PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1530801
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1530801
According to Stratistics MRC, the Global Power Semiconductor Market is accounted for $54.2 billion in 2024 and is expected to reach $80.8 billion by 2030 growing at a CAGR of 6.9% during the forecast period. Power semiconductors are crucial components in modern electronic systems, used to control and convert electrical power efficiently. They handle high voltages and currents, enabling the regulation of power in various applications, from industrial machinery to consumer electronics. These semiconductors manage power flow, improve energy efficiency, and reduce heat generation. Innovations in material science, such as the use of silicon carbide (SiC) and gallium nitride (GaN), are enhancing performance and efficiency. These materials offer higher thermal conductivity and better switching speeds compared to traditional silicon-based semiconductors, contributing to more reliable and compact power management solutions.
According to the US Congressional Budget Office, defense spending in the United States is predicted to increase every year until 2033. Defense outlays in the United States amounted to USD 746 billion in 2023.
Surge in electric and hybrid vehicles
As electric and hybrid vehicles become more prevalent, the demand for advanced power semiconductor components increases due to their critical role in battery management, motor control, and energy conversion. Power semiconductors like MOSFETs, IGBTs, and GaN devices are essential for managing the high voltages and currents involved in electric propulsion systems and efficient power conversion. This growing demand drives innovation and investment in power semiconductor technology, leading to advancements in efficiency, size, and performance boosting the growth of the market.
High R&D costs
Significant investment is required to develop advanced technologies like silicon carbide (SiC) and gallium nitride (GaN), which can lead to higher production costs and pricing pressures. Smaller firms, facing financial constraints, may struggle to keep pace with technological advancements, reducing competition and potentially stifling innovation. Additionally, high R&D expenses can delay the commercialization of new technologies, slowing the overall market adoption of cutting-edge solutions.
Increasing adoption of solar and wind power systems
Renewable energy sources require efficient power management and conversion technologies to integrate with the grid and optimize energy usage. Power semiconductors are essential for tasks such as DC-AC conversion, maximum power point tracking (MPPT), and energy storage management in solar inverters and wind turbines. Further the growth in solar and wind energy installations drives demand for advanced power semiconductor components, such as high-efficiency diodes, MOSFETs, and IGBTs, as well as emerging technologies like silicon carbide (SiC) and gallium nitride (GaN).
Thermal management challenges
Power semiconductors generate significant heat during operation, and inadequate thermal management can lead to overheating, reduced efficiency, and shorter device lifespans. This necessitates the development of complex and costly cooling solutions, which can increase overall system costs and the increased thermal management requirements can also delay product development and add to R&D expenses, impacting the market's ability to innovate and bring new technologies to market quickly.
COVID-19 significantly impacted the power semiconductor market by disrupting supply chains, causing delays in production and shipping. The pandemic initially led to a decline in demand due to economic slowdowns and factory closures. However, as the world adapted, there was a surge in demand driven by increased reliance on electronics, remote work, and growth in sectors like healthcare and renewable energy. The crisis accelerated digital transformation and highlighted the need for resilient supply chains, driving long-term investments in semiconductor technology and infrastructure.
The discrete power semiconductors segment is expected to be the largest during the forecast period
The discrete power semiconductors is expected to be the largest during the forecast period due to their versatility and wide application range. They handle specific power control tasks efficiently in various systems, from consumer electronics to industrial machinery. Their continued evolution enhances performance, reliability, and energy efficiency. The growing demand for energy-efficient solutions in sectors like automotive, renewable energy, and industrial automation drives their market growth.
The gallium nitride segment is expected to have the highest CAGR during the forecast period
The gallium nitride segment is expected to have the highest CAGR during the forecast period because these GaN devices enable faster switching speeds, higher efficiency, and greater thermal conductivity, which improves energy efficiency and reduces heat generation. This leads to more compact and reliable power management solutions. The adoption of GaN technology is accelerating in applications such as electric vehicles, renewable energy systems, and high-frequency power supplies.
North America is projected to hold the largest market share during the forecast period owing to the growing adoption of EVs in North America increases demand for power semiconductors for battery management systems and motor control. Further the expansion of renewable energy sources like solar and wind drives the need for efficient power conversion and management systems propelling the market growth.
Asia Pacific is projected to hold the highest CAGR over the forecast period due to significant investments in EV infrastructure and production in countries like China, Japan, and South Korea are driving demand for power semiconductors, particularly for battery management and motor control applications. Additionally the growing focus on renewable energy sources, such as solar and wind power, in Asia Pacific countries necessitates advanced power management solutions to integrate and optimize these energy sources.
Key players in the market
Some of the key players in Power Semiconductor market include Alpha & Omega Semiconductor, Broadcom Inc., Fuji Electric Co. Ltd, Infineon Technologies AG, Littlefuse Inc., Magnachip Semiconductor Corp., Microchip Technology Inc., Mitsubishi Electric Corporation, Nexperia Holding BV, NXP Semiconductors NV, ON Semiconductor Corporation, Qorvo Inc., Renesas Electronics Corporation, Rohm Co. Ltd, Semikron International, STMicroelectronics NV, Texas Instruments Inc., Toshiba Corporation and Wolfspeed Inc.
In July 2024, Infineon expanded Infringement Lawsuit against Innoscience and files complaint with U.S. International Trade Commission. In addition, Infineon filed a complaint with the U.S. International Trade Commission (USITC) containing legal claims referring to the same four patents covered by the lawsuit.
In June 2024, Infineon introduced power system reliability Modeling to reduce power shortages and blackouts in data center systems. Target applications of the solution include DCDC converters, ACDC rectifiers and IBC modules utilized in data centers, AI servers, GPUs, and telecom networks.
In June 2024, VIS and NXP to established a joint venture to build and operate a 300mm Fab. The joint-venture fab will support 130nm to 40nm mixed-signal, power management and analog products, targeting the automotive, industrial, consumer and mobile end markets.