Power Electronics Market Growth Drivers
Increasing Investment in Renewable Energy Technology
· Renewable energy plays a pivotal role in the global transition towards clean energy. The International Energy Agency (IEA) forecasts that renewable capacity will constitute 35% of global power generation by 2025. Countries worldwide are intensifying their investments in renewable energy to curb carbon emissions. For instance, in May 2023, Malaysia's Ministry of Economy announced an ambitious renewable energy target of 70% by 2050, backed by an estimated investment of MYR 637 billion (USD 143 billion). Similarly, India pledged $4.3 billion in February 2023 to enhance green technology and reduce the carbon footprint of its economy.
· Power electronics are crucial in renewable energy systems, facilitating the conversion, control, and management of electrical power. Devices such as inverters and converters play an essential role in transforming the electricity generated from renewable sources into a usable form. By converting DC electricity into AC, power electronics ensure compatibility with existing infrastructure, maintaining a constant frequency, voltage, and power quality. They also enable the seamless integration of various renewable energy sources, optimizing performance and reliability. The surge in investment in renewable energy is expected to propel the growth of the power electronics market.
Growing Demand for Power Electronics in the Consumer Electronics Industry
1. Power electronics are integral to the functionality of numerous consumer electronics including computers, mobile devices, and home appliances. These components regulate voltage and current levels, ensuring safe and efficient operation. Power electronic converters, such as DC-DC, AC-DC, DC-AC, and AC-AC converters, are essential in these devices for power processing applications.
2. These converters operate with a power stage and a controller; the power stage handles high voltage/current power processing, while the controller manages system behavior, ensuring stable voltage or current output. The growing necessity for power electronics in consumer electronics to provide reliable and high-performance power management is anticipated to drive market growth.
Rising Use of Power Electronics in LED Lighting
1. LED lighting, a significant application area for power electronics, offers numerous benefits over traditional lighting sources such as incandescent and fluorescent lamps. LEDs are known for their lower energy consumption, longer lifespan, higher brightness, and better color quality. However, they also face challenges like sensitivity to temperature, color and intensity variation, flickering, dimming issues, and compatibility with existing power infrastructure.
2. Power electronics can address these challenges, enhancing the efficiency of LED lighting. They ensure reduced energy consumption and cost, increased lifespan and reliability, improved performance and quality, and enhanced functionality and versatility. By matching power supply characteristics to LED requirements, protecting LEDs from thermal and electrical stress, and enabling smooth dimming and color tuning, power electronics play a vital role in advancing LED technology.
Power Electronics Market Growth Opportunity
Rising Use of Power Electronics in Electric Vehicles
1. As the world moves towards sustainable energy solutions, electric vehicles (EVs) have become a cornerstone of modern transportation. Power electronics are fundamental to this transformation, enabling efficient control and conversion of electricity essential for EV operation. Key components such as inverters/converters, sensors, and control systems manage power flow between the battery and the electric motor, convert DC to AC, and regulate motor speed.
2. Power electronics are particularly crucial in hybrid electric vehicles (HEVs), facilitating the transition between electric motors and combustion engines. They also enhance energy retention systems and other technologies that boost EV efficiency. The increasing focus of market players on launching power electronic devices for EVs further drives market growth. For instance, in April 2023, Infineon Technologies AG introduced HybridPACK™ Drive G2, a new automotive power module for EV traction inverters. Similarly, in December 2022, STMicroelectronics NV launched high-power modules designed to enhance EV performance and driving range. These developments are expected to significantly boost the adoption of power electronics in electric vehicle applications.
Power Electronics Market Analysis: Key Findings
By Product Type: In 2024, the Power ICs Segment to Dominate the Power Electronics Market
· The power electronics market is segmented into various product types including power diodes, power transistors, thyristors, power electronic circuits, power ICs, power switches, power regulators, power modules, power drivers, and others. In 2024, the power ICs segment is expected to hold the largest market share at 25.0%. This dominance is driven by the rising power demand from IoTs, wearables, consumer, automotive, and industrial applications. The need to simplify power management in complex embedded systems, optimize power consumption, and extend battery life are significant factors contributing to this growth. Innovations like Nordic Semiconductor's nPM1300™ Power Management IC (PMIC) for battery-operated applications exemplify the market's focus on advanced product offerings.
· However, the power modules segment is projected to register the highest CAGR during the forecast period. The increasing need for efficient power conversion and control, particularly in electric cars and other electric motor controllers, appliances, and medical equipment, is driving this segment's growth.
By Application: In 2024, the Power Control Segment to Dominate the Power Electronics Market
· Based on application, the power electronics market is divided into power generation, power transmission, power distribution, and power control. In 2024, the power control segment is expected to capture the largest market share at 40.0%. The extensive use of power electronics devices to regulate current flow through various components ensures stability and optimal performance.
· Moreover, this segment is anticipated to experience the highest growth rate. Continuous innovation in power control devices, like Magnachip Semiconductor Corporation's Power Management Integrated Circuit (PMIC) launched in November 2022, drives this growth. These devices manage output voltage control, ON/OFF block, output voltage sequence management, protection circuit fault flag, and switching frequency transition, highlighting the importance of power control in modern electronic systems.
By End-use Industry: In 2024, the Consumer Electronics and Home Appliances Segment to Dominate the Power Electronics Market
· The power electronics market is segmented by end-use industry into consumer electronics and home appliances, automotive, IT & telecommunication, heavy machinery, aerospace & defense, energy & utility, healthcare, and others. In 2024, the consumer electronics and home appliances segment is expected to dominate, holding 28.0% of the market share. The need for power electronics devices in computers, mobile devices, and home appliances to ensure safe and efficient operation drives this segment's growth.
· The automotive segment is projected to exhibit the highest CAGR during the forecast period. The expanding automotive market, coupled with the increasing adoption of power electronics for various automotive applications such as body electronics, infotainment, safety, and electric vehicle powertrains, fuels this growth. The focus on reducing carbon emissions and the rise of electric vehicles are significant contributors. Collaborations like Renault Group's partnership with STMicroelectronics NV in June 2021 to develop power electronics systems for battery-operated and hybrid vehicles illustrate the market's dynamic nature.
Geographical Analysis
In 2024, Asia-Pacific is expected to hold the largest share of the power electronics market at 45.0%. The region's dominance is attributed to the high demand for energy-efficient hybrid electric vehicles, widespread adoption of consumer electronics, and the presence of leading power electronics companies such as Renesas Electronics Corporation, Mitsubishi Electric Corporation, and Toshiba Corporation.
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Key Questions Answered in the Report-
- Which are the high-growth market segments based on product type, application, and end-use industry?
- What was the historical market for power electronics?
- What are the market forecasts and estimates for the period 2024–2031?
- What are the major drivers, restraints, and opportunities in the power electronics market?
- Who are the major players, and what shares do they hold in the power electronics market?
- How is the competitive landscape in the power electronics market?
- What are the recent developments in the power electronics market?
- What are the different strategies adopted by the major players in the power electronics market?
- What are the key geographic trends, and which are the high-growth countries?
- Who are the local emerging players in the global power electronics market, and how do they compete with the other players?
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