Top three trends driving the power electronics market share between 2023 to 2032
The growing trend of industrial automation and elevated demand for renewable energy infrastructure is expected to fuel the expansion of the power electronics market. Automated industrial machines such as robots are largely deployed across manufacturing plants to increase process efficiencies, streamline communications, and protect employees from hazardous tasks. The growing adoption of such equipment will generate the demand for power electronics systems in industrial application in the coming years. According to a study by Global Market Insights Inc., the power electronics market size is projected to surpass USD 40 billion by 2032. Rising sales of electric vehicles, growing use of robots and automated machines in the industrial sector, and rapid shift towards renewable energy are some of the factors that will drive this growth.
Mentioned below are some of the key trends fueling the power electronics market growth:
1) Strong demand for consumer appliances with advanced features
Consumer appliances such as refrigerators, air conditioners, vacuum cleaners, microwave ovens, and washing machines are recording high demand on account of improving standard of living, rapid urbanization, and budding consumer interest in luxury lifestyle. These appliances rely on power discrete devices for optimizing energy consumption. With such devices, consumer electronics manufacturers can develop new equipment models with features like low noise and high power efficiency. Moreover, integration of advanced technologies like AI and IoT is expected to pave the way for newer consumer electronic appliances, shaping the power electronics industry.
2) Widespread applications of power modules
Power electronics market from the module segment is anticipated to surpass 35% share by 2032. Power modules are high-power electrical components that contain single/several components combined into an isolated unit. These modules are gaining significance in applications that require high-power switching. Some of its applications include AC-DC inverters & converters, electric cars, battery chargers, electroplating machinery, welding equipment, appliances, and medical equipment. The popularity of power modules may amplify owing to offered features like reliability and high energy efficiency compared to discrete counterparts like rectifiers. They are also rigged with customized ICs to improve equipment protection under conditions such as short circuits.
3) Rising sales of EV across North America
North America power electronics market size is poised to reach over USD 5 billion by the year 2032. The region holds the presence of some of the leading brands operating in the energy, automotive, and consumer electronics sector. The electric vehicle sector is particularly booming across the region with automotive giants such as Tesla, Volkswagen, and General Electric holding a major share of the market. Efforts to expand the production capacity of electric vehicles will drive the demand for power electronics. Furthermore, rapid developments in battery technology and a rising number of initiatives to promote the benefits of renewable energy systems will open new growth avenues for power electronics manufacturers.