- Summary
- Table Of Content
- Methodology
Power Semiconductor Market Size :
Power Semiconductor Market size is estimated to reach over USD 60.86 Billion by 2031 from a value of USD 43.21 Billion in 2022 and is projected to grow by USD 44.14 Billion in 2023, growing at a CAGR of 4.10% from 2023 to 2031.
Power Semiconductor Market Scope & Overview:
A power semiconductor is an efficient component that is designed to withstand high current and voltage thus allowing less power loss within devices. They are of various types and are employed in all electrical and electronic devices to manage the power flow within a certain limit. Moreover, they are designed to perform modified electrical and electronic functions among various devices. In addition, the key applications include the amplification of signals by means of power amplifiers, as a component in inverters and converters, and as a switch in turning on/off electrical appliances.
Global Power Semiconductor Market Insights :
Power Semiconductor Market Dynamics - (DRO) :
Key Drivers :
Growing demand in the power and energy industry is driving the market
The requirements for power semiconductors in the power and energy sector are growing rapidly, driven by the increasing adoption of renewable energy technologies including solar and wind power. They are mainly used in a wide variety of applications in the power and energy sector including wind turbine converters, solar inverters, and HVDC transmission systems, among others. Solar inverters convert the DC power generated by solar panels into AC power, which is stored in storage or directly transferred to the power grids for further utilization in residential and commercial locations. In addition, wind turbine converters convert the AC power generated by wind turbines into DC power that is further transmitted to the grid for commercial, residential, and industrial applications. Accordingly, owing to the rising need for power and energy, these semiconductors have turned into a necessary device for the operation of electrical and electronic components, thus driving the market growth.
Moreover, the adoption of renewable energy including solar and wind power is becoming increasingly popular due to their environmental benefits. Furthermore, new developments in power electronics technologies including SiC and GaN, are offering higher efficiency, higher power density, and better thermal performance than traditional silicon-based power semiconductors. Therefore, the market trends analysis shows that based on the above-mentioned factors associated with the adoption of these new technologies in a wider range of applications such as solar inverters, wind turbine converters, and HVDC transmission systems, driving the power semiconductor market growth.
Increasing demand in varied industries for controlling switches is driving the market
Power semiconductors are used in a wide variety of industries for controlling switches. A few of the major industries that are utilizing these semiconductors for controlling switches include industrial automation, power electronics, and telecommunication, among others. Power electronics is the field of engineering that deals with the conversion and control of electrical energy. These semiconductors are essential components in power electronics and are used in a wide variety of applications, such as solar inverters, wind turbine converters, and others. In addition, in industrial automation power semiconductors are used in a wide variety of industrial automation applications such as motor control, process control, and robotics.
Moreover, in consumer electronics applications, the usage of these semiconductors is growing rapidly, owing to the increasing requirements for consumer electronics products. The advent of technology has been creating an interest among individuals in the need for technologically advanced products thus generating a driving force for the power semiconductor market growth.
For instance, according to World Robotics data, there was a substantial rise in the numbers of robots adopted by countries including China, Japan, United States by 268.2, 47.2, and 35.0 (thousand units) for every 10,000 employees in the year 2021. Therefore, the analysis of market trends depicts that the rising demand for industrial automation and increased preference for robots is accounted to be a driving factor for the market.
Key Restraints :
Increased expenses towards research and development process are hindering the market
The power semiconductor market is constantly evolving, and there is a need for constant investment in research and development to develop new and innovative technologies. Companies, especially small and medium-sized enterprises find it difficult to invest in R&D expenses owing to rising geopolitical issues such as trade war, fluctuation in currency exchange, and high trade deficit, among others tend to restrict market growth. For instance, the R&D expenses for NXP Semiconductors N.V. have risen to USD 2.1 billion in the year 2022 in comparison to USD 1.9 billion in the year 2021. Therefore, the analysis of market trends portrays that owing to the high cost of expenditures in the R&D, considered for SMEs seems to be very high which is restraining the power semiconductor market demand.
