Status of the Power Module Packaging Industry 2025

• Provide an overview of the main applications for power devices, along with their market drivers and trends.
• Discuss the impact of application trends on power module package design and packaging materials.
• Furnish an analysis of each power module packaging components, along with forecasts.
• Identify the key technology trends that will shape the power packaging market in the future.
• Give an overview of the power module supply chain, i.e., devices and power module and power module packaging components.
• The manufacturing facilities of power module and power module packaging components is discussed.
• Analyze the changes in business models, synergies with other industries, and opportunities for newcomers in power devices.
• Discuss the main technology trends related to power modules and power module packaging components.
• Analyze the essential power module packaging requirements for various applications, especially xEV.
• Analyze the silicon carbide (SiC)-based power modules and intelligent power modules.

Key features

• Provide an overview of the main applications for power devices, along with their market drivers and trends.
• Discuss the impact of application trends on power module package design and packaging materials.
• Furnish an analysis of each power module packaging components, along with forecasts.
• Identify the key technology trends that will shape the power packaging market in the future.
• Give an overview of the power module supply chain, i.e., devices and power module and power module packaging components.
• The manufacturing facilities of power module and power module packaging components is discussed.
• Analyze the changes in business models, synergies with other industries, and opportunities for newcomers in power devices.
• Discuss the main technology trends related to power modules and power module packaging components.
• Analyze the essential power module packaging requirements for various applications, especially xEV.
• Analyze the silicon carbide (SiC)-based power modules and intelligent power modules (IPMs).
• Discuss the embedded die PCB packaging for power electronics.

What's new?

• Analyze the locations of manufacturing facilities for power module manufacturers and their component manufacturers, including those involved in encapsulation, die and substrate attachment, ceramic substrates, and electrical interconnections.
• Discuss detailed technology trends in the power module sector, such as moving towards smaller-sized modules, power modules on cooler, modules with lower inductance, and Hybrid SiC-MOSFET and Si-IGBT power modules.
• Provide an in-depth analysis of the power module industry in China, focusing on the supply chain and the involvement of Chinese automotive OEMs in the power module sector.
• Discuss the concept of embedded die PCB packaging for power electronics.
• Explore GaN-based power modules.
• Analyze technology trends with specific applications versus the broader technology trends for each component.

The annual demand for power module packaging is expected to double from 2024 to 2030, reaching approximately $6.1 billion.

Power modules are essential components in power electronics systems. The revenue from power modules will grow from $10 billion in 2024 to $20 billion by 2030, reflecting a compound annual growth rate (CAGR) of 13%. The electric vehicle (xEV) market remains the largest segment within the power modules industry. While growth in the xEV market has been slower than expected, it continues to dominate demand for power modules. This slowdown has prompted manufacturers to explore industrial applications, such as photovoltaics and industrial motors. A potential positive outcome of the slowdown in the xEV market could be the increased adoption of Silicon Carbide (SiC) devices in other sectors, such as PV, as the supply of these devices surpasses demand, likely resulting in decreased costs. Power module packaging components account for approximately 32% of the total cost of power modules, influenced by the materials used, including die attach, ceramic substrates, and package size. The market for power module packaging components was about $3.2 billion in 2024 and is expected to grow to $6.1 billion by 2030. The baseplate is the largest segment of power module packaging components, followed by ceramic substrates. There is an ongoing necessity for improvements in packaging materials and packaging design to enhance the performance of power modules and fully leverage the advantages of SiC technology. At the same time, development efforts focus on reducing power module costs while ensuring they deliver satisfactory performance and reliability.

 

Many power module packaging components manufacturers have their manufacturing facilities in Asia.

The leading power module suppliers are primarily located in Europe and Japan, including companies such as Infineon, Semikron Danfoss, ST Microelectronics, Fuji Electric, and Mitsubishi Electric., Rohm, these traditional market leaders are increasingly facing intense competition from Chinese companies, such as StarPower, CRRC, BYD, United Automotive Electronic Systems (UAES), ACCO Power, and MACMIC, as well as Tier-1 automotive manufacturers like Denso, Bosch, and BorgWarner. Reducing the production costs of power modules is a crucial requirement. As a result, most power module manufacturers, including Infineon, onsemi, Rohm, and STMicroelectronics, have established their packaging facilities in China and Southeast Asia. This strategic decision allows them to benefit from lower operational costs and to be closer to their Asian customers. Key suppliers of power module packaging components are primarily located in Japan (e.g., ShinEtsu, Sumitomo Bakelite, Resonac, FTH, Dowa, Denka, Tanaka, NGK Insulators), the United States (e.g., Rogers Corporation, MacDermid Alpha, 3M, Dow, Indium Corporation), and Europe (e.g., Heraeus). Geographic expansion is increasing, with several companies along the power module supply chain relocating or planning to move production to countries with lower costs, such as Malaysia, the Czech Republic, Vietnam, Hungary, and Romania. This is intended to cut costs, enhance customer proximity, or explore new business opportunities. This leads to more robust competition, increased price pressure, and increasing motivation for partnerships and M&As.

