Power Electronics Market Size

Power Electronics Market Analysis

The power electronics market is estimated at USD 29.19 billion in the previous year. The market is expected to reach USD 37.72 billion over the forecast period, registering a CAGR of 4.53%. This growing demand for power electronics comes from various booming applications, including electric and hybrid electric vehicles (xEV), factory automation, photovoltaics, wind turbines, UPS, and home appliances.

• Notably, electrical energy consumption continues to grow, and more applications are being introduced based on electricity. More than 60 percent of total energy consumption is expected to be converted into electricity for use, and electrical energy must be produced, distributed, and used as efficiently as possible. Further, emerging climate change also argues for finding future sustainable solutions. Under such evolving circumstances, two major technologies that are likely to play essential roles in solving parts of those future problems include the change in electrical power production from conventional, fossil (and short-term) based energy sources to renewable energy sources and usage of highly efficient power electronics in power transmission/distribution, power generation, and end-user application, thus driving the role of power electronics.
• The power electronics industry is experiencing a dynamic environment that is constantly changing due to numerous trends. As power electronic devices and systems exist throughout the power supply chain, from the power plant to the entire power grid, the factors that influence them can vary widely. And then to items that consume electricity. All are very different environments and are affected differently.
• Reducing energy consumption is one of the major trends impacting the energy industry, and power electronics are emerging as a key technology to precisely control the flow of electrical energy from the source to the load, depending on the load requirements. Thus, it is responsible for the reliability and stability of the whole power supply infrastructure from the sources, the energy transmission and distribution up to the huge variety of applications in the industry, transportation systems, and home and office appliances.
• For instance, advanced power electronics could realize savings of about 50 percent of the energy losses in converting from mains or battery voltages to those being utilized in electronic equipment. But despite the tremendous importance of power electronics, there needs to be more awareness of the role of power electronics in modern industrial society, even in the well-informed general public.
• The pandemic also accelerated the adoption of IoT, which positively impacted the market. For instance, a recent study by global mobile satellite provider Inmarsat found that the maturity of companies adopting the Industrial Internet of Things (IoT) has increased rapidly since the start of the COVID-19 pandemic.