Power Semiconductor Market Size

Power Semiconductor Market Analysis

The Power Semiconductor Market size is estimated at USD 43.34 billion in 2024, and is expected to reach USD 51.87 billion by 2029, growing at a CAGR of 3.66% during the forecast period (2024-2029).

• Vehicle electrification, carbon emission reduction goals, and clean energy production significantly accelerated the power semiconductor industry's growth. Demand is expected to increase rapidly over the coming years, driving technology changes and investment in production capacity. Power devices are found in various applications as discrete devices, power modules, or combined with IC functionalities. It includes industrial motor drives, wind turbines, photovoltaic (PV) installations, trains, UPS, electric vehicle (EV) charging infrastructure, and home appliances.
• Power transistors, such as MOSFETs and IGBTs, help in the rapid dissipation of heat, prevent overheating, and minimize carbon dioxide emissions and the cost of electricity. Owing to these advantages, they form a crucial component of several electronic products. Due to the increasing worldwide population and usage of fossil fuels, there is a rising demand for power-efficient electronic devices.
• Furthermore, embedded and application processors and other components in complex systems need multiple power rails and domains. Using discrete devices for power management in these systems can be costly. Power management integrated circuits (PMICs), which integrate multiple voltage regulators and control circuits into a single chip, are highly suitable for implementing complete power supply solutions. They reduce component count and board space while easily and cost-effectively managing system power.
• However, SiC devices are challenged with their driving requirements. Though the primary goal of SiC-based devices is to replace IGBT, the driving requirements vastly vary for these two devices. Most transistors include driving requirements using symmetric rails (such as ±5V). On the other hand, SiC devices need asymmetric rails (such as -1V to -20V) due to the requirement of a small negative voltage to ensure that they are fully off. It could challenge their application in portable equipment as additional DC-DC drivers or specialized batteries with three connections (+, 0V, and-) are needed. Such factors might restrict market growth.
• The pandemic accelerated digital transformation across industries and sped up the adoption of digital technologies by several years. The rising adoption of emerging technologies like AI and IoT creates a positive growth outlook for the market for power semiconductors. The pandemic also accelerated the adoption of IoT, which positively impacted the market.