POWER ELECTRONICS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Power Electronics Market Size and Trends

The global power electronics market is estimated to be valued at US$ 48.16 Bn in 2024 and is expected to reach US$ 71.13 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.

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The rapid adoption of renewable energy sources and increasing demand for energy-efficient power management solutions from various end-use industries such as industrial, residential, transportation, and utilities is driving significant growth in the global power electronics market.

The market is witnessing increasing demand for silicon carbide (SiC)- and gallium nitride (GaN)-based power semiconductors owing to their superior characteristics such as higher efficiency, faster switching capabilities, and smaller size over conventional silicon-based components. Additionally, the growing adoption of electric vehicles worldwide is further propelling the need for the adoption of advanced power electronics for efficient on-board power management and charging infrastructure.

Rising demand for energy-efficient electronics

The global emphasis on greener energy sources and reduced carbon emissions has increased the demand for power electronics applications around the world. Power electronics help optimize energy usage in various industries such as consumer electronics, automotive, industrial machinery, medical devices, and renewable energy generation. They allow precise control over electrical currents and help devices operate more efficiently.

Consumer awareness regarding energy conservation has never been higher. People want products that can perform multiple tasks but consume low power. This is driving innovations in power management integrated circuits that improve the efficiency of devices without compromising on performance. Variable frequency drives controlled by power electronics are also gaining popularity as they help electric motors use only as much power as they need. The renewable energy sector is heavily dependent on power conversion systems as well. Solar panels and wind turbines generate DC power that needs to be inverted for transportation over long distances or feeding into commercial power grids. Power converters play a vital role in maximizing yields from renewable sources and minimizing transmission losses.

Governments across the world are introducing stringent regulations and incentives to curb emissions. The European Union has mandated that all new vehicles sold from 2021 should emit no more than 95 grams of CO2 per kilometer. This is putting pressure on automakers to develop hybrid and electric vehicles. Sophisticated onboard chargers and DC-DC converters are essential for electric vehicles to charge quickly and extend driving range. Other industries are also under regulatory pressure to reform manufacturing processes and switch to cleaner alternatives. Power electronics are proving indispensable for process optimization aiming to meet environmental compliance standards. With rising environmental awareness and tougher emission norms, the demand for energy-efficient power electronics can be expected to grow substantially in the coming years.

For instance, in May 2023, Toshiba Electronics Europe introduced a new 150V N-channel power MOSFET, the TPH9R00CQ5, which is based on the company's latest generation U-MOS X-H Trench process technology. This power MOSFET has been specifically designed for high-performance switching power supply applications, such as those found in communication base stations and other industrial equipment.

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Rise of electric mobility and automation

The automotive sector is undergoing rapid transformation influenced by newly emerging technologies. Automakers are investing heavily in developing electric, autonomous, and connected vehicle solutions to stay ahead of the curve. According to many estimates, electric vehicles will dominate new car sales in less than two decades due to favorable regulations, improved battery technology, and charging infrastructure investment. Power converters are essential components for electric vehicle powertrains, on-board charging systems, and efficient energy management. Batteries used in EVs also require sophisticated battery management systems (BMS) powered by embedded microcontrollers and power ICs.