The power electronics market was valued at USD 36.93 Billion in 2017 and is expected to reach USD 51.01 Billion by 2023, at a CAGR of 5.5% as per a report by MarketsandMarkets.
Why growing demand for HEVs and EVs is leading more opportunities in power electronics space?
The increasing use of plug-in electric vehicles (PEVs) is creating significant opportunities for the power electronics market for transportation application. Moreover, an increasing number of charging stations across Europe is propelling the use of power electronic components, such as power management integrated circuits (PMICs), intelligent power modules (IPMs), insulated gate bipolar transistors (IGBT), and power integrated modules (PIMs).
The advent of electric vehicles (EVs) is one of the most important steps of environment conservation. These vehicles do not use any fuel and, thus, do not emit harmful gases. This factor has accelerated the growth of the electric vehicles market. As these vehicles completely rely on electrical power supply, the use of electronic devices is more in these vehicles. These devices are poised to have a greater impact on the power electronics market in the coming years.
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However, one of the challenges EV manufacturers facing is to replace fast fueling combustion engines with electric engines operated on slow charging batteries. Advanced DC chargers help reduce the duration of charging. As a result, demand for fast chargers is expected to grow significantly in the near future. Many players are trying to enhance low-speed chargers with power IGBT/FET to overcome low-speed charging. For instance, IONITY (a joint venture of BMW Group, DaimIer, Ford Motor, and Volkswagen Group, along with Audi and Porsche) is mainly focusing on building powerful charging stations across Europe.
Why manufacturers struggling to cope with frequently changing demand for more compact and efficient devices at low prices continue to pose major challenge?
Increasing demand for compact and portable devices creates significant opportunities; however, a major issue faced by manufacturers is to meet the ever-changing needs of consumers for more compact devices. To cater to the demand for compact, portable, and multifunctional devices, components and systems need to be miniaturized to lower production cost. For this purpose, manufacturers are actively investing in research and development to develop products and enhance their product offerings to stay competitive in the market. Thus, continuous demand for more compact devices can be a barrier, as it does not justify the return on investments due to the uncertainty associated with the life cycle of developed technologies or products.
Upgrade of power infrastructure and focus toward the use of renewable power sources
In the Americas and Europe, there is a drive regarding the upgrade of the existing power infrastructure. In developing regions, existing power supply resources are being increasingly utilized because of the growing power consumption. The demand for the enhancement of power infrastructure and concerns regarding the use of renewable power supplies are increasing globally. Governments across the globe are increasingly investing in renewable energy sources, such as solar and wind, and are constantly working toward formulating better feed-in-tariff policies to provide photovoltaic projects with the convenience of grid connections.
Growing demand for energy-efficient battery-powered portable devices
Nowadays, the requirement for portable devices is increasing with the evolution of digitalization, Internet of Things (IoT), smart city, and cloud computing. The increasing demand for portable devices, which are energy-efficient and powered by batteries, is driving the growth of the market for power management ICs.
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