SKU: DMICT691 | Published On: Aug 08 2022 | Available Formats
Power Semiconductor Market size is projected to reach USD billion by 2029, with growth at a CAGR of 5% during the forecast period 2022-2029. Power semiconductor control motor and lighting systems are changing voltages and frequencies and changing DC to AC or AC to DC. It handles high voltages and large currents and increases power density and efficiency by lowering the loss. It is used in automotive, consumer electronics, industrial, military and aerospace sectors.
Market Growth Drivers:
Growing demand from automotive and consumer appliance industries is a major driver for the global power semiconductor market:
Semiconductor sales for automotive applications are primarily determined by vehicle sales volume and the degree of vehicle digitalization and electrification. Hybrid electric vehicles (HEV) and electric vehicles (EV) are essential in terms of power semiconductor demand because they comprise more semiconductors than combustion-engine vehicles. Power semiconductors are used in consumer electronics, such as video games, televisions and watches. The current demand for gaming devices, audio equipment, and some kitchen appliances has increased, especially in the post-pandemic period.
Increasing technological complexity and growing costs are expected to restrain the global power semiconductor market:
Over the forecast period, the increasing technological complexity and growing costs are expected to prevent the growth of the global market. Semiconductors, particularly power semiconductors, have quickly become a requirement for nearly every electronic device imaginable and in recent years, they've enabled artificial intelligence and machine learning. Although many governments encourage semiconductor growth, new fabs intended through comprehensive R&D require billions of dollars in investment. Since the semiconductor industry has a consistent track record of technological advancement, its companies must maintain their competitive edge in all sectors.
The advancement in material technologies employed in power semiconductors is expected to generate new opportunities for the global market:
New power semiconductors are specialized transistors using various competitive technologies such as GaN, SiC and silicon. GaN and SiC are both wide-bandgap technologies, which means they are more efficient and faster than silicon-based devices. Several vendors are releasing the next generation of power semiconductors relying on gallium nitride (GaN) and silicon carbide (SiC).
Environmental pollution associated with semiconductor production is expected to present challenges for the global market:
Demand for silicon chips, which are found in everything from smart devices and television sets to wind turbines, is increasing but at a high cost of a massive carbon footprint. Fluorinated compounds with a high global warming potential (GWP) are used to manufacture power semiconductors. Though power semiconductors are a must-have for developing digital and communication technologies, the heavy pollution caused by varied aspects of the industry is creating major challenges for the growth of the global power semiconductors market.
COVID-19 Impact Analysis
The outbreak of the COVID-19 pandemic created obstacles to the growth of the power semiconductor market. The pandemic completely affected the power semiconductor sector's fundamentals, including customer behavior, business revenues and corporate operations. The impact of the pandemic on individual application segments was even more complex. With much uncertainty ahead in the post-pandemic period, power semiconductor firms will benefit from developing multiple future scenarios, each with a different macroeconomic and virus-related outcome, as they plan their strategy for the coming years.
Recent Developments in the Industry:
Power Semiconductor Market Scope
Metrics |
Details |
Market CAGR |
30.4% |
Segments Covered |
By Component, By Material, By Application, and By Region |
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
Fastest Growing Region |
Asia Pacific |
Largest Market Share |
North America |
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Market Segmentation:
The scope of the report covers segmentation based on component, material, application and region. The global Power semiconductor market is segmented by component into discrete, module and power integrated circuits. The global Power semiconductor market is segmented by material into silicon (Si), Silicon Carbide (SiC), Gallium Nitride (GaN), IGBT and MOSFET. The global Power semiconductor market is segmented by application into automotive, consumer electronics, military, aerospace, and industrial. The global Power semiconductor market is segmented by region into North America, South America, Europe, Asia-Pacific, Middle East and Africa.
Regional Classification:
According to the DataM Intelligence market research report, the global Power semiconductor market is divided into North America, South America, Europe, Asia-Pacific, Middle East and Africa.
Power semiconductors are the basis of modern power electronic circuitry equipment and devices. Wireless communication, advanced control of electric motors, motion control & servo drives, advanced computer systems, antennas, propagation & satellite systems and broadband wireless systems are among the prominent technology industries of North America. They are an essential component of electrical appliances, machinery and systems. Government backing and increased involvement of prominent semiconductor companies are projected to drive the North American power semiconductor market over the forecast period.
The PowerBase project, supported by the EU, industry and national and regional governments, created the next generation of energy-efficient gallium nitride semiconductors. The European power semiconductor sector could witness significant growth if activities such as testing and packaging are shifted from China to lower-cost Eastern European countries. Tech companies from U.S. are already investing in Europe, with Apple and Intel making significant investments in semiconductor-related enterprises.
Asia-Pacific is a rapidly industrializing region that is experiencing high economic growth. It has led to a high concentration of manufacturing industries across various sectors such as manufacturing, chemicals, automotive, aerospace and electronics. Asia-Pacific is also a leading producer of industrial automation devices and control instrumentation. The demand for power semiconductors is also increasing due to the region's maturing national defense industries. Due to growing demand from key strategic industries, the Asia-Pacific power semiconductor market will likely increase significantly in the coming years.
Competitive Analysis:
The global power semiconductor market is competitive, with various international and local players. The companies employ novel product launches, capacity utilization, technology innovation, new product creation and market expansion tactics to maintain their market position.
Major Companies:
Some key companies contributing to the global Power semiconductor market growth include Infineon Technologies AG, STMicroelectronics, NXP Semiconductor, Renesas Electronics Corporation, Qualcomm, Analog Devices, Texas Instruments, Mitsubishi Electric Corporation and Toshiba Corporation, among others.
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