by Power electronics play a vital role in converting and controlling the flow of electric power. Devices such as power diodes, thyristors, transistors, integrated circuits and other circuitries are used in power converters, inverters, controllers and other power electronic systems. These systems help optimize electric power generation, transmission, distribution and utilization. Power electronics find applications in various end-use industries including industrial, consumer electronics, energy & power, transportation and others. They help improve equipment efficiency, enable renewable energy integration and reduce energy costs. Rapid industrialization and growing focus towards reducing carbon footprint are driving the demand for power electronic solutions worldwide.
The Global Power Electronics Market is estimated to be valued at US$ 71.13 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period between 2024 to 2031.
Key Takeaways
Key players operating in the Power Electronics 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. These manufacturers offer extensive product portfolios for various power management applications.
The Power Electronics Market Size is expected to grow significantly driven by increasing investments in industrial automation, renewable energy integration, electric vehicles and smart grid infrastructure development across the globe. Rapid industrialization and growing focus on renewable energy adoption are fueling the need for efficient power electronic systems.
Growing international collaborations and investments are facilitating technology transfers and accelerating innovations in the field of wide bandgap semiconductors, power ICs, electric vehicle charging infrastructure and smart grid technologies. This is boosting global expansions of key players. The untapped domestic markets in developing nations also offer immense prospects for manufacturers.
Market Key Trends
The rapid transition towards renewable energy sources is Power Electronics Market Size and Trends. Wide-bandgap semiconductor devices such as SiC and GaN promise enhanced efficiency, reduced power losses and smaller form factors. Emergence of hybrid and electric vehicles is another key growth driver as EVs require efficient bidirectional converters for battery charging, motor control and grid integration. Strategic investments by governments and private players in supporting infrastructure are expected to accelerate the EV adoption trajectory globally. Focus on decentralization of power distribution network through smart grid technologies also provides opportunities for power electronics systems.
Porter’s Analysis
Threat of new entrants: Low investment requirements and limited supplier switching costs pose threat of new entrants.
Bargaining power of buyers: Large number of suppliers offer competitive products increasing bargaining power of buyers.
Bargaining power of suppliers: Critical components and technologies used in manufacturing power electronics comes from few specialized suppliers increasing their bargaining power.
Threat of new substitutes: Alternative technologies for power conversion like DC-DC converters pose threat of substitution.
Competitive rivalry: Intense competition exists among industry players to gain market share through product innovation and technological advancements.
Geographical Regions
Asia Pacific region accounts for the major share of the power electronics market in terms of value mainly due to presence of large manufacturing base and electronic products manufacturers in countries like China, Taiwan and South Korea.
The power electronics market in North America region is expected to witness highest CAGR during the forecast period majorly driven by increasing investments in renewable energy sector and rapid adoption of electric vehicles in the region.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
