Power Semiconductor Market Size

Increasing demand for wireless communications and consumer electronics to propel the market growth

The global market is growing favorably due to the rising use of consumer electronics products. Today, a wide range of consumer products, including communication devices (such as smartphones, tablets, smartwatches, and other gadgets), computers (both personal and corporate computers use PCBs), entertainment systems, and home appliances, require semiconductors. The smartphone is the main user of semiconductors in this sector. The smartphone market has seen a lot of rivalry recently. Additionally, it is anticipated that increased mobile phone usage will fuel the global industry.

For instance, Ericsson projects that by 2026, the amount of data used by smartphones worldwide would have increased from 32 exabytes per month in 2019. The Indian appliances and consumer electronics (ACE) industry is anticipated to grow at a 9% CAGR to reach INR 3.15 trillion (USD 48.37 billion) in 2022, according to the India Brand Equity Foundation (IBEF).

Manufacturers are driving this market expansion by increasing the battery capacity of their products, which increases consumer demand for faster charging times. Across all wearable and portable devices, the pattern has remained constant. Fast charging adapters are included right out of the box by manufacturers like OPPO, one plus, Motorola, Samsung, and Apple. Since they encourage their users to use their products less frequently when plugged in, fast charging is an essential part of their marketing efforts.

Currently, engineers can meet high voltage and power demands affordably thanks to more efficient drivetrains that use semiconductor technology like Silicon Carbide (SiC). As a result, these applications offer significant growth prospects. Thus, it is anticipated that this aspect will accelerate power semiconductor market revenue globally.

The Global Power Semiconductor Market Industry is poised for substantial growth, with projections indicating a market size of 69.4 USD Billion in 2024 and an anticipated increase to 119.0 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate of 5.02% from 2025 to 2035. The expansion is driven by various factors, including the rising demand for electric vehicles, advancements in renewable energy technologies, and the increasing integration of smart devices across sectors. These projections highlight the dynamic nature of the power semiconductor market and its critical role in supporting technological advancements and sustainability initiatives.

The proliferation of consumer electronics is a notable driver of the Global Power Semiconductor Market Industry. With the increasing integration of smart technologies in everyday devices, the demand for efficient power management solutions is escalating. Power semiconductors are integral to the functionality of various consumer electronics, including smartphones, laptops, and home appliances. As the market evolves, manufacturers are focusing on enhancing energy efficiency and performance, which further propels the demand for advanced power semiconductor technologies. This trend is expected to contribute to the overall market growth, reflecting the dynamic nature of consumer preferences and technological advancements.

The increasing adoption of electric vehicles (EVs) is a pivotal driver for the Global Power Semiconductor Market Industry. As governments worldwide implement stringent emissions regulations and provide incentives for EV purchases, the demand for power semiconductors in electric drivetrains is surging. In 2024, the market is projected to reach 69.4 USD Billion, with power semiconductors playing a crucial role in enhancing energy efficiency and performance. This trend is expected to continue, as the shift towards sustainable transportation accelerates, potentially leading to a market size of 119.0 USD Billion by 2035, indicating a robust growth trajectory.

The rise of industrial automation and smart manufacturing is a significant factor driving the Global Power Semiconductor Market Industry. As industries adopt automation technologies to enhance productivity and efficiency, the demand for power semiconductors in control systems and robotics is increasing. These components are vital for managing power distribution and ensuring optimal performance in automated environments. The trend towards Industry 4.0 is likely to accelerate the adoption of advanced power semiconductor solutions, thereby fostering growth in the market. This shift indicates a broader transformation in manufacturing processes, emphasizing the importance of power management in modern industrial applications.

The transition towards renewable energy sources, such as solar and wind, significantly influences the Global Power Semiconductor Market Industry. Power semiconductors are essential for converting and managing the energy generated from these sources. As countries strive to meet their renewable energy targets, the demand for efficient power conversion systems is likely to increase. This shift not only supports sustainability goals but also drives technological advancements in power semiconductor devices. The industry's growth is anticipated to align with the broader energy transition, contributing to a compound annual growth rate of 5.02% from 2025 to 2035.

The expansion of telecommunications infrastructure, particularly with the rollout of 5G networks, is a key driver for the Global Power Semiconductor Market Industry. Power semiconductors are crucial for managing power in base stations and other telecommunications equipment. As the demand for high-speed connectivity increases, the need for efficient power management solutions becomes more pronounced. The telecommunications sector is expected to invest significantly in upgrading infrastructure to support 5G, which will likely drive the demand for advanced power semiconductor technologies. This trend underscores the critical role of power semiconductors in enabling next-generation communication systems.

Major market players are spending a lot on R&D to increase their product lines, which will help the power semiconductor industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations.

Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.One of the primary business strategies manufacturers adopt in the global power semiconductor industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, power semiconductor industry has provided medicine with some of the most significant benefits.

The power semiconductor market major player such as Infineon, Vishay Intertechnology, Renesas Electronics, ON Semiconductor, Texas Instruments, Mitsubishi Electric Corporation, Littelfuse, Toshiba, Fuji Electric, Nexperia, Semekron and STMicroelectronics.A global Japanese manufacturer of electronics and electrical equipment with its headquarters in Tokyo, Japan, Mitsubishi Electric Corporation was founded on January 15, 1921. It is one of Mitsubishi's primary businesses. In February 2022, the SLIMDIP-X power semiconductor module from Mitsubishi Electric Corporation, which offers low thermal resistance and noise for household appliance inverter systems, was recently released.

The new SLIMDIPTM series module is intended to streamline and minimise the size of inverter systems used in appliances including refrigerators, washing machines, and air conditioners.The Netherlands' Nijmegen is home to the headquarters of the semiconductor firm Nexperia. It is a division of the Chinese business Wingtech Technology, which is partly owned by the government. It has front-end plants in Greater Manchester, England, and Hamburg, Germany. In April 2021, the availability of Nexperia's second-generation 650 V GaN FETs, which support 80 PLUS Titanium-class power supply running at 2 kW and higher, was announced.

In comparison to earlier technology and rival gadgets, it provides a significant performance boost.