Power electronics industry is propelled by xEV and renewables

In 2022, the total power electronics market was worth $20.9 billion, including discretes and modules. It is expected to grow to $33.3 billion by 2028.

Worth $14.3 billion in 2022, the discrete market is expected to reach $18.5 billion by 2028. The main applications driving this growth are xEV, DC charging infrastructure, and automotive. Consumer remains the largest market for discrete devices even if it is in decline. In parallel, the module market is pushed by xEV and renewables applications. It includes both photovoltaic and wind. According to Yole Intelligence, this market should reach $14.8 billion by 2028.

Ana Villamor, Ph.D., Team Lead Analyst, Power Electronics at Yole Intelligence: “The power device market is split into three different materials: Si, SiC, and GaN. Without doubt, silicon is the major part of this market, though SiC is gaining momentum. At Yole Intelligence, we see the growing demand for modules for xEV. In parallel, GaN’s main application will continue to be consumer power supplies.”

In the long term, total wafer production is increasing alongside the growing power electronic device demand from renewables, automotive, and industrial applications. To meet this demand, silicon wafers for power applications will grow to about 47 million 8” equivalent wafers per year. Meanwhile, wafer players are focusing on 12”. SiC’s transition to 8” is taking place, and in the coming years, this will take a greater share of the market.

Yole Intelligence has released its annual power electronics report, ‘Status of the Power Electronics Industry 2023,’ which provides an overview of and update on each power electronics market’s forecast and technology trend, from wafer level to inverter level for each different segment. This analysis closely examines the status of the entire power electronics market, updating the various forecasts from the previous edition. It identifies the dynamics of each component type, from wafers to MOSFETs, IGBTs, power modules, and converters.

This report presents an overview of the market shares of the power electronics market by material types (Si, SiC, GaN) and explores the market shares of the different component types and materials. The main power applications, relevant market trends, and their impact on the evolution of technology are also well analysed.

Today, China is the largest buyer of power components, followed by Asia/Pacific and Europe. New growth areas, previously less active in semiconductor manufacturing, are found where major companies are investing to supply Asia, other than China, such as Malaysia, Vietnam, and Singapore.

A detailed look shows that the silicon wafer market is dominated by five leading players, with 88% of the market. The three major players are Sumco, Siltronic, and Global Wafers. Most of the manufacturers are in Asia/Europe. At the device level, the top manufacturers are pushing the three different device technologies: Si, GaN, and SiC.

“We have noticed that a few players pushing GaN have stepped back on R&D to wait for a market increase before investing further, such as onsemi, and Alpha, and Omega,” adds Ana Villamor from Yole Intelligence.

From the manufacturing side, China remains the leader in investments for manufacturing expansion in 300mm, as well as in 200 and 150mm. Main power IDMs and foundries are constructing/expanding 300mm lines. Infineon Technologies, Bosch, Toshiba, Nexperia, are part of the ecosystem. A few 200mm lines are being built worldwide, and 150mm lines are being re-furbished to 200mm. Apart from that, Wolfspeed, Infineon Technologies, CRCC, are among the list of power IDMs pushing for 200mm SiC capacity.

Yole Group is pleased to deliver its key power electronics results during upcoming key trade shows, conferences, and webcasts.

ANALYST THURSDAY – ‘Technical pillars for car electrification: power, controller, and battery’ – 7 September 2023.

Speakers: Wilfried Theron, Electronic System Department Director & Quality Manager at Yole SystemPlus; Amine Allouche, Technology & Cost Analyst, Power Electronics at Yole SystemPlus; Yu Yang, Senior Technology & Market Analyst, Power Electronics at Yole Intelligence.

Yole SystemPlus and Yole Intelligence are Yole Group companies.

As well as: EU power international semiconductor executive summit – 14―15 September 2023.

Analysts are very glad for the opportunity to meet Yole Group’s customers and business partners, establish new contacts in the industry, and help drive their business forward. Come and meet Yole analysts and look through the latest market, technology, reverse engineering, and reverse costing analyses.