The global power electronics market is primarily driven by the rising adoption of the power electronics across various end use verticals. The rapidly growing demand for the power efficient devices is boosting the demand for electronics across the globe. The rising government initiatives to deploy smart power grids and renewable energy sources is fueling the growth of the global power electronics market. Furthermore, the increased concerns over carbon emission has compelled the government to constitute regulatory frameworks to control vehicle emissions. This has significantly fostered the demand for the electric and hybrid vehicles in an attempt to promote low emission or emission free vehicles across the globe. Therefore, the rising adoption of the electric vehicles is boosting the demand for electronics as it is used in several automotive components.
Asia Pacific was the most prominent power electronics market, garnering around 40% of the market share in 2020. Asia Pacific is characterized by the presence of numerous big players in the consumer electronics industry. The demand for the consumer electronics is high in the region owing to the rising disposable income and growing urban population. Electronics are an essential part of the consumer electronic and hence the consumption of consumer electronics is high in this region. Moreover, the favorable government policies to attract FDIs is resulting in rapid industrialization in the nation like China and India, which is estimated to offer lucrative growth opportunities to the market players in the forthcoming years. For this, the Asia Pacific region is also estimated to be the most opportunistic market during the forecast period. The rising government investments in the deployment of renewable energy sources and the development of advanced healthcare infrastructure is expected to spur the demand for the power electronics in the foreseeable future. Nations like India are planning to develop several Smart Cities, which will further fuel the consumption of power electronics.
Scope of the Power Electronics Market
|Market Size in 2020||USD 22.5 Billion|
|Growth Rate From 2021 to 2030||CAGR of 5.2%|
|Forecast Period||2021 to 2030|
|Largest Market||Asia Pacific|
|Companies Covered||ABB Group, Mitsubishi, Fuji Electric Co, Infineon Technologies AG, Microsemi Corporation, Renesas Electronics Corporation, Toshiba Corporation, Rockwell Automation, STMicroelectronics, Texas Instruments Incorporated|
Rapidly growing demand for the electric vehicles
Rising awareness among the consumers regarding the deteriorating environmental conditions and rising government initiatives to control carbon emission is fostering the demand for the electric vehicles especially in the developed regions like Europe and North America. Automotive components such as windshield wiper control, interior lightings, ignition switch, and power steering are made using the electronics. Therefore, the growing demand for the electric vehicles across the globe is expected to drive the growth of the global power electronics market.
Ongoing shortages of semiconductors
The ongoing shortages of the semiconductors may hampering the power electronics market growth. The increasing gap between the demand and supply of the semiconductors may adverselyimpact the global electronics market during the forecast period.
Various developmental strategies adopted by the market players
The market is fragmented with presence of several players in the market and various developmental strategies such as product launches, acquisitions, agreement, and partnerships highly influences the market growth. For instance,in March 2021, Infineon Technologies introduced StrongIRFET 2 power MOSFETs. It is available in the voltage range of 80 and 100V and is optimized for both the high and low frequencies.
Complexity in designs and integration
The manufacturers of the power electronics are trying to integrate the electronics into a single chip, which results in the complexity of designs. With the rising demand for the compact technologies, the complexities are increasing in designing and integrating the power electronics in the devices. This complexity in the designs may hamper the market growth.