Future Opportunities :
Growing demand from the automotive industry is expected to create opportunities
The growing automotive industry includes increasing adoption of electric vehicles, rising utilization of advanced driver-assistance systems (ADAS), and rising application of infotainment systems, among others. Electric vehicles use power semiconductors to control the motors, batteries, and charging systems. The requirements for these semiconductors in the electric vehicle market are growing rapidly, as the market for electric vehicles is expected to grow significantly in the coming years. For instance, ADAS is increasingly being adopted in vehicles that utilize semiconductors to control features including adaptive cruise control, lane departure warning, and automatic emergency braking. Accordingly, analysis of market trends shows that the rising need for electric vehicles will provide greater power semiconductor market opportunities during the forecast period.
Power Semiconductor Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2031 |
| Market Size in 2031 | USD 60.86 Billion |
| CAGR (2023-2031) | 4.10% |
| By Type | Diodes, Transistors, Insulated-gate bipolar transistors (IGBTs), Gate turn-off thyristors (GTOs), and MOSFET |
| By Material | Silicon, Silicon Carbide (SiC), and Gallium Nitride (GaN) |
| By End Use | Consumer Electronics, Automotive, IT & Telecommunication, Electrical & Electronics, Power & Energy, and Aerospace & Defense |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | NXP Semiconductors N.V., Mitsubishi Electric Corporation, Toshiba Corporation, On Semiconductor Corporation, Hitachi Power Semiconductor Device, Ltd., Texas Instruments Incorporated, Infineon Technologies AG, Beneq, STMicroelectronics N. V., Renesas Electronics Corporation, QORVO Inc. |
| Geographies Covered | |
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Restraint or Challenges, Opportunities, Environment & Regulatory Landscape, PESTLE Analysis, PORTER Analysis, Key Technology Landscape, Value Chain Analysis, Cost Analysis, and Regional Trends & Forecast |
Power Semiconductor Market Segmental Analysis :
By Type :
Based on the type, the market is divided into diodes, transistors, insulated-gate bipolar transistors (IGBTs), gate turn-off thyristors (GTOs), and MOSFET. MOSFET is accounted to generate the largest market share in the year 2022 of the global power semiconductor market. The advent of technology in the fields of automotive, power and energy, telecommunication, and others has been proliferating the market. Power MOSFETs are the most widely used semiconductor devices in the market owing to their application in a wide variety of applications, including solar inverters, wind turbine converters, and electric vehicles. Moreover, the need is expected to continue to grow in the coming years, driven by the increasing adoption of renewable energy technologies and the growing electric vehicle market. For instance, companies such as Infineon Technologies are offering a range of automotive power MOSFETs namely OptiMOS 7 that have higher power efficiency, increased SOA for high current applications, and reduced switching losses, among others.
By Material :
Based on the Material, the market is divided into silicon, silicon carbide (SiC), and gallium nitride (GaN). Gallium nitride (GaN) is accounted to generate the largest market share in the year 2022. The key factors attributing to the growth of gallium nitride (GaN) in the overall power semiconductor market share are due to its wider bandgap and reduced power loss. In addition, GaN offers increased efficiency and best performance in electronic devices including RF applications is promoting the market growth of the segment. Moreover, as per the segmental trends analysis, the key attributing factors towards the growth of the segment include higher switching speed of GaN, higher breakdown voltage, and lower on-resistance, among others proliferating the power semiconductor market demand.
Moreover, the segment is also expected to grow at the fastest CAGR during the forecast period owing to the rising need for GaN in comparison to SiC and Si for a wide range of applications including power converters, and RF power amplifiers, among others. For instance, RF power amplifiers are used to amplify radio frequency signals for a variety of applications including 5G wireless networks, radar systems, and satellite communications. For instance, GaN-based transistors are made available by Infineon Technologies, namely CoolGaN which are an attractive option for these semiconductors.
By End-User :
Based on the end use, the market is segmented into consumer electronics, automotive, IT & telecommunication, electrical & electronics, power & energy, and aerospace & defense. The consumer electronics segment accounted for the largest market share of 33.7% of the total power semiconductor market share in the year 2022. Owing to the high need for these semiconductors in designing and manufacturing high-performance consumer electronic products including smartphones, laptops, and TVs is driving the market.
