penetration of advanced technologies and the increasing adoption of semiconductors in various industries drive the market's growth. The growing involvement of regional government in promoting research programs has enhanced many semiconductor-oriented sectors, and it is supported by high technology connectivity environment. The German government committed to increasing the number of research companies to 20,000 and innovative companies to 140,000 by 2020. According to the World Semiconductor Trade Statistics (WSTS) and SIA, Europe's semiconductor sales increased by 6.4% in 2019. Such developments drive market growth.
The key players in the global power semiconductor market are Infineon Technologies AG, Texas Instruments Inc., United Silicon Carbide Inc., ST Microelectronics NV, NXP semiconductor Inc., ON Semiconductor Corporation, Renesas Electronic Corporation, Broadcom Inc., Toshiba Corporation, Fuji Electric Co. Ltd, Semikron International, Wolfspeed Inc, ROHM Co Ltd, Vishay Intertechnology Inc., Nexperia BV, Mitsubishi Electric Corporation, Alpha & Omega Semiconductor, Magnachip Semiconductor Corp, Microchip Technology Inc, and Littlefuse Inc.
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