According to a new report published by Allied Market Research, titled, “Power Electronics Market," The power electronics market was valued at $26.6 billion in 2021, and is estimated to reach $43.7 billion by 2031, growing at a CAGR of 5.1% from 2022 to 2031.
Power electronic module is a set of power components integrated in power semiconductor devices. Power devices can attain extremely low resistance and high-frequency switching. These properties are exploited in high-efficiency power supplies, electric vehicles (EVs), hybrid electric vehicles (HEVs), photovoltaic inverters, and RF switching. These devices are applicable in power supplies for server, IT equipment, high-efficiency & stable power supplies, and EV & HEV devices.
Power electronics is the branch of electronics that deals with the control and conversion of electrical power. The characteristics of silicon carbide semiconductors such as higher breakdown electric field strength and wider band gap enable their usage in power electronics; for instance, these devices play a crucial role in controlling automotive electronics such as electric power steering, hydro electric vehicles main inverter, seat control, and braking system. SiC power electronics facilitate energy conversion in generators and actuators integrated in aircraft, which significantly contributes toward the growth of the global market. In addition, the growth of the power electronics market size is driven by an increase in the usage of power electronics in a wide range of applications such as industrial motor drives, electric grid stabilization, and consumer electronics. This is attributed to the fact that their effective power control and management features for industrial operations or functioning of electrical/electronic devices make them suitable for different industry verticals, thereby augmenting the global power electronics market share. Presently, electronics are equipped with a plethora of features to increase their sales. Thus, technological improvements in electronics such as power electronics devices, fundamentals of power electronics, and power electronics inverters are anticipated to provide lucrative opportunities for the power electronics market growth. For instance, a nano-controller plays a crucial role in managing the operations with optimum power loss.
The power module segment was the largest revenue contributor in 2021 and is expected to grow at a CAGR of 3.8% from 2021 to 2031. This is attributed to the fact that power modules have witnessed an increase in demand over the past few years, owing to their low power consumption and lightweight design. Numerous industries adopt insulated-gate bipolar transistor (IGBT) and metal–oxide–semiconductor field-effect transistor (MOSFET) modules to operate high-voltage applications, such as welders, and rolling mills, and water pumps, which further fuels the growth of the segment. Energy & Power industry vertical is the leading largest contributor of revenue in 2021 and is expected to grow at a CAGR of 3.8% from 2021 to 2031. This is attributed to the fact that various market vendors have been making considerable investments to produce power components, owing to the rise in demand for photovoltaic cells and micro-inverters in the energy & power industry.
By region, the power electronics market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. The analysis identified that Asia-Pacific contributed maximum revenue in 2021. The power electronics market in Asia-Pacific is expected to grow at a faster rate as compared to other regions. Factors such as an increase in adoption of fuel-efficient electric vehicles and surging demand for advancement in the automotive sector contribute to the power electronics industry growth in Asia-Pacific.
The key players profiled in the power electronics market analysis include ABB Group, Fuji Electric Co, LTD, Infineon Technologies AG, Microsemi Corporation, Mitsubishi Electric Corporation, Renesas Electronics Corporation, Rockwell Automation, Inc., STMicroelectronics, Texas Instruments INC., and Toshiba Corporation.
Market players have adopted various strategies such as product launch, expansion, collaboration, partnership, and acquisition to strengthen their foothold in the power electronics industry.