Power Semiconductor Market - Strategic Insights and Forecasts (2025-2030)

The power semiconductor market is set to reach USD 59.592 billion in 2031, growing at a CAGR of 4.00% from a valuation of USD 49.175 billion in 2026.

Power Semiconductor Market Highlights:

A power semiconductor device is a semiconductor that is used in power electronics as a switch or rectifier. These semiconductors are predominantly 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.

The primary factor driving the power semiconductor market growth is the rapid electrification of the automotive, industrial, and consumer sectors. The shift to electric vehicles (EVs), charging infrastructure, and advanced driver assistance systems is significantly increasing demand for power semiconductors.

Moreover, the rising government investment to expand the semiconductor industry in their respective countries is also contributing to the expansion of the global market. Power semiconductors play a crucial role in renewable energy 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, and hydro, to generate power is driving the demand for power semiconductors.

Power Semiconductor Market Overview

A power semiconductor device is a semiconductor employed in power electronics as a switch or a rectifier. The major part of these semiconductors consists of gallium nitride and silicon carbide. Power diodes, thyristors, bipolar junction transistors, and power transistors are a few examples of power semiconductors. Power semiconductors are primarily used in audio amplifiers, voltage regulators, lamp dimmers, induction cookers, radio frequency amplifiers, and automotive ignition systems.

Market dynamics in power semiconductors are robust, with global trends of electrification, sustainability, and innovation pushing the market upwards. Power semiconductors are indispensable in the processes of major power conversion, management, and control in highly demanding voltage and current applications. These devices are capable of significantly lowering energy losses and achieving higher efficiency, along with a compact size, making them ideal for those industries that are increasingly required to deliver performance and comply with environmental standards.

The rise in the use of consumer devices, such as smartphones, wearables, and 5G infrastructure, mainly leads to the necessity of efficient power management. The electronic production in India witnessed a sixfold growth from 2014-2015 to 2024-2025, increasing from ?1.9 lakh crore to ?11.3 lakh crore, according to the Ministry of Electronics and IT data published in October 2025. Meanwhile, the exports of electronics grew by eight times during the same period, from 38,000 crores to 3.27 crores.

Moreover, the country witnessed mobile phone production rise by 28 times from 2014-2015 to 2024-2025, which is from ?18,000 crore to ?5.45 lakh crore, and export increased by 127 times and valued at 2 lakh crore in 2024-2025, as per the same source.

Moreover, power semiconductors ensure that electronics have longer battery lives and have quicker charging times. They also support telecommunications in transmitting high-speed data in base stations and beamforming ICs. Large-scale wireless connectivity, with the number of 5G users witnessing an upward trajectory globally, leads to wireless devices contributing to market expansion in the IT and telecommunication sectors by making it more efficient to handle increased data traffic and power requirements.

Power Semiconductor Market Growth Drivers:

• Adoption of Electric Vehicles (EVs) and Automotive Electrification
  Power semiconductors, like MOSFETs, IGBTs, diodes, and thyristors, are specific electronic components that can manage high voltage and current efficiently. They are at the core of the power system, supporting energy swapping and regulation through efficient switching and controlling the electrical energy. In the case of electric vehicles (EVs) and the wider automotive electrification, they are the components that are working and facilitating the transition from internal combustion engine (ICE) to the era of electrified mobility in the various types of vehicles which includes battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs).
  
  The global uptake of EVs is being accelerated by several factors, including environmental regulations, government subsidies, decreasing battery prices, and growing consumer demand for eco-friendly transportation. According to the International Energy Agency (IEA), in 2025, EV sales were expected to exceed 20 million units, accounting for over 25% of the global car market, from 17 million in 2024. This change is significantly boosting the power semiconductor market, as there is a rising demand for new, highly efficient devices, which can handle electrified powertrains' high-voltage operations, rapid charging, and energy optimization, among other unique requirements.
  
  In contrast to ICE automobiles, where semiconductor use is comparatively low, power semiconductors are the main materials in the semiconductor content of cars among EVs due to their heavy use in controlling electric motor systems. Automotive electrification is largely dependent on power semiconductors for its efficient energy use, longer vehicle range, and fast charging support. The Inverters convert AC from charging stations to DC for the battery storage, utilizing GaN and SiC semiconductor devices for increased frequency switching, which facilitates efficient design and faster charging of the vehicles.

Power Semiconductor Market Segmentation Analysis

• By Application: Automotive
  By application, the power semiconductor market is segmented into consumer electronics, automotive, aerospace & defense, industrial, energy & power, and others. Power semiconductors are one of the key components of a vehicle that allow the power to be changed effectively, voltage to be regulated, and heat discharge to be controlled in different systems such as electric powertrains, battery management systems (BMS), onboard chargers, traction inverters, electric power steering, advanced driver-assistance systems (ADAS), and infotainment modules.
  
  Along with the rapid rise in the number of electric vehicles (EVs), plug-in hybrids, and mild hybrid systems, the demand for high-performance power devices has greatly increased. This is because these vehicles need to be efficient in handling high voltages and currents that help to extend the driving range, enhance charging speed, and ensure operational safety. The sales of new light-duty EVs exceeded 1.2 million in the first three quarters of 2025 in the USA, which is the highest figure for any year so far. The EV sales share in the third quarter also got close to 12%. Since 2015 and up until September 2025, over 7 million EVs have been sold, and more than half of these sales went through in the last three years.
  
