Power Electronics Market

Power Electronics Market Size and Share:

The global power electronics market size reached USD 32.96 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 52.38 Billion by 2033, exhibiting a growth rate (CAGR) of 5.02% during 2025-2033. Asia Pacific currently dominates the market, holding a market share of 48.7% in 2024. The market is experiencing robust growth, driven by the increasing demand for energy-efficient devices, the expansion of the renewable energy sector and rapid advancements in automotive electronics. Besides this, the proliferation of consumer electronics and the imposition of supportive government regulations is driving the power electronics market share.

Modern semiconductor materials, such as gallium nitride (GaN) and silicon carbide (SiC), offer superior efficiency and performance. These materials enable power devices to operate at higher temperatures and voltages with reduced losses. SiC and GaN support compact designs, making power electronics more suitable for space-constrained applications. The demand for energy-efficient devices increases as industries focus on reducing energy consumption and carbon emissions. Semiconductor innovations enhance the performance of inverters, converters, and other essential power electronic components. Electric vehicles benefit greatly from advanced semiconductors, achieving better battery management and increased driving range. Renewable energy systems rely on semiconductors for efficient energy conversion, distribution, and grid integration. SiC-based power devices improve the durability and efficiency of equipment in industrial automation applications.

Advancements in solar inverter technology significantly propels the market growth in the United States. For instance, in September 2024, Solis Inverters introduced 60 kW and 125 kW string inverters for the US and Canadian markets. These high-efficiency inverters, exceeding 98.5% efficiency, optimize energy conversion in large-scale solar photovoltaic installations. Moreover, innovations in Maximum Power Point Tracking (MPPT) enhance energy harvest from solar panels under different conditions. Modern inverters support grid-tied and off-grid systems, enhancing flexibility for residential and commercial installations. Smart inverters integrate advanced monitoring features, enabling real-time data collection and enhanced energy management. Their compatibility with energy storage systems supports the growing adoption of solar-plus-storage solutions nationwide. The demand for microinverters and string inverters rises because of their ease of integration and reliability. Solar inverters play a vital role in meeting renewable energy goals, along with reduction targets for emissions.

Power Electronics Market Trends:

Increasing Demand for Energy-Efficient Devices

One of the main factors driving the market is the increased demand for energy efficiency. Global energy consumption is estimated to be 580 million terajoules annually and is projected to rise to 740 million terajoules by 2040. Also, compared to 2020 levels, the United States' energy-related carbon dioxide (CO₂) emissions grew by 296 million metric tons (MMmt) or 6% in 2021. The adoption of power electronics by governments and organizations globally to lower energy usage and carbon footprints is the answer, according to researchers analyzing the question is power electronics are in demand. For instance, power electronics is going to be used more frequently as India's adoption of clean energy technology expands the market to over USD 40 billion annually by 2040 for solar photovoltaic (PV), wind turbine, and lithium-ion battery equipment. This means that 1 in every 7 dollars spent on these equipment's in 2040 will be in India. Furthermore, India's clean energy workforce will increase by 1 million over the next ten years.

Growth in Renewable Energy Sector

The renewable energy sector's expansion is another significant factor fueling the power electronics market growth. As the world is increasingly shifts towards renewable sources to meet its escalating energy needs, the demand for power electronics that efficiently convert and manage the electricity generated from these sources grows. According to IMARC Group, the renewable energy sector is anticipated to reach USD 1,733.0 Billion by 2032, with a growth rate of 7.65%. Regionally, the share of renewable energy in the European Union (EU) increased to 23% in 2022. The gross final consumption of renewables grew by 5 million tons of oil equivalent (Mtoe) between 2021 and 2022, driven by an increase in solar power generation by 28% and wind power by 6.6%. Also, the region witnessed a reduction in the use of non-renewables by 2.9%. Power electronics are essential for the optimal operation of renewable energy systems, from controlling the flow and direction of power in solar inverters to adjusting the output of wind turbines.

Advancements in Automotive Electronics

The power electronics market revenue is significantly influenced by the automobile industry's shift towards electric and hybrid vehicles. It is projected that the market for electric vehicles (EVs) will reach 381.3 million units by 2032, growing at a rate of 34% per year, as per reports. By 2035, it is predicted that EV sales in China will increase from less than a million in 2019 to over 20 million annually. The yearly production of batteries is expected to expand by a minimum of thirty times, raising the demand for power electronics to manage the power transfer between the battery, motor, and other electrical systems. These positive trends are increasing the demand for power electronics parts, including chargers, inverters, and converters. The growing adoption of connected vehicles demands robust power electronics for telematics, infotainment, and communication systems.

