The global power electronics market size was exhibited at USD 19.93 billion in 2023 and is projected to hit around USD 33.40 billion by 2033, growing at a CAGR of 5.3% during the forecast period of 2024 to 2033.
Key Takeaways:
Power Electronics Market: Overview
In the rapidly evolving landscape of technology, the power electronics market stands as a crucial enabler, powering a wide array of devices and systems across industries. From consumer electronics to automotive, renewable energy, and beyond, the demand for efficient, reliable, and high-performance power electronic components continues to soar. This overview delves into the key drivers, trends, challenges, and opportunities shaping the power electronics market landscape.
Power Electronics Market Growth
The growth of the power electronics market is propelled by various factors contributing to its expansion. One significant driver is the increasing adoption of electric vehicles (EVs) worldwide, fueled by growing environmental concerns and advancements in battery technology. Additionally, the rising deployment of renewable energy sources, such as solar and wind power, drives demand for power electronics in efficient energy conversion and management. Furthermore, the proliferation of Internet of Things (IoT) devices and smart technologies necessitates compact and energy-efficient power electronics solutions for seamless connectivity and operation. Advancements in semiconductor technology, particularly the adoption of wide-bandgap materials like silicon carbide (SiC) and gallium nitride (GaN), enhance the performance and efficiency of power electronic devices. Moreover, the Industry 4.0 revolution and automation trends stimulate the demand for power electronics in industrial applications, including robotics, motor drives, and factory automation systems. Overall, these growth factors underscore the pivotal role of power electronics in driving innovation and sustainability across diverse industries.
Power Electronics Market Report Scope
| Report Coverage | Details |
| Market Size in 2024 | USD 19.93 Billion |
| Market Size by 2033 | USD 33.40 Billion |
| Growth Rate From 2024 to 2033 | CAGR of 5.3% |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Segments Covered | By Material,By Application |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Regional Scope | North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa |
| Key Companies Profiled | ABB Group, Fuji Electric Co, Infineon Technologies AG, Microsemi Corporation, Mitsubishi, Renesas Electronics Corporation, Rockwell Automation, STMicroelectronics, Texas Instruments Incorporated, Toshiba Corporation. |
Power Electronics Market Dynamics
A significant dynamic in the power electronics market is the ongoing shift towards wide-bandgap semiconductors, such as silicon carbide (SiC) and gallium nitride (GaN). These materials offer superior performance characteristics compared to traditional silicon-based semiconductors, including higher efficiency, faster switching speeds, and increased power density. As a result, manufacturers are increasingly adopting SiC and GaN-based power electronic devices in various applications, ranging from electric vehicles to renewable energy systems and industrial automation.
Another significant dynamic shaping the power electronics market is the integration of power modules with advanced features and functionalities. Manufacturers are focusing on developing power modules that incorporate components such as insulated gate bipolar transistors (IGBTs), diodes, and gate drivers into a single package. These integrated power modules offer benefits such as simplified system design, reduced footprint, and improved thermal management. Additionally, advanced power modules may include features like fault protection, intelligent control algorithms, and built-in diagnostics, enhancing reliability and performance.
Power Electronics Market Restraint
One of the primary restraints affecting the power electronics market is cost constraints associated with the adoption of advanced technologies and materials. While wide-bandgap semiconductors like silicon carbide (SiC) and gallium nitride (GaN) offer superior performance and efficiency, they often come at a higher manufacturing cost compared to traditional silicon-based counterparts. This cost differential poses a barrier to mass adoption, particularly in price-sensitive markets such as consumer electronics and automotive. Additionally, the development and implementation of advanced packaging techniques and thermal management solutions to enhance the reliability and performance of power electronics components contribute to overall production costs.
Another significant restraint in the power electronics market is the challenge of ensuring the reliability and durability of components, especially in harsh operating environments and high-temperature conditions. Power electronics devices are subjected to various stresses, including thermal cycling, voltage spikes, and electromagnetic interference, which can degrade performance and lead to premature failures. Ensuring robustness and longevity requires rigorous testing, quality assurance protocols, and the use of materials and manufacturing processes capable of withstanding demanding operating conditions. However, achieving high levels of reliability without significantly increasing costs remains a considerable challenge for manufacturers.
Power Electronics Market Opportunity
The rapid expansion of renewable energy installations presents significant opportunities for the power electronics market. As governments and industries worldwide prioritize decarbonization and transition towards sustainable energy sources, there is a growing demand for power electronics solutions to facilitate the integration of solar, wind, and other renewable energy sources into the grid. Power electronics devices play a crucial role in efficiently converting and managing power generated from renewable sources, as well as enabling grid stabilization, voltage regulation, and energy storage. Moreover, advancements in power electronics technology, such as the adoption of wide-bandgap semiconductors and advanced control algorithms, enhance the performance and reliability of renewable energy systems.
