In 2023, the global power electronics market—including discrete devices and modules—was valued at US$23.8 billion. In its Status of the Power Electronic Industry, 2024 edition Yole Group projected the market to grow at a CAGR of 7.0% from 2023 to 2029 to US$35.7 billion in 2029.

The discrete market, valued at US$15.5 billion in 2023, is projected to grow at a 3.9% CAGR to US$19.5 billion by 2029, driven mainly by xEV , OBC , DC-DC converters, and charging infrastructure. Automotive and Consumer are the biggest market segments. Power modules, pushed by battery energy storage, EV DC chargers, and xEVs, are set to reach US$16.2 billion by 2029, with a 12.0% CAGR.

The power device market is led by silicon, with SiC gaining ground in xEV and industrial applications, while GaN serves consumer power supplies and e-mobility. Gallium oxide (Ga₂O₃) could become a future contender.

—Milan Rosina, Ph.D., Principal Analyst, Power Electronics & Battery at Yole Group

Wafer demand is rising, especially for 12-inch silicon wafers, with GaN-on-Si using 6- and 8-inch wafers. SiC wafer capacity is expanding, risking oversupply due to lower xEV demand. SiC wafer size will largely remain at 6 inches, though with a growing use of 8-inch wafers.

The 2024 edition of the market report provides an overview and an update of every power electronics market forecast and technology trend for each segment, from wafer level to inverter level. The 2024 report updates the power market forecasts from 2023, analyzing the dynamics of components such as wafers, MOSFETs, IGBTs, and power modules while also providing insights into market shares by material type (Si, SiC, GaN) and key power applications.

Additionally, it reviews top power electronics companies, mergers, capacity expansions, business strategies, and geopolitical issues and provide a global overview of technology trends in power electronic devices.

Yole says that the power electronics supply chain is evolving due to several factors:

• Expansion in wafer and device manufacturing capacity, with a shift toward larger wafer diameters.

• An increase in new silicon and SiC wafer manufacturers from China.

• Mergers and acquisitions across wafer, device, packaging, and system manufacturers.

• Device manufacturers diversifying their technology portfolios (Si, SiC, GaN).

• System makers horizontally integrating into various applications, including photovoltaics, wind, EV DC charging, and BESS.

Recent years have seen rapid growth in manufacturing capacity, particularly for SiC and silicon devices and wafers. However, despite the demand drivers, the slowdown in xEV demand and the rush to increase capacity has led to overcapacity, especially in the SiC segment. This will likely lead to consolidation in the supply chain, fostering innovation, reducing prices, and creating new strategies. More partnerships, mergers, and acquisitions are expected in the coming years.

—Milan Rosina

Chinese companies have a strong presence in end-systems such as PV installations, wind energy, electric vehicles, and EV DC charging infrastructure and in power converter manufacturing. They also have extensive involvement in silicon and SiC wafer production and power device packaging. The Chinese government and businesses are focused on addressing their reliance on foreign suppliers for bare dies, aiming to boost the market share of Chinese power device manufacturers in the near future.