Power Semiconductor Market Size, Share, Opportunities, And Trends By Module (Power Module, Power Discrete), By Component (IGBT, Power Diodes, Power Management IC, BJT, Power MOSFET, Thyristor), By Material (Silicon, Germanium, GaN, GaS, SiC), By Application (Consumer Electronics, Automotive, Aerospace & Defense, Industrial, Others), And By Geography - Forecasts From 2023 To 2028

A power semiconductor device is a semiconductor that is used in power electronics as a switch or rectifier. These semiconductors are predominately composed of gallium nitride and silicon carbide.  Some examples of power semiconductors include power diodes, thyristors, bipolar junction transistors and power transistors. Power semiconductors are usually deployed in audio amplifiers, voltage regulators, lamp dimmers, induction cookers, radio frequency amplifiers and automotive ignition systems.

High demand for power semiconductors from consumer electronics, automotive and renewable power industries is driving the market growth during the forecast period. Rising government investment to expand the semiconductor industry in their respective countries is also contributing to the expansion of the global market. For instance, the Government of India announced in September 2022, that they were planning to invest USD25 billion to expand the Indian semiconductor industry. Moreover, In May 2021, the Japanese government announced that the developed nation planned to enhance expenditures to scale up domestic manufacture of advanced semiconductor devices as part of their annual development programme. To encourage the domestic chip sector, the government promised to invest JPY 200 billion, and by 2030 it hopes to control 40 per cent of the worldwide market for next-generation power semiconductors. In September 2022, the Biden Administration announced First CHIPS and Science act. Under this initiative, the government has pledged US$ 50 billion to boost the United States semiconductor industry constructing foundries and providing funding to develop power semiconductors.

However, the lack of skilled manpower, supply chain complexity, and stringent rules and regulations by the government, is obstructing the growth of the global market for power semiconductors during the analysis period.

During the anticipation period, the rising demand from renewable energy and the automotive sector will support the growth of the global power semiconductor market during the projection period.

Power semiconductors play a crucial role in renewable energy power generation. They help in the conversion of power in plants such as wind turbines or solar PV and the transmission of power to the grid. Therefore, the growing use of renewable energy sources such as solar, wind or hydro to generate power is driving the demand for power semiconductors. According to the data from International Energy Agency, in 2021, the output of renewable power increased by a record-breaking 7 per cent, reaching 522 TWh with wind and solar PV technologies collectively accounting for over 90 per cent of this growth. In 2021, the proportion of renewable energy in the world's electrical generation increased to 28.7 per cent. The United States Energy Information Agency says that around 12.4 per cent of the nation's total primary energy consumption in 2021 came from renewable sources. Around 19.8 per cent of the total power produced at the utility scale came from renewable sources. Between 2021 and 2025, it is anticipated that the United States and the European Union would install more than 125 GW of solar PV annually. India, which plans to add over 100 GW of solar PV capacity by the year 2022, will also play a significant part in the expansion of the total industry.

Power semiconductors are extensively used in the production of the electric vehicle. They are a key component responsible for HEVs and EVs’ energy efficiency and fuel economy. According to a report published by International Energy Agency, only approximately 17,000 electric vehicles were on the road worldwide in 2010. There were 7.2 million electric cars in operation in 2019 which is a 42,000 per cent growth. The same report also says that the sales of electric vehicles nearly doubled to 6.6 million, representing a sales share of approximately 9 per cent, compared to 2020, to reach 16.5 million electric vehicles or EVs on the road. In 2021, the sales proportion of electric vehicles rose by 4 percentage points. The International Energy Agency data also says that there will be more than 300 million electric vehicles on the road by 2030, and they will make up 60 per cent of all new car sales.  These factors are anticipated to fuel market expansion globally in the future.

Asia Pacific is anticipated to hold a significant amount of the power semiconductors market share during the forecast period.

Asia Pacific region is anticipated to hold a significant market share in power semiconductors. This region will witness high growth during the forecast period owing to the well-established consumer electronics and semiconductor industry in countries such as South Korea, China and Japan. Rising government investment and initiatives to expand the semiconductor industry in countries such as India, Korea and China are driving the growth of the market in this region. The Government of India announced in September 2022, that they were planning to invest USD25 billion to expand the Indian semiconductor industry. Continuous investment activities by key market players in this region to increase their production capacity are also propelling demand. For instance, in March 2023 Mitsubishi Electric will invest around 100 billion yen in a new Japanese facility, which would allow it to quintuple the manufacturing capacity for energy-saving silicon carbide power semiconductor devices. Throughout the five years ending in fiscal 2025, power semiconductor capital expenditures are expected to reach a total of 260 billion yen, which is double the 130 billion yen originally anticipated.  The presence of key market players such as TSMC, Mitsubishi and Toshiba Corporation is also propelling the growth of the semiconductor foundry market in this region. Prime markets in the Asia Pacific region are India, China, Japan, South Korea, Taiwan, Thailand and Indonesia.

Market Key Developments

• In March 2023, SET GmbH, a long-time leader in the creation of test systems for the aerospace and military industries as well as a recent inventor in the field of power semiconductor reliability testing, has been acquired by NI. Together, the businesses will shorten the time it takes for crucial, highly distinct solutions to reach the market and speed up the convergence of the semiconductor and transportation supply chains using materials for power electronics like silicon carbide and gallium nitrite.
• In February 2023, Mitsubishi Electric Company launched its new SLIMDIP-Z power semiconductor module which has an exceptionally high 30A rated current for use in inverter systems of household appliances. By simplifying and reducing systems for multifunction in complex devices like air conditioners, washing machines, and refrigerators, the small module will enable the SLIMDIPTM series to satisfy a wider variety of power inverter units.
• In March 2023, Alpha and Omega Semiconductor Ltd a designer, developer, and international supplier of a wide variety of power semiconductors, power ICs, and digital power solutions expanded its AlphaZBLTM line of active bridge drivers. The AOZ7203AV, which comes in an SOP-8L package, is a self-powered dual-driver IC used to drive external high-voltage MOSFETs in place of two low-side bridge rectifier diodes. The new component may be used in power supply for desktop computers, game consoles, and servers as well as adapters for expensive laptops and televisions.

Power Semiconductor Market Scope:

Segmentation:

• By module
  • Power Module
  • Power Discrete
• By Component
  • IGBT
  • Power Diodes
  • Power Management IC
  • BJT
  • Power MOSFET
  • Thyristor
• By Material
  • Silicon
  • Germanium
  • GaN
  • GaS
  • SiC
• By Application
  • Consumer Electronics
  • Automotive
  • Aerospace & Defense
  • Industrial
  • Others 
• By Geography
  • North America
    • USA
    • Canada
    • Others
  • South America
    • Brazil
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Others
  • Middle East and Africa
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Taiwan
    • Thailand
    • Indonesia
    • Others