Power electronics refers to the control and flow of electrical power by switching electronic components on and off. Power electronics devices such as diodes, thyristors, power transistors and choppers are used in applications like switch mode power supplies, motor drives, HVDC power transmission, and converters for battery storage systems. Power electronics offer advantages such as improved efficiency, quality, reliability, smaller size, lower weight and cost. They play a crucial role in management and conversion of electrical energy and are increasingly being used across industries such as consumer electronics, automotive, manufacturing, energy & power, among others.

The 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 from 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.

Power Electronics Market Demand for consumer electronics and electric vehicles is driving the market. Advancements in wide bandgap materials such as silicon carbide and gallium nitride are enabling development of more efficient power electronic devices.

Market Trends

1. Increasing Adoption of Wide Bandgap (WBG) Materials: Wide bandgap materials such as silicon carbide and gallium nitride have superior characteristics compared to conventional silicon. Their use enables smaller device size, faster switching capabilities, and higher voltages & temperatures. This is driving R&D in next-gen power semiconductor devices.

2. Growing Penetration of Renewable Energy: Power electronics play a vital role in energy transmission, storage and conversion applications in renewable energy sector. Their use in solar PV and wind power inverters, battery energy storage systems and electric vehicle charging infrastructure is growing significantly.

Market Opportunities

1. Electric Vehicles: Rapid growth of the electric vehicles market worldwide will fuel demand for more efficient on-board chargers, DC fast chargers and other power electronic components in EVs.

2. Data Centers: Increasing digitization is driving investments in hyperscale data centers. This provides opportunities for deployment of advanced power conversion and distribution systems employing latest power semiconductor technologies.

Impact of COVID-19 on Power Electronics Market

The coronavirus pandemic had a significant impact on the power electronics market growth in the initial months. The imposition of lockdowns across major countries led to the closure of production facilities and disruption in supply chains. This adversely affected the electronics manufacturing industry where power electronics play a crucial role. The decline in demand from end-use sectors such as consumer electronics, automotive, industrial also impacted the market. However, as restrictions are lifted now, the market is gradually recovering.

In the pre-COVID era, the power electronics market was projected to grow at 5-6% annually due to rising demand for efficient power management and conversion solutions in industries. The outbreak halted this growth momentum temporarily. However, with development of vaccines and resumption of operations, the demand outlook is improving. Manufacturers are focusing on development of innovative and advanced power devices to support digitalization trends like artificial intelligence, cloud computing, Internet of Things. Government initiatives for clean energy adoption and investments in renewable energy generation will further aid market expansion. Meanwhile, new opportunities are emerging in healthcare sector for power systems for patient monitoring equipment and ventilators. Adoption of work from home culture also drove demand for computers, mobiles charging the future growth prospects.

Geographically, North America accounted for the largest market share in value terms owing to widespread use of power electronics across industries. Asia Pacific is the fastest growing region led by China, driven by huge investments in renewable and growth of consumer electronics sector. Countries like India, Indonesia, Vietnam offer lucrative opportunities due to increasing manufacturing activities and industrialization. Rising living standards and purchasing power are positively impacting the demand.

Regarding regions, Asia Pacific represents the most promising growth avenue for the power electronics market going forward in terms of value. Major factors contributing to its rapid growth include rising income levels, growing middle class, expansion of electronics manufacturing industry and automated assembly lines in countries like China, India, Vietnam and Indonesia. Moreover, increased government focus on renewable energy generation and electric vehicles adoption will continue supplementing the regional market growth over the coming years.

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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)