The ongoing electrification of transportation represents a significant opportunity for the power electronics market. With increasing concerns about air pollution, energy security, and climate change, governments and automotive manufacturers are accelerating the adoption of electric vehicles (EVs) and hybrid electric vehicles (HEVs) as a cleaner and more sustainable alternative to internal combustion engine vehicles. Power electronics components, such as inverters, converters, and onboard chargers, are integral to the propulsion systems and charging infrastructure of electric and hybrid vehicles. Additionally, the deployment of electric buses, trucks, and other commercial vehicles further expands the market for power electronics solutions in the transportation sector. Manufacturers can capitalize on this opportunity by developing high-performance, energy-efficient power electronics devices optimized for automotive applications, as well as partnering with automakers and infrastructure providers to support the widespread adoption of electric transportation.
Power Electronics Market Challenges
One of the significant challenges facing the power electronics market is supply chain disruptions. The global supply chain for power electronics components and materials is complex, involving multiple suppliers, manufacturers, and distributors across various regions. Disruptions such as shortages of critical materials, geopolitical tensions, natural disasters, and transportation disruptions can impact the availability of key components and raw materials, leading to delays in manufacturing and delivery schedules. Moreover, the COVID-19 pandemic highlighted vulnerabilities in the supply chain, with lockdowns, trade restrictions, and labor shortages disrupting production and distribution channels.
Compliance with stringent regulatory standards and certifications poses a significant challenge for power electronics manufacturers. The power electronics industry is subject to various regulations and standards related to product safety, electromagnetic compatibility (EMC), energy efficiency, and environmental sustainability. Achieving compliance with these regulations requires extensive testing, documentation, and certification processes, which can be time-consuming and costly. Additionally, regulatory requirements vary across different regions and markets, further complicating compliance efforts for global manufacturers.
Segments Insights:
Material Insights
Based on the material, the silicon segment dominated the global power electronics market in 2023 in terms of revenue and is estimated to sustain its dominance during the forecast period. This is simply attributed to the extensive use of silicon in the production of various power electronics for the different end use applications. Further, silicon is currently the most desirable substrate for producing most of the semiconductor wafers and it is most desirable for low-power applications.
On the other hand, the sapphire is estimated to be the most opportunistic segment during the forecast period. This is mainly due to the rising adoption of the sapphire in the production of various products such as smartwatches, LED lights, and optical wafers.
Application Insights
Based on the application, the aerospace & defense segment dominated the global power electronics market in 2023, in terms of revenue and is estimated to sustain its dominance during the forecast period. The rising adoption of the power electronics in the aerospace & defense industry for wider applications such as cabin lighting, flight control, communications, power drive controls, and navigations to name a few, is significantly augmenting the growth of this segment. The aerospace and defense industry is investing heavily on the development of compact, low weight, and cost effective equipment and along with it also focusing on improving surveillance, communications, and commands. This factor has resulted in the growth of the segment.
On the other hand, the automotive is estimated to be the fastest-growing segment during the forecast period. This is attributed to the rising demand for the electric and hybrid vehicles among the global consumers. Furthermore, the increased disposable income and increased awareness regarding the environment among the population of the developed regions like Europe and North America is fueling the adoption of the electric vehicles. Therefore, the rapidly growing automotive industry is expected to drive the growth of the power electronics in the upcoming future.
Device Insights
Based on the device, the discrete segment accounted for 66% revenue share in 2023. The discrete segment consists of thyristors, diodes, and transistors, which are extensively used in the production of the electronic circuitry.
This segment accounted for around 64% of the market share in 2023. It is used in industrial applications owing to its lower noise production and low power consumption. The increased utilization of discrete devices in the power invertors, motor drives, and electric power grids has resulted in its dominance in the market.
Region Insights
Based on region, Asia-Pacific region accounted for 62% revenue share in 2023. Asia-Pacific is also estimated to be the most opportunistic market during the forecast period. It accounted for around 40% of the market share in 2023.
This region is characterized by the presence of numerous top manufacturers in various industries, such as consumer electronics, automotive, ICT, and industrial. The rising government initiatives to deploy renewable energy sources is fostering the demand for the power electronics. Moreover, countries like India, China, Japan, and South Korea are presenting lucrative growth opportunities owing to the presence of top electronic manufacturers. The governments in these countries are framing favorable regulations that attract FDIs and manufacturers are increasingly investing in this region owing to the cheap availability of the various factors of production. Hence, Asia-Pacific is the largest and fastest-growing market.
Key Companies & Market Share Insights
Some of the prominent players in the power electronics market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global power electronics market.
