Power Module Packaging Market Size

Power Module Packaging Market Analysis

The Power Module Packaging Market size is estimated at USD 2.5 billion in 2024, and is expected to reach USD 3.98 billion by 2029, growing at a CAGR of 9.78% during the forecast period (2024-2029).

A power module or power electronic module acts as a physical container for storing several power components, usually power semiconductor devices. Packaging plays a crucial role in the shift toward higher power densities, which enables more efficient power supplies, faster conversion, power delivery, and improved reliability. As the world is shifting toward faster-switching frequencies and higher power densities, there is a related shift in packaging materials used for wire bonding, die-attach, substrates, and system cooling.

• Power modules are the key elements in the power inverters and converters. ​Power modules are commonly used in electric cars and other electric motor controllers, appliances, power supplies, electroplating machinery, medical equipment, battery chargers, AC to DC inverters and converters, power switches, and welding equipment. The growth of the power module packaging market is driven by a reduction in energy wastage, efficient distributed cooling schemes, a reduction in footprint, and a consequent increase in power density. Moreover, the growing demand for power modules in the industrial and consumer electronics sector is expected to drive the power module packaging market.
• The growing demand for electric vehicles and battery-powered electric vehicles, owing to rising fuel costs and increasing environmental concerns, is driving the demand for highly efficient power module packaging. The replacement of silicon IGBTs with SiC MOSFETs for automotive inverters and other applications is also fueling changes in assembly and packaging. Owing to this, key vendors are focusing on introducing SiC MOSFETs, and this factor is driving the power module packaging market.
• The increased proliferation of consumer electronics, such as smartphones, laptops, computers, and TVs, is also driving the demand for innovative and advanced power module packaging solutions. AC-DC converters are widely used in electronic devices that require DC power, such as computers, televisions, and smartphones, as they help decrease energy waste and enhance the efficiency of electronic devices by enabling more efficient and effective power delivery. The growing prevalence of smartphones due to advancements in battery and 5G technology and new variants with additional features create demand for AC-DC converters and power modules.
• The global financial crisis has changed the regulatory frameworks, and the post-crisis market environment has had a significant impact on the advanced packaging market. To remain competitive in the market, power module packaging vendors are increasing their M&A activities to increase their market share. This is expected to continue in the coming years, with various levels of consolidation among the major players affecting the overall profitability.
• The increasing investments in R&D facilities, the growing IoT electronics market, an increasing number of foundries due to COVID-19, the trend of miniaturization and technology migration, and the high demand for power modules have an impact on the growth of the market. Moreover, many market vendors are expecting market growth in the coming years, mainly due to trends like 5G and electric vehicles.