Next Generation Power Semiconductors Market - Size, Industry Share, Growth Trends and Forecasts (2023 - 2031)

By Material Type :

Based on material type, the market is bifurcated into GaN (Gallium Nitride) and SiC (Silicon Carbide). The GaN (Gallium Nitride) segment accounted for the largest revenue share in the year 2022. Gallium nitride is capable of enhancing the properties and design of semiconductors. Moreover, gallium nitride has high electron mobility, which enables it to support high gain at higher frequencies and with increased efficiency in comparison to other materials. Moreover, GaN-based power semiconductors offer several benefits including enhanced thermal conductivity, high breakdown tolerance, lower on-resistance, and faster-switching speeds. The above benefits of GaN-based power semiconductor are further increasing the utilization in automotive, telecommunication, electronics, and other industries. For instance, in September 2023, AIXTRON launched its new G10-GaN, specifically designed for power electronics sector. The newly launched solution provides high performance in a compact cluster for high-volume manufacturing of Gallium Nitride (GaN) based power and RF devices. Therefore, the rising innovations associated with gallium nitride is a prime factor proliferating the growth of the segment.

The SiC (Silicon Carbide) segment is anticipated to register fastest CAGR growth during the forecast period. SiC is a compound semiconductor that is composed of silicon and carbide. Silicon carbide offers a range of benefits including wider temperature ranges, superior breakdown electric field strength, wide band gap, low energy loss, and increased switching frequencies among others. SiC-based power semiconductors are used in automotive, aerospace & defense, power generation, and other sectors.

For instance, in March 2023, Mitsubishi Electric Corporation announced an investment of approximately USD 1.56 billion for a five-year period to increase the production of silicon carbide (SiC) power semiconductors, attributing to the increasing demand from electric vehicles. Thus, the increasing advancements related to SiC-based power semiconductors are a vital factor expected to drive the growth of the market during the forecast period.

By End-User :

Based on the end-user, the market is segregated into automotive, telecommunication, electronics, power generation, aerospace & defense, and others, and others. The electronics segment accounted for the largest revenue share of 32.98% in the year 2022. Factors including rising popularity of smart home devices, increasing penetration of smartphones, laptops, and other consumer appliances, and growing demand for energy-efficient devices are key determinants for driving the growth of the electronics segment.

For instance, according to the Brazilian Electrical and Electronics Industry Association (ABINEE), the value of electrical and electronics industry in Brazil reached USD 42.2 billion in 2022, depicting an increase of nearly 8% in comparison to USD 39.2 billion in 2021. Thus, the growing electronics sector is increasing the utilization of next generation power semiconductors in smartphones, laptops, and other consumer appliances, in turn driving the growth of the market.

Automotive segment is expected to witness fastest CAGR growth during the forecast period. The growth of automotive segment is attributed to several factors including advancement in autonomous driving, rise in automobile production, increasing adoption of electric vehicles, and growing investments in automotive manufacturing facilities.

For instance, in March 2023, Denso Corporation, a global automotive manufacturer, developed its first inverter with silicon carbide (SiC) semiconductors. The inverter is primarily designed for integration in battery electric vehicle (BEV). Thus, the rising adoption of next generation power semiconductors in automotive sector is projected to drive the market growth during the forecast period.

By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for the largest revenue share of USD 398.54 Million in 2022 and is expected to reach USD 659.93 Million by 2031, registering a CAGR of 5.7% during the forecast period. The market growth for next generation power semiconductors in the North American region is primarily driven by its deployment in automotive, telecommunication, aerospace & defense, and other sectors. Moreover, the growing adoption of electric vehicles and increasing utilization of next generation power semiconductors in EVs for optimizing the overall system power density and efficiency along with increasing overall performance and EV power are among the significant factors driving the market growth in the region.

For instance, according to the International Energy Agency, electric car registrations in the United States reached 630 thousand units in 2021, depicting a substantial growth in comparison to 295 thousand units in 2020. Thus, the growth of automotive industry is boosting the deployment of next generation power semiconductors, in turn accelerating market growth in the North American region. In addition, growing investments in the field of aerospace & defense and telecommunication sectors are anticipated to facilitate lucrative growth prospects for the market in North America during the forecast period.

Asia Pacific accounted for the significant revenue share of USD 269.35 Million in 2022 and 280.44 in 2023 and is expected to reach USD 468.20 Million by 2031, registering the fastest CAGR of 6.1% during the forecast period. In addition, in the region, the China accounted for the maximum revenue share of 28.2% in the same year. The growing pace of industrialization and development is creating lucrative growth aspects for the market in the region. Additionally, factors including the growth of various industries including consumer electronics, power generation, automotive, and others are driving the market growth for next generation power semiconductors in the Asia-Pacific region.

For instance, according to the India Brand Equity Foundation, the overall consumer electronics industry in India was valued at USD 9.84 billion in 2021, and it is expected to grow at a high growth rate to reach USD 21.18 billion by 2025. Therefore, the growing consumer electronics sector is driving the deployment of next generation power semiconductors for application in smartphones, laptops, and other consumer appliances, thereby, proliferating the market growth in the Asia-Pacific region.