The global power electronics market size is projected to grow from USD 35.1 billion in 2020 to USD 44.2 billion by 2025, at a CAGR of 4.7%.
The increasing focus on the use of renewable power sources across the globe, growing adoption of power electronics in the manufacturing of electric vehicles, and increasing use of power electronics in consumer electronics are the major factors driving the growth of the power electronics market.
The power electronics market in 2020 is expected to be affected by the impact of COVID-19 as most of OEMs are experiencing a decline in demand for end-products, which ultimately will affect the growth of the power electronics market.
The increasing use of GaN & SiC products in various applications and growing industrialization in developing economies are projected to create lucrative opportunities for the players operating in the power electronics market during the forecast period.
Based on the product type, the power modules market to grow at the highest CAGR during the forecast period
The power modules market is expected to register the highest CAGR during the forecast period.
High power efficiency requirements from various applications are driving the demand for power modules.
Government initiatives to increase the adoption of EV/HEV, rising electrification in the automotive industry, increasing trend of clean energy generation (renewable energy generation), increasing number of charging stations, growing industrialization, growing adoption of intelligent modules in consumer appliances, and industrial automation & Industry 4.0 are expected to be the major factors driving the growth of the modules segment.
Modules are used in various applications, such as motor control and drives; hybrid-electric solutions for construction, commercial, and agricultural vehicles; solutions for solar energy systems; uninterruptible power supply (UPS); room air conditioners; high frequency & switching applications; dc/dc converters; auxiliary inverters; hybrid electrical vehicles; and inductive heating & welding.
Based on voltage, the low voltage power electronics market is expected to grow at a high rate from 2020 to 2025.
The growing adoption of low voltage devices in the automotive, consumer, and industrial sectors to drive the growth of the power electronics market.
Majority of power electronics devices are used in low voltage applications ranging from SMPS (adapter and charger), battery-powered applications, motor control and drives, battery management systems, inverters, computing and mobile applications, industrial power supplies, industrial UPS, energy storage, fridge, fans, pumps, room air conditioners, automotive applications, high frequency & switching applications, DC/DC converters, auxiliary inverters, hybrid electrical vehicles, and inductive heating & welding.
Most of the devices in the consumer, automotive, and industrial sectors operate at low voltages, which is expected to support the growth of the low voltage segment.
APAC power electronics to grow at significant CAGR during the forecast period
Rising demand for consumer electronics and government initiatives to adopt electrified vehicles are driving the growth of the power electronics market in APAC regions, specifically in China.
China is a global manufacturing hub and holds immense potential for the power electronics market.
China has a large base of players across the value chain – power electronics manufacturing, device manufacturing, OEMs, end users.
China is also the largest consumer, as well as manufacturers, of various consumer devices.
It is also at the forefront when it comes to industrialization, adoption of industry 4.0 standards and IoT solutions.
Furthermore, the country is inclined towards the adoption of renewable energy sources and electric vehicles.
The aforementioned factors are likely to catalyze the growth of the power electronics market in the country.
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