PORTLAND– Allied Market Research published a report, titled, “Power Electronics Market by Device Type (Power Discrete, Power Module, and Power IC), Material (Silicon Carbide, Gallium Nitride, Sapphire, and Other), and Application (Power Management, UPS, Renewable, and Others), and End User (Telecommunication, Industrial, Automotive, Consumer Electronics, Military & Defense, Energy & Power, and Other): Global Opportunity Analysis and Industry Forecast, 2020–2027.” According to the report published by Allied Market Research, the global power electronics market generated $23.25 billion in 2019, and is estimated to reach $36.64 billion by 2027, registering a CAGR of 5.7% from 2020 to 2027.
Key Determinants in the Market
Rise in need for power management devices and increase in incorporation of power electronics components in electric vehicles augment the growth of the global power electronics market. Whereas, compound processes of incorporation in advanced electronics devices impede the growth. Nevertheless, increase in demand for plug-in electric vehicles (PEVs) would offer innumerable opportunities in the future.
Covid-19 Scenario
- Due to the global lockdown, various major market players have held the production of power electronic devices. In addition, the disruptions in supply chain have caused shortage of raw materials including gallium nitride and silicon carbide.
- The demand for power electronics from the power industry is likely to be dropped. This is due to the shutdown of most of the industrial units.
The Power Module Segment Dominated the Market in 2019
Based on device type, the power module segment contributed to the largest share in 2019, accounting for nearly half of the global power electronics market, and is estimated to maintain its dominant position during the forecast period. Rise in adoption of power module due to low power consumption and lightweight design, unmatched efficiency and durability, and surge in demand for power electronics in the energy & power sector drive the growth of the segment.
However, the power discrete segment is estimated to portray the highest CAGR of 7.4% during the forecast period. Rise in demand for power discrete in automotive applications and consumer electronics and increase in demand for power management chips in electronic applications such as air conditioners and refrigerators augment the segment growth.
The Silicon Carbide Segment Accounted for Highest Market Share in 2019
Based on material, the silicon carbide segment accounted for the largest share in 2019, holding more than one-fourth of the global power electronics market, and is expected to maintain the largest share throughout the forecast period. Surge in demand for SiC-based photovoltaic cells in the developing countries, such as China, Brazil, and India fuels the growth of the segment.
However, the gallium nitride segment is expected to register the highest CAGR of 7.8% from 2020 to 2027. Increase in demand for GaN in radio frequency equipment in telecommunication industry, and surge in demand for AC fast charger, LiDAR, and wireless power drive the segment growth.
Asia-Pacific, followed by North America, to rule the Roost Throughout 2027-
Based on region, Asia-Pacific, followed by North America, held largest market share, accounting for nearly half of the global power electronics market in 2019, and will maintain its dominance throughout the forecast period. Furthermore, this region is expected to grow at the highest CAGR of 6.7% from 2020 to 2027. The availability of huge power stations for high voltage power, increase in demand for power modules, and surge in population drive the market in this region.
Leading Market Players
- Mitsubishi
- STMicroelectronics
- Rockwell Automation
- Toshiba Corporation
- Texas Instruments Incorporated
- Fuji Electric Co
- ABB Group
- Microsemi Corporation
- Infineon Technologies AG
- Renesas Electronics Corporation
