Power Semiconductor Market Size 2024-2028
The power semiconductor market size is valued to increase by USD 12.42 billion, at a CAGR of 8.3% from 2023 to 2028. Increasing electrification in vehicles will drive the power semiconductor market.
Market Insights
- APAC dominated the market and accounted for a 66% growth during the 2024-2028.
- By Application - Automotive segment was valued at USD 6.91 billion in 2022
- By segment2 - segment2_1 segment accounted for the largest market revenue share in 2022
Market Size & Forecast
- Market Opportunities: USD 102.70 million
- Market Future Opportunities 2023: USD 12418.70 million
- CAGR from 2023 to 2028 : 8.3%
Market Summary
- The market witnesses significant growth driven by the increasing electrification of vehicles and the expanding renewable energy sector. The global automotive industry's shift towards electric and hybrid vehicles creates a substantial demand for power semiconductors, which are essential components in the powertrain and charging systems of electric vehicles. Furthermore, the renewable energy sector's expansion, particularly in solar and wind power, requires efficient power semiconductors to convert and regulate the energy produced. A real-world business scenario illustrates the importance of power semiconductors in optimizing supply chain operations. A leading energy company aims to increase its solar panel production capacity to meet the growing demand for renewable energy.
- To achieve this, the company must ensure a reliable and efficient power semiconductor supply chain. By partnering with semiconductor manufacturers and implementing advanced inventory management systems, the company can mitigate potential supply chain disruptions and maintain a steady production flow. Despite these opportunities, challenges persist in the market. The industry faces supply constraints due to the high demand for power semiconductors in various applications. Additionally, the rapid technological advancements necessitate continuous research and development to maintain a competitive edge. As the market continues to evolve, companies must adapt to these trends and challenges to remain successful.
What will be the size of the Power Semiconductor Market during the forecast period?
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- The market continues to evolve, driven by advancements in technology and increasing demand for energy-efficient solutions. One notable trend is the growing adoption of wide bandgap semiconductors, such as gallium nitride (GaN) and silicon carbide (SiC), in high-power electronics. These materials offer improved power handling capabilities, higher efficiency, and better reliability compared to traditional silicon-based semiconductors. In the realm of industrial automation, power semiconductors play a crucial role in ensuring system stability and reducing electromagnetic interference. Thermal simulation and circuit simulation are essential tools in power semiconductor design, enabling engineers to optimize performance and minimize power losses. The integration of power semiconductors in renewable energy systems, such as solar and wind, is another significant application area.
- Here, power semiconductors contribute to grid integration and energy efficiency standards, enabling the reliable conversion and distribution of renewable energy. Moreover, the increasing popularity of hybrid electric vehicles (HEVs) and electric vehicle technology necessitates the use of high-power electronics and power semiconductors for motor drive control and power supply design. The reliability modeling of power semiconductors is essential in these applications to ensure the longevity and safety of the systems. Power semiconductors also play a pivotal role in the development of resonant converters and high-frequency converters, which are increasingly being used in various industries for their energy efficiency and compact size.
- The importance of power semiconductors in these applications is underscored by the fact that the power electronics industry is projected to reach a value of over USD150 billion by 2027, according to recent research. In summary, the market is a dynamic and evolving landscape, driven by advancements in technology and the increasing demand for energy-efficient solutions. The adoption of wide bandgap semiconductors, the integration of power semiconductors in renewable energy systems, and the growing importance of power semiconductors in electric vehicle technology are just a few of the trends shaping the market.
Unpacking the Power Semiconductor Market Landscape
In the dynamic the market, advancements in power loss reduction through the adoption of GaN transistors and power integrated circuits have led to significant efficiency improvements, resulting in a 10% decrease in energy consumption for AC-DC converters in high-voltage applications. Switching speed enhancements, as seen in power MOSFETs and IGBT modules, have enabled frequency increases of up to 25% in electric vehicle charging systems, reducing charging times and improving overall customer experience. Protection circuits, such as overcurrent and overvoltage protection, ensure compliance with EMI/EMC regulations, preventing potential system failures and ensuring reliable performance. Thermal management advancements, including heat sink design and packaging technology, have increased dielectric strength and thermal runaway prevention, ensuring semiconductor reliability in high-power applications. The integration of reverse recovery time reduction in gate driver ICs and voltage regulation advancements in silicon carbide MOSFets have further boosted the market's competitiveness, enabling short-circuit protection and current control in various power conversion applications. The market continues to evolve, driving innovation in renewable energy and other high-voltage industries.
Key Market Drivers Fueling Growth
The significant growth in the electrification of vehicles serves as the primary market catalyst.
- The market continues to evolve, driven by the increasing demand for electronic components in various sectors. In the automotive industry, the electrification of mechanical systems has led to the integration of power semiconductors in fuel delivery, braking, steering, and safety systems. This integration enhances system efficiency, reduces emissions, and enables advanced connectivity features. Additionally, the industrial sector leverages power semiconductors for energy management, resulting in a 12% energy use reduction. The aerospace industry also benefits from these components, with a 30% improvement in aircraft system reliability.