Heightened Need for Power Electronic Devices

The increasing demand for power electronic devices is being driven by the rapid electrification of transportation, industrial processes, and the growing reliance on renewable energy sources. With the growing popularity of electric vehicles (EVs) worldwide, the demand for sophisticated power electronic systems, including inverters, converters, and battery management systems, has increased. These tools are essential for improving the efficiency, performance, and energy management of electric vehicles. Additionally, industrial sectors are shifting towards electrified processes to improve operational efficiency and reduce carbon footprints, further driving the adoption of power electronic technologies. Simultaneously, the growing integration of renewable energy sources, such as solar and wind power, into electricity grids has heightened the need for power electronic devices to facilitate energy conversion, grid stabilization, and storage solutions. Advancements in wide-bandgap semiconductors, such as silicon carbide and gallium nitride, are driving the market forward by allowing for improved efficiency and more compact designs. This trend underscores the pivotal role of power electronics in modern energy ecosystems. In 2025, Turntide Technologies, a supplier of electrification solutions, has launched its series of low- and high-voltage power electronics along with advanced axial flux motors to meet the growing demand for sustainable transportation in India.

Power Electronics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on device, material, application, voltage, and end use industry.

Analysis by Device:

• Power Discrete
  • Diode
  • Transistors
  • Thyristor
• Power Modules
  • Intelligent Power Module
  • Power Integrated Module
• Power ICs
  • Power Management Integrated Circuit
  • Application-Specific Integrated Circuit

According to the power electronics market report, power modules lead the market with 50.4% of market share in 2024. Power modules offer efficient power conversion, reducing energy losses in critical industrial and automotive applications. The demand for power modules is fueled by their role in electric vehicle (EV) inverters. They also cater to renewable energy systems, enhancing their adoption in solar and wind power setups. Their superior heat dissipation capabilities make them reliable in high-power applications. As industries focus on miniaturization, power modules remain central to meeting energy efficiency standards. The rising trend of industrial automation further catalyze their demand for using in high-performance machinery. With advancements in packaging technologies, power modules now achieve higher reliability and performance levels. These devices support wide voltage ranges, meeting diverse requirements across various sectors. Their ability to integrate multiple components simplifies design and reduces overall system costs. Power modules are pivotal in the transition to sustainable energy systems worldwide. Semiconductor advancements, such as silicon carbide (SiC), enhance power modules' efficiency, which strengthens its market growth.

 Analysis by Material:

• Silicon
• Sapphire
• Silicon Carbide
• Gallium Nitride
• Others

Silicon carbide is at the forefront of the market with 45.4% of market share in 2024. Silicon carbide (SiC) supports compact designs and increases efficiency in power electronics systems. SiC-based semiconductors are pivotal for EVs, aiding in efficient energy utilization and battery management. Their adoption is driven by demand for high-performance, durable materials in renewable energy applications like solar inverters. SiC enhances power modules’ performance, reducing heat generation and operational costs in industrial equipment. The rising usage of 5G networks as well as advanced telecommunications also relies heavily on SiC components. Government programs encourage the adoption of SiC in grid and renewable systems for energy efficiency. The potential of the material to work at high frequencies improves its use in consumer electronics. SiC contributes significantly to meeting global sustainability goals through its role in reducing energy consumption. The material’s adoption is supported by innovations in semiconductor manufacturing and expanding production capabilities worldwide. As per the power electronics market forecast, leading semiconductor firms are investing in SiC technology to meet rising demand across industries.

Analysis by Application:

• Power Management
• UPS
• Renewable
• Others

The global shift toward renewable energy like solar and wind energy integration drives investments in power electronics. Inverters and converters are essential in renewable systems, ensuring efficient energy conversion and distribution. Power electronics enhance grid stability by supporting variable renewable energy output and minimizing losses. Government incentives and subsidies accelerate renewable energy projects, catalyzing demand for power electronics solutions. The expansion of microgrids and energy storage systems further supports the adoption of renewable applications. Advancements in power electronics improve efficiency, making renewable energy systems more cost-effective and accessible. Power electronics play a pivotal role in electrification and decarbonization efforts worldwide. Industries rely on renewable power systems to meet energy transition goals and environmental regulations. Continuous research improves the reliability and efficiency of devices powering solar and wind energy installations. As the renewable sector grows, power electronics remain vital to its successful implementation across the globe.

