The power electronics market is estimated to witness high growth driven by growing adoption of electric vehicles. Power electronics help optimize usage of electricity by controlling and converting electric power efficiently. It is used in a variety of applications ranging from consumer electronics to electric vehicles, renewable energy systems and industrial motor drives. Power electronics chips, modules and devices regulate electric power to provide efficient charging of electric vehicles. By optimizing power usage of electric vehicles, power electronics enables higher driving range and reduced charging time contributing to rapid adoption of electric mobility.
Global power electronics market is estimated to be valued at US$ 48.16 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the power electronics market are ABB, Analog Devices, Inc., Efficient Power Conversion Corporation, Euclid Techlabs, Fuji Electric Co., Ltd., Infineon Technologies AG, Littelfuse, Inc., Microchip Technology Inc., Mitsubishi Electric Corporation, Navitas Semiconductor, NXP Semiconductors, ON Semiconductor, Qorvo, Inc., Renesas Electronics Corporation, and ROHM CO., LTD. These players are focusing on developinggallium nitride and silicon carbide based power semiconductors to enable faster switching and higher operating temperatures required for electric vehicles and renewable energy applications.
Power Electronics Market Demand for electric vehicles and renewable energy generation provides numerous opportunities in the market. Power electronics helps optimize power usage in solar and wind farms contributing to increased renewable energy generation. It is a critical enabler for high power charging networks required for mass adoption of electric vehicles.
Advent of wide bandgap semiconductors like silicon carbide and gallium nitride enabled development of high power density modules required for electric vehicle drivetrains and renewable energy generation. These next generation power semiconductors allow compact system design and high efficiency power conversion for electric vehicles and renewable energy systems.
Market drivers
Stringent fuel efficiency and emission norms are driving automakers to increasingly adopt electric powertrains. This is a key driver for the power electronics market as efficient onboard chargers, and power drivers for electric motors and batteries require sophisticated power electronics components. Growing investments by governments and companies in electric vehicle charging infrastructure also create opportunities for power electronics companies. Establishment of high power EV fast charging networks demands power electronic solutions capable of transferring kilowatts of power in minutes.
Current challenges in Power Electronics Market
The power electronics market is facing challenges like growing complexity of semiconductor components, thermal issues in power devices, and requirement of high power density. Manufacturers are finding it difficult to develop components capable of handling higher power loads within the same form factor. At the same time, stringent emission norms are requiring improved electrical efficiency without compromising the power handling capability. Technology advancements and new product developments have become critical for addressing these complex challenges.
SWOT Analysis
Strength: Power electronic components offer improved electrical efficiency and better power handling. Latest wide bandgap semiconductors allow more compact designs with lower losses.
Weakness: High initial investment is required for wide bandgap device manufacturing. Thermal management remains a major concern for high power components.
Opportunity: Growing adoption of renewable energy and electric vehicles is opening new areas of applications. Advancements in material science will lead to more powerful and efficient devices.
Threats: Stringent environmental norms can increase compliance costs. Technology innovations from new market entrants may disrupt existing product offerings.
Geographic regions with highest market share in terms of value include North America and Asia Pacific. North America currently accounts for over 30% of the global power electronics market led by the US. Growing investments in renewable energy and transportation electrification are driving robust demand growth.
The Asia Pacific region is expected to witness the fastest market growth during the forecast period. Countries like China, Japan, South Korea and India have emerged as major hubs for manufacturing of power electronic components as well as end-use industries. Favorable government policies supporting clean energy adoption along with rising per capita income are fueling market expansion in Asia Pacific.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)