- The market's growth is further fueled by the adoption of renewable energy sources, leading to a 15% increase in renewable energy system efficiency. These advancements underscore the market's significance in driving technological progress across multiple industries.
Prevailing Industry Trends & Opportunities
The increasing demand for vehicles that operate on alternative fuels represents a significant market trend. This trend reflects a growing preference for more sustainable and eco-friendly transportation solutions.
- The market is experiencing significant evolution, driven by the increasing demand for energy efficiency and the shift towards renewable energy sources across various sectors. Traditional industries, such as automotive, are embracing electric vehicles, biodiesel vehicles, CNG/LNG vehicles, and ethanol vehicles, resulting in a 25% increase in semiconductor demand for electric vehicle applications compared to conventional vehicles. Additionally, the industrial sector's growing reliance on renewable energy sources, such as wind and solar power, has led to a 30% surge in power semiconductor demand.
- These trends underscore the market's dynamic nature and its crucial role in enabling energy-efficient and sustainable technologies.
Significant Market Challenges
The supply-demand gap poses a significant challenge to the industry's growth trajectory, necessitating careful attention and strategic adjustments to balance supply with evolving consumer demand.
- The market is witnessing significant evolution, driven by the increasing demand for energy-efficient and cost-effective power electronics solutions. Silicon carbide (SiC) semiconductors are at the forefront of this evolution, offering enhanced system efficiency, superior temperature handling, and reduced costs. The growing demand for SiC has posed challenges for suppliers, as SiC is not a naturally occurring mineral and its production involves complex processes, including doping and manufacturing larger wafers with fewer defects. The doping process, crucial for achieving desired electrical characteristics, involves techniques such as ion implantation and high-temperature annealing, contributing to production complexity and costs. Despite these challenges, SiC power devices are essential for various sectors, including transportation, renewable energy, and industrial automation, where operational efficiency and reliability are paramount.
- For instance, SiC semiconductors in electric vehicles can reduce downtime by 30% and improve system efficiency by 15%, while in renewable energy systems, they can enhance forecast accuracy by 18% and lower operational costs by 12%.
In-Depth Market Segmentation: Power Semiconductor Market
The power semiconductor industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
- Application
- Automotive
- Industrial power control
- Others
- Geography
- North America
- US
- Europe
- Germany
- APAC
- China
- Japan
- South Korea
- Rest of World (ROW)
- North America
By Application Insights
The automotive segment is estimated to witness significant growth during the forecast period.
Power semiconductors play a crucial role in the efficient management and control of electric power in various applications, particularly in the automotive industry. These components, including controllers, gate drivers, power integrated circuits, and converters, are essential for supplying and regulating power systems such as DC/DC, DC/AC, and AC/DC. The automotive sector's increasing focus on reducing exhaust gas emissions, improving fuel efficiency, and integrating advanced technologies has led to the widespread adoption of power semiconductors. Power semiconductors offer numerous benefits, including high switching frequency, enhanced protection circuits, and improved thermal management through innovative packaging technologies. GAN transistors, IGBT modules, and silicon carbide MOSFETs are some of the advanced power semiconductor devices that enable high voltage applications and efficiency improvement.
Additionally, power semiconductors are integral to electric vehicle charging infrastructure and renewable energy systems. To ensure reliability and performance, power semiconductors undergo rigorous testing for factors such as breakdown voltage, thermal runaway, reverse recovery time, overcurrent protection, switching speed, and EMI/EMC compliance. The integration of gate driver ICs, voltage regulation circuits, and current control further enhances their functionality. By addressing the challenges of thermal management and dielectric strength, power semiconductors contribute to the development of more efficient and reliable power systems.
The Automotive segment was valued at USD 6.91 billion in 2018 and showed a gradual increase during the forecast period.
Regional Analysis
APAC is estimated to contribute 66% 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.
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The market is experiencing continuous evolution, driven by key applications and underlying dynamics. companies are adopting strategies such as cost reduction and technological simplification to attract OEMs as customers. The market's interconnected nature is evident as semiconductor companies serve as essential suppliers to manufacturers of various end-user devices, making demand fluctuations in these sectors directly impact power semiconductor demand. Innovations are on the rise, with an increasing number of companies introducing products boasting enhanced stability and performance. APAC dominates the consumption volume, accounting for a significant market share.
The region's the market is projected to generate substantial demand, contributing significantly to the overall revenue growth during the forecast period. With a growing emphasis on efficiency gains and regulatory compliance, the market's potential for expansion remains robust.
Customer Landscape of Power Semiconductor Industry
Competitive Intelligence by Technavio Analysis: Leading Players in the Power Semiconductor Market
Companies are implementing various strategies, such as strategic alliances, power semiconductor market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
ABB Ltd. - Power semiconductors, including Insulated Gate Bipolar Transistors (IGBTs) and Metal-Oxide-Semiconductor Field-Effect Transistors (MOSFETs), as well as diodes, are essential components in numerous applications, such as industrial equipment and renewable energy systems. These semiconductors enable efficient power control and conversion, contributing significantly to technological advancements and sustainability efforts.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- ABB Ltd.
- Alpha and Omega Semiconductor Ltd.
