According to the latest report from Straits Research, the market valuation of the global power semiconductor industry has climbed to the $40 billion mark in 2020, showing strong momentum. Looking ahead, the industry is expected to grow steadily at a CAGR of 3.3% during the forecast period 2022-2030, reaching a market size of $55 billion by 2030.
Power semiconductors, as the core components of the electronics field, specialize in managing high currents and voltages, and play an indispensable role in the regulation of power flow in many electronic systems. It is designed to handle high-power applications and is therefore able to withstand voltage and current loads that far exceed those of ordinary semiconductor devices. In recent years, wide bandgap semiconductor materials such as silicon carbide (SiC) and gallium nitride (GaN) have created a wave of innovation in the field of power electronics due to their superior performance. Compared with traditional silicon-based devices, SiC and GaN show significant advantages in efficiency, power density, and operating frequency, opening up broad prospects for cross-industry applications.
One of the key factors driving the growth of this market is the rising demand for consumer electronics worldwide. From smartphones and tablets to smartwatches to PCs and home appliances, nearly all consumer electronics rely heavily on semiconductor technology. Among them, the smartphone industry, as the largest consumer group in the semiconductor market, has further accelerated the pace of expansion of the global market due to its increasingly fierce competition and the surge in the number of users.
Figure: Global Power Semiconductor Market (Source: Straits Research)
At the same time, with the popularization of wireless communication technology and the increasing demand for energy saving, the pursuit of energy-saving battery technology in portable devices is also becoming stronger. While lithium-ion batteries are still the dominant power solution for today's consumer devices, their limitations are driving the industry to explore more efficient battery technologies. Manufacturers are focusing on increasing battery capacity and charging speed to meet consumers' urgent demand for longer battery life and faster charging, which undoubtedly brings new growth points to the power semiconductor market.
In addition, the wide application of power semiconductors in various industries such as IT, consumer electronics, automotive, power distribution and railway transportation has also provided a strong impetus for its market expansion. Especially in the automotive industry, the urgent need for power management optimization and safety function upgrades has promoted the rapid penetration of advanced technologies such as SiC in the field of electric vehicles. These technologies not only improve battery charging efficiency and drivetrain performance, but also lay the foundation for more efficient energy use.
In terms of geographical distribution, the Asia-Pacific region is expected to maintain a CAGR of 3.6% throughout the forecast period, continuing to lead the global power semiconductor market due to its leading position in the global semiconductor industry and the support of government policies. Core markets such as China, Japan, Taiwan and Korea account for the majority of the global discrete semiconductor market, while the active participation of neighboring countries such as Viet Nam, Thailand, Malaysia and Singapore further strengthens the market dominance of the Asia-Pacific region.
