The global power semiconductor market is expected to grow significantly during 2023-2028. According to recent market research, the market is projected to grow at a compound annual growth rate (CAGR) of approximately 5%, from US$46.72 billion in 2022 to US$62.26 billion by 2028.
Power semiconductors play an essential role in the power electronics industry, as they are used to rectify and amplify electrical signals or turn the electricity flow on and off. They are designed to handle high electrical currents and up to several gigawatts of voltage. As such, they find extensive applications in power transmission and distribution, industrial automation, consumer electronics, and electric vehicles.
One of the primary drivers of the power semiconductor market growth is the increasing demand for electric vehicles, which are gaining popularity due to their eco-friendliness, high fuel efficiency, and low maintenance costs. The growing adoption of industrial automation is also expected to drive the market as industries increasingly shift towards automation to increase productivity, efficiency, and safety.
The rising demand for consumer electronics, including smartphones, laptops, and tablets, is another factor expected to fuel the market growth. Furthermore, the growing demand for renewable energy and increasing disposable income are projected to boost the market.
However, the market growth could be negatively impacted by various challenges, such as high development costs, supply chain disruptions, power failure, etc.
The power semiconductor market is concentrated, with the top 10 companies accounting for nearly 65%. These companies include Infineon Technologies AG, Texas Instruments Inc., Mitsubishi Electric Corporation, STMicroelectronics N.V., Toshiba Corporation, NXP Semiconductors N.V., Broadcom Inc., Renesas Electronics Corporation, Vishay Intertechnology Inc., ON Semiconductor Corporation.
In conclusion, the global power semiconductor market is poised to experience substantial growth during the forecast period, driven by increasing demand for electric vehicles, rising adoption of industrial automation, growing demand for consumer electronics, and increasing demand for renewable energy. However, the market faces various challenges that could impede its growth.
The growth of the global power semiconductor market is expected to continue in the coming years, driven by various factors. One of the major drivers is the increasing demand for electric vehicles (E.V.s). Power semiconductors are critical in the efficient functioning of E.V.s, as they help convert D.C. power to A.C. power and vice versa, thereby optimizing the vehicle’s energy efficiency. The increasing focus on reducing carbon emissions and promoting clean energy is also expected to drive the demand for renewable energy, which is expected to drive the demand for power semiconductors.
The rising adoption of industrial automation is another factor driving market growth. Industrial automation involves using power semiconductors in various applications such as motor control, power supply, and lighting control. This technology helps improve efficiency, reduce energy consumption, and minimize downtime, thereby increasing productivity.
However, market growth is expected to be hindered by various challenges. High development cost is one of the significant challenges faced by the market players, as the development of advanced power semiconductors requires substantial investment in research and development. Supply chain disruptions, power failure, and other technical issues are also expected to impact market growth negatively.
The power semiconductor market is highly concentrated, with the top 10 companies accounting for a significant market share. Some of the leading players in the market include Infineon Technologies AG, Texas Instruments Inc., Mitsubishi Electric Corporation, Fuji Electric Co., Ltd., and Toshiba Corporation. These companies invest heavily in research and development to develop new and innovative products and stay ahead of the competition.
In conclusion, the global power semiconductor market is expected to continue its growth trajectory in the coming years, driven by various factors such as the increasing demand for electric vehicles, rising adoption of industrial automation, and increasing demand for renewable energy. However, the market players need to be prepared to address the challenges faced by the industry to ensure sustained growth and profitability.
