Global Power Semiconductor Market Outlook, 2029

The global power semiconductor market plays a crucial role in enabling the efficient management and control of power in various electronic devices and systems. These semiconductors are fundamental components that regulate the flow of power in circuits, making them indispensable across industries such as automotive, industrial, consumer electronics, and telecommunications. The first germanium power semiconductor device appeared in 1952 with the introduction of the power diode by R.N. Hall. It had a reverse voltage blocking capability of 200 V and a current rating of 35 A. Germanium bipolar transistors with substantial power handling capabilities (100 mA collector current) were introduced around 1952; with essentially the same construction as signal devices, but better heat sinking. Power handling capability evolved rapidly, and by 1954 germanium alloy junction transistors with 100-watt dissipation were available. These were all relatively low-frequency devices, used up to around 100 kHz, and up to 85 degrees Celsius junction temperature. Silicon power transistors were not made until 1957, but when available had better frequency response than germanium devices, and could operate up to 150 C junction temperature. Regulations governing the global power semiconductor market primarily focus on ensuring product safety, reliability, and environmental sustainability. International standards such as IEC (International Electrotechnical Commission) and UL (Underwriters Laboratories) set guidelines for manufacturing processes, materials used, and performance specifications to ensure compliance with safety and quality standards. According to the research report "Global power semiconductor Market Overview, 2029," published by Bonafide Research, the Global power semiconductor market was valued at more than USD 42 Billion in 2023. 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 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. One of the industry's fastest-growing areas, battery-powered appliances demand energy-efficient, dependable, and cost-effective battery charging. For this reason, Infineon Technologies AG introduces the ICC80QSG single-stage PWM controller for flyback topologies to its portfolio of AC-DC controller ICs. Optimized with CoolMOSTM P7 super junction (SJ) MOSFETs, the IC is ideal for battery charger applications and offers scalable power designs up to 130 W. In addition to adapter, printer, PC, television, monitor, set-top box, and audio amplifier applications, this component is also appropriate for set-top box applications. India is set to become a global power in semiconductor manufacturing with the launch of Tata Group's semiconductor fabrication unit in Dholera, Gujarat. The unit, backed by Tata Electronics and Power chip Semiconductor Manufacturing Corp, aims to establish India as a key supply chain partner in the global semiconductor industry.

Market Drivers Electrification of Vehicles (EVs and HEVs): The electrification trend in the automotive sector is a significant driver for the power semiconductor market. Electric vehicles (EVs) and hybrid electric vehicles (HEVs) require advanced power semiconductor devices such as power MOSFETs, IGBTs (Insulated Gate Bipolar Transistors), and diodes for efficient power management, motor control, and energy conversion. Expansion of Renewable Energy Sources: The global push towards sustainable energy solutions is another key driver for the power semiconductor market. Renewable energy sources like solar and wind power require power semiconductor devices for inverters that convert DC power generated by solar panels or wind turbines into AC power suitable for grid integration. Market Challenges Heat Management and Thermal Dissipation: Power semiconductors generate heat during operation, and effective thermal management is critical to ensure their reliability and performance. Managing heat dissipation becomes more challenging as semiconductor devices handle higher voltages and currents to meet increasing power requirements. Complex Design Requirements and Reliability: Designing power semiconductor devices capable of operating reliably under high voltages and currents involves complex engineering challenges. Manufacturers must optimize device structures, materials, and manufacturing processes to achieve high performance, efficiency, and reliability. Market Trends Adoption of Wide Bandgap (WBG) Semiconductors: Wide bandgap materials such as silicon carbide (SiC) and gallium nitride (GaN) are gaining traction in the power semiconductor market due to their superior electrical properties compared to traditional silicon-based semiconductors. WBG semiconductors offer advantages like higher efficiency, faster switching speeds, and better thermal performance, making them ideal for applications in power electronics, EV charging systems, and renewable energy inverters. Smart Grid and Energy Storage Integration: The integration of smart grid technologies and energy storage solutions is driving innovation in the power semiconductor market. Smart grids leverage digital communication and advanced monitoring capabilities to optimize energy distribution, manage peak demand, and enhance grid stability. Power semiconductors play a crucial role in smart grid infrastructure for applications such as grid-tied inverters, energy storage systems, and power quality monitoring devices.

