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The IGBT market is estimated to grow at a CAGR of 12.3% between 2022 and 2027. The size of the market is forecast to increase by USD 7,292.66 million. The growth of the market depends on several factors, including the increasing government support for EVs or HEVs, high demand for energy-efficient electronic products, and growth in HVDC lines.
This report extensively covers market segmentation by product (IGBT modules and discrete IGBTs), application (EV or HEVs, industrial, motor drives, consumer appliance, and others), and geography (APAC, Europe, North America, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global IGBT market as a part of the global semiconductor market, within the overall global semiconductors and semiconductor equipment market. The parent market, the global semiconductor market covers manufacturers of semiconductors and related products. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
High demand for energy-efficient electronic products is notably driving the market growth, although factors such as rising competition from wide bandgap (WBG) semiconductor materials may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key IGBT Market Driver
High demand for energy-efficient electronic products is notably driving the market growth. Governments across the world are deploying policies such as energy performance labels and energy performance standards to ensure environmental safety, general awareness programs, reduced consumption of energy, and lower utility bills for consumers. These policies and the rise in the cost of energy have compelled manufacturers to take measures to develop energy-efficient products.
The efficient use of energy is a crucial approach to achieving a sustainable society by minimizing carbon emissions and reducing electrical consumption in areas such as transportation, household appliance, electric power, and industrial equipment. The electrical efficiency of products can reduce power bills by approximately one-fifth. This has led to increasing demand for power electronic products such as IGBTs. IGBTs provide stable electric power to applications, due to which power distribution to products can be controlled as per requirement. This ultimately leads to higher efficiency, higher performance, and extended life of the device. Such factors are expected to increase the demand for IGBT. Thus propelling the market in focus during the forecast period.
Key IGBT Market Trend
Functional consolidation of semiconductor devices is a major trend in the market. The trend toward digitalization can be seen in industries that push digital control of power to make inverters, drive controls, and other electrical equipment compatible with the Industrial Internet. As a result, the integration of other semiconductor components, such as sensors, ICs, and microcontrollers, with IGBT devices can happen for efficient and easier control.
The consolidation of semiconductor devices can lead to improvements in performance and advances in semiconductor devices, including IGBTs. The integration of these devices will provide a lot of insights in the form of data, which can be analyzed to detect potential key areas for improvements in applications as well as in semiconductor devices. This will enhance the performance of semiconductor devices such as IGBTs, and these devices can be made more useful and efficient by addressing issues arising from analyzed data. This will make IGBTs more reliable devices as the efficiency and reliability of the entire circuit depend considerably on the IGBT's performance, and this possible combination of technologies can ensure a smooth flow of operations. Such benefits are expected to propel the growth of the market in focus during the forecast period.
Key IGBT Market Challenge
Rising competition from wide bandgap (WBG) semiconductor materials is a major challenge in the IGBT market. WBG semiconductors materials allow devices to perform at high voltage, high temperature, and higher switching frequencies. WBG materials such as silicon carbide (SiC) and gallium nitride (GaN) have good thermal conductivity, and these can be exploited in power semiconductor devices. These are considered more efficient than the existing silicon devices because operating at high temperatures eliminates the need for outer cooling, and higher switching frequencies result in lesser noise. In addition, these materials can achieve a significant reduction in switching loss. The ampere capacity of SiC is superior to silicon. The use of these materials will significantly improve energy efficiency and will reduce system costs, which cannot be attained while using silicon-based IGBT devices.
SiC-based devices such as SiC MOSFET and SiC diodes, which are used in high-end power supply, are available, whereas GaN-based devices like GaN FET and GaN devices at 600V are available, but the use of GaN in appliances is still in experimental stages. SiC and GaN devices pose a threat to IGBT devices operating at a higher voltage as OEMs want compact, faster, and efficient devices, which is possible to achieve if these materials are explored further. However, IGBTs are less expensive than GaN or SiC devices and are comparatively easier to manufacture. Despite that, Industries that prefer precision over cost would like to move toward SiC and GaN-based devices. Such factors are hampering the focused market growth.
Key IGBT Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global IGBT Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Hitachi - The company operates under multiple segments including IT, and energy among others, with a high focus on IT.? The company under this segment?offers products and services such as consulting, cloud systems, software, and others. The company's key offerings include?IGBT.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the IGBT modules segment will be significant during the forecast period. The IGBT modules have a dominant share in the global IGBT market because IGBT modules are more expensive than discrete IGBTs. A single IGBT module consists of several discrete IGBTs, making them more compatible with high power.
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The IGBT module segment shows a gradual increase in the market share of USD 5,079.80 million in 2017 and continue to grow by 2021. Since the demand for high-power devices is growing at a rapid pace, the demand for IGBT modules is also expected to rise proportionally. Furthermore, applications like EV/HEVs and wind farms require IGBT devices with high power capability, which is often difficult to manage for discrete IGBT. Therefore, there are high prospects for future growth in the IGBT modules market compared with discrete IGBTs. The YoY growth will be high during the forecast period due to the increasing demand for high power density requirements globally. As governments across the globe adopt energy-saving measures, the demand for IGBT modules will increase.
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APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The APAC region is expected to grow at a strong rate during the forecast period due to the fast pace of industrialization in developing countries of the region and the increasing adoption of renewable energy and EVs. In addition, the demand for energy-efficient solutions, both on the industrial and consumer front, is the other reason for the high share of the region in the global IGBT market. The major contributors to the IGBT market are China and Japan because vendors from around the globe are dependent on the supply of IGBT products.
China will be the leading country during the forecast period because of the high adoption of EV/HEVs and renewable energy in the country. Additionally, the country has been promoting EV purchases by exempting purchase taxes. China is also the global leader in terms of renewable energy installation, both solar PV and wind installations. Japan is another major market for IGBTs. The country is the global leader in IGBT production and has the presence of several major IGBT manufacturers. EVs are widely popular in the country, which drives the IGBT market in Japan. The country became one of the early adopters of EVs because of its high industrialization rate, dense population, and shortage of fossil fuels. Japan continues to be one of the pioneers in the development of EVs, thus driving the growth of the IGBT market in the region during the forecast period.
The outbreak COVID-19 pandemic slowed down the growth rate of the regional IGBT market owing to disruptions in supply chains in 2020. However, with the implementation of large-scale COVID-19 vaccination drives in 2021, operations at manufacturing sites for IGBTs rebounded slowly. In addition, the demand for EVs from the thriving e-commerce sector in India is rising owing to the need for cost-efficient logistics for delivery services. These factors are anticipated to increase the demand for IGBTs, which, in turn, is expected to propel the growth of the regional IGBT market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Product (IGBT modules and Discrete IGBTs), Application (EV or HEVs, Industrial, Motor drives, Consumer appliances, and Others), and Geography (APAC, Europe, North America, South America, and Middle East and Africa).
IGBT Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.3% |
Market growth 2023-2027 |
USD 7,292.66 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.07 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, Japan, South Korea, and India |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Danfoss AS, Hitachi Ltd., Infineon Technologies AG, Jilin Sino Microelectronics Co. Ltd., Littelfuse Inc., MagnaChip Semiconductor Corp., Mitsubishi Electric Corp., Sanken Electric Co Ltd, SEMIKRON Elektronik GmbH & Co. KG, STARPOWER SEMICONDUCTOR Ltd, STMicroelectronics NV, Toshiba Corp., Fuji Electric Co. Ltd., IXYS Corp, Microchip Technology Inc., NXP Semiconductors NV, ON Semiconductor Corp, Renesas Electronics Corp., and ROHM Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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