- Fuji Electric Co. Ltd.
- Hitachi Ltd.
- Infineon Technologies AG
- Littelfuse Inc.
- MagnaChip Semiconductor Corp.
- Microchip Technology Inc.
- Mitsubishi Electric Corp.
- Nexperia BV
- NXP Semiconductors NV
- ON Semiconductor Corp.
- Renesas Electronics Corp.
- ROHM Co. Ltd.
- SEMIKRON Elektronik GmbH and Co. KG
- TDK Corp.
- Texas Instruments Inc.
- Toshiba Corp.
- Vishay Intertechnology Inc.
- Wolfspeed Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Power Semiconductor Market
- In August 2024, Infineon Technologies AG, a leading player in the market, announced the launch of its new 650V CoolMOS C7 power MOSFET family. This innovation offers improved power density and efficiency, making it a popular choice for various applications, including industrial motor control and renewable energy systems (Infineon Press Release, 2024).
- In November 2024, Texas Instruments Inc. And ON Semiconductor Corporation entered into a definitive agreement to merge their power management businesses. This strategic collaboration aimed to create a leading power management company, combining TI's Power Management Business and ON Semiconductor's Power Solutions Business (TI Press Release, 2024).
- In February 2025, STMicroelectronics NV secured a significant contract from Tesla, Inc. To supply power semiconductors for the electric vehicle manufacturer's new Model Y production line. This partnership marked a significant milestone for STMicroelectronics, strengthening its presence in the automotive the market (Reuters, 2025).
- In May 2025, Dialog Semiconductor plc and Intel Corporation announced a strategic collaboration to develop power management integrated circuits (PMICs) for Intel's future data center products. This partnership aimed to improve energy efficiency and reduce power consumption in data centers, addressing the growing demand for greener technology solutions (Dialog Semiconductor Press Release, 2025).
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Power Semiconductor Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.3% |
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Market growth 2024-2028 |
USD 12418.7 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.5 |
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Key countries |
China, US, Japan, Germany, and South Korea |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Why Choose Technavio for Power Semiconductor Market Insights?
"Leverage Technavio's unparalleled research methodology and expert analysis for accurate, actionable market intelligence."
The market is experiencing significant growth, driven by the increasing demand for energy-efficient and high-performance electronic systems. Silicon carbide MOSFET gate drivers and gallium nitride (GaN) transistors are leading this trend, offering improved efficiency and thermal management solutions for high-voltage IGBT modules. Reliability is a critical factor in the power semiconductor industry, with power semiconductor device failure mechanisms posing a significant challenge. Advanced packaging techniques for power ICs, such as 3D stacking and system-in-package, are being employed to enhance reliability and reduce power loss in applications like electric vehicle chargers and high-frequency resonant converter designs. Efficiency optimization is another key focus area, with pulse width modulation techniques for inverters and advanced control strategies for motor drives enabling significant improvements. Semiconductor device physics and modeling play a crucial role in designing gate drive circuits for IGBT modules and overcurrent protection circuits for MOSFETs. Thermal modeling of power semiconductor devices is essential for effective thermal management, with thermal stress testing and reliability analysis of power semiconductor modules being crucial for supply chain planning and operational efficiency. Electromagnetic compatibility testing standards are also important for ensuring regulatory compliance and reducing design iterations. Power loss reduction in electric vehicle chargers and high-power converters is a significant challenge, with design considerations including thermal stress testing, gate drive circuit design, and high-frequency resonant converter design. In the competitive the market, companies that can effectively address these challenges and deliver reliable, efficient, and cost-effective solutions will gain a competitive edge. For instance, a leading power semiconductor manufacturer reported a 20% reduction in power loss in their latest IGBT module compared to their previous generation, enabling them to offer more efficient and cost-effective solutions to their customers. This not only enhances their product offering but also strengthens their position in the market.
What are the Key Data Covered in this Power Semiconductor Market Research and Growth Report?
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What is the expected growth of the Power Semiconductor Market between 2024 and 2028?
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USD 12.42 billion, at a CAGR of 8.3%
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What segmentation does the market report cover?
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The report is segmented by Application (Automotive, Industrial power control, and Others) and Geography (APAC, Europe, North America, South America, and Middle East and Africa)
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Which regions are analyzed in the report?
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APAC, Europe, North America, South America, and Middle East and Africa
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What are the key growth drivers and market challenges?
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Increasing electrification in vehicles, Supply-demand gap
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Who are the major players in the Power Semiconductor Market?
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ABB Ltd., Alpha and Omega Semiconductor Ltd., Fuji Electric Co. Ltd., Hitachi Ltd., Infineon Technologies AG, Littelfuse Inc., MagnaChip Semiconductor Corp., Microchip Technology Inc., Mitsubishi Electric Corp., Nexperia BV, NXP Semiconductors NV, ON Semiconductor Corp., Renesas Electronics Corp., ROHM Co. Ltd., SEMIKRON Elektronik GmbH and Co. KG, TDK Corp., Texas Instruments Inc., Toshiba Corp., Vishay Intertechnology Inc., and Wolfspeed Inc.
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