The global power electronics market size was valued at USD 32.33 billion in 2016. The increasing demand for energy-efficient and battery-powered devices is likely to propel the global market over the forecast period.
In addition, the urge for enhancing power infrastructure, increasing focus on the usage of renewable energy sources, and growing trend of energy harvesting technologies are the major aspects that are anticipated to catapult the industry growth over the estimated duration.
U.S. power electronics market revenue by application, 2014 - 2025 (USD Billion)
Power electronics are solid-state circuitry devices that are used to alter and control electrical energy from the source to the load in an appropriate and effective way. Power electronics enable power management in order to improve energy conservation in a variety of applications such as consumer electronics, automotive, electric automobiles, and industrial systems.
Moreover, power electronics are capable of regulating the energy flow in unidirectional as well as bidirectional means, depending on the application and usage. At present, power electronics are extensively used in renewable energy resources and electric vehicles to enhance the switching speed while avoiding power losses.
The intensifying need for power management devices and the rising adoption of power electronics in electric automobiles are the key influencing factors paving the way for the notable adoption of power electronics across various verticals including automotive, consumer electronics, energy & power, aerospace & defense, and other industries.
As such, all these factors are expected to boost the overall market growth across the globe over the estimated duration. Additionally, initiatives and proactive promotions are undertaken by various government organizations at regional as well as international levels are further expected to create growth opportunities in the market.
On the basis of materials, the global market has been segregated into silicon, sapphire, silicon carbide, gallium nitride, and other materials used across the sector. Silicon accounted for the largest market size in 2016 and is projected to dominate the market over the forecast period. The applicability of silicon in different power electronic equipment and devices has led the material to account for the largest share.
However, the sapphire segment is anticipated to grow at the highest CAGR from 2017 to 2025. The growth of this segment is attributable to the lucrative opportunities such as the use of sapphire in smartwatches, cell phone cover glasses, optical wafers, and LED lights is gaining traction for the material.
The consumer electronics sector is experiencing a massive expansion on account of increased demand for smartphones, smart wearables, electronic appliances such as television and LED lights. In turn, the sapphire segment is also expected to grow further owing to its increasing applicability across consumer electronic products.
The devices segment has been sub-categorized into discrete, module, and integrated circuit (IC) devices. The discrete devices segment accounted for the largest market size in 2016 and is anticipated to dominate the market till 2025. Discrete devices mainly include different types of diodes, transistors, and thyristors. This large market share of the discrete devices is due to the large adoption of diodes, thyristors, and transistors in the electronic circuitry.
However, the advancements in the power electronic sector have led to the development and adoption of various power devices in different applications. The increasing application of ICs across wireless communication, RADAR systems, satellite communication, electronic warfare, and Radio Frequency (RF) has brought about extensive opportunities to electronic ICs.
Global power electronics market revenue by material, 2016 (%)
Therefore, the segment is likely to grow at a rapid CAGR over the forecast period. In addition, the increasing application of ICs in radio communication and microwave radiation arenas is further expected to drive the growth of this market from 2017 to 2025.
On the basis of applications, the power electronics market has been segmented into ICT, power, consumer electronics, industrial, automotive, aerospace & defense, and other industries. The power segment accounted for the largest market size in 2016 and generated the largest revenue.
The automotive application is anticipated to exhibit the fastest growth at the CAGR of 2.8% from 2017 to 2025. The significant growth of the segment can be accredited to the increasing demand for energy-efficient hybrid electric vehicles to curb down the impact of growing pollution on the environment.
The necessity to conserve the environment and natural resources, such as natural gas and oil, is leading toward the development of various alternatives such as hybrid vehicles and electric cars, which, in turn, is increasing the adoption of such energy-efficient resources. This is paving the way for the rising adoption of power electronic devices across the automotive sector owing to its ability to optimize and reduce energy consumption.
The Asia Pacific region accounted for the largest share of 40% of the global industry in 2016. The region is expected to witness considerable growth and would continue its domination till 2025. The large market share and regional growth can be attributed to the lucrative opportunities in consumer electronics, automotive, ICT, and industrial applications in the Asia Pacific region.
The regional emergence as a promising manufacturing hub, particularly for the consumer electronics and automotive sectors, has led to a notable rise in production practices across the region by different leading manufacturers of the respective verticals. Furthermore, the cost & operational advantages and initiatives being taken by the governments of emerging countries, such as China, South Korea, India, and Singapore, are attracting investors and various industry leaders to establish their manufacturing units in this region. This is boosting the domestic manufacturing activities of different verticals in the Asia Pacific region and leading to the setting-up of more and more industries. All these factors are expected to drive the growth of this market in the Asia Pacific region.
Prominent companies functioning in this industry consist of Texas Instruments, Inc., Infineon Technologies AG, STMicroelectronics NV, Fuji Electric Co., Ltd., Qualcomm, Inc., and Mitsubishi Electric Corp. Due to greater opportunities in both developing and developed countries, the key players are indulged in undertaking strategic initiatives such as new product development, mergers, and acquisitions, and venture capital investments to gain a market existence.
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2017 - 2025
Revenue in USD Billion, and CAGR from 2014 to 2025
North America, Europe, Asia Pacific, South America, Middle East & Africa
U.S., Canada, Mexico, Germany, U.K., France, China, Japan, India, and Brazil
Revenue forecast, company share, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global power electronics market on the basis of materials, devices, applications, and region:
Material Outlook (Revenue, USD Billion; 2014 - 2025)
Silicon Carbide (SiC)
Gallium Nitride (GaN)
Device Outlook (Revenue, USD Billion; 2014 - 2025)
Application Outlook (Revenue, USD Billion; 2014 - 2025)
Aerospace & Defense
Regional Outlook (Revenue, USD Billion; 2014 - 2025)
Middle East & Africa
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The global electronics devices market (including consumer electronics and industrial electronics devices) is expected to be impacted significantly by COVID-19 as China is one of the major suppliers for the raw materials (used to manufacture devices) as well as the finished products. The industry is on the brink of facing a reduction in production, disruption in supply, and price fluctuations. While this can vastly encourage local manufacturers to step up and address the growing demand, the scarcity of raw material can still pose a challenge to this industry. The sales of prominent electronic companies is expected to be affected in the near future. The report will account for Covid19 as a key market contributor.
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