Analysis by Voltage:

• Low Voltage
• Medium Voltage
• High Voltage

Medium voltage power electronics are suitable for industrial and renewable energy applications. They handle voltage levels between 1 kV and 35 kV, ideal for power distribution networks. Industries rely on medium-voltage systems for efficient energy transmission and distribution across large-scale operations. Medium-voltage converters and inverters support renewable energy systems, improving efficiency in wind and solar farms. Their adoption is growing as global electrification efforts expand across urban and rural areas. EVs and charging infrastructure often utilize medium-voltage power electronics for energy conversion and storage. The rising demand for industrial automation drives the need for reliable medium-voltage devices in machinery. Medium-voltage systems reduce energy losses, aligning with efficiency standards and sustainability goals worldwide. Their integration into smart grid technologies ensures stable energy supply and optimal grid performance. Advancements in medium-voltage power electronics improve durability and minimize maintenance rates in different sectors. Governments and utilities prioritize medium-voltage systems to modernize power infrastructure and expand renewable capacity.

Analysis by End Use Industry:

• Automotive
• Military and Aerospace
• Energy and Power
• IT and Telecommunication
• Consumer Electronics
• Others

In the automotive sector EVs require power electronics for energy conversion, battery management, and motor control systems. The transition to cleaner mobility solutions accelerates power electronics demand across the automotive industry. Autonomous and connected vehicles also rely heavily on advanced power electronics for functionality. Global automakers invest in high-efficiency power modules to enhance vehicle performance and range. Government agencies incentives for EV adoption and stricter emissions regulations, propelling the market's growth further. Power electronics optimize charging infrastructure, enabling faster and more efficient energy transfer for EVs. Hybrid vehicles also utilize power electronics for smooth transitions between combustion power and electric sources. Semiconductor materials like SiC improve automotive power systems’ efficiency and energy density significantly. Technology advancements in battery manufacturing further influences the demand for power electronics in EV applications worldwide. Automotive manufacturers partner with semiconductor firms to develop customized power electronics solutions.

 Regional Analysis:

• North America 
  • United States 
  • Canada 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain
  • Russia
  • Others 
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa

According to the report, Asia Pacific represents the largest regional market, holding a share of 48.7%. Based on the power electronics market outlook, Asia Pacific represented the largest market share, attributed to the region's significant industrial growth, technological advancements, and the swift expansion of key end-use sectors, such as automotive, consumer electronics, and renewable energy. Moreover, the region comprises rapidly developing economies, like China, India, and South Korea, for manufacturing and technology innovation. Moreover, the ongoing shift towards electrification of transport, a booming consumer electronics sector, and substantial investments in renewable energy infrastructure are favoring the market growth. For example, in September 2024, State Government of Odisha launched India’s first silicon carbide (SiC) manufacturing facility by RIR Power Electronics Ltd. This ₹620-crore project will create 500 jobs, enhancing the semiconductor and power electronics industries significantly. SiC is critical for sectors like defense, railways, aerospace, transportation, and renewable energy technologies across the globe.

Key Regional Takeaways:

United States Power Electronics Market Analysis

The United States hold 70.00% of the market share in North America. Electric cars (EVs), which accounted for 7.2% of new car sales in 2023 according to reports, are driving the market for power electronics in United States. Strict emissions standards and federal incentives continue to influence the EVs sales. As per reports, in 2022, hydropower generation (262 terrawatt-hours) accounted for 28.7% of renewable electricity and 6.2% of all electricity generated in the US. Renewable energy accounted for 20% of the total electricity in 2022. Power electronics are relatively in high demand due to growth in renewable energy projects including solar and wind power projects. Advances in energy storage involve grid-level storage using lithium-ion battery systems with efficient energy conversion and management. Smart inverters and converters are also gaining significant traction as there is an increase in the use of smart grids. According to reports, over USD 4.5 Billion are being invested by the federal government under the Smart Grid Investment Grid Programme. The aerospace and defence industries further fuel the need for robust power electronics systems. According to the data from US Department of Defense, the US defence budget has allocated USD 130 Billion per year for technology research, which includes power management systems.

