Technavio analyzes that the Power Semiconductor Market is expected to grow at a CAGR of 8.3% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 12418.7 million.There are various factors that contribute to the growth of the market. The power semiconductor market is experiencing significant growth due to the increasing trend towards electrification in various industries, particularly in the automotive sector. Electric vehicles (EVs) are becoming increasingly popular, leading to a surge in demand for advanced semiconductor solutions to manage the complex power systems required for their operation. This trend is expected to continue, driving the growth of the power semiconductor market in the coming years. The integration of renewable energy sources into power grids is another factor contributing to the market's expansion. Power semiconductors play a crucial role in enabling efficient and reliable power conversion and control, making them essential components in the electrification of transportation and energy systems.
Power semiconductor devices play a crucial role in the efficient management and control of electric power in the automotive sector. Components such as controllers, gate drivers, power integrated circuits, and converters are integral to supplying and regulating power systems in electric and hybrid electric vehicles, including DC/DC, DC/AC, and AC/DC. The surge in demand for sustainable transportation solutions, driven by regulatory pressures on exhaust gas emissions and increasing fuel efficiency requirements, is fueling the adoption of advanced technologies like electric vehicles, active safety systems, and driver assistance systems. Defense spending and the automotive industry's focus on fuel efficiency and carbon neutrality are further boosting the market growth for power semiconductors. Electric vehicle sales are expected to continue rising, with the global market projected to reach USD125.2 billion by 2027. Silicon wafers, IGBTs, and other power semiconductor devices are essential in powering the various electrical systems in