  Sales figures from GM and Hyundai reflect this trend. In 2015, each of the two carmakers sold only three EV models; however, by 2025, GM and Hyundai were selling 14 and 15 EV models, respectively. The carmakers' sales of EVs have increased along with the number of models on offer.
  
  Automakers are increasingly prioritizing the transition from the traditional silicon-based devices to advanced materials such as silicon carbide (SiC) and gallium nitride (GaN). These materials enable higher switching frequencies, reduce power losses, and offer improved thermal stability, making them ideal for future automotive architectures. Siemens collaborated with SK keyfoundry in 2025 to launch a 130nm automotive power semiconductor, the Calibre PERC PDK, that is solely intended for application in Calibre® PERC™ software.
  
  Altogether, automotive segment applications will be one of the most influential and fast-growing contributors to the demand for power semiconductors globally. This growth is backed by strict emission regulations, government incentives for vehicle electrification, and constant innovation in automotive electronics.

Power Semiconductor Market Geographical Outlook:

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

• North America: the US
  The growing automation trend in the United States has accelerated the frequency of investment in next-generation technological concepts that offer efficient power management, and with the US government emphasising bolstering its industrial growth by promoting smart manufacturing, this has positively impacted the prevalence of robotics usage in industrial sectors. According to the International Federation of Robotics’ “World Robotics 2025 – Industrial Robots” report, the United States accounted for 68% of the total industrial robotics installations in the Americas region.
  
  Power semiconductor forms an integral part of modern industrial machinery by assisting in motion intelligence, which simplifies complex tasks. Hence, with industrial automation gaining traction, the demand for such power devices is anticipated to show progression in the United States. Similarly, the implementation of favourable initiatives such as the “CHIPS and Science Act,” which aims to bolster US semiconductor manufacturing capacity, has provided new growth prospects.
  
  Likewise, the growing domestic semiconductor demand has made various foundry & semiconductor manufacturers invest in the US market. For instance, in December 2025, the United Microelectronics Corporation (UMC) formed a memorandum of understanding (MoU) with US-based Polar Semiconductor LLC, which aimed to expand the production of 8-inch high-quality wafers that will address the growing demand from key sectors, such as automotive, aerospace & defense, consumer electronics and data centers.
  
  Moreover, the growing transition towards sustainable fuel, fuelled by growing environmental awareness, has given a major push to the sales of electric vehicles in the United States. According to the International Energy Agency, in the first three months of 2025, the sales of electric vehicles reached more than 360,000 in the country, which marked a 10% increase over the same duration in the preceding year.
  
  Such improved growth has also accelerated the establishment of EV charging stations, and according to the Alliance for Automotive Innovation’s “First Quarter 2025” report, the number of electric vehicle charging stations available across the United States stood at 203,360, of which L2 ports accounted for a major share of 151,161. Furthermore, according to the “Second Quarter 2025” report by the same source, the availability reached 217,929. Power electronics are installed in the onboard charger and such high-voltage EV infrastructure to exercise power efficiency, and with such improvement in charging station establishment, the usage is estimated to show an upward trajectory, thereby augmenting the overall market expansion. Additional factors, such as strategic manoeuvres to expand 5G networks, followed by growth in AI infrastructure, have further paved the way for future market expansion.

Power Semiconductor Market Key Developments:

• October 2025: Navitas announced progress on its 800 VDC power-device roadmap, unveiling new GaN and SiC FETs specifically optimized for high-density AI “factory” data centers and high-voltage rack power distribution.
• August 2025: Infineon expanded its wide-bandgap portfolio by introducing 650 V G2 CoolSiC MOSFET 650 V G2 (75 mΩ), targeting compact, medium-power SMPS and converter applications in EVs, renewables, and AI-server power supplies.
• May 2025: Navitas Semiconductor was selected by NVIDIA to provide GaN and SiC devices for NVIDIA’s next-generation 800 V HVDC architecture, enabling high-efficiency power delivery for AI data-center infrastructure.
• April 2025: Infineon Technologies launched its new 750 V G2 CoolSiC MOSFET 750 V G2, offering ultra-low RDS (on) and high-power density for EV, industrial, and charging-system applications.
• 2025: Infineon Technologies AG announced the strengthening of its existing collaboration with Delta Electronics, Inc., in the development of state-of-the-art high-density power modules capable of enabling vertical power delivery to AI processors in hyperscale data centers.

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Power Semiconductor Market Segmentation:

• BY TYPE
  • Diodes
  • Transistors (Metal-Oxide-Semiconductor Field-Effect Transistor (MOSFET)
  • Insulated Gate Bipolar Transistor (IGBT)
  • Bipolar Junction Transistor (BJT)
  • Thyristor
  • Power Integrated Circuits
• BY MATERIAL
  • Silicon
  • Germanium
  • Gallium Nitride (GaN)
  • Silicon Carbide (SiC)
  • Others
• BY APPLICATION
  • Consumer Electronics
  • Automotive
  • Aerospace & Defense
  • Industrial
  • Energy & Power
  • Others
• BY GEOGRAPHY
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • Thailand
    • Others