Product Code: 66560
The power electronics market is anticipated to witness a CAGR of 5.0% over the forecast period (2021 - 2026). The growing need for power-efficient products is one of the major factors driving the demand for the power electronics products across all end-user industries. Therefore, the increasing need for energy-efficient products in markets, such as data centers, automotive, telecom infrastructure, and 5G devices, is becoming a major investor in the studied market. The growing adoption of power management ICs is also fuelling the demand for power electronics.
- Over the last few years, power electronic products are integrated into all types of energy conversion applications. They are needed in all phases of the conversion process, from generation through transmission and, ultimately, consumption. Advancements in energy infrastructure, production of renewable energy, and energy-efficient portable electronics components drive the market growth at a higher rate. Silicon carbide (SiC) and gallium nitride (GaN) are particularly well-suited for power electronics use.
- Power electronic vendors are also betting high on the renewable energy market. The recent trend of energy saving, in industries like data center and energy storage, and growing commercialization of 5G technology will offer a massive opportunity to electronic power vendors, especially in distribution centers and in communication applications. For instance, China-based China Tower Corporation Limited is witnessing significant growth over the last few years, due to growing investment in Chinese 5G infrastructure market. By the end of 2019, the company had a total of almost 2 million towers throughout the country and reported a near doubling in net income
- Further, the IGBT and MOSFET market will continue to increase, but part of the market will go to SiC, especially when talking about modules for EV/ HEV. Moreover, the demand for power MOSFET is supported by their growing use in replacing insulated-gate bipolar transistors and thyristors. Besides, the significant advantage of using power MOSFET in reinforcing the power efficiency of devices at low voltages is the increasing demand for the global power MOSFET market.
- Also, trends in the automotive industry, like electric vehicle and autonomous vehicle, and increasing production of an electric vehicle is emerging as a significant driver for the power electronic market growth. Silicon carbide devices are already in use in the onboard battery chargers of electric buses, taxis, and lorries, as well as passenger cars. Power MOSFETs are used in electric and hybrid vehicles. Nexperia developed a new series of Trench 9 power MOSFETs, targeted primarily in the automotive industry.
- According to the government data, the growing population along with the increasing electrification and per capita usage to drive growth in power consumption to 1894.7 TWh in 2022 in India. The Government of India has released its roadmap to achieve a capacity of 175 GW renewable energy by 2022.
- However, the COVID-19 pandemic shut down most automotive assembly plants for several weeks, first in China and then across the globe. At the same time, demand for new vehicles has fallen as dealerships were closed and lost jobs and wage reductions in many parts of the world combined to slash demand. This instance hinders the growth of the market in the short term.
Key Market Trends
Aerospace and Defence to Hold Major Market Share
- The aerospace and defence (A&D) sector is witnessing the ongoing struggle to reduce size, weight, power, and cost, while at the same time increasing command, communications, intelligence, and surveillance capabilities. This is forcing the A&D organizations to invest in solutions with ever-increasing power densities and capabilities.
- In the sector, power electronics products are adopted for vast range of applications, like power drive controls, landing gear and defensive aids systems (DAS) engine systems and controls, flight control, navigation, cabin lighting, avionics, and communications, among others. For instance, signal processing for modern military radars, avionics, weapon systems, unmanned aerial vehicle (UAV) payloads and missile controls use processing power that emits tremendous amounts of heat. Efficient power electronics help to reduce heat and improve performance
- Many market vendors are offering products specific to the A&D industry. For instance, in January 2020, the US-based Solid State Devices Inc. launched the SFC35N120 1200-volt silicon carbide (SiC) power MOSFETs for high-reliability aerospace and defense power electronics applications, like PFC boost converters and high-voltage DC-DC converters.
- The UK-based TT Electronics, one of the global market vendors, is increasingly investing in power electronics for the A&D industry. The company is also adopting acquisition and collaboration strategies to gain market share in the sector. Tis factor is also augmenting the growth of the studied market.
- For instance, in November 2019, TT Electronics acquired Excelitas Technologies Corp, the US-based power electronics manufactures for the defense and aerospace industry. Excelitas Technologies' aerospace and defence power supply business' revenues for the last 12 months (to June 2019) were USD 9.3 million. The adjusted EBITDA was USD 1.7 million. In November 2019, the company also made an agreement to establish a joint venture with UniRoyal, the second largest resistor manufacturer globally.
