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Global Power Electronics Market to Record 6.2% CAGR During 2016 – 2022
According to a new market research report “Global Power Electronics Market Size, Share, Development, Growth and Demand Forecast to 2022 - Industry Insights by Device (Power Discrete, Power Module, Power IC), By End-User (Consumer Electronics, Automotive, Industrial, Power & Energy, ICT, Aerospace & Defense, and Others), by Voltage (400V – 1.1kV, 1.2kV – 1.9kV, 2kV – 3.3 kV, >3.3kV”) published by P&S Market Research, the global power electronics market is projected to reach $19,972.0 million by 2022, growing at a CAGR of 6.2% during 2016 - 2022.
Access the scope of the research at: https://www.psmarketresearch.com/market-analysis/power-electronics-market
Global power electronics (PE) market worth $12.9 billion in 2015
The study reveals that the global power electronics market is likely to grow from $12.9 billion in 2015 to $20.0 billion by 2022. Power electronics is used in various industries such as automotive, power & energy, ICT, consumer electronics, and aerospace & defense; however, among these industries, the largest user of power electronics is consumer electronics industry.
Insights on market segments
As per the research findings, among the various devices, power discrete has been the largest market. The power modules segment is expected to witness fastest growth in demand during the forecast period. Among the various end-users, the global power electronics market has been generating maximum revenue through the consumer electronics segment.
Asia-Pacific continues to be the largest power electronics market
Geographically, Asia-Pacific has been the largest revenue contributor to the global power electronics market. China has been the largest market in Asia-Pacific, while the U.S. led the North American market. Germany has been the major European market, whereas U.A.E. stood as the largest market in Rest of the World.
Increasing requirement for higher power density emerges as the major market driver
Power density is a prime factor in the PE industry, particularly in high-power applications. For instance, PE devices in electric rail traction drives, wind power generators, inverter systems, and solar power generators use PE devices to increase their operational efficiency. Vendors in the market are investing in R&D to develop devices that work at higher power density levels. PE devices have several advantages, such as less driving power, simplified circuits, and optimum forward and reverse blocking capabilities, which can enable them to work in higher power densities. Furthermore, compact PE device designs are the ideal choices for usage in high power densities. Thus, the escalation in demand for higher power density in numerous high-power applications is one of the drivers for the growth of the global market.
The increased penetration of PE devices in utility applications is also driving the market growth. It is expected that by 2030, up to 80% of the electricity produced will use power electronic devices. These devices enhance the performance of electricity grid. This is complemented by the increased integration of renewable energy sources into the grid. It is expected to empower consumers in the residential, industrial, and commercial sectors.
The global need to generate electrical energy from renewable energy sources is escalating rapidly. It is projected that global energy consumption will increase by over 60% by 2030, which is expected to boost the adoption of power electronics in renewable technologies such as those for solar and wind power. These devices are used in wind turbine converters, grid converters, and inverters in solar panels to increase power efficiency and switching speed. Thus, the growing need for improved thermal capacity and power cycling capacity is also playing a substantial role, thus increasing the implementation of power electronics devices in the renewable energy sector.
One of the major challenges in the global power electronics market is the high cost of power electronic devices. The high cost of these products makes the market more price-sensitive, thereby affecting its growth. Despite such challenges, the market is expected to witness steady growth due to the presence of several emerging trends that could have a positive impact on the market during the forecast period. Thus, the combined effect of drivers and trends is expected to foster the market growth over the next few years.
Intensity of rivalry remains high in the global power electronics market
The overall intensity of rivalry in the power electronics market is high. The intensity of rivalry is high due to existence of a large number of players in the market. The medium industry growth rate creates a moderate degree of rivalry in the power electronics market. The intensity of rivalry is also high because of low differentiation among the products. The low switching cost further elevates the level of competition in the power electronics market. Some of the key players in the global market include NXP Semiconductors N.V., Infineon Technologies AG, STMicroelectronics N.V., ON Semiconductor, Vishay Intertechnology Inc., Microsemi Corporation, Toshiba Corporation, Texas Instrumentation Inc., and ABB Ltd.
Major power electronic companies introduces new products
According to the findings, Infineon Technologies, STMicroelectronics and ON Semiconductor have been the major players to introduce new power electronic products in the recent years. The other major developments in the market include merger and acquisition, and partnerships and collaborations.
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