Power Electronics Market Size, Share, Forecast, & Trends Analysis by Type (Power ICs, Modules, Transistors, Thyristors, Regulators, Others), Application (Generation, Transmission, Distribution, Control), End-use Industry (Automotive, Consumer Electronics, Others), Geography - Global Forecast to 2031

Power Electronics Market Size & Forecast

The Power Electronics Market is expected to reach $59.7 billion by 2031, at a CAGR of 4.9% from 2024 to 2031. The growth in this market is driven by factors such as increasing demand for power electronic devices in the consumer electronics industry, increasing investment in renewable energy technology, rising use of power electronics in LED lighting, and rising use of power electronics devices in automotive applications. In addition, the increasing use of power electronic devices in electric vehicles and the growing need for power electronic devices in aerospace & defense is expected to provide opportunities for market growth. However, complex design and integration processes can restrain the growth of the market. Also, heat dissipation from devices during switching poses challenges the market growth.

Power Electronics Market Growth Drivers

Increasing Investment in Renewable Energy Technology

Renewable sources of energy play a critical role in clean energy transitions. According to the International Energy Agency (IEA) (France), renewable capacity will meet 35% of global power generation by 2025. As countries across the globe are focusing on energy transition to reduce carbon emissions, investment in renewable energy is expected to increase rapidly.

For instance, in May 2023, the Ministry of Economy of Malaysia announced a new renewable energy target, aiming to reach 70% of renewables in the power mix by 2050. Malaysia estimated an investment of MYR 637 billion (USD 143 billion) to carry out the objective. The ministry also allocated MYR 50 million (USD 11.2 million) to install rooftop solar systems for government facilities across the country over the next six months. Similarly, in February 2023, the Indian government pledged to invest $4.3 billion in green technology to clean up the country’s economy.

Power electronics play a vital role in renewable energy systems by enabling the conversion, control, and management of electrical power. Devices such as inverters and converters transform the electricity generated by renewable sources into a form that can be efficiently used or stored.

Power electronics bridge this gap by converting the DC electricity into AC, making it compatible with our existing infrastructure. They ensure a constant frequency, voltage, and quality of power, improving the reliability and stability of the entire energy system. In addition, power electronics enable the seamless integration of multiple renewable energy sources, such as solar and wind, by synchronizing their outputs and optimizing their performance. Thus, rising investment in renewable energy is expected to drive the power electronics market growth in the forecast period.

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Growing Demand for Power Electronics in the Consumer Electronics Industry

Power electronics play a crucial role in the operation of various consumer electronics, such as computers, mobile devices, and home appliances. They are responsible for regulating voltage and current levels, ensuring that these devices function safely and efficiently.

Power electronic converters in consumer electronics have several functions. They are used to convert electrical power from one form to another, such as DC-DC converters, AC-DC converters, DC-AC converters, and AC-AC converters. These converters are essential for power processing applications in consumer electronics devices (CED). They work as a system with a power stage and a controller, where the power stage processes power at a higher voltage/current, and the controller ensures that the converter system behaves like a voltage or current source.

Therefore, the rising need for power electronics in the consumer electronics industry to provide reliable, safe, and high-performance power to electronic components and systems is expected to drive the market's growth.

Rising Use of Power Electronics in LED Lighting

Lighting is one of the prominent areas of power electronics application. LED lighting is a type of solid-state lighting that uses light-emitting diodes (LEDs) to produce light. LEDs have many advantages over conventional lighting sources, such as incandescent and fluorescent lamps, such as lower energy consumption, longer lifespan, higher brightness, and better color quality. However, LED lighting also faces some challenges, such as the sensitivity to temperature, the variation in color and intensity, the flickering and dimming issues, and the compatibility with existing power infrastructure.

