Power Electronics Market Outlook On A Sustainable Future

Published On: December 2022

Power Electronics Market Outlook

According to the power electronics market outlook, the power electronics market will reach USD 59.40 billion at a CAGR of 6.64% between 2020 and 2026. The rising demand for electric vehicles worldwide drives the global power electronics market's rapid growth. Power electronics are used in several car parts, including the ignition switch, interior illumination, and power steering. The management of the electric energy used by electric vehicles depends heavily on power electronics. As per the power electronics market analysis, governments worldwide are being forced to limit automobile emissions due to growing environmental concerns, which will fuel the expansion of the worldwide power electronics market.  

Power electronic products have been included in various energy conversion applications throughout the last few years. They are necessary throughout the entire energy conversion process, from production to transmission to consumption. The automotive power electronics industry is growing more quickly because of improvements in energy infrastructure, the creation of renewable energy, and energy-efficient portable electronics components. In particular, silicon carbide (SiC) and gallium nitride (GaN) are excellent materials for power electronics applications.  

GROWTH AND THE SUCCESSFUL ADOPTION

The growth of the power electronics market is driven by its increased usage in several applications, including industrial motor drives, electric grid stabilization, and consumer electronics. The need for power management devices has increased across various industries, including automotive, consumer electronics, and energy & power due to the increased use of high-voltage operating devices. A further factor driving the expansion of the global power electronics market is the spike in demand for SiC-based photovoltaic cells in developing nations like China, Brazil, and India. The growing need for power management devices is the key influencing factor driving the notable adoption of power electronics across various verticals, including energy & power, automotive, aerospace & defense, consumer electronics, and other industries. As a result, these elements are expected to accelerate the power electronics market growth during the anticipated period. Various government organizations' activities and proactive marketing campaigns at the regional and global levels are also anticipated to open up new market expansion prospects.  

RESTRAINTS AND CHALLENGES FACED BY THE SECTOR

However, the difficult integration procedure for cutting-edge electrical equipment is one of the main obstacles in the market. Complex device design calls for reliable methodologies, skill sets, and a variety of integration toolkits, all of which drive up the price of the devices. Users cannot move to new, cutting-edge technology devices due to the high cost of the products. On the other hand, according to the power electronics market analysis, it is anticipated that during the forecast period, the growth in demand for plug-in electric vehicles (PEVs) and innovations in the power metal-oxide-semiconductor field-effect transistor (MOSFET) will offer lucrative opportunities for the power electronics market. But due to the COVID-19 pandemic's disruption of global trade and supply chains, the power electronics business has been dramatically impacted. In the early part of 2020, a major shortage of semiconductor raw materials and components was caused by the trade disruption. Manufacturing facilities have moved to new regions due to the lack of semiconductors and the disruption of global trade. On the positive side, the pandemic has sped up the advancements in ADAS, self-driving cars, and electric vehicles, increasing the market's demand for power electronic devices throughout the projected period.  

In the future, one of the main factors favoring the application of power electronics in fan regulators, light dimmers, air conditioners, induction cooking, emergency lights, vacuum cleaners, and uninterrupted power systems(UPS) is the growing reliance on consumer electronics due to rapid urbanization and rising disposable incomes. Additionally, the automotive power electronics market is growing due to the increasing use of electronic devices in textile mills and other production facilities, such as pumps, blowers, elevators, rotary kilns, arc furnaces, and compressors.  

To limit their carbon impact, regions like Europe and North America have strictly implemented several rules. The population's growing knowledge of the harmful effects that automobile emissions have on the environment has also increased consumer demand for electric and hybrid vehicles. Leading automakers are making significant investments in creating fuel-efficient and emission-free automobiles. As a result, demand for the power electronics market is predicted to rise in the following years, according to the power electronics market analysis.