Market and Technology Trends

Status of the Power Electronics Industry 2022

By Yole Intelligence — Aug 2022

What products to target and which company strategies to choose in the rapidly evolving power electronics market, which will reach $30.5B in 2027?

Key features

2021 - 2027 market for power wafers, discrete power devices, power modules, and power converters
Market and technology trends by application (xEV, photovoltaics, wind turbines, rail, UPS, consumer electronics…)
Key power electronics device supplier rankings
Mergers & acquisitions
Manufacturing-capacity expansion plans
Worldwide power market dynamics – focus on different regions
Technology trends in wafers, devices, device packaging, system integration, charging infrastructure, battery…

What's new

Updated market forecasts (2021 - 2027)
Updated supply chain and manufacturing capacity expansions
Focus on synergies between different applications
Insight regarding e-motors, passives components, solid-state brakers…
Insight concerning raw materials and environmental issues in power electronics manufacturing
Impact of the Russia-Ukraine war

Product objectives

Closely examine the status of the entire power market
Research the dynamics of each device type, e.g., MOSFETs, IGBTs, wafers, power modules, etc.
Explore the market share of the different device types and materials
Provide an overview of the main power applications and relevant market trends, and their impact on the technology evolution
Summarize the global power supply chain, e.g., for wafers, devices, modules, batteries, etc.
Analyze the impact of the COVID-19 crisis and the Russian-Ukraine war on different market segments, including shortages
Review the latest mergers & acquisitions and manufacturing capacity expansions
Analyze the latest trends in companies’ business strategies

Power electronics is a healthy and dynamic market worth $30.5 billion by 2027

The power electronics market is mainly driven by efforts to slow-down climate change (by CO₂ emissions reduction and system efficiency increase), and by digitalization trends. Trends such as “electrification”, “batteryfication”, and “automation” boost the demand for power electronic systems and devices. The power electronics discrete and module component market will feature a 2021 - 2027 CAGR of 6.9%. Such growing demand for power electronic devices comes from different booming applications analyzed in this report, such as electric and hybrid electric vehicles (xEV), factory automation, photovoltaics, wind turbines, uninterruptible power supplies (UPS), and home appliances.

In this report, Yole analyzes the market trends for different applications and provides market forecasts at silicon wafer, power device, and power converter levels.

Companies’ positioning and supply chain consolidation

2021 was marked by a global power electronics demand increase that has basically risen for all important players in the field. Looking closer at the top power electronics players’ rankings, we can see there is a clear leader – Infineon – which is a ways ahead of its two big followers: onsemi and STMicroelectronics. These companies are followed by a large number of smaller power electronics players. Consolidation of the power electronics supply chain is expected in the coming years. From Yole’s analysis, any company in the rankings will remain an important player after Infineon, provided they merge or acquire any company having a key product in their portfolio. Moreover, manufacturing capabilities need to be increased to be able to keep or increase share of the market – also, the increase in device design, back-end, and testing capacities needs to be reinforced. In this sense, big investments have been announced in power device manufacturing: more than $16B spent on new facilities with at least partial power device production allocation during the 2020 - 2025 period.

In this report, the power electronics supply chain is analyzed, including a focus on the supply chain of different materials (Si, SiC, GaN). Additionally, the main manufacturing capability expansion and M&As are compiled and discussed.

Power technologies are getting better, greener, and less costly

At Yole, we estimate that there will be no disruptive power electronics technology coming to the market in the next years, since the last disruption – SiC & GaN – is still being settled and is grabbing share of the traditional silicon market. Nevertheless, there are several technologies that are being developed to eventually penetrate in the long-term, such as Diamond, SiC IGBTs, and gallium oxide.

In any case, there is much evolution happening in different areas (system, device, wafer) in order to achieve lower losses, lower environmental imprint, and reduced costs. For instance, linked to cost reduction, the shift to larger wafer sizes is happening in all technologies, going to 12-inch for power silicon devices and 8-inch for GaN and SiC.

There is also much evolution at system level in order to get more efficient, cheaper systems. For instance, there is a big demand on power devices in the mid-voltage power range, around 650V and 1,200V. Device manufacturers are increasingly enlarging their product portfolio by offering devices with “intermediary” device voltage levels (e.g., 1,350V, 1.8kV, 2.0kV, 2.5kV…) to improve system efficiency and cost by a better match with the system voltage levels.

In this report, different topics are discussed, such as the penetration of multilevel topologies, the use of WBG devices and circuit breakers, the packaging evolution, and the trends for gate drivers and passives.

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Status of the Power Electronics Industry 2022

What products to target and which company strategies to choose in the rapidly evolving power electronics market, which will reach $30.5B in 2027?

Power electronics is a healthy and dynamic market worth $30.5 billion by 2027

Companies’ positioning and supply chain consolidation

Power technologies are getting better, greener, and less costly