Towards higher reliability, better thermal management,downsizing and cost optimization

The semiconductor devices and the power module design become increasingly important factors in choosing an appropriate packaging solution and material. Amongst the most critical trends for power module packaging technology is the increasing use of SiC-MOSFETs in power modules as an alternative to silicon-IGBTs, especially for xEV applications. This has resulted in a growing need for power module packaging materials that can withstand higher junction and operating temperatures. Such as silver sintering die-attach, advanced low stray-inductance electrical interconnections, and metalized ceramics substrates with higher thermal conductivity like Si3N4 – AMB. To enable complex and compact module designs, epoxy resin materials with a transfer molding process are increasingly preferred for encapsulation over silicone gel in xEVs. However, they face limitations regarding reliability at high temperatures and size constraints. As a result, some power module manufacturers, have started exploring another solutions, for example, Fuji Electric and Mitsubishi Electric, focus on a liquid epoxy resin with a potting process. There is a growing focus in power module packaging on achieving “good enough” properties at a lower cost. However, demonstrating the added value of cost-effective solutions is challenging, as it requires a deep understanding of power module packaging materials and designs, manufacturing processes, and their integration into systems. Ultimately, the cost-effectiveness of any new solution must be evaluated at the system level rather than solely at the device level.

• Glossary

• Definition

• Identity card

• Report objectives

• Scope of the report

• About the authors

• Companies cited

• Forecast comparison with previous report editions

• What we got right, what we got wrong

• Methodologies & definition

• Three-page summary

• Executive summary

• Market forecasts

• Global power module market

• Power module market size, in $M

• Global power module packaging market

• Global power module market: power module vs. Intelligent Power Modules

• 2020-2030 power module packaging market evolution in $M – split by:

• Application

• By packaging solution

• By component

• Power module and power module packaging components - bill of material (BOM) comparison

• Comparison of Average Selling Price (ASP) of various materials used in packaging components

• Power module packaging components market forecast in Munits and $M

• Market trends

• Supply chain analysis

• Why are so many players interested in the power module business?

• Power electronics supply chain and business models

• Main power module manufacturers by region

• Main power module manufacturers – manufacturing facility locations

• Power modules supply chain for xEV

• Power module supply chain in China

• Power module packaging materials supply chain - headquarters

• Interconnection - wire and ribbon manufacturers

• Key players involved in innovative interconnections

• Encapsulation: Silicone gel and epoxy molding compound manufacturers

• Die and substrate attach material manufacturers

• Ceramic substrate manufacturers - Who supply to whom?

• Baseplate suppliers

• TIM suppliers

• Power module packaging materials supply chain – manufacturing facility locations

• Power module packaging material suppliers – investment plans

• Power module packaging solutions suppliers - partnership and M&A

• Technology trends

• Overview

• Power module packaging trends - Towards smaller power modules

• Power module packaging trends - Power module on cooler

• General technology trends for power electronics

• Selection of power modules packaging components depends on application

• Power modules for various applications

• Power module package technology trends – xEV and other applications

• Power module packaging technology trends – by components

• Encapsulation technology trends

• Interconnection technology trends

• Substrate technology trends

• Die and substrate attach technology trends

• Baseplate technology trends

• Thermal interface materials (TIM)

• Power module technology trends - SiC-based power module

• Power module technology trends – GaN-based power module

• Power module technology trends - Embedded die PCB packaging

• Intelligent Power Modules (IPM)

• Conclusion

3M, Ametek, Avantor, Aismalibar, A.L.M.T. Corp., Alpha & Omega Semiconductor, Amkor, AOS Thermal Compounds, Almatis, Aurel, Arlon, Amulaire, AMX, ASMPT, BYD, Boschman, Bosch, BorgWarner, Besi, CRRC, CeramTec, CoorsTek, CPS Technology, Comelec Sa, Curtiss-Wright, CML Europe, CHT Group, Coherent, Dupont, Denka, Dow, Dowa, Daco, Elkem, Electrolube, EPISIL Technologies, FLH (formally known as Ferrotec), Fuji Electric, FJ Composite, F & K Delvotec, Heraeus, HALA Contec, Hitachi Chemicals, Henkel, Hirata, Hesse Mechatronics, Indium Corporation, Infineon, Interplex, Infotech, Japan Fine Ceramics Co. Ltd., KCC, Kyocera, KinWong Electronic, KISCO, Kulicke & Soffa, Laird, La Chi Enterprise Co. Ltd, Laser Cheval, MacDermid Alpha, Electronics Solutions, Momentive, Merck, Maruwa, Muller Ahlhorn, Mitsubishi Electric, MacMic, Malico, NGK Insulators, Namics, Nuvotun, ON Semiconductors, Plansee, Powerex, Parker, Proterial, Parylene Coating Services, PSC, Pink, Palomar, Resonac, Renesas, ROHM Semiconductor, Rogers Corporation, Raytrons, Shin-Etsu, Suzhou Kary Nanotech, Sumitomo Bakelite Co. Ltd, STMicroelectronics, Semikron Danfoss, SPEA, Schunk, Specialty Coating System, Silga, Shengyi Technology, StarPower, Serigroup, Sonics Ultrasonic Engineering Co. ltd. Sensitron Semiconductor, Silvermicro, Semiland, Suntech, Texas Instruments, Tesla, Tanaka, Tatsuta, Toshiba, Towa, Tower Semiconductor, Wacker, Wieland, Würth Elektronik, Vincotech, Ventec, Vitesco, and more.