Power electronics can offer many advantages for LED lighting efficiency, such as reducing energy consumption and cost, increasing lifespan and reliability, improving performance and quality, and enhancing functionality and versatility. This is accomplished by matching the power supply to LED characteristics, protecting LEDs from thermal and electrical stress, enabling smooth and precise dimming, flicker-free operation, color tuning, wireless communication, remote control, and smart integration with other systems.

Power Electronics Market Growth Opportunity

Rising Use of Power Electronics in Electric Vehicles

As we pivot towards a more sustainable energy landscape, electric vehicles (EVs) have emerged as a cornerstone of modern transportation. The role of power electronics in this revolution is paramount. With its ability to efficiently control and convert electricity, power electronics provide the essential technological infrastructure that facilitates the widespread adoption and operation of EVs.

The individual components of electric vehicle power electronics, including inverters/converters, sensors, and control systems, are responsible for critical functions like the flow of power between the battery and the electric motor, conversion from DC to AC, and the regulation of the speed of the electric motor. Power electronics are particularly important in hybrid electric vehicles that switch between the use of the electric motor and the combustion engine during transit. They are also crucial in managing kinetic energy retention systems and other technologies that improve electric vehicle efficiency.

Furthermore, the rising focus of market players to launch power electronics devices for EVs is expected to drive the market growth. For instance, in April 2023, Infineon Technologies AG (Germany) launched HybridPACK™ Drive G2, a new automotive power module for traction inverters in electric vehicles. In another instance, in December 2022, STMicroelectronics NV (Switzerland) released high-power modules for electric vehicles that boost performance and driving range. Thus, all such factors are expected to increase the adoption of power electronics for electric vehicle applications.

Power Electronics Market Analysis: Key Findings

By Product Type: In 2024, the Power ICs Segment to Dominate the Power Electronics Market

Based on product type, the power electronics market is broadly segmented into power diodes, power transistors, thyristors, power electronic circuits, power ICs, power switches, power regulators, power modules, power drivers, and other power electronic product types. In 2024, the power ICs segment is expected to account for the largest share of 25.0% of the global power electronics market. The large share of the segment is attributed to the rising power demand from IoTs, wearables, consumer, automotive, and industrial applications, the rising need to simplify power management in complex embedded systems, the increasing need to optimize power consumption and extend battery life and rising focus of market players on innovative product offerings. For instance, in June 2023, Nordic Semiconductor (Norway) launched its nPM1300™ Power Management IC (PMIC) for battery-operated applications.

However, the power modules segment is expected to register the highest CAGR during the forecast period. The segment’s growth is driven by the rising need to handle the switching of currents and voltages, enabling efficient power conversion and control, and the increasing use of power modules in electric cars and other electric motor controllers, appliances, power supplies, electroplating machinery, medical equipment, battery chargers, AC to DC inverters and converters, power switches, and welding equipment.

By Application: In 2024, the Power Control Segment to Dominate the Power Electronics Market

Based on application, the power electronics market is segmented into power generation, power transmission, power distribution, and power control. In 2024, the power control segment is expected to account for the largest share of 40.0% of the global power electronics market. The large share of the segment is attributed to the rising use of power electronics devices to regulate current flow through various components, ensuring stability and optimal performance.

Moreover, the power control segment is expected to register the highest CAGR during the forecast period. The rising focus of market players to launch innovative power control devices is expected to drive the segment’s growth. For instance, in November 2022, Magnachip Semiconductor Corporation (South Korea) launched its first Power Management Integrated Circuit (PMIC) for IT devices equipped with OLED screens. IT can control functions such as output voltage control, ON/OFF block, output voltage sequence management, protection circuit fault flag, and switching frequency transition.

By End-use Industry: In 2024, the Consumer Electronics and Home Appliances Segment to Dominate the Power Electronics Market

Based on end-use industry, the power electronics market is segmented into consumer electronics and home appliances, automotive, IT & telecommunication, heavy machinery, aerospace & defense, energy & utility, healthcare, and other end-use industries. In 2024, the consumer electronics and home appliances segment is expected to account for the largest share of 28.0% of the global power electronics market. The large share of the segment is attributed to the rising need for power electronics devices in various consumer electronics, such as computers, mobile devices, and home appliances, for regulating voltage and current levels, ensuring that these devices function safely and efficiently.

