Power module packaging material market will double to $4.3 billion in 2029.
OUTLINE
The cost of materials for power module packaging represents about 30 % of the total power module cost.
The packaging costs depend on the packaging materials, such as die-attach and ceramic substrate materials, and the package size.
The power module packaging material business will account for nearly $4.3B in 2029.
Supply chain: The leading power module packaging solution suppliers are mainly located in the US and Europe. The increase in Asian power module packaging material players will put cost pressure on European players.
Today, power modules are a crucial component of power electronics systems. Power module revenue will grow from $8 billion in 2023 to $16 billion by 2029, announces Yole Group. The market research and strategy consulting company announces a 12.1% CAGR between 2023 and 2029. The power module packaging costs fully depend on the packaging materials, such as die-attach and ceramic substrate materials, and the package size. In 2023, it represented a $2.3 billion market in 2023, with the cost of materials for power module packaging representing about 30 % of the total power module cost.Materials cost will have an 11% CAGR between 2023 and 2029, and the market should reach $4.3 billion by 2029. The largest power module packaging material segment is the baseplate, which will be worth $1,070 million by 2029, against $651 million in 2023. Its CAGR will be 9% between 2023 and 2029, closely followed by the ceramic substrate market segment.
Shalu Agarwal, PhD
Senior Technology & Market Analyst, Power Electronics & Battery at Yole Group
“Today, continuous improvements in module materials and packaging design are needed to take advantage of the benefits of SiC technology. However, the development is simultaneously focused on reducing the costs of power modules through “good enough” performance and reliability.”
In this context, the market research and strategy consulting company Yole Group releases its market & technology report, Status of the Power Module Packaging Industry 2024. This 2024 update provides an overview of the main applications, market drivers, and trends of power electronics devices. It also discusses the impact of application trends on package design and packaging materials. In this new report, Yole Group’s analysts offer a deep dive into the packaging technologies and the major trends that will shape tomorrow’s power electronics industry. In addition, they detail the power module supply chain, analyze the evolution of business models, and discuss synergies with other industries and the numerous opportunities for newcomers. The xEV market segment is included in this 2024 report, with a special focus on SiC-based power modules and intelligent power modules.
“The power module packaging supply chain is continually being reshaped, with new companies entering power module manufacturing,” asserts Shalu Agarwal from Yole Group. “These companies are expanding their product portfolios and forming new partnerships and M&As. In this dynamic context, the growth of Asian packaging material players puts intense cost pressure on European players.”
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june 2021
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Indeed, the comprehensive requirements of higher efficiency, robustness, reliability, weight, and volume of power modules for xEV applications offer an opportunity for both power module packaging companies and suppliers of packaging materials. These players continuously improve their market position by providing innovative solutions:
The leading power module suppliers are in Europe and Japan, with Infineon Technologies, Semikron Danfoss, Fuji Electric, and Mitsubishi Electric.
Meanwhile, the leading power module packaging material suppliers are primarily located in the US, where Yole Group has identified Rogers Corporation, MacDermid Alpha, 3M, Dow, and Indium Corporation, in Europe with Heraeus, Henkel, for example, and in Japan, with FTH (formally known as Ferrotec), Proterial, Kyocera, Dowa, Denka, Tanaka, Resonac, and NGK Insulators.
The geographic expansion of packaging material providers is increasing. Japanese players have a powerful presence in materials but sometimes need help accessing other regions. Therefore, they are trying to grow their presence in China, Europe, and the United States and are investing in developing their businesses within these regions.
For example, Japan’s NGK Insulators is planning to manufacture ceramic substrates in Poland. Similarly, European and U.S. players, such as Heraeus, Henkel, MacDermid Alpha, and Rogers Corporation, are focusing on Asia, mainly China. At the same time, several companies along the power module supply chain have either moved or are planning to transfer their production to countries with a lower cost of production to reduce costs, such as Vietnam, Hungary, Malaysia, and Romania. This leads to more robust competition, increased price pressure, and increasing motivation for partnerships and M&As.
Yole Group will attend APEC 2024 from February 25 to 29.
On February 29, Yole Group’s experts will be part of the APEC program, participating in several events:
Industry Session Chair: IS26 – WBG Market Trends at 1:30pm – 3:10 pm. – Elena Barbarini, Business Line Director, Manufacturing & Global Supply Chain activities.
IS26.1 – SiC Power Devices Are on a Roll: Technology and Cost Overview from Wafer to Packaging at 1.30 pm. – Amine Allouche, Technology & Cost Analyst, Semiconductor Substrates & Materials.
IS26.2 – A New Rising Market for SiC: EV DC Charging Infrastructure at 1.55 pm. – Milan Rosina, Ph.D., Principal Analyst, Power Semiconductor.
IS26.4 – GaN Device Market for Automotive & Mobility: In-depth Analysis of a $504M Business Opportunity by 2028 at 2:45pm. – Taha Ayari, PhD., Technology & Market Analyst, Semiconductor Substrates & Materials.
Yole Group’s power electronics team invites you to follow the technologies, related devices, applications, and markets on www.yolegroup.com.
Shalu Agarwal, PhD Senior Technology & Market Analyst, Power Electronics & Battery at Yole Group“Today, continuous improvements in module materials and packaging design are needed to take advantage of the benefits of SiC technology. However, the development is simultaneously focused on reducing the costs of power modules through “good enough” performance and reliability.”
