Power Semiconductor Market Size is slated to experience a significant boom between the period of 2021 and 2027 owing to the higher adoption of various IoT devices. The increasing technological progressions across the consumer and power electronics sector have led to the growing preference for small electronic gadgets. Furthermore, constant advancements in wireless communication along with the rising deployment of 5G technology is expected to stimulate the industry growth.
The expansion of the automotive sector coupled with the hiking per capita consumer incomes has also made way for the higher use of non-conventional energy sources as well as effective power management solutions and safety features. The booming smartphone and smartwatch demand coupled with the elevating need for renewable energy are some of the major trends complimenting the industry expansion.
With regards to product, the market size from the IGBT (Insulated Gate Bipolar Transistor) segment will see lucrative expansion through 2027 due to increasing acceptance in power electronics applications, inclusive of inverters, converters, and power supplies. On account of their high voltage capabilities and fast switching speeds, IGBTs are increasingly preferred overpower bipolar and MOSFETs. Higher usage in small-signal amplifier circuits, as well as high voltage and moderate-speed applications, will contribute towards the segment growth.
Application wise, the demand for power semiconductors across the automotive sector is poised to rise notably driven by higher demand for electric and hybrid vehicles. The paradigm shift towards smart cities has also paved the path for self-driving and connected cars. The growing incursion of power integrated circuits and ADAS (Advanced Driver Assistance Systems) will further add a significant edge to the market progression.
In terms of regional landscape, Asia Pacific is anticipated to emerge as a considerable hub for the market. This is mainly attributable to the expanding electronic sector and the prominent presence of some leading industry players in the region. APAC is one of the major producers of electronic devices as well as components across the world. Increasing government support in the form of initiatives, such as Digital India and the rising development of smart manufacturing across China are other major drivers contributing to the regional expansion.
Innovations and marketing strategies, including partnerships, mergers, and acquisitions along with capacity expansions are some of the prominent initiatives employed by these firms to strengthen their position in the business landscape.
For instance, in June 2021, STMicroelectronics joined hands with Renault Group for the design, development, production, and supply of its products and related packaging solutions to the latter company’s power electronics systems associated with battery-operated and hybrid vehicles.
In another instance, in June 2020, Mitsubishi Electric Corporation purchased buildings and land from Sharp Corporation-owned Sharp Fukuyama Semiconductor Co., Ltd. The newly acquired properties supported the firm to process wafers to produce power semiconductors.
ABB Ltd., Texas Instruments, Semikron International GmbH, Infineon Technologies AG, Toshiba Corporation, and Fuji Electric Co., Ltd. (Furukawa Group) are some other major participants operating in the market.
The COVID-19 outbreak caused a revolutionary effect on the global economy fueled by the regulation of nationwide lockdowns as well as containment drives, that gave rise to multiple trade restrictions. The power semiconductor industry has also felt the pinch of the ongoing crisis on account of the shipping delays from China and several other countries, bringing severe impacts on the just-in-time delivery models used by the electronics companies.