However, the automotive segment is expected to register the highest CAGR during the forecast period. The segment’s growth is driven by the rapidly expanding automotive market, the rising adoption of power electronics to control and convert electric power for various automotive applications, such as body electronics, infotainment and telematics, safety and security, chassis, and powertrains in electric vehicles (EVs). The rising focus on carbon emission reduction, the growth of electric vehicles, and the rising focus of automotive manufacturers to integrate power electronics in the vehicle also contribute to the segment’s growth.

In June 2021, Renault Group (France) partnered with STMicroelectronics NV (Switzerland) to design, develop, manufacture, and supply STMicroelectronics’ products and related packaging solutions for the power electronics systems of battery-operated and hybrid vehicles of the Renault Group.

Geographical Analysis

In 2024, Asia-Pacific is expected to account for the largest share of 45.0% of the power electronics market. The large share of the region is attributed to the rising demand for energy-efficient hybrid electric vehicles, the rising adoption of consumer electronics devices, and the presence of well-established power electronics companies such as Renesas Electronics Corporation (Japan), Mitsubishi Electric Corporation (Japan), Murata Manufacturing Co., Ltd. (Japan), Fuji Electric Co., Ltd. (Japan), TDK Corporation (Japan) and Toshiba Corporation (Japan).

Moreover, Asia-Pacific is expected to register the highest CAGR of 6.0% during the forecast period. The market’s growth is driven by rising government initiatives and investments in renewable power generation and the growing focus of market players on innovative product offerings. For instance, in January 2023, Renesas Electronics Corporation (Japan) launched a new gate driver IC designed to drive high-voltage power devices such as IGBTs (Insulated Gate Bipolar Transistors) and SiC (Silicon Carbide) MOSFETs for electric vehicle (EV) inverters.

Power Electronics Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the power electronics market are ON Semiconductor Corporation (U.S.), ABB Ltd. (Switzerland), Infineon Technologies AG (Germany), Texas Instruments Incorporated (U.S.), ROHM Co. Ltd (Japan), STMicroelectronics NV (Switzerland), Renesas Electronics Corporation (Japan), Vishay Intertechnology Inc. (U.S.), Toshiba Corporation (Japan), Mitsubishi Electric Corporation (Japan), Analog Device Inc. (U.S.), TDK Corporation (Japan), Murata Manufacturing Co., Ltd. (Japan), Fuji Electric Co., Ltd. (Japan) and NXP Semiconductors N.V. (Netherlands).

Power Electronics Industry Overview: Latest Developments from Key Industry Players

• In April 2024, Fuji Electric Co., Ltd. (Japan) launched the HPnC Series, a new series of large-capacity industrial IGBT* modules for applications, including power converters for solar and wind power generation systems.
• In February 2024, Vishay Intertechnology, Inc. (U.S.) unveiled a line of five new half-bridge IGBT power modules housed in the newly redesigned INT-A-PAK package
• In February 2024, Infineon Technologies AG (Germany) launched high-density power modules to enable benchmark performance and TCO for AI data centers.
• In September 2022, ON Semiconductor Corporation (U.S.) launched an automotive silicon carbide-based power module trio for on-board chargers.
• In May 2022, Hitachi Energy Ltd. (Switzerland) announced the launch of RoadPak, its pioneering power semiconductor module for electric vehicles, at PCIM Europe, the world’s leading power electronics trade fair in Nuremberg, Germany
• In November 2021, Fuji Electric Co., Ltd. (Japan) launched its 2nd-generation discrete SiC-SBD* Series of power semiconductors, which will contribute to energy saving in data centers and communication base stations.

Power Electronics Market Research Summary:

Key questions answered in the power electronics market report: