According to a recent report by Technavio, the Power Electronics Market is set to grow by USD 10.67 billion from 2024 to 2028 progressing at a CAGR of 5.92% during the forecast period. APAC is projected to drive 54% of growth by 2028. Analysts at Technavio detailed regional trends, drivers, and challenges. Japan, China, South Korea, and India are key revenue contributors. Manufacturing-focused policies from the Chinese and Indian governments also fuel growth in the region. The market is driven by increased adoption of renewable energy.
The innovations to reduce the design time of power electronic systems:
The design phase of power electronic components involves determining performance, efficiency, cost, and weight, often requiring multiple physical prototypes. This leads to a long time-to-market for products. Virtual prototyping, using software to simulate conditions, can enhance reliability and speed up design, reducing time-to-market. The introduction of new virtual prototyping packages is expected to drive market growth by boosting innovation and demand for power electronic components.
The increased utilization of artificial intelligence and machine learning in the smart grid industry is driving market expansion by enhancing asset management, reducing downtime, optimizing grid operations, enabling predictive maintenance, and facilitating real-time data monitoring.
The technological limitations of metal-oxide-semiconductor field-effect transistors (MOSFETs), particularly in high-voltage applications, pose a significant challenge for the power semiconductor market. While silicon-based devices are commonly used, they suffer from reduced efficiency at higher voltages. The adoption of wide bandgap and ultra-wide bandgap materials could address this issue, but their production technology is expensive and not yet widely commercialized, hindering market growth.
Market Segmentation
The power electronics market analysis includes Product, Material and geography landscape. This study identifies the Rise in the adoption of smart grids, Increased use of artificial intelligence (AI) and machine learning (ML), and new product launches as one of the prime reasons driving the power electronics market growth during the next few years.
The discrete segment of the market, particularly in silicon-based components like rectifiers, thyristors, and transistors, is projected to experience significant growth during the forecast period. This growth is driven by demand from consumer electronics and LED lighting systems, as well as advancements in technology, such as wide bandgap materials like silicon carbide (SiC) and gallium nitride (GaN).
The silicon segment is poised to dominate the market due to its widespread use in various industries and applications, including consumer electronics, industrial equipment, and automotive systems. However, as demand for higher efficiency and power density increases, there is a growing interest in novel materials like gallium nitride and silicon carbide. Despite limitations, the demand for silicon is expected to remain strong, driven by its versatility and ongoing advancements in material technology.
Regional Analysis:
The Asia-Pacific (APAC) region is projected to contribute significantly, around 54%, to market growth by 2028. Key countries such as Japan, China, South Korea, and India drive revenue generation, supported by manufacturing-oriented policies. Notable players in APAC include Mitsubishi Electric Corporation, Fuji Electric, Renesas Electronics Corporation, and TOSHIBA ELECTRONIC DEVICES AND STORAGE CORPORATION. Additionally, established distributor networks, organized into associations like CEDA, ELCINA, and the Distributors Association of Semiconductors and Components in Japan, further bolster market growth prospects in the region.
This report presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources through an analysis of key parameters
Analyst Review:
The power electronics market, a cornerstone of modern electrical engineering, continues to evolve with advancements in semiconductor devices and electronic components. With its primary focus on power conversion and voltage regulation, this field plays a crucial role in managing energy efficiently across various industries, including renewable energy, electric vehicles, and battery management systems. Power electronics enable critical applications such as solar inverters and wind power converters to harness renewable energy sources effectively, contributing to the global transition towards sustainable power generation.
Innovation in semiconductor materials, such as silicon carbide and gallium nitride, has revolutionized power semiconductor devices, paving the way for more efficient and compact power modules. These advancements have led to the development of highly reliable power electronic systems, equipped with features like power factor correction and active rectifiers, ensuring optimal performance and safety standards across diverse applications.
The market for power electronics is witnessing significant growth driven by the increasing demand for energy-efficient solutions in the automotive, industrial, consumer, and aerospace electronics sectors. With rapid technological advancements and stringent quality standards, power electronic manufacturers and suppliers are navigating a competitive landscape, characterized by dynamic market trends and emerging opportunities. As the demand for power electronic innovations continues to rise, stakeholders must adapt to evolving market dynamics and leverage strategic entry strategies to capitalize on the expanding market outlook.
Market Overview:
The power electronics market, driven by advancements in semiconductor devices, plays a pivotal role in power conversion and energy efficiency across various sectors. With a focus on renewable energy and electric vehicles, power electronics enable critical applications like solar inverters and wind power converters, facilitating the transition towards sustainable energy solutions. The demand for efficient power supplies is increasing, reflecting the growing trend towards renewable energy adoption and electric vehicle proliferation. Market trends indicate a rising emphasis on energy efficiency and renewable energy integration, driving innovation in power electronics to meet evolving industry demands. As the market continues to expand, manufacturers are poised to capitalize on opportunities presented by the shift towards sustainable power solutions and the increasing adoption of electric vehicles.