Furthermore, the segment is also projected to grow at the fastest CAGR during the forecast period owing to rising applications of semiconductor technology in devices such as smartphones for display units, power supply, and camera operation is projected to drive the power semiconductor market trends.
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 15.77 Billion in 2022 and is expected to reach USD 22.34 Billion by 2031, growing by a CAGR of 4.2%. Also, the market is projected to garner revenue of USD 16.12 Billion in the year 2023. In addition, in the region, the U.S. accounted for the maximum revenue share of 72.35% in the same year. As per the power semiconductor market analysis, the adoption of these semiconductors in North America is primarily driven by factors due to the strong presence of semiconductor and electronics industries such as NXP Semiconductors N.V., Infineon Technologies AG, and Texas Instruments. In addition, North America is a leading region in the adoption of renewable energy technologies, such as solar and wind power. These semiconductors are essential for the conversion and transmission of electricity from aforementioned sources, thus proliferating its power semiconductor market expansion in the region.
In addition, the region has new power electronics technologies, such as silicon carbide (SiC) and gallium nitride (GaN), which offer higher efficiency and power density than traditional silicon-based power semiconductors. Therefore, analysis of regional trends shows that owing to the adoption of the above-mentioned new technologies in a wider range of applications including solar inverters, wind turbine converters, and electric vehicles is driving the power semiconductor market opportunities.
The power semiconductor market analysis shows that Asia-Pacific is expected to register the fastest CAGR of 4.3% during the forecast period. The power semiconductor market in the Asia-Pacific region is expected to grow significantly during the forecast period. The growth is attributed to several factors, including rapidly growing renewable energy adoption, the opening of the market for electric vehicles, presence of semiconductors companies such as Mitsubishi Electric Corporation, Toshiba Corporation, Hitachi Power Semiconductor Device, Ltd., and others that will drive the power semiconductor market trends during the forecast period. Asia Pacific region is headquartered in a few of the fastest-growing renewable energy markets in the world. The increasing adoption of renewable energy technologies, such as solar and wind power, is driving the demand for these semiconductors for the conversion and transmission of electricity.
Top Key Players & Market Share Insights:
The power semiconductor market is highly competitive with major players providing semiconductors to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-use launches to hold a strong position in the power semiconductor market. Key players in the power semiconductor industry include-
- NXP Semiconductors N.V.
- Mitsubishi Electric Corporation
- Beneq
- STMicroelectronics N. V.
- Renesas Electronics Corporation
- QORVO Inc.
- Toshiba Corporation
- On Semiconductor Corporation
- Hitachi Power Semiconductor Device, Ltd.
- Texas Instruments Incorporated
- Infineon Technologies AG
Recent Industry Developments :
- In November 2021, Qorvo acquired United Silicon Carbide (UnitedSiC), one of the key players in Silicon Carbide power semiconductors.
Key Questions Answered in the Report
What is Power Semiconductor? +
A power semiconductor is an efficient device that is designed to withstand high current and voltage thus allowing less power loss within devices. Power semiconductors are of various types and are employed in all electrical and electronic devices to manage the power flow within a certain limit.
What specific segmentation details are covered in the power semiconductor report, and how is the dominating segment impacting the market growth? +
For instance, by type segment has witnessed MOSFET as the dominating segment in the year 2022, owing to the advantages offered by MOSFET power semiconductors including high efficiency.
What specific segmentation details are covered in the power semiconductor market report, and how is the fastest segment anticipated to impact the market growth? +
For instance, by end use segment will witness consumer electronics segment to grow at the fastest growth rate during the forecast period. The demand is expected to increase due increased application of power semiconductors in smartphones, handheld devices, among others.
Which region/country is anticipated to witness the highest CAGR during the forecast period, 2023-2031? +
Asia-Pacific is anticipated to register fastest CAGR growth during the forecast period due to rapid pace of industrialization and demand for telecommunication and semiconductor infrastructure.
