Next-Generation Power Semiconductors Market

Growing use of electric vehicles is driving the market growth

The market for next-generation power semiconductors is anticipated to develop due to the increasing use of electric vehicles. An electric car is a vehicle with an electric motor powered by a battery that can be charged externally. High-efficiency power transistors and integrated circuits are made with gallium nitride power semiconductors for usage in electric vehicles. SiC power semiconductors have several benefits over silicon, including a band gap three times larger and a breakdown electric field ten times stronger.

For instance, the Energy Information Administration (EIA), a US-based government agency charged with gathering, analyzing, and disseminating energy information, reported in October 2021 that there were 1.31 billion light-duty vehicles (LDVs) in use worldwide in 2020 and that it is anticipated that there will be 2.21 billion LDVs by 2050. Similarly, it is anticipated that the number of electric cars (EVs), or any LDV with a charging port, will increase from 0.7% of the worldwide LDV fleet in 2020 to 31% in 2050, or 672 million vehicles.

As a result, the market CAGR for next-generation power semiconductors is driven by the increasing use of electric vehicles.

The method provides a ten times lower FIT rate from cosmic rays and allows for an acceptable over-voltage tolerance compared to 1700 V SiC MOSFETs. The devices' broad functional gate voltage range makes them easy to employ.

The Global Next-Generation Power Semiconductors Market Industry is significantly influenced by the increasing adoption of electric vehicles (EVs). As governments worldwide implement stringent regulations to reduce emissions, the demand for EVs is on the rise. Power semiconductors are integral to EV technology, enabling efficient power management and battery performance. The market is projected to expand as the automotive sector increasingly incorporates advanced semiconductor solutions. By 2035, the market is anticipated to reach 1.99 USD Billion, driven by the continuous evolution of electric mobility and the need for enhanced performance in EV systems.

The Global Next-Generation Power Semiconductors Market Industry experiences a surge in demand for energy-efficient solutions across various sectors. As industries strive to reduce energy consumption and carbon footprints, power semiconductors play a crucial role in optimizing energy use. For instance, advancements in semiconductor technology facilitate the development of more efficient power converters and inverters, which are essential in renewable energy applications. This trend is expected to drive the market's growth, with projections indicating a market value of 1.2 USD Billion in 2024, reflecting a growing recognition of the importance of energy efficiency.

The Global Next-Generation Power Semiconductors Market Industry benefits from the rapid advancements in renewable energy technologies. As countries invest in solar, wind, and other renewable sources, the demand for efficient power conversion systems grows. Power semiconductors are essential for managing the energy flow from these sources to the grid. The integration of advanced semiconductor materials, such as silicon carbide and gallium nitride, enhances the efficiency and reliability of renewable energy systems. This trend is likely to contribute to a compound annual growth rate (CAGR) of 4.69% from 2025 to 2035, reflecting the industry's commitment to sustainable energy solutions.

The Global Next-Generation Power Semiconductors Market Industry is positively impacted by the increasing investment in smart grid infrastructure. Governments and utility companies are recognizing the need for modernizing electrical grids to enhance reliability and efficiency. Power semiconductors are vital components in smart grid technologies, facilitating real-time monitoring, control, and energy management. The integration of advanced semiconductor solutions into grid systems is expected to drive market growth as utilities seek to optimize energy distribution and reduce operational costs. This trend aligns with the global push towards sustainable energy practices and is likely to shape the future of the power semiconductor industry.

The Global Next-Generation Power Semiconductors Market Industry is propelled by ongoing technological innovations in semiconductor materials. The emergence of wide bandgap semiconductors, such as silicon carbide and gallium nitride, offers superior performance compared to traditional silicon-based devices. These materials enable higher efficiency, reduced thermal losses, and improved power density, making them ideal for high-performance applications. As industries increasingly adopt these advanced materials, the market is poised for substantial growth. The transition to next-generation materials is expected to enhance the overall performance of power electronic systems, further solidifying the industry's position in the global market.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American next-generation power semiconductors market area will dominate this market. The market is fueled by advancements in the automotive and aerospace industries and the GaN reliability enhancement and technology transfer (GREAT2) industry. The military, offshore oil and gas development, and emergency medical service providers all have increasing needs for semiconductor devices, another factor driving regional market expansion.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: NEXT-GENERATION POWER SEMICONDUCTORS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe next-generation power semiconductors market accounts for the second-largest market share with expanding end-user industries, including the automotive and consumer electronics sectors. The growing use of gallium nitride semiconductor devices in several advanced industries, including defense & aerospace, information & communication technology, and healthcare, further helps boost the region's share of the next-generation power semiconductor market. Further, the German next-generation power semiconductors market held the largest market share, and the UK next-generation power semiconductors market was the fastest growing market in the European region

The Asia-Pacific Next-generation power semiconductors Market is expected to grow at the fastest CAGR from 2023 to 2032. Consumer electronics and vehicles are being produced and exported more from China, Japan, and India due to the government of China's substantial investment. The official announcement of a 15% lithium import subsidy by the Indian government in March 2019 shows how simple it is to produce electric vehicles. The heavy industries department also approved a plan to manufacture and adopt hybrid and electric vehicles more quickly. The use of power semiconductors in automobiles is driving the Asia Pacific market.

Moreover, China’s next-generation power semiconductors market held the largest market share, and the Indian next-generation power semiconductors market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the next-generation power semiconductors market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, next-generation power semiconductors industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the next-generation power semiconductors industry to benefit clients and increase the market sector. In recent years, the next-generation power semiconductors industry has offered some of the most significant advantages to market. Major players in the next-generation power semiconductors market attempting to increase market demand by investing in research and development operations include Infineon Technologies (Germany), STMicroelectronics (Switzerland), Mitsubishi Motors (Japan), Toshiba (Japan), Fairchild (U.S.), NXP Semiconductors (Netherlands), Fuji Electric (Japan), Semikron (U.S.), Vishay Intertechnology (U.S.), and Renesas Electronics (Japan).

NXP Semiconductors N.V. (NXP) is a Dutch semiconductor designer and manufacturer with its corporate headquarters in Eindhoven, the Netherlands. More than 30 nations are home to the company's 31,000-person workforce. The company that makes and sells semiconductors is NXP Semiconductors Netherlands B.V. The company sells a variety of goods, including RF, sensors, wireless connection, media and audio, analog, identity and security, microcontrollers, automotive networks, processors, and microcontroller-based solutions. Customers are served globally by NXP Semiconductors Netherlands.

Fuji Electric Co Ltd. produces electrical goods. Its commercial operations include producing thermal, geothermal, and hydraulic power as well as nuclear power-related machinery, solar power generation systems, energy management systems, watt-hour meters, and information systems. Additionally, the company provides transmission and distribution equipment, heating, and induction furnace equipment, factory energy management systems, industrial power supply equipment, industrial drive systems, data centers, plant control systems, measurement systems, clean room facilities, and radiation monitoring systems.