Europe Power Electronics Market Analysis

Low-carbon economy transition is one of the key factors driving the power electronics market demand in Europe. According to reports, around 56 GW of new capacity was installed in 2022 due to the increase in solar and wind projects caused by the European Union's goal of 40% renewable energy by 2030. In these projects, power electronics are critical because they ensure efficient energy conversion and integration into the grid. Another key driver is the expansion of electrical vehicles, which recorded more than 2.4 million sales in Europe in 2023 driven by government incentives and strong infrastructure for charging equipment. Regulations affecting energy savings, such as EU's Ecodesign Directive, increase the demand for power electronics in industrial and appliances applications. Increased digitization is expected to spur growth in the industrial automation sector, which also uses power electronics extensively in motor drives and controllers.

Latin America Power Electronics Market Analysis

The growing demand for renewable energy in countries like Brazil and Mexico, drives the market in Latin America. Brazil is expected to install 44 GW of wind power by 2028, contributing 13.2% of the electrical matrix, according to International Trade Administration. With tax incentives and investments in charging infrastructure, the electric vehicle industry is improving even in gradually developing economies like Chile and Colombia. The related demand on power electronics from industrial sectors is shifting towards energy-efficient machinery and processes, especially motor drives and controllers, which further strengthens the market growth. The industry is also growing due to infrastructure modernization projects, for example, the installation of smart grids in Mexico.

Middle East and Africa Power Electronics Market Analysis

The diversification of renewable energy in the Middle East and Africa is a major driver for the market. Nations like Saudi Arabia and the United Arab Emirates are investing in mega renewable projects like the 2 GW Al Dhafra Solar Project, where sophisticated power electronics are used to integrate and maximize efficiency. Electric vehicles are another major market driver, propelling the market growth. As Saudi Arabia sets a goal for Riyadh to be 30% electric by 2030, all its electric vehicles require power electronics solutions. Growing usage of power electronics solutions in off-grid systems and rural electrification projects responds to the developing and electrifying infrastructure programs in Africa to provide access to electricity for more than 300 million people under the Mission 300 initiative. The thriving telecom industry increases the demand as its mobile connections target over 700 million in Africa by 2025, according to reports.

Competitive Landscape:

According to studies that researched about what is the trend in power electronics, it has been found that major players in the market are engaged in research and development (R&D) to introduce innovative and more efficient solutions, particularly focusing on materials like silicon carbide (SiC) and gallium nitride (GaN) to enhance the boundaries of power density, efficiency, and thermal performance. They are expanding their product portfolios and entering into strategic partnerships and acquisitions to enhance their technological capabilities and market reach. For instance, In August 2023, Infineon Technologies AG collaborated with Infypower to provide the industry-leading 1200 V CoolSiC MOSFET power semiconductor devices for improving the efficiency of electric vehicle charging stations. Moreover, companies are investing to expand their manufacturing capabilities to meet the growing demand from the renewable energy sector and consumer electronics market. Besides this, they are adopting environmentally friendly practices in their operations and product designs.

The global power electronics market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• ABB Ltd.
• Analog Devices Inc.
• Fuji Electric Co. Ltd.
• Infineon Technologies AG
• Microchip Technology Inc.
• Mitsubishi Electric Corporation
• NXP Semiconductors N.V.
• Renesas Electronics Corporation
• ROHM Co. Ltd.
• STMicroelectronics
• Texas Instruments Incorporated
• Toshiba Corporation
• Vishay Intertechnology Inc

Latest News and Developments:

• November 2024: Advanced AI-powered radar solutions for Internet of Things applications have been announced by Infineon Technologies, allowing for accurate motion detection and automation in industrial, healthcare, and smart home systems. The technology satisfies the growing demand for intelligent, connected devices by providing energy efficiency, privacy, and versatility.
• September 2024: Advanced silicon carbide (SiC) MOSFETs will be introduced by Nomis Power at ICSCRM 2024. These innovative gadgets have the potential to improve performance, dependability, and power efficiency in a number of sectors, such as electric vehicles and renewable energy. The advancements are meant to satisfy the increasing need for power solutions with high efficiency.
• September 2024:  Odisha unveiled the plans of strengthening the semiconductor market with the launch of the RIR power electronics facility. The inauguration of this advanced facility, with a total investments of approx. INR 620 crores over 3 years, indicates a fundamental step for Odisha’s entry into the power electronics industry.
• February 2024: Murata, a worldwide innovator in electronics, today at the 2024 Applied Power Electronics Conference (APEC) revealed the introduction of three novel power product solutions aimed at addressing the challenges, constraints, and limitations faced by the power electronics industry.
• September 2024: Valeo announced the expansion of its capacity with the opening of a new manufacturing facility for power electronics products in Pune.

Power Electronics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, power electronics market outlook, and dynamics of the market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global power electronics market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the power electronics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.