Power Semiconductor Market Size, Share, and Trends 2024 to 2034

Power Semiconductor Market Size to Worth USD 81.70 Bn by 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.

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Power Semiconductor Market Key Takeaways

• Asia Pacific led the power semiconductor market with the highest share of 41% in 2023.
• By region, North America is expected to attain the fastest rate of growth during the forecast period.
• By component, the power integrated circuits segment held the largest share of the market in 2023.
• By component, the discrete segment is estimated to exhibit the fastest growth rate during the forecast period.
• By material, the silicon/germanium segment dominated the market in 2023.
• By material, the silicon carbide (Sic) segment attained the fastest growth rate during the forecast period.
• By end-user industry, the consumer electronics segment dominated the market in 2023.
• By end-user industry, the automotive segment is expected to grow with the highest CAGR during the forecast period.

Asia Pacific Power Semiconductor Market Size and Growth 2024 to 2034

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.

• In February 2024, Renesas Electronics Corporation launched the RZ Family of microprocessors (MPUs) in Japan. RZ Family of microprocessors (MPUs) are power semiconductor devices that find applications in the robotics industry.
• In February 2024, Murata launched three power product solutions. The trio of products includes two step-down DC-DC converters and a new charge pump IC to solve the problems of the power electronics industry.

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.

• In July 2024, Boeing made an announcement stating that it would acquire Spirit AeroSystems. This acquisition is made to aim at developing the overall aerospace sector across the North American region.
• In January 2024, Tesla launched the all-new Model 3 in North America. This vehicle supports level 2 autonomy and comes with an electric drivetrain that claims a driving range of up to 341 miles on a single charge.
• In August 2022, the U.S. government announced that it would invest around US$ 50 billion in developing the semiconductor industry across the country.
• In March 2024, Arctic Semiconductor launched SilverWings. SilverWings is a low-power advanced transceiver chip for designers to implement high-performance 5G communications in various wireless devices, such as satellite communications systems, radios, repeaters, and others.

Market Overview

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.

• According to the annual report of Mitsubishi Electric Corporation (2023), the company announced doubling an investment of 130 billion yen to 260 billion yen for increasing the production of silicon carbide (SiC) power semiconductors.

Power Semiconductor Market Growth Factors

• The growing developments in the technological sector have led to power semiconductor market growth.
• Government initiatives to strengthen the semiconductor industry around the world.
• There is an upsurge in the number of startup companies that deal in power semiconductors across the world.
• There are growing investments from public and private sector entities to develop the power semiconductor industry.
• The rising demand for power semiconductors for industrial automation processes.
• The development in the fabrication process is a major factor that propels industrial growth.
• The advancements in technologies for developing the power semiconductor industry.
• There is a growing trend for energy-efficient devices for numerous applications in various industries.
• The demand for power integrated circuits such as linear regulators, BMICs, multiple PMICs, and other circuits boosts the market growth.
• The increasing application of power semiconductors in the telecommunication sector is driving the growth of the power semiconductor market.

Market Scope

Market Dynamics

Driver

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.

• In May 2023, Telstra launched a new industrial automation system. This system is used in several end-user industries, such as construction, mining, supply chain, manufacturing, and others, and it helps these industries become smarter, cleaner, safer, more productive, and more secure.
• In July 2022, Lattice Semiconductor Corp launched Certus-NX FPGA devices. The new FPGA devices, including the Certus-NX-28 and Certus-NX-09, have been found to be applicable to industrial automation systems.

Restraint

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.

Opportunity

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.

• In July 2023, Toshiba Electronic Devices & Storage Corporation launched the all new ‘TRSxxx65H’ series. TRSxxx65H series is the latest gen-silicon carbide (SiC) Schottky barrier diodes (SBDs) that find applications in several industrial equipment.

Component Insights

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.

• In June 2023, Nordic Semiconductor launched nPM1300. nPM1300 is a power management IC with applications in several end-users, including battery-operated applications.

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.

