Power Converter Market Expected to Reach $44.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Power Converter Market," The power converter market size was valued at $20.9 billion in 2022, and is estimated to reach $44.6 billion by 2032, growing at a CAGR of 7.8% from 2022 to 2032.

A power converter is an electronic device that transforms electrical energy from one voltage, frequency, or waveform to another. The primary objective is to match the characteristics of the input power source to the requirements of the load or electrical system. Power converters are essential in addressing the mismatch between power sources and electronic devices, ensuring optimal performance and safety in various applications.

In the field of renewable energy, power converters are instrumental in the integration of solar and wind energy into the power grid. Photovoltaic (PV) systems generate direct current (DC) electricity, and a power converter industry is employed to convert this DC power into alternating current (AC) suitable for distribution in the grid. Similarly, wind turbines generate variable-frequency AC power, which necessitates the use of power converters to ensure compatibility with the grid's standard frequency.

Power converter market share are extensively utilized in electric vehicles (EVs). Electric cars and hybrid vehicles rely on power converters to manage the flow of electricity between the battery and the electric motor. These converters enable efficient energy transfer, contributing to the overall performance and sustainability of electric transportation systems. As the automotive industry continues to transition toward electrification, the demand for advanced and efficient power converters is on the rise.

In industrial applications, power converter market analysis widespread use in motor drives and control systems. Variable frequency drives (VFDs), a type of power converter, are employed to regulate the speed and torque of electric motors. This enhances the overall efficiency of industrial processes and enables precise control over machinery, resulting in improved productivity and reduced energy consumption.

Power converters are indispensable in telecommunications. They are employed in power supplies for various communication devices, ensuring a stable and reliable power source. In addition, they play a crucial role in signal processing and modulation, contributing to the efficient transmission of data in communication networks.

The concept of bidirectional power flow is gaining prominence in power converter market trends, particularly in applications involving energy storage systems and electric vehicles. Bidirectional converters allow for the efficient transfer of power in both directions, enabling energy storage systems to store energy from the grid and feed it back when needed. In electric vehicles, bidirectional power converters facilitate vehicle-to-grid (V2G) technology, allowing electric cars to discharge excess energy back to the grid during peak demand periods.

Advancements in power electronics and semiconductor technologies drive the power converter market growth.

Advances in semiconductor materials and design techniques lead to higher efficiency in power converters. This is essential for various applications, including renewable energy systems, electric vehicles, and industrial power supplies. Semiconductor technologies enable the miniaturization of power converters, making them more suitable for applications where space is a critical factor. This is particularly important in portable electronics, aerospace, and automotive industries. Improved power electronics allow for higher power density in converters. This means that more power is handled within a smaller physical footprint, addressing the demand for compact and powerful electronic systems.

In April 2023, the PowerUP Asia conference and exhibition showcased the latest advancements and trends in power electronics, emphasizing technologies such as WBG devices and power semiconductors. The event underscored the industry's expansion driven by factors such as the booming electric vehicle sector, increasing demands for renewable energy, trends in industrial automation, and the growing consumer electronics market. Manufacturers are prioritizing power efficiency, carbon reduction, and environmentally friendly energy solutions in response to these developments.

The power converter market report is segmented into type, application, end-use industry, and region. On the basis of type, the market is classified into AC to DC converter, DC to AC converter, DC to DC converter, and AC to AC converter. On the basis of the application, the market is divided into renewable energy, consumer electronics, medical equipment, electric vehicles, and others.  On the basis of the end-use industry, the market is divided into residential, commercial, and industrial. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of category DC to AC converter is the fastest growing segment representing 8.5% of CAGR in power converter market forecast in 2022. The efficiency of a DC to AC converter is a critical factor in its performance. Modern inverters are designed to operate with high efficiency, minimizing energy losses during the conversion process. This is particularly important in renewable energy systems where maximizing the energy yield is crucial for economic and environmental reasons.

In March 2023, Siemens Smart Infrastructure introduced the Connect Box, an accessible IoT solution tailored for the management of small to medium-sized buildings. This innovation simplifies daily building management tasks by providing a user-friendly, cloud-based interface. The Connect Box eliminates the need for additional gateways or software, streamlining the process for users.

By end-use industry renewable energy is the fastest growing segment in the power converter market growing with the CAGR of 9.0% in 2022. There are several types of power converters employed in renewable energy systems, with inverters and converters being the most common. Inverters, for instance, play a crucial role in solar photovoltaic (PV) systems. These devices convert the direct current (DC) generated by solar panels into alternating current (AC), which is the standard form of electricity used in homes and businesses. By transforming the energy into AC, it becomes compatible with existing electrical grids, enabling seamless integration.

Region wise, Asia-Pacific is the fastest growing segment in the power converter market. Travelers are one of the primary users of power converters in the Asia-Pacific. The increasing frequency of international travel for business and leisure, the demand for versatile power converters has surged. These converters allow individuals to charge their laptops, smartphones, cameras, and other electronic devices without worrying about voltage and frequency differences. Many modern power converters are equipped with multiple plug types, catering to the diverse socket designs found in different APAC countries.

The major players operating in the power converter market include ABB, Siemens, Schneider Electric, Delta Electronics, Emerson Electric, Eaton, General Electric (GE), Mitsubishi Electric, Texas Instruments, and Vicor Corporation.

Key Market Insights:

• By type, the DC to DC converter segment dominated the market representing 7.6% of CAGR to the market in 2022.
• By application, the consumer electronics segment dominated the market accounting for half of the market in 2022.
• By end-use industry, the residential segment was fastest growing representing 8.2% of CAGR to the market in 2022.
• By region, Asia-Pacific was the highest revenue contributor and fastest growing region representing 8.3% of CAGR in 2022.