In 2023, the global power electronics market, including discrete devices and modules, was valued at $23.8 billion. It is projected to grow at a CAGR of 7.0% from 2023 to 2029 to $35.7 billion in 2029, announces Yole Group in its ‘Status of the Power Electronic Industry’, 2024 edition.
The discrete market, valued at $15.5 billion in 2023, is projected to grow at a 3.9% CAGR to $19.5 billion by 2029, driven mainly by xEV , OBC , DC/DC converters, and charging infrastructure. Automotive and consumer are the biggest market segments. Power modules, pushed by battery energy storage, EV DC chargers, and xEVs, are set to reach $16.2 billion by 2029, with a 12.0% CAGR.
Milan Rosina, PhD,Principal Analyst, Power Electronics and Battery at Yole Group: “The power device market is led by silicon, with SiC gaining ground in xEV and industrial applications, while GaN serves consumer power supplies and e-mobility. Gallium oxide (Ga2O3) could become a future contender.”
Wafer demand is rising, especially for 12” silicon wafers, with GaN-on-Si using 6- and 8” wafers. SiC wafer capacity is expanding, risking oversupply due to lower xEV demand. SiC wafer size will largely remain at 6”, though with a growing use of 8” wafers.
In this context, the market research and strategy consulting company Yole Group releases an update of its annual report, ‘Status of the Power Electronic Industry 2024’. This 2024 edition provides an overview and an update of every power electronics market forecast and technology trend for each segment, from wafer level to inverter level. The 2024 report updates the power market forecasts from 2023, analysing the dynamics of components like wafers, MOSFETs, IGBTs, and power modules while also providing insights into market shares by material type (Si, SiC, GaN) and key power applications. Additionally, it will review top power electronics companies, mergers, capacity expansions, business strategies, and geopolitical issues, and provide a global overview of technology trends in power electronic devices.
The power electronics supply chain is evolving due to several factors:
- Expansion in wafer and device manufacturing capacity, with a shift toward larger wafer diameters.
- An increase in new silicon and SiC wafer manufacturers from China.
- Mergers and acquisitions across wafer, device, packaging, and system manufacturers.
- Device manufacturers diversifying their technology portfolios (Si, SiC, GaN).
- System makers horizontally integrating into various applications, including photovoltaics, wind, EV DC charging, and BESS.
“Recent years have seen rapid growth in manufacturing capacity, particularly for SiC and silicon devices and wafers,” asserts Milan Rosina. “However, despite the demand drivers, the slowdown in xEV demand and the rush to increase capacity has led to overcapacity, especially in the SiC segment. This will likely lead to consolidation in the supply chain, fostering innovation, reducing prices, and creating new strategies. More partnerships, mergers, and acquisitions are expected in the coming years.”
Chinese companies have a strong presence in end-systems like PV installations, wind energy, electric vehicles, and EV DC charging infrastructure and in power converter manufacturing. They also have extensive involvement in silicon and SiC wafer production and power device packaging. The Chinese government and businesses are focused on addressing their reliance on foreign suppliers for bare dies, aiming to boost the market share of Chinese power device manufacturers in the near future.
Yole Group will participate in the PowerUP and Fortronic Conference and Exhibition on 18–19 September 2024 in Milan, Italy. WBG, Renewables: Technology Innovations and Market Dynamics presentation by Milan Rosina, Principal Analyst Power Electronics and Battery, and Amine Allouche, Technology and Cost Analyst Semiconductor Substrates & Materials, are both at Yole Group, on 19th September 2024.
