Market Trends of Power Transistor Industry
This section covers the major market trends shaping the Power Transistor Market according to our research experts:
Consumer Electronics Sector is Expected to Boost Market Growth
- Consumer electronics is a significant application segment for power transistors. The surging adoption of consumer electronics such as earphones, laptops, smartphones, wearables, and other portable devices bolsters the segment's growth.
- The advent of 5G technology has increased the adoption of 5G enabled devices supporting the adoption of different foundry nodes. The rising demand for better and more efficient semiconductors in consumer electronics will propel the need for power transistors. According to Ericsson Mobility Report, 5G subscriptions with a 5G-capable device grew by 70 million during the first quarter of 2021 and are forecast to reach 580 million by the end of 2021.
- The rising demand for high-definition audio, fast charging, and more energy-efficient designs for consumer electronics will foster growth for GaN technology. The GaN transistors technology will provide the adaptation needed for the digital world to continue improving.
- The 5G enabled devices will witness a surge in the market in the coming years, owing to the increasing usage and surging data requirements of data processing. The chip manufacturers for 5G enabled smartphones will face demand growth for 5G chips to support the growing demand for 5G enabled devices. The increase in the semiconductor chips will contribute to the development of the semiconductor, eventually supporting the demand for power transistors.
- Since the demand for power transistors is growing, a shortage of semiconductors has been observed to create strong demand in the future. Additionally, the US Senate introduces FABS Act to give tax credits to semiconductor manufacturers to expand the semiconductor fabrication capacity in line with the demand growth in the consumer electronics and automotive industries.
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Asia Pacific Expected to Witness the Highest Growth
- The Asia Pacific is the fastest-growing region in the power transistors markets globally, owing to the presence of major companies, such as Toshiba Corporation, and Mitsubishi Electric Corporation, among others. China, Japan, Taiwan, and South Korea are major countries with a significant market share. The region also contributes a substantial market for smartphones and 5G technology; it is also witnessing a rise in investments in automotive (especially EVs). For instance, GaN systems, a gallium nitride power semiconductor manufacturer, signed a comprehensive capacity agreement with BMW for the company's GaN power transistors, designed to increase the efficiency and power density of critical applications in EVs.
- The rise in electronic equipment manufacturing across the region to cater to the rising demand for electric vehicles, consumer electronics, and energy & power is expected to foster growth in the power transistor market.
- China contributes significantly to the semiconductor market. The surging demand for electric vehicles will propel the use of semiconductors in the Electric vehicle.
- The consumption of semiconductors is rapidly growing in Japan, South Korea, and China, compared to other countries in the region, due to the continuing transfer of diverse electronic equipment to China. In addition, the presence of the world's top five largest consumer electronics sectors is based in China, posing enormous opportunities for semiconductor adoption across the region in the estimated timeframe.
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