A new report published by Allied Market Research, titled, "Power Electronics Market by device, type, and application - global opportunity analysis and industry forecast, 2014-2022", projects that the global power electronics market is projected to reach $25 billion by 2022 with a CAGR of 8.9% from 2016-2022. Asia-Pacificdominates the global market in terms of revenue, accounting for more than 50% share of the global market, followed by Europe.
Summary of the Power Electronics Market Report can be accessed on the website at: https://www.alliedmarketresearch.com/power-electronics-market
Insulated gate bipolar transistor (IGBT) is the most widely used device in the industry. Presently, rise in demand for higher efficiency, faster switching, and minimal power loss are some of the key driving factors of the market. Moreover, aggrandized need for power management devices is expected to provide lucrative opportunities to market players. IGBT device is the leading segment in the global power electronics market, and is expected to maintain this trend throughout the forecast period. However, metal-oxide-semiconductor field-effect transistor (MOSFET) segment is expected to witness significant growth in the future, as this transistor is compact and cost-effective.
The power module segment is projected to maintain its lead in the global power electronics market, as these modules are used for power transmission in high-voltage applications with minimum current loss. Moreover, Asia-Pacific region is the major revenue contributor in the power module segment due to increase in demand for electric vehicles utilizing power devices for energy transaction. China, India, and Japan are the prime consumers of power modules, which is expected to fuel overall growth of the market.
Among applications, energy & power segment dominated the global market in 2014, accounting for about 23% share. Proactive government initiative to establish smart grids and growing need for high voltage direct current (HVDC) have fueled the market growth. However, automotive segment is expected to grow at the highest CAGR of 10.5% during the forecast period due to increase in demand for power management in electric vehicles. Moreover, Asia-Pacific was the leading revenue contributor in the global electric vehicle market in 2014.
Asia-Pacific region was the major revenue contributor in 2014, and is expected to maintain its dominance throughout the forecast period. This is attributed to the increase in number of electric vehicles and industry systems utilizing power electronics. Moreover, advancements in consumer electronics, inverters, and UPS would boost the growth of the power electronics market, especially in Asian countries such as China, Japan, South Korea, and India.
"Power electronic devices are integrated in electronic applications to enable power management and reduce power leakage. Moreover, they offer numerous benefits, such as high efficiency, low system complexity, and reduced system maintenance. Power module represents almost 48-50% of the total power electronics market, owing to its resilience and high efficiency. In addition, substantial demand for electric vehicles and trend of customer shift towards advanced power semiconductor to achieve better efficiency are expected to fuel its adoption in the energy & power, inverter & UPS, and other industry sectors," states Manish Chaurasiya, Research Analyst, Semiconductor & Electronics Research, AMR.
Asia-Pacific is projected to be the fastest growing region during the analysis period, owing to increase in power transmission, upsurge in use of renewable energy, and rise in adoption of power electronics in electric vehicles. Furthermore, increase in power management devices across several countries including China, Japan, India, and South Korea to cater to the end user needs, such as consumer electronics and industrial systems, have fueled the market growth. Moreover, technological advancements to overcome power loss issues in extreme conditions would offer lucrative opportunities for market players in the near future.
Key findings of the study:
- In 2014, IGBT segment dominated the global power electronics market in terms of revenue, and is projected to grow at a CAGR of 10.5% during the forecast period.
- Power IC segment is projected to grow at a CAGR of 10.4% during the analysis period.
- Automotive segment is expected to exhibit the fastest growth during the forecast period, owing to increase in applications of power management devices in e-bikes and e-cars.
- China is the major shareholder in the Asia-Pacific power electronics market, accounting for about 34% share.