• In November 2023, Nexperia launched two discrete power semiconductor devices of 1200V in 3-pin TO-247 packaging with RDS (on) values of 40mΩ and 80mΩ. The two discrete semiconductor devices are named ‘NSF040120L3A0’ and ‘NSF080120L3A0’ that find applications in electric vehicle (EV) charging piles along with inverters for solar and energy storage systems (ESS).

Material Insights

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.

• In January 2024, Tower Semiconductor announced a collaboration with Renesas. This collaboration is done to use Tower’s high-performance SiGe BiCMOS technology for manufacturing SiGe-based beamforming ICs.

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.

• In July 2024, Power Master Semiconductor launched the second generation of the 1200V eSiC MOSFET. The second generation of the 1200V eSiC MOSFET is a silicon carbide-based gate driver IC that provides several features, such as higher efficiency, robust reliability, high power density, and ruggedness in various end-user applications.

End-User Industry Insights

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.

• In January 2024, Asus launched the all-new ROG Phone 8. This gaming phone features 18 GB RAM, Qualcomm Snapdragon 8 Gen 1, 512 GB storage, and a 6.78-inch AMOLED screen with a 144 hertz refresh rate. It also comes with several features, such as AirTrigger 5, a GameCool 5 cooling system, and dual front-facing speakers, which enhance the overall gaming experience.
• In August 2023, ROHM launched the all-new ‘BM3G0xxMUV-LB’ series. BM3G0xxMUV-LB is a series of EcoGaN power-stage ICs that are built with 650V gallium nitride (GaN) high-electron-mobility transistors (HEMTs) along with a gate driver that finds applications in consumer electronics.

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.

• In March 2024, BMW launched the all-electric‘ iX xDrive50’. This new vehicle provides superior features to ensure a smoother driving experience. It comes with standard adaptive 2-axle air suspension for a comfortable ride and a claimed driving range of around 635 km.
• In January 2024, Mitsubishi Electric Corporation will introduce six new J3-Series power semiconductor modules. These new power semiconductors will be used for various electric vehicles (EVs) that feature either an RC-IGBT (Si) or a silicon carbide metal-oxide-semiconductor field-effect transistor (SiC-MOSFET).

Power Semiconductor Market Companies

• Infineon Technologies AG
• Texas Instruments Inc.
• United Silicon Carbide Inc.
• ON Semiconductor Corporation
• Renesas Electronic Corporation
• Broadcom Inc.
• ST Microelectronics NV
• NXP Semiconductor Inc.
• Toshiba Corporation
• Fuji Electric Co. Ltd
• Semikron International
• Hitachi America, Ltd.
• Wolfspeed Inc
• ROHM Co Ltd
• Vishay Intertechnology Inc.
• Nexperia BV
• Mitsubishi Electric Corporation
• Alpha & Omega Semiconductor
• Magnachip Semiconductor Corp
• Maxpower Semiconductor
• Power Semiconductors, Inc
• Microchip Technology Inc
• Littlefuse Inc.

Recent Developments

• In May 2024, Polar Semiconductor announced the inauguration of a new manufacturing facility in Bloomington, Minnesota, U.S. This construction will cost around US$525 million and will use innovative technologies to serve new customers across the country.
• In May 2024, Infineon launched CoolSiC™ MOSFETs 400 V. CoolSiC™ MOSFETs 400 V is used for solar and energy storage systems (ESS), inverter motor control, industrial auxiliary power supplies (SMPS), and other applications.
• In April 2024, Fuji Electric launched a power semiconductor module based on a compact insulated-gate bipolar transistor (IGBT) designed for large-capacity industrial power converters with a voltage of 2,300 V.
• In April 2024, Alif Semiconductor launched Balletto. Balletto is an ultra-small WLCSP package that features hardware optimization for AI/ML workloads in space-constrained devices.
• In January 2024, Omega Semiconductor Limited announced a partnership with Alpha. This partnership is aimed to launch ‘AONA66916’, which is a 100V Power MOSFET for telecommunication applications.
• In January 2024, Texas Instruments launched AWR2544 77GHz. AWR2544 77GHz is a new semiconductor millimeter-wave radar sensor chip that improves automotive safety and enhances the ADAS landscape.

Segments Covered in the Report

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

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa