YG PRESS NEWS – Electrification is driving the power electronics market; power converters play a crucial role in this development

July 24, 2024

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The power electronics market for xEV will reach US$11.1 billion in 2029.
The total market for power converters will exceed US$164 billion by 2029.
Rising contributions of SiC substrates from Chinese suppliers are driving market shifts with rapid price reductions, boosting SiC adoption and extending to off-vehicle DC chargers.
Integration trends persist, leading to the emergence of hybrid devices combining SiC MOSFETs and Si IGBTs.
The entire supply chain is looking at how to reduce the CO2 imprint to get an additional advantage against competitors.

Yole Group has been covering power electronics technologies and automotive market for some time. In this context, Yole Group has amassed a significant collection of products that reflect their expertise on the subject. This year, the market research and strategy consulting company is introducing two new reports with a special focus: Power Electronics for xEV 2024 report and Power Converters for xEV, Green Energy and Industrial 2024.

More and more SiC substrate contributions from Chinese suppliers are shifting the market with quick price cuts, positively fueling the adoption of SiC, and even to off-vehicle DC chargers

According to Yole Group, in the Power Electronics for xEV 2024 report, as global growth in the BEV market slows and financing challenges due to interest rate hikes intensify, BEV start-ups are facing significant difficulties, with many struggling financially or facing bankruptcy. Increased consolidation is anticipated in leading markets, though new opportunities remain in developing regions. OEMs are continuing their vertical integration in the powertrain sector, with a strong emphasis on power electronics module manufacturing, particularly SiC MOSFETs. The market is being reshaped by the growing supply of SiC substrates from Chinese suppliers, which, through rapid price reductions, is accelerating SiC adoption and expanding into off-vehicle DC chargers…

The success of new technologies often spreads from one segment to another

As the EV market and DC charging infrastructure expand, the need for green energy sources becomes crucial to maintaining the environmental benefits of EVs. This need drives the demand for PV systems and BESS to support grid stability. The growing synergy among EVs, DC charging, BESS, and PV is increasing the demand for power converters. These four segments are expected to represent over half of the total market, which is projected to reach US$164.1 billion by 2029. Simultaneously, HVDC technology is gaining traction for grid upgrades, spurred by the rise in offshore wind installations. The HVDC power converter market is anticipated to reach US$3.8 billion by 2029, with a CAGR of 12.8% from 2023 to 2029. The adoption of SiC began with EVs and then extended to EV chargers, data centers, and other applications, creating a domino effect. The success of new technologies frequently cascades from one segment to another. Yole Group has noted this trend across various technologies, including high voltage, liquid cooling, and modular designs. The new Power Converters for xEV, Green Energy and Industrial 2024 report examines how the differing specifications of each segment influence the integration of emerging technologies at the power converter level…