Power Electronics Market - Arena highly competitive 2025 | Infineon Technologies AG, NXP Semiconductors N.V.
Power electronics are solid state circuitry devices that convert and control electric power from the source to load. These devices ensure effective delivery of power, providing high security, reliability, and flexibility to the power system. They improve switching speed and also enable power management to prevent power loss. The materials commonly used for these devices are silicon, gallium nitride, silicon carbide, and sapphire. Some of the common types of devices are transistors, diodes, thyristors, modules, and ICs. These devices find applications across industrial verticals such as information and communication technology, consumer electronics, industrial, automotive, power, and aerospace and defense.
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Global Power Electronics Market: Key Trends
The rising awareness regarding the benefits of power electronics is boosting their uptake across different applications. Presently, about 30% of all power generation is carried out using power electronic devices, either at the stage of power generation or at the final electricity consumption point. It is anticipated that by 2030, up to 80% of the electricity produced will use power electronic devices. The burgeoning demand for energy-efficient battery-powered portable devices is also fuelling the global power electronics market. Moreover, the growing reliance on renewable energy resources is working in favor the market.
Other factors such as improving power infrastructure and the increasing demand for energy harvesting technologies are stoking the growth of the global market. On the other hand, high complexity and cumbersome integration process of advanced technology devices make their manufacturing time consuming, which in turn negatively impacting the growth of the global power electronics market. Furthermore, the high initial costs of power electronics are hampering the growth of the market.
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Global Power Electronics Market: Market Potential
Material forms the foundation of power electronic devices and thus, researchers are focusing towards developing materials that have higher efficiency and enable better power generation. A research by Massachusetts Institute of Technology (MIT) in August 2015 proved the higher efficiency of gallium nitride over silicon. As a result, gallium nitride started emerging as the next generation semiconductor for power electronics and replacing conventional materials. Similarly, researchers at the University of Minnesota and the University of Utah announced that the conjoin of two oxide compounds, namely neodymium titanate (NTO) and strontium titanate (STO), makes an extraordinary conductive material that could be up to five times more conductive than silicon and can vastly improve power transistors. Another case in point is the development of organic thin-film, high-voltage transistors in March 2017 by a team of researchers at the Linkoping and Umea universities in Sweden. This transistor is estimated to be a breakthrough in the field of organic power electronics. Therefore, such developments are imparting significant momentum to the global power electronics market.
Global Power Electronics Market: Geographical Segmentation
Geographically, Asia Pacific is expected to be a prominent revenue contributor to the growth of the global market. The rapid expansion of manufacturing facilities along with the robust growth of the consumer goods sector is supplementing the growth of the region. Cost advantages and increasing initiatives taken by governments are boosting the domestic manufacturing of power electronics devices, thereby contributing to the growth of APAC. The growth of Europe can be attributed to countries such as the U.K. and Germany.
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Global Power Electronics Market: Competitive Landscape
The presence of a large number of global and regional participants in the global power electronics market and low differentiation in their product offerings have rendered the arena highly competitive. The intensity of rivalry will remain high due to switching cost also. Some of the prominent companies operating in the market are Infineon Technologies AG, NXP Semiconductors N.V., ON Semiconductor, STMicroelectronics N.V., Microsemi Corporation, Vishay Intertechnology Inc., Texas Instrumentation Inc., Toshiba Corporation, and ABB Ltd.
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