Asia Pacific is Expected to Record Significant Growth Over the Forecast Period
- Asia Pacific is one of the major investors and adopters of the studied market, as many of the countries in the region are increasingly investing in the semiconductor industry. In 2019, countries, like India and South Korea, witnessed the growing demand for Schottky barrier diodes, MOSFETs, (JFETs), and other SiC discrete
- The technology boom is powering Asia's economies. Explosive growth in new-era gadgets such as wearable devices and internet-linked connected appliances stoking fresh demand for components such as semiconductors and displays. India, Singapore, South Korea, and Taiwan would be among the economies expected to benefit most
- The vendors of power electronics in the region are highly involved in EV automotive, consumer electronics, and power and energy industry. As the region is the largest producer and consumer of electronic gadgets, the region offers a great opportunity. In June 2019, Toyota announced to invest USD 2 billion to develop electric vehicles in Indonesia over the next four years, starting with hybrid vehicles.
- Additionally, the region is also witnessing the increasing development of data centers. The regional governments are also playing a significant role in the studied market developments. For instance, according to the Ministry of Electronics and Information Technology, the Indian government is also working on policies to develop a semiconductor and power electronic components manufacturing base in the country.
The power electronics market is a fragmented one with the presence of various global as well as regional players such as Texas Instruments Incorporated, ABB Ltd., Veeco Instruments Inc., Gresham Power Electronics, Scientech Technologies Pvt., XP Power Limited, ST Microelectronics NV, Renesas Electronics Corporation, Toshiba International Corporation, Fuji Electric Co., Ltd., and many others. Most of these players are involved in several strategic developments, including mergers, acquisitions, new product launches, and market expansion, to gain a competitive edge in the global market.
- June 2020: Ricoh Electronic launched the RN5T5610, a series of system power management IC (PMIC) suitable for harsh and outdoor industrial equipment such as factory automation devices and motor drivers that operate continuously for 24 hours under wide temperature conditions in factories. The RN5T5610 series operates at a voltage range of 2.7V to 5.5V. They are suitable to be used in applications, such as an FPGA / SoC solution, PLC, Servo Amp/ Inverter, and industrial machine controller box.
- May 2019: Infineon Technologies AG entered high-volume production of a comprehensive portfolio of 1200V CoolSiC MOSFET devices. They are rated from 30mΩ to 350mΩ and implemented in TO247-3, TO247-4, and TO247-2 housings. The expansion also includes a 650V CoolSiC MOSFET product family, and a surface-mount device (SMD) portfolio, both to be launched soon. With these products, Infineon addresses the fast-growing demand for energy-efficient SiC solutions in power conversion scenarios, such as sever and telecom switched-mode-power supplies, battery charging infrastructure, photovoltaic inverters, energy storage solutions, and uninterruptable power supplies (UPS)
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Force Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Intensity of Competitive Rivalry
- 4.2.5 Threat of Substitutes
- 4.3 Assessment of COVID -19 impact on the Industry
- 4.4 Market Drivers
- 4.4.1 Rising Demand for High -energy and Power -efficient Devices in the Electronics Segment
- 4.4.2 Demand for Green Energy Power Generation Drives
- 4.5 Market Restraints
- 4.5.1 Rising Demand for Integrated Circuits
- 4.6 Technology Snapshot
- 4.6.1 Power Generation and Storage
- 4.6.2 Sensing and Measurement
- 4.6.3 Power Management and Distribution
- 4.6.4 Other Functions
5 MARKET SEGMENTATION
- 5.1 Device
- 5.1.1 Discrete
- 5.1.2 Modules
- 5.2 End User Industry
- 5.2.1 Automotive
- 5.2.2 Aerospace and Defence
- 5.2.3 Consumer Electronics
- 5.2.4 Industrial
- 5.2.5 Energy and Power
- 5.2.6 Other End-user Industries
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia Pacific
- 5.3.4 Latin America
- 5.3.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 ON Semiconductor Corporation
- 6.1.2 ABB Ltd.
- 6.1.3 Infineon Technologies AG
- 6.1.4 Texas instruments Inc.
- 6.1.5 Qualcomm Inc.
- 6.1.6 ST Microelectronics NV
- 6.1.7 Renesas electronic corporation
- 6.1.8 Broadcom Limited
- 6.1.9 Toshiba Corporation
- 6.1.10 Mitsubishi Electric Corporation
7 INVESTMENT ANALYSIS
8 FUTURE OF THE MARKET