The power electronics market was valued at $38,522 million in 2021, and it is set to reach $56,269 million by 2030, growing at a CAGR of 4.3% between 2021 and 2030, according to a research report by P&S Intelligence.
This can be credited
to the increasing infrastructure development, snowballing expenditure by
consumers, high research and development spending, increasing requirement for
energy-efficient items in 5G devices, automobiles, and data centers, and other
products needed for telecom infrastructure, growing electricity generation
industry, and the increasing number of vendors.
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| Power Electronics Industry Demand Forecast to 2030 |
Silicon category held the largest revenue share and is projected to grow at a significant rate in the years to come. This can be accounted to the high usage of these variants in several verticals, including ICT and electronics, the increasing need for them from India and China, and their better cost-efficiency.
The modules category
is projected to grow at the fastest rate in the years to come. This can be
credited to the extensive usage of these components in inverters, wind
turbines, photovoltaic inverters, and micro-inverters, where such modules are
vital components of power architecture. By this, the industry development is
inclined by the snowballing requirement for renewable resources, which need
converters to switch DC to AC and vice-versa.
The low-voltage
category is projected to grow at the highest growth rate. This can be ascribed
to these products’ wide deployment in consumer electronics and the enhancements
in energy harvesting methods.
Furthermore, the
extensive usage of power electronics in automobiles to deliver consistent
output, control interfaces, and thermal control with the support of converters,
is the major reason contributing to the growth of the industry.
APAC held the
largest revenue share and is projected to continue its dominance in the years
to come. This is because of the rapid industrialization, increasing population,
growing trend of EVs and HEVs, improving consumer spending, the large consumer
base for end products, availability of skilled and cheap labor, advanced
technologies, and favorable government initiatives helping the renewable energy
sector.
The budding trend of
European and American companies shifting their production operations to China
and India, will indeed contribute to the growth of the industry in the coming
years.
North America held a
considerable revenue share in the power electronics market, owing to the surge
in the pace of technological enhancement in the end-user industries, adoption
of smartphones in large numbers, rise in internet usage, and increase in the
sale of EVs, to reduce carbon emissions.
Therefore, the
increasing infrastructure development, snowballing expenditure by consumers,
high research and development spending, and rising requirement for
energy-efficient items in 5G devices will drive the power electronics industry
in the future.