By Material
By Application
By Device
By Region
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Power Electronics Market
5.1. COVID-19 Landscape: Power Electronics Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Power Electronics Market, By Material
8.1. Power Electronics Market, by Material Type, 2024-2033
8.1.1. Sapphire
8.1.1.1. Market Revenue and Forecast (2021-2033)
8.1.2. Silicon
8.1.2.1. Market Revenue and Forecast (2021-2033)
8.1.3. Gallium Nitride
8.1.3.1. Market Revenue and Forecast (2021-2033)
8.1.4. Silicon Carbide
8.1.4.1. Market Revenue and Forecast (2021-2033)
8.1.5. Others
8.1.5.1. Market Revenue and Forecast (2021-2033)
Chapter 9. Global Power Electronics Market, By Application
9.1. Power Electronics Market, by Application, 2024-2033
9.1.1. Consumer Electronics
9.1.1.1. Market Revenue and Forecast (2021-2033)
9.1.2. Industrial
9.1.2.1. Market Revenue and Forecast (2021-2033)
9.1.3. ICT
9.1.3.1. Market Revenue and Forecast (2021-2033)
9.1.4. Aerospace & Defense
9.1.4.1. Market Revenue and Forecast (2021-2033)
9.1.5. Automotive
9.1.5.1. Market Revenue and Forecast (2021-2033)
9.1.6. Others
9.1.6.1. Market Revenue and Forecast (2021-2033)
Chapter 10. Global Power Electronics Market, By Device
10.1. Power Electronics Market, by Device, 2024-2033
10.1.1. Module
10.1.1.1. Market Revenue and Forecast (2021-2033)
10.1.2. Discrete
10.1.2.1. Market Revenue and Forecast (2021-2033)
10.1.3. IC
10.1.3.1. Market Revenue and Forecast (2021-2033)
Chapter 11. Global Power Electronics Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Material (2021-2033)
11.1.2. Market Revenue and Forecast, by Application (2021-2033)
11.1.3. Market Revenue and Forecast, by Device (2021-2033)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Material (2021-2033)
11.1.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.1.4.3. Market Revenue and Forecast, by Device (2021-2033)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Material (2021-2033)
11.1.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.1.5.3. Market Revenue and Forecast, by Device (2021-2033)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Material (2021-2033)
11.2.2. Market Revenue and Forecast, by Application (2021-2033)
11.2.3. Market Revenue and Forecast, by Device (2021-2033)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Material (2021-2033)
11.2.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.2.4.3. Market Revenue and Forecast, by Device (2021-2033)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Material (2021-2033)
11.2.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.2.5.3. Market Revenue and Forecast, by Device (2021-2033)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Material (2021-2033)
11.2.6.2. Market Revenue and Forecast, by Application (2021-2033)
11.2.6.3. Market Revenue and Forecast, by Device (2021-2033)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Material (2021-2033)
11.2.7.2. Market Revenue and Forecast, by Application (2021-2033)
11.2.7.3. Market Revenue and Forecast, by Device (2021-2033)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Material (2021-2033)
11.3.2. Market Revenue and Forecast, by Application (2021-2033)
11.3.3. Market Revenue and Forecast, by Device (2021-2033)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Material (2021-2033)
11.3.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.3.4.3. Market Revenue and Forecast, by Device (2021-2033)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Material (2021-2033)
11.3.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.3.5.3. Market Revenue and Forecast, by Device (2021-2033)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Material (2021-2033)
11.3.6.2. Market Revenue and Forecast, by Application (2021-2033)
11.3.6.3. Market Revenue and Forecast, by Device (2021-2033)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Material (2021-2033)
11.3.7.2. Market Revenue and Forecast, by Application (2021-2033)
11.3.7.3. Market Revenue and Forecast, by Device (2021-2033)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Material (2021-2033)
11.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.4.3. Market Revenue and Forecast, by Device (2021-2033)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Material (2021-2033)
11.4.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.4.4.3. Market Revenue and Forecast, by Device (2021-2033)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Material (2021-2033)
11.4.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.4.5.3. Market Revenue and Forecast, by Device (2021-2033)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Material (2021-2033)
11.4.6.2. Market Revenue and Forecast, by Application (2021-2033)
11.4.6.3. Market Revenue and Forecast, by Device (2021-2033)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Material (2021-2033)
11.4.7.2. Market Revenue and Forecast, by Application (2021-2033)
11.4.7.3. Market Revenue and Forecast, by Device (2021-2033)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Material (2021-2033)
11.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.5.3. Market Revenue and Forecast, by Device (2021-2033)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Material (2021-2033)
11.5.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.5.4.3. Market Revenue and Forecast, by Device (2021-2033)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Material (2021-2033)
11.5.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.5.5.3. Market Revenue and Forecast, by Device (2021-2033)
Chapter 12. Company Profiles
12.1. ABB Group
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Fuji Electric Co
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Infineon Technologies AG
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. Microsemi Corporation
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Mitsubishi
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Renesas Electronics Corporation
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Rockwell Automation
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. STMicroelectronics
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Texas Instruments Incorporated
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. Toshiba Corporation
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers