India Discrete Power Semiconductor Devices Market Research Report: By Application (Electric Vehicle, Solar Power Generation, Domestic Power Inverter, Power Sector) - Industry Analysis and Growth Forecast to 2030

Market Overview

The Indian discrete power semiconductor devices market size is estimated to have stood at $1,007.7 million in 2021, and it is expected to grow at a CAGR of 12.2% during 2021–2030. The key factors responsible for the growth of the industry include the rapid deployment of EVs and the increase in demand for power electronic modules across various industries, such as aerospace, medical, and defense.

For instance, in tune with the Aatmanirbhar Bharat initiative and in order to position India as a global hub for electronic system design and manufacturing, the Indian government has approved a comprehensive program for the development of a sustainable semiconductor and display ecosystem in the country. In total, the Government of India has committed $30 billion (INR 2,30,000 crore) to position India as a global hub for electronics manufacturing, with semiconductors as the foundational building block.

Additionally, the Indian government has adopted several policies to encourage the deployment of EVs. For instance, in August 2021, the Ministry of Road Transport and Highways issued a notification exempting EVs from charges for the issue or renewal of registration certificates. Moreover, the Telangana government has exempted the first 200,000 electric two-wheelers from road tax and registration fees, while the Gujarati government is offering subsidies to students purchasing electric two-wheelers, and e-rickshaw drivers and self-employed people buying electric three-wheelers.

During the COVID-19 pandemic, manufacturing companies, including discrete power semiconductor devices producers, were severely affected. Since factory workers remain in close contact, the lockdown and social distancing measures hampered the production of semiconductor components across the world during the pandemic. This led to the shortage of power semiconductor devices and disrupted the supply chain globally. In addition, most of the automotive plants in India were shut down for several weeks.

At the same time, the demand for new vehicles had fallen, as there was a shift in behavior and working culture of people. Most of the people were working from home, rather than going to the office, and focused on necessary items rather than luxurious products. Due to the weak demand for automobiles and consumer electronics, manufacturers of discrete power semiconductor devices registered a declined growth in the pandemic time.

EV Category Dominated the Indian Discrete Power Semiconductor Devices Market Share

In 2021, the EV category accounted for the major market share, and it is expected to maintain its lead during the forecast period (2022–2030) as well. This can be mainly attributed to the rapid deployment of EVs, coupled with the increasing concerns over the environmental impact and surging emission regulations in the country.

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Major Opportunity Areas

• The increasing demand for intelligent power modules (IPMs) from the consumer electronics sector to improve energy efficiency, which is a major opportunity for the growth of the market. Design engineers are making efforts to reduce energy consumption and limit energy costs in air conditioning (AC) units, compressors, fans, and other devices. However, demanding electromagnetic compatibility (EMC) specifications, limited space, and harsh operating environments pose tough design challenges for engineers. IPMs offer design engineers a smart solution by integrating all the necessary power semiconductors and the driver circuit in a single integrated package. Thus, these help engineers simplify product design and meet their energy efficiency goals.
• The rising adoption of consumer and connected devices is expected to drive the growth of the market. Power electronic products are used in a large number of home appliances, such as AC power supplies, washing machines, dishwashers, and induction heaters. Most power electronics used today are improving load controls, such as variable-speed drives for motors that drive fans, pumps, and compressors, or switching power supplies found in most consumer electronics.

Two-Wheeler Category To Witness Higher Growth Rate

The two-wheeler vehicle type is expected to be the faster-growing category in the market in the coming years. This can be majorly driven by the increasing demand for high-speed electric two-wheelers. For instance, 233,971 units of electric two-wheelers were sold in 2021, which was more than double the number of electric two-wheelers sold in 2020, i.e., 100,736 units.

Sale of Silicon Carbide (SiC) Material To Hold Major Market Revenue Share

The SiC material type held the dominating share of the market in 2021, and the category is also expected to retain its position during the forecast period. This can be mainly because SiC provides high-temperature resistance, low power consumption, rigidity, and support for smaller, thinner designs that semiconductor devices and electronics need.

TO-247 Package Type Is Expected to Grow at a Healthy Growth Rate

The TO-247 package type accounted for the major market share over the past few years, and it is expected to maintain the lead during the forecast period as well. This category is further expected to grow at a healthy CAGR during the forecast period. This can be primarily because this type of packaging provides good thermal conduction directly to a heat sink, accommodation of large die size for higher current and lower on-resistance devices, and minimal stress in mounting activities.

Rapid Deployment of EVs Is Major Factor Driving the Market

Nowadays, semiconductor companies are launching newer variants of devices that can help improve the specifications of EVs, which make them more popular among the masses. For instance, in May 2021, Infineon Technologies launched a power module with the SiC MOSFET technology for automotive applications. The use of SiC instead of Si ensures higher efficiency in converters of EVs.

Moreover, the Indian government has adopted several policies to encourage the deployment of EVs. For instance, in August 2020, the Delhi government launched the Delhi EV Policy to drive the transition to battery EVs, to contribute to 25% of the total new vehicle registrations in the city by 2024. In phase 1, 100 EV charging bays and battery swapping stations, each with the capacity to charge five vehicles, are set to come up in 100 locations in the city, most of them on land owned by the Delhi Metro Rail Corporation (DMRC).

Market Players Involved in Product Launches to Gain Significant Industry Position

The Indian discrete power semiconductor devices market has a large number of players, which has increased the competition in the industry. In recent years, players in the market have been involved in product launches in order to attain a significant position. For instance:

• In March 2022, Infineon Technologies AG launched the new EDT2 IGBTs in a TO247PLUS package. With the automotive micro-pattern trench-field-stop cell design, the IGBTs are based on a technology that is used in many inverter modules, such as the EasyPACK 2B EDT2 and the HybridPACK. The EDT2 technology is optimized for traction inverter and has a breakdown voltage of 750 V, supporting battery voltages up to 470 V DC, and majorly helping in reducing switching and conduction losses.
• In January 2022, Nexperia B.V. introduced 50 µA Zener diode range, which is available in three different surface-mount device (SMD) package options, and in an ultra-small discrete flat no-leads (DFN) package and AEC-Q101 qualified parts. With 40 new types per package option covering nominal working voltages from 1.8 V to 75 V, the range is available in the ultra-low-profile SMD SOT23 (BZX8450), SOD323 (BZX38450), SOD523 packages (BZX58550), and leadless DFN1006BD-2 (BZX8850S) packages. The diode features a non-repetitive peak reverse power dissipation of ≤40 W, total power dissipation ≤300 mW, and low dynamic resistance.

Key Players in Indian Discrete Power Semiconductor Devices Market Are:

• Infineon Technologies AG
• NXP Semiconductors N.V.
• STMicroelectronics N.V.
• ABB Ltd.
• Renesas Electronics Corporation
• Fuji Electric Co. Ltd.
• Microchip Technology Incorporated
• ON Semiconductor Corporation
• Taiwan Semiconductor Manufacturing Company Limited (TSMC)
• Mitsubishi Electric Corporation

Market Size Breakdown by Segment

The India discrete power semiconductor devices market report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Semiconductor Devices Market Segmentation by Application

• Electric Vehicle (EV)
  • Two-wheeler
  • Three-wheeler
• Solar Power Generation
• Domestic Power Inverter
• Power Sector

Power Module Market Segmentation by Application

• Electric Vehicle (EV)
• Solar Power Generation
• Domestic Power Inverter
• Power Sector