Market Trends of Power Semiconductor Industry
MOSFETs to be the Largest Discrete Semiconductor Component
- MOSFETs are widely used in consumer electronics due to their excellent electrical characteristics and versatility in various applications. For instance, they are used in consumer electronics for power management applications, such as voltage regulation and DC-DC conversion. They can switch power on and off quickly, which makes them ideal for applications in all consumer devices, such as laptop power management and mobile phone battery charging.
- The increasing sales of consumer electronics like cell phones, televisions, laptops, computers, and household appliances are major factors influencing the importance of MOSFETs in the consumer electronics sector. According to Shopify, income from smartphone sales peaked at USD 481 billion in 2021 and is predicted to surpass USD 500 billion by 2026. The overall demand for MOSFETs in these components rises along with the sales of consumer gadgets.
- Wearable electronics are making up a new development vector for the burgeoning Internet of Things (IoT) market due to the growing use of the IoT, from smartwatches and fitness bands to industrial and healthcare applications. MOSFETs are frequently utilized as switching components in these items and include many applications. By 2023, there will be 29.3 billion networked devices, up from 18.4 billion in 2018, according to Cisco. Such elements will influence the devices' demand for MOSFETs.
- MOSFETs are also used for many applications, including switching power supplies, power converters, motor control, and voltage regulators. Similarly, IGBT can be found in multiple systems requiring high voltage or power, especially for EV applications.
- Hybrid electric cars (HEVs), plug-in hybrid electric vehicles (PHEVs), and completely electric vehicles (EVs) are all rapidly becoming more prevalent in the worldwide automotive industry. These vehicles' powertrain systems, including motor drives, battery management programs, and charging infrastructure, depends on power MOSFETs. As a result, there is a rising need for Power MOSFETs due to the rising popularity of electric vehicles. According to EV Volumes, 14,2 million new BEVs and PHEVs were delivered in total in 2023.
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Asia-Pacific Expected to include Significant Growth
- 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.
- According to SIA, China, Japan, Taiwan, and South Korea collectively account for about 75% of the world's semiconductor production. Countries like Vietnam, Thailand, Malaysia, and Singapore contribute significantly 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 power electronics industry growth 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 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.
- Additionally, it is anticipated that the government's initiatives to achieve carbon neutrality goals by 2060 will boost demand for power electronics by capitalizing on the expansion of other markets, such as those for electric vehicles. According to China's Development Plan for the New Energy Automobile Industry (2021-2035), EVs could include a 25% market share by 2025. As a result, China is taking more aggressive measures to encourage the purchase of EVs. It is expected to accelerate the development of power electronics for their widespread use in EVs.
- In addition, Japan's power electronics market is rapidly growing due to developments in several industries. It includes transportation, renewable energy, and other fields where power electronics contain many 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.
- Several local governments are also working hard to promote renewable energy sources usage. It is anticipated to boost the market for power electronics as these devices find numerous uses in the energy sector. For instance, the Indian government announced plans in April 2023 to add 250 GW of renewable energy capacity over the following five years to meet its goal of 500 GW of clean energy by 2030. These initiatives are expected to increase the industry demand for Power electronics.
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