Power Semiconductor Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

The Global Power Semiconductor Market Size accounted for USD 41.6 Billion in 2022 and is projected to achieve a market size of USD 60.2 Billion by 2032 growing at a CAGR of 3.8% from 2023 to 2032.

Power Semiconductor Market Highlights

• Global power semiconductor market revenue is expected to increase by USD 60.2 Billion by 2032, with a 3.8% CAGR from 2023 to 2032
• Asia-Pacific region led with more than 51% of power semiconductor market share in 2022
• North America region is expected to expand at the highest CAGR between 2023 and 2032
• The Indian Electronics and Semiconductor Association predicts that the country's semiconductor component business will be worth USD 32.35 billion by 2025
• Global EV sales continued strongly in 2022, with a total of 10.5 million new BEVs and PHEVs delivered, a +55% increase over 2021
• Growing adoption of renewable energy sources, drives the power semiconductor market value

Power semiconductors are electronic components that are specifically designed to handle high power levels and voltage in various applications. They are crucial in controlling and managing the flow of electrical power in devices such as power supplies, motor drives, inverters, and industrial equipment. Power semiconductors include devices like power diodes, power transistors, thyristors, and insulated gate bipolar transistors (IGBTs).

The power semiconductor market has witnessed significant growth over the years due to the increasing demand for energy-efficient devices, the rising adoption of renewable energy sources, and the expanding automotive sector. The need for efficient power management and improved power electronics systems has fueled the demand for power semiconductors across multiple industries. These devices play a vital role in minimizing energy losses, improving power conversion efficiency, and reducing carbon emissions. The market growth of power semiconductors is driven by factors such as the electrification of vehicles, the development of smart grids and renewable energy infrastructure, and the growing use of power electronics in consumer electronics, industrial automation, and telecommunications. Additionally, the rising demand for power semiconductor devices in emerging economies, where there is rapid industrialization and infrastructure development, further contributes to the market expansion.

Global Power Semiconductor Market Trends

Market Drivers

• Increasing demand for energy-efficient devices and systems
• Growing adoption of renewable energy sources
• Rapid electrification of vehicles and the expansion of the electric vehicle (EV) market
• Advancements in power electronics technology

Market Restraints

• High development and manufacturing costs of power semiconductor devices
• Challenges related to thermal management and heat dissipation in high-power applications

Market Opportunities

• Development and adoption of wide-bandgap (WBG) semiconductors like silicon carbide (SiC) and gallium nitride (GaN)
• Emerging applications in sectors such as renewable energy, electric vehicles, and 5G communications

Power Semiconductor Market Report Coverage

Power semiconductors are electronic devices designed to handle high power levels and voltage in various applications. They are crucial for controlling and managing the flow of electrical power, enabling efficient power conversion and control. Power semiconductors include devices such as power diodes, power transistors, thyristors, and insulated gate bipolar transistors (IGBTs). These devices are engineered to handle high currents and voltages, offering robust performance and reliability.

Power semiconductors find extensive applications across different industries. One prominent application is in power electronics systems, where they play a vital role in converting and controlling electrical power. They are used in power supplies, motor drives, inverters, and converters, enabling efficient energy conversion and management. Power semiconductors are also utilized in electric vehicles (EVs) and hybrid electric vehicles (HEVs), where they control the power flow between the battery and the motor, allowing for efficient and precise control of the vehicle's propulsion system. In addition, power semiconductors are integral to renewable energy systems. They are employed in solar power inverters, wind turbine generators, and energy storage systems, enabling the conversion and integration of renewable energy into the grid.

The power semiconductor market has been witnessing robust growth due to several factors. One of the key drivers is the increasing demand for energy-efficient devices and systems across various industries. With a growing emphasis on sustainability and energy conservation, there is a heightened need for power semiconductors that can optimize power management and reduce energy losses. Another major driver is the rapid adoption of renewable energy sources and the development of smart grids. The shift towards clean energy generation requires advanced power semiconductors to efficiently convert and distribute power. Moreover, the expansion of electric vehicles (EVs) and the electrification of transportation present a significant growth opportunity for the power semiconductor market. The EV market demands high-performance power semiconductors for efficient power conversion and control in electric drivetrains.

Power Semiconductor Market Segmentation

The global power semiconductor market segmentation is based on component, material, end-user industry, and geography.

Power Semiconductor Market By Component

• Discrete
• Power Integrated Circuits
• Module

According to the power semiconductor industry analysis, the discrete segment accounted for the largest market share in 2022. Discrete power semiconductors are individual components such as diodes, transistors, and thyristors that perform specific functions in power management and control applications. One of the key drivers for the growth of the discrete segment is the increasing demand for energy-efficient devices across various industries. Discrete power semiconductors offer enhanced power conversion efficiency, enabling more efficient energy use and reduced power losses. They find applications in power supplies, motor drives, lighting systems, and industrial equipment, among others. The need for improved power management solutions and the drive for energy conservation has fueled the adoption of discrete power semiconductors. Additionally, the rising penetration of renewable energy sources has contributed to the growth of the discrete segment.

Power Semiconductor Market By Material

• Silicon/Germanium
• Gallium Nitride (Gann)
• Silicon Carbide (Sic)

In terms of materials, the silicon/germanium segment is expected to witness significant growth in the coming years. Silicon and germanium are semiconductor materials widely used in the manufacturing of power devices due to their desirable electrical properties. Silicon, being the most commonly used semiconductor material, has been the backbone of the power semiconductor industry. It offers good thermal conductivity, high voltage capability, and a well-established manufacturing infrastructure. The demand for silicon-based power semiconductors is driven by various applications such as power supplies, motor control, industrial automation, and consumer electronics. Despite the emergence of alternative materials, silicon continues to dominate the market due to its proven performance, reliability, and cost-effectiveness.

Power Semiconductor Market By End-user Industry

• Automotive
• IT and Telecommunication
• Consumer Electronics
• Military and Aerospace
• Industrial
• Power
• Others

According to the power semiconductor market forecast, the automotive segment is expected to witness significant growth in the coming years. The increasing electrification of vehicles and the integration of advanced electronics systems in automobiles are driving the demand for power semiconductors in the automotive industry. One of the key factors contributing to the growth of the automotive segment is the shift towards electric and hybrid vehicles. The transition from traditional internal combustion engine (ICE) vehicles to electric vehicles (EVs) requires efficient power management and control systems. Power semiconductors, such as insulated gate bipolar transistors (IGBTs), silicon carbide (SiC) and gallium nitride (GaN) devices, play a critical role in power conversion, motor control, battery management, and charging infrastructure in EVs. The growing adoption of EVs globally is propelling the demand for power semiconductors in the automotive sector. Another driver of growth is the increasing integration of advanced electronics and connectivity features in vehicles.

Power Semiconductor Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)