Market Trends of Power Electronics Industry
Rising Demand for High-energy and Power-efficient Devices in the Electronics Segment is Expected to Drive the Market Growth
- Industrial appliances such as uninterruptible power supplies (UPS), server power supplies, power converters, and motor drives consume a significant portion of the world's power. Therefore, any increase in efficiency in industrial power supplies will substantially reduce a company's operating costs. With greater power density and better thermal performance, the demand for high-efficiency power supplies is increasing exponentially.
- Currently, one of the most popular applications for power semiconductors is uninterruptible power supplies. It is typically used to protect hardware such as computers, data centers, communications equipment, and other electrical equipment where an unexpected power failure could result in injury, death, critical business loss, and interruption or loss of data. Uninterruptible power supply systems usually contain batteries and an inverter that uses IGBT (insulated-gate bipolar transistor).
- The need for high-efficiency power sources is growing at a rapid pace. Several causes are fueling this expansion. The first is a growing global awareness of the importance of using energy efficiently and wisely. Power semiconductors for controlling electric power are attracting wider applications and increasing demand as key devices that can help lower a global society's carbon footprint.
- Electric motor drives are one of the key elements in any industry. They drive pumps, fans, and conveyor belts, move hoisting vehicles and elevators, and are used to the same extent to generate compressed air or refrigeration. Owing to their widespread deployment, electric drives account for a significant portion of the power used in the industry.
- Using efficient power semiconductors allows for the design of effective, reliable, and multi-dimensional robots. Thus, increasing the installation of industrial robots creates a positive outlook for the market. According to the International Federation of Robotics (IFR), robot installations worldwide recovered strongly the year before, making it the most successful year ever for the robotics industry. With the continued trend toward automation and continued technological innovation, demand has reached high levels across the industry.
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Asia-Pacific Expected to be the Fastest Growing Region
- The Asia-Pacific region dominated the electronic power market in the previous year and is expected to grow considerably and continue dominating over the forecast period. The lucrative opportunities in consumer electronics, automotive, telecom, and industrial applications in the Asia-Pacific region are responsible for the sizeable market share and regional growth.
- The region of Asia-Pacific is anticipated to dominate the market studied because it currently dominates the global semiconductor market, further supported by government policies. According to SIA, China, Japan, Taiwan, and South Korea account for about 75 percent of the world's semiconductor production collectively, and other countries like Vietnam, Thailand, Malaysia, and Singapore also make significant contributions to the region's market dominance.
- In April 2023, the PowerUP Asia conference and exhibition highlighted the most recent technological developments and trends in power electronics, including WBG devices, power semiconductors, and related technologies. It stated that the growing electric vehicle (EV) industry, rising calls for renewable energy adoption, industrial automation trends, and rising consumer electronics demand are all fueling the growth of the power electronics industry as manufacturers focus on power efficiency, carbon reduction, and 'greener' energy.
- Power electronics are becoming increasingly common in EVs, requiring high-power energy to rotate electric motors. Power components like MOSFETs (metal-oxide-semiconductor field-effect transistors) and IGBT are power electronic switches in power train systems. The significant market growth can be attributed to the rising demand for energy-efficient hybrid electric vehicles in several nations, including India, China, Japan, and others, to reduce the effects of rising environmental pollution.
- For instance, China's automotive sector has increased, and the region plays a more significant role in the global auto industry. China is one of the top countries to adopt electric vehicles, which are becoming increasingly popular. In 2022, China sold 5.67 million EVs (electronic vehicles) and plug-ins, according to the China Passenger Car Association, as consumers switched from gas-guzzler models due to government subsidies and high oil prices. With the EV industry, it is anticipated that demand for power electronics will increase quickly.
- In addition, the market for power electronics in Japan is rapidly growing due to developments in several industries, including transportation, renewable energy, and other fields where power electronics have a wide range of applications. As a result, it is anticipated that the Japanese automotive industry, which is expanding quickly due to demand for electric vehicles, will be the primary driver of opportunities for power electronics in the region.
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