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Manmayi Raval

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based on the report, the product type is segmented into Silicon Carbide (SiC), Gallium Nitride (GaN) and others. SiC semiconductors are known for their high thermal conductivity, electric field breakdown strength, and ability to handle high currents. These properties make SiC devices suitable for high-temperature, high-power, and high-frequency applications. SiC devices exhibit lower energy loss during operation, enabling faster switching and improved overall efficiency. This is crucial for applications like inverters and battery chargers. GaN power semiconductors are recognized for their fast-switching capabilities and high efficiency, making them ideal for applications that require compact and lightweight solutions. Although GaN wafers are generally more expensive than sic, their performance in high-frequency applications, such as RF devices and power supplies, is unmatched. GaN devices enable significant size and weight reductions in power systems, which is advantageous for portable electronics and advanced communication systems. based on the report, the component Discrete, Module and Power Integrated Circuits. Discrete semiconductors are individual components that perform specific electronic functions. Common types include diodes, transistors (such as MOSFETs and IGBTs), thyristors, and rectifiers. These components are essential in controlling electric current and are widely used in consumer electronics, automotive applications, and industrial systems. The rise of electric vehicles (EVs) and hybrid electric vehicles (HEVs) is significantly increasing the demand for discrete semiconductors, particularly IGBTs and MOSFETs, which are critical for power management and efficiency in EV systems. The rise of electric vehicles (EVs) and hybrid electric vehicles (HEVs) is significantly increasing the demand for discrete semiconductors, particularly IGBTs and MOSFETs, which are critical for power management and efficiency in EV systems. Recent advancements in packaging technology have led to higher power density in modules, allowing for more compact designs that improve efficiency and reduce thermal management challenges. Power Integrated Circuits combine multiple functions into a single chip, integrating power management and control functions. They are widely used in applications such as smartphones, tablets, and other portable devices, where space and efficiency are paramount. As devices become smaller and more portable, the trend towards miniaturization in power ICs is accelerating, allowing for more compact designs without sacrificing performance. based on the report, the applications are segmented into IT and Telecommunication, Consumer Electronics, Automotive, Aerospace and Defence and Others. Power semiconductors in the IT and telecommunication sector are crucial for managing the power supply in devices such as servers, base stations, and networking equipment. The rapid growth of technologies like 5G, IoT, and cloud computing is increasing the demand for high-efficiency power management solutions to handle higher data transmission rates and power consumption. The focus on reducing power consumption in communication devices has led to the development of advanced power converters and efficient semiconductor devices, achieving efficiency levels exceeding 85%. In the consumer electronics segment, power semiconductors are essential for energy management in devices like smartphones, laptops, and home appliances. As consumer demand for energy-efficient and compact devices rises, so does the need for advanced power management solutions. The trend towards smaller, more efficient power ICs allows for sleeker designs in consumer devices while maintaining high performance. The automotive sector is witnessing a significant transformation with the rise of electric vehicles (EVs) and advanced driver-assistance systems (ADAS). Power semiconductors play a critical role in managing power distribution, battery management, and electric motor control. Power semiconductors designed for aerospace applications must withstand harsh environments, leading to innovations in materials and packaging technologies.

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APAC leads in the power semiconductor industry primarily due to its advanced manufacturing capabilities, substantial investments in research and development, and a comprehensive ecosystem that supports innovation and large-scale production. The Asia-Pacific (APAC) region's prominence in the power semiconductor industry is largely attributable to its sophisticated manufacturing infrastructure, significant R&D investments, and an extensive ecosystem that fosters both innovation and efficient production. Power semiconductors, which are critical for managing and converting electrical energy in various applications—from consumer electronics to industrial machinery and automotive systems—require advanced technology and high precision. APAC’s leadership in this sector is exemplified by the region's key players in countries such as Japan, South Korea, China, and Taiwan, each contributing uniquely to its dominant position. South Korea also plays a significant role in the power semiconductor market, driven by its strong industrial base and technological advancements. Major companies like Samsung Electronics and LG Electronics, while primarily known for their work in memory and display technologies, are also investing in power semiconductor technologies. South Korea’s emphasis on R&D and its capabilities in manufacturing advanced power devices contribute to its competitive edge. The APAC region's leadership is further strengthened by its well-established supply chain ecosystem, which includes a network of suppliers, equipment manufacturers, and technology partners. This comprehensive ecosystem enables efficient production processes, rapid development cycles, and the ability to meet global demand for power semiconductors. Additionally, supportive government policies and incentives across APAC countries create an environment conducive to growth and innovation in the power semiconductor industry. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Power Semiconductor Market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product Type: • Silicon Carbide (SiC) • Gallium Nitride (GaN) • Others By Component: • Discrete • Module • Power Integrated Circuits By Application: • IT and Telecommunication • Consumer Electronics • Automotive • Aerospace & Defence • Others The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Power Semiconductor industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.