May 2024
Power Semiconductor Market (By Component: Discrete, Module, Power Integrated Circuits; By Material: Gallium Nitride (Gann), Silicon/Germanium, Silicon Carbide (Sic); By End-user Industry: Automotive, Consumer Electronics, Military and Aerospace Power, IT and Telecommunication, Industrial, Other End-user Industries) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2034
The global power semiconductor market size was USD 50.30 billion in 2023, calculated at USD 52.57 billion in 2024 and is expected to reach around USD 81.70 billion by 2034, expanding at a CAGR of 4.50% from 2024 to 2034. The rising demand for home appliances across the world is driving the growth of the power semiconductor market.
The Asia Pacific power semiconductor market size was exhibited at USD 20.62 billion in 2023 and is projected to be worth around USD 33.58 billion by 2034, poised to grow at a CAGR of 4.53% from 2024 to 2034.
Asia-Pacific held the largest share of the power semiconductor market in 2023. The market's growth in this region is mainly driven by rising technological advancements in industries and several government initiatives to develop the semiconductor industry in countries such as India, China, Japan, South Korea, and others. According to data published by WEF (World Economic Forum), the government of Japan planned to invest around US$ 13 billion in developing semiconductors across the country. The growing developments in the electronics industries, along with the rising advancements in the robotics industry in countries such as Japan, China, South Korea, and others, have helped the power semiconductor industry to grow in this region.
Moreover, the presence of several local market players in power semiconductors, such as Toshiba Corporation, Fuji Electric Co. Ltd, Mitsubishi Electric Corporation, Murata, and some others, are continuously engaged in developing high-grade power semiconductors for various industries and adopting several strategies such as partnerships, launches, and business expansions, which in turn drives the growth of the power semiconductor market in this region.
North America is expected to be the fastest-growing region during the forecast period. Rising developments in the aerospace industry, including the presence of several market players such as Boeing, Northrop Grumman, Lockheed Martin Corporation, SpaceX, and others, along with growing advancements in the military and defense industries, have increased the demand for power semiconductors across this region, thereby boosting the market growth.
Moreover, the presence of EV manufacturers such as Tesla, Rivian, General Motors, and some others has increased the demand for power semiconductors for managing EV operations along with the rising government initiatives in Canada and the U.S. for developing the semiconductor industry that boosts the market growth in this region.
Additionally, the presence of various local companies of power semiconductors such as Alpha & Omega Semiconductor, Texas Instruments Inc., Power Semiconductors, Inc., Arctic Semiconductor, and some others are offering high-grade power semiconductors across the North American region, in turn, is expected to drive the growth of the power semiconductor market in this region.
The power semiconductor market is an important industry that deals in manufacturing and delivering power semiconductors across the world. The growing developments in advanced materials, along with the rising advancements in fabrication technology, are driving the growth of the market. This industry comprises several components that mainly comprise discrete components, module components, and power integrated circuits. There are several materials used in this industry, including gallium nitride (Gann), silicon/germanium, and silicon carbide (Sic). It includes several end-user industries, including automotive, consumer electronics, military and aerospace, industrial, and some others. The power semiconductor industry is expected to grow exponentially with the growth in the electronics and automotive industries.
Report Coverage | Details |
Market Size by 2034 | USD 81.70 Billion |
Market Size in 2023 | USD 50.30 Billion |
Market Size in 2024 | USD 52.57 Billion |
Market Growth Rate from 2024 to 2034 | CAGR of 4.50% |
Largest Market | Asia Pacific |
Base Year | 2023 |
Forecast Period | 2024 to 2034 |
Segments Covered | Component, Material, End-user Industry, and Regions |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Rising demand for industrial automation
The developments in technologies and advancements in factory machinery have changed the landscape of industries in recent times. The demand for automation technologies in industries has increased as they increase the efficiency of workers and reduce errors in production methodologies. Moreover, they increase productivity, coupled with improving product quality and safety in factories. The industrial automation system requires several components, such as sensors, actuators, controllers, and some others that are embedded with power semiconductors. Thus, with the growing demand for automation systems in industries, the demand for power semiconductors increases, which is expected to drive the growth of the power semiconductor market during the forecast period.
High cost along with complexities
The applications of power semiconductors have increased rapidly with the rising demand from various end-user industries. Although power semiconductors are used frequently, there are several problems associated with them. Firstly, the prices of raw materials required to manufacture power semiconductors are increasing day by day. Secondly, there are several complexities in power semiconductors, such as cycling resistance, less thermodynamic resistance, environmental exposures, and some others. Thus, the above-mentioned problems associated with it are expected to restrain the growth of the power semiconductor market during the forecast period.
Increasing application of Schottky barrier diodes to reshape the future
The demand for power semiconductors has increased rapidly across the world. The Schottky barrier diodes have gained traction recently due to advancements in their development processes, along with the rising application of these diodes in various applications such as solar cells, transistors, and others. Thus, growing applications of Schottky barrier diodes in numerous applications are likely to create ample growth opportunities for the market players in the upcoming years.
The power integrated circuits (PIC) segment dominated the market in 2023. The growing demand for power integrated circuits (PIC) to replace the existing bulky components such as capacitors and transformers drives the market growth. Also, the rising advantages of power integrated circuits, such as low power consumption, high reliability, small size, and some others, have boosted the market growth. Moreover, the increasing application of power integrated circuits (PIC) in switch mode power supplies, display drivers, electronic ballasts for fluorescent lamps, motor controllers, automotive electronics, telecommunication circuits, and other applications is expected to boost the growth of the power semiconductor market during the forecast period.
The discrete segment is expected to grow with the fastest CAGR during the forecast period. The growing applications of discrete power semiconductors in the military for manufacturing complex military control systems, along with their use in the aerospace sector for the production of landing gear and defensive aids systems (DAS), have driven the market growth. Also, there are several advantages of discrete power semiconductors, such as improved energy efficiency, minimizing power losses, reliability in operations, and some others that boost market growth.
Moreover, the upsurge in the use of discrete power semiconductors in applications that require high-frequency switching, such as motor drives, power supplies, converters, and others in end-user industries such as transportation, industrial, telecom, networking, medical, IoT, and others, is expected to foster the growth of the power semiconductor market during the forecast period.
The silicon/germanium segment held a dominant share of the market in 2023. The growing use of silicon/germanium-based power semiconductors in various applications such as fiber optic cables, high-speed computer chips, infrared radiation, and others has driven market growth. Also, the rising applications of silicon power semiconductors in the manufacturing of personal computers, smartphones, digital cameras, televisions, IC cards, and others boost the market growth to some extent. Moreover, several advantages of silicon/germanium-based power semiconductors, such as high thermal stability, superior speed, and high-frequency performance in wireless systems, make them suitable for use in several end-user industries, including electronics, telecommunication, aerospace, and some others. These are likely to drive the growth of the power semiconductor market during the forecast period.
The silicon carbide (Sic) segment is expected to attain the fastest growth during the forecast period. The rising use of silicon carbide (Sic)-based power semiconductors in several end-user applications such as seal rings, electronic circuitry, industrial heat exchangers, diesel engines, gas turbines, high-temperature conversion systems, and some others is expected to boost the market growth. Also, there are several advantages of silicon carbide (Sic)-based power semiconductors, such as superior efficiency, high reliability, high-grade electron mobility, and low power losses, which are likely to drive the market growth.
Moreover, the growing applications of silicon carbide (Sic) power semiconductor in several end-user industries such as automotive, electronics, EV charging, aircraft manufacturing, transportation, energy and utilities, defense, IT, and telecommunication is expected to propel the growth of the power semiconductor market during the forecast period.
The consumer electronics segment dominated the market in 2023. The rising applications of power semiconductor devices such as diodes, thyristors, transistors, and sensors in electronic devices due to several functions such as rectification, amplification, and switching are driving the market growth. Moreover, the rising demand for smartphones and tablets around the globe has increased the demand for power semiconductors, which in turn is expected to boost the growth of the power semiconductor market during the forecast period.
The automotive segment is expected to grow with the fastest CAGR during the forecast period. The rising application of power semiconductors for analyzing engine temperatures and measuring pressure sensor data is driving market growth. Also, the growing usage of power semiconductors for controlling steering, HEV main inverter, central body control, braking system, seat control, and some others boosts the market growth to some extent. Moreover, the increasing demand for electric vehicles (EVs) around the world has increased the demand for power semiconductors to convert current, which is likely to drive the growth of the power semiconductor market during the forecast period.
Segments Covered in the Report
By Component
By Material
By End-user Industry
By Geography
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