Power Electronics Market Size, Share & Trends Analysis grow at a CAGR of 5.2% from 2024 to 2030
The global power electronics market size was valued at USD 38.12 billion in 2023 and is projected to grow at a CAGR of 5.2% from 2024 to 2030. The rising adoption of renewable energy sources, including solar and wind power, fuels the increased demand for power electronics systems. Power electronics devices are utilized in the process of converting and controlling the electrical energy which is generated from renewable energy sources into functional forms for industrial, automotive, aerospace defense, and other applications.
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Electrification of transportation and industrial processes fuels the demand for power electronic devices. The increased demand for additional electricity sources, such as wind energy production and solar panel installations, is attributed to the rising consumption of electricity worldwide. Power electronic devices are essential in producing electrical energy from these sources. Furthermore, the extensive adoption of EVs, resulting in a significant decrease in CO2 emissions and eco-friendly mobility solutions, and the rising integration of renewable energy sources, including solar cells and wind energy, improve environmental sustainability.
Rising consumer awareness of energy consumption is driving the market growth for power electronic devices. There is a heavy demand for products with multitasking ability and low power consumption features. This leads to innovation in efficient power management circuits, which enhance the performing capabilities of devices without lower power consumption. For instance, in July 2023, Nordic Semiconductor introduced its power management integrated circuit nPM1300. This helps developers optimize power management solutions for low-power products.
Material Insights
The silicon (Si) segment held the largest market revenue share of 88.9% in 2023. The demand for silicon in the power electronics market is increasing due to its essential properties that meet the growing needs of high-efficiency and high-performance applications. Silicon’s ability to withstand high temperatures and voltages and its superior electrical conductivity and thermal stability make it suitable for power devices like transistors, diodes, and integrated circuits. Additionally, the rising adoption of renewable energy systems, electric vehicles, and advanced consumer electronics requires power management solutions to handle large power loads and improve energy efficiency efficiently. As a result, silicon’s proven reliability and cost-effectiveness continue to drive its demand in the power electronics sector.
The sapphire segment is projected to grow at the fastest CAGR of 6.7% over the forecast period. The demand for sapphire in the power electronics market is rising due to its superior material properties, which make it a suitable substrate for semiconductor devices. Sapphire’s high thermal conductivity and electrical insulation properties enhance device performance and reliability, especially in high-temperature and high-voltage applications. Additionally, sapphire substrates provide superior optical clarity and chemical resistance, which is crucial for advanced electronic components.
