The power electronics market was valued at $38,522 million in 2021 and is expected to reach $56,269 million by 2030, growing at a compound annual growth rate (CAGR) of 4.3% from 2021 to 2030, according to a report by P&S Intelligence.
This growth is driven by factors such as increasing infrastructure development, rising consumer spending, significant research and development investments, and the growing demand for energy-efficient products in 5G devices, automobiles, data centers, and telecom infrastructure. Additionally, the expanding electricity generation sector and the increasing number of vendors further contribute to market expansion.
The silicon segment accounted for the largest revenue share and is anticipated to grow at a notable rate in the coming years. This is attributed to the widespread use of silicon-based products across various sectors, including ICT and electronics, rising demand from countries like India and China, and the cost-effectiveness of these materials.
The modules category is expected to grow at the fastest pace due to their essential role in power architectures for inverters, wind turbines, photovoltaic inverters, and micro-inverters. The increasing focus on renewable energy sources, which require power converters for DC to AC conversion and vice versa, is propelling growth in this segment.
The low-voltage segment is predicted to experience the highest growth rate, largely due to the extensive use of low-voltage products in consumer electronics and advancements in energy harvesting technologies.
Moreover, the widespread application of power electronics in automobiles—providing stable power output, controlling interfaces, and managing thermal conditions with the help of converters—is another major factor driving the industry’s growth.
The Asia-Pacific (APAC) region held the largest revenue share and is expected to maintain its dominance in the years ahead. Key factors include rapid industrialization, a growing population, increased adoption of electric and hybrid electric vehicles (EVs and HEVs), rising consumer spending, a large customer base for end products, availability of skilled labor at lower costs, advanced technologies, and supportive government policies boosting the renewable energy sector.
Additionally, the trend of European and American companies relocating production operations to China and India is expected to further fuel market growth in the coming years.
North America also captured a significant market share, supported by technological advancements in end-user industries, widespread smartphone adoption, increased internet usage, and the growing sales of EVs aimed at reducing carbon emissions.
In conclusion, the market for power electronics will be driven by infrastructure development, rising consumer spending, increased R&D investments, and the growing need for energy-efficient products in various applications, particularly 5G devices.
Source: P&S Intelligence