The Global Power Electronics Market was valued at USD 35.5 Bn in 2020 and is expected to reach USD 48.3 Bn by 2027, growing at a CAGR of 4.5% during the forecast period.
Power electronics plays an essential function in electrified vehicle applications that offer compact and high-efficient solutions to power conversion. It is a circuitry tool that transfers power from a source to a load in an efficient, compact, and robust way to ensure convenient utilization. This tool is used to govern the conversion of electric power from one form to another using diodes, transistors, and thyristors.
The growing trends in the automobile industry, such as increasing adoption of electric vehicles and autonomous vehicles, and high demand for efficient manufacturing processes are expected to boost the power electronics market growth. Silicon carbide devices are already in use in the onboard battery chargers of electric buses, taxis, and lorries, as well as passenger cars. Power MOSFETs are also being utilized in electric powered and hybrid vehicles. Such developments are encouraging manufacturers to offer novel power electronics devices for automotive applications. For instance, Nexperia developed a brand new collection of Trench 9 power MOSFETs, focused primarily on the automotive industry.
In addition to this, the advent of industry 4.0 and rapid automation in the industrial process contributed to the growth of the power electronics market during the forecast period. Moreover, the growing focus on renewable energy across the globe is a significant factor provides lucrative growth opportunities in the global power electronics industry.
By Device Type
By Industry Vertical
Based on the device type, the power module segment in the power electronics market is expected to grow at the highest CAGR during the forecast period owing to its high demand in the automotive industry
Based on the type, the power electronics market is segmented into power discrete, power module, power ICs. The power module segment in the power electronics market is expected to grow at the highest CAGR during the forecast period. The growth in the segment is attributed to the increasing electrification in the automotive industry. Moreover, increasing industrialization and the rise in the adoption of intelligent modules in consumer appliances are projected to increase the demand for power modules during the forecast period.
Based on the industry vertical, the automotive & transportation segment is expected to dominate the market during the forecast period owing to the considerable developments happening in the electric vehicles market across the globe
As per the industry vertical, the market is segmented into ICT (Information & Communication Technology), consumer electronics, industrial, automotive & transportation, and aerospace & defense among others. The automotive & transportation segment dominated the global power electronics market in 2020 and is projected to maintain its dominance throughout the analysis period. The scarcity of natural resources such as petrol, diesel, natural gas, etc. along with growing concerns over air pollution caused by automobiles are prime factors for the development of fuel efficient vehicles. Electric vehicles do not emit any polluting content and are highly efficient compared to other sources. Therefore, their demand is evident in the near future. This growing demand for EVs, will further propel the demand for relevant components and services, including that of power electronics, which plays a vital role in EV development.
Based on region, the Asia Pacific power electronics market is expected to grow at the highest CAGR during the forecast period
The Asia-Pacific power electronics market is expected to grow at the highest CAGR during the forecast period owing to the rapid developments in the electronics industry, initiatives towards smart infrastructure, and rising demand for fuel-efficient vehicles. Other factors supporting this growth include high investments as well as supportive initiatives by governments, the increasing spending power of consumers, and rapid technological advancements in the region. Moreover, renewable energy generation is another factor that influences the power electronics market growth. Governments in the countries of the region are motivating the generation of renewable energy, mainly photovoltaics or solar and wind, in the form of various offers and subsidies.
The development and sale of electric vehicles in the emerging economies of Asia Pacific were considerably better than in the previous year and are projected to grow at a substantial CAGR during the forecast period. For instance, according to the Indian Brand Equity Foundation (IBEF), 2020, the electric vehicle (EV) market in India is estimated to be a USD 7.09 billion opportunity in India by 2025, with two- and three-wheelers expected to drive higher electrification of the vehicles in the medium term in the wake of COVID-19.
The report also provides an in-depth analysis of Power Electronics market dynamics such as drivers, restraints, opportunities, and challenges:
COVID-19 Impact on the Power Electronics Market Analysis:
The COVID-19 significantly impacted various industries such as oil & gas, manufacturing, retail and others due to the significant lockdown imposed by governments across the globe. The supply chain and manufacturing facilities were completely halted to limit the spread of the COVID-19 pandemic. The power electronics market is majorly driven by the automotive industries and the automotive industries, which were significantly impacted during the COVID-19 era. For instance, according to the International Organization of Motor Vehicle Manufacturers, global auto production in 2020 was severely hit by the COVID-19 crisis, with a 16% drop in world auto production. This has impacted the power electronics market.
*Note: A detailed analysis is specific to the power electronics market will be provided in the report.
The report also provides an in-depth analysis of key trends in the power electronics market:
The report also provides an in-depth analysis of recent news developments and investments:
The unique insights provided by this report also include the following:
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Market Overview & Competitive Landscape
Market Segmentation (Market Size and Share Analysis)
COVID – 19 Opportunity Mapping
Regional Market Analysis