Power semiconductor market to hit €59. 6 billion in 2027

Author: EIS Release Date: Nov 17, 2022

The total power semiconductor device market is expected to reach €59.6 billion in 2027, says Yole Developpement, with the discrete and module power device market expected to reach $30.5 billion in 2027.

 

The power electronics market is mainly driven by efforts to slow down climate change through CO2 emission reductions and increasing system efficiency, and by digitalization trends.

 

Trends such as “electrification”, “batteryfication”, and “automation” boost the demand for power electronics systems and devices.

 

Infineon Technologies, onsemi and ST  dominated the 2021 power electronics player rankings

 

The power electronics discrete and module device market will feature a 2021-2027 CAGR of 6.9%.

 

This growing demand for power electronics devices is coming from various booming applications, such as electric and hybrid electric vehicles (xEV), factory automation, photovoltaics, wind turbines, UPS , and home appliances.

 

“Looking closer at the top power electronics player’s rankings, we see that Infineon Technologies is a clear leader, far ahead of its two leading competitors: onsemi and STMicroelectronics,” says Yole’s Milan Rosina, “these companies are followed by many smaller power electronics players.”

 

Consolidation of the power electronics supply chain is expected in the coming years.

 

An increase in device design and back-end and testing capacity needs to be reinforced. In this regard, big investments have already been announced in power device manufacturing: more than $16 billion was spent on new facilities with at least partial power device production allocation during the 2020-2025 period.

 

“We estimate that there will be no disruptive power electronics technology coming to the market in the next few years since the last major disruption – the emergence of SiC & GaN – is still playing out and is grabbing a share of the traditional silicon market,” says Yole’s Ana Villamor, “nevertheless, several technologies are being developed that will come to fruition in the long-term, such as diamond, SiC IGBTs, and gallium oxide.”

In any case, there is much happening in different areas (at system, device, and wafer levels) to reduce losses, lessen environmental imprint, and reduce costs. For instance, all technologies are moving to larger wafer sizes, toward 12-inch for power silicon devices and 8-inch for GaN and SiC, which will reduce costs.”