With the continuous expansion in population and a subsequent increase in the use of technological devices, the demand for electricity and devices powered by it has risen in an unprecedented manner in the past decade. Additionally, there has been observed rising consumer awareness for shifting preference towards electronic products which are powered by electricity generated from renewable resources of energy. The one application that has benefitted from these developments in power electronics which involves devices that are used for the conversion and control of electricity. Power electronic devices play a fundamental role in electric vehicles as they are directly responsible for controlling automotive electronics, including braking system, electric power steering, seat control, HEV main inverter, and others. Renewable resources energy companies and institutes have visibly recognized the importance of power electronics and are increasingly investing in technology. In a first, the Fraunhofer Institute for Solar Energy Systems (ISE) has identified the growth aspect of this market and inaugurated their Center for Power Electronics and Sustainable Grids in July 2019. This institute will benefit the power electronics market as it offers unique infrastructure that will instigate research and help the industry in meeting the expanding demand for power electronics in automotive and renewable resources industries. During the forecast period of 2019-2025, the power electronics market will witness notable growth with a CAGR of 7.4%. In the year 2018, the market earned a hefty revenue of $36 billion.

APAC Region Dominating The Power Electronics Market

According to the analysis of IndustryARC, the APAC region has emerged as the geographical leader of the global Power Electronics Market with a 37.6% share out of the total revenue earned in 2018. Advancements made by China, Japan, and India in the solar energy and electric vehicles market are the key factors that have led to this development. According to the International Energy Agency, APAC region has made remarkable progress in the manufacture and sales of electric vehicles. According to their estimates, in the next two decades, the population of Japan will be roughly equal to the number of electric cars on the street. In China, massive investments have poured in the form of government subsidies, which will be pivotal in increasing the sales of electric vehicles in the country, while elevating exports as well. China is gradually transforming into an electric vehicles production behemoth with tight regulations about vehicles in place.

Moreover, the Chinese government recently introduce green license plates for environment-friendly vehicles, which makes them eligible for preferential treatment. In terms of solar energy, India has been making remarkable growth with the government massively investing in resources to convert the country into the world’s largest solar power producer. According to the Institute for Energy Economics & Financial Analysis, a think-tank based in the United States of America, rooftop solar energy experienced growth with a CAGR of 116% between 2012 and 2018. China, on the other hand, is generating more solar power than any other country in the world, evaluated at 130 gigawatts. Moreover, according to the International Energy Agency, China has more than 60% of the world’s solar panels. The investment made by China and India in accentuating solar power and increasing electric vehicles on the street has been important for the power electronics market as the demand for electricity control devices rises.

Several Industries Impacting Growth Of the Power Electronics Market

Ø  Solar Power Making Use Of Power Electronics

With a consistent depletion of fossil fuels, non-renewable resources of energy have become virtually non-existent. This has made nearly all industries to make a radical shift towards increasing use of renewable resources of energy for daily tasks and functioning. According to findings of Stanford University, every year, the sun provides energy more than the required amount by Earth in a single year. Since sunlight is the most prominent renewable source available, inadvertently, industry players have begun to capitalize on this factor and invest in solar parks and solar panel setups. This helps them in generating massive solar energy which can run industrial units equivalent to those run by coals and other fossil fuels. Despite these factors, solar energy panels consistently suffer from inefficiency and require technical setups that assure zero energy wasted both at storage and generation levels. Therefore, the increase in solar parks has immensely benefitted the power electronics market as these semiconductors based devices are extensively used in solar power generators to prevent electricity loss and reduce heating of the systems. Power electronics also help in converting direct current to alternating current, which is the primary electrical requirement of a solar generator. Governments around the world have contributed to this development to properly harness the energy provided by the sun and put it into substantial use. In 2011, the US Department of Energy launched an initiative called SunShot that aimed at making solar energy market competitive enough to reach the level of hydroelectricity and biomass fuel by the end of 2020. In 2017, the department announced a positive development of the solar energy market has already met the required production level forecast in SunShot initiative. This has been beneficial for the power electronics market as these devices have been pivotal in increasing solar energy production and helping governments around the world in meeting their solar energy targets.

Ø  The Rise Of Electric Vehicles

In recent times, there has increased consumer preference for electric vehicles owing to their functionality following environmental conservation. In August 2018, one in every twelve cars sold in the United Kingdom was an electric vehicle. Furthermore, sales of electric cars crossed the one million mark by the end of 2018 which albeit is not noticeable on a global level, but is a good starting point for an industry that just started gaining momentum. Under the Road to Zero strategy, the UK government has pledged to at least cut-down petrol and diesel vehicles sales by 40% by 2040. The market for electric vehicles is getting provided with further impetus owing to an increase in plug-in stations. Copenhagen, for example, recently installed 320 stations across the city, which can charge approximately 400 electric vehicles under The Drive Now scheme. Electric vehicles have a plethora of positive impact on the market. Firstly, electric vehicles do not exploit non-renewable resources of energy, thus conserving the environment by saving up on drilling activities and reducing toxic gas emissions. Besides, automotive companies are readily investing in using an increasing number of eco-friendly materials in electric vehicles. For example, there is extensive usage of recycled materials in the Ford Focus Electric, and its padding is entirely composed out of bio-based materials. Power electronics play a key role in ensuring smooth functioning in electric vehicles. Automotive alternators in electric vehicles that are primarily used for power generation heavily employ power electronics for improving efficiency and improve the capacity for high temperature. Moreover, devices based on power electronics application such as switched-mode power supply which has zero voltage is also being used in electric vehicles. The role of this application in electric vehicles for regulating power supply and increasing efficiency has provided impetus to the power electronics market and will continue to fuel growth in the upcoming years.

Major Players Operating In The Power Electronics Market

Key players of the power electronics market have been provided impetus in the last decade to innovate more and mass-produce power electronic devices. This has mainly occurred due to increasing acceptance and purchase of electric vehicles on the streets. Moreover, the automotive industry has left no stone unturned in increasing sales of electric vehicles by investing in rechargeable stations that work on the same principle as petrol pump stations. These key companies include Infineon Technologies AG,., Toshiba Corporation, ABB Group, STMicroelectronics, Rockwell Automation, Inc., Mitsubishi Electric Corp, Renesas Electronics Corporation, Fuji Electric Co. Ltd., Microsemi Corporation, and Texas Instruments.

In 2017, Infineon Technologies announced the closure of an intensive study conducted on exploring electronic components that could assist in conserving energy. This company, which is a global leader in manufacturing semiconductors for the power electronics market-led this study titled ‘eRamp- Excellence in Speed and Reliability for More than More Technologies.’ In this study, Infineon extensively covered the value chain of power electronics, which has helped the market players in gaining more strategies to leverage demand in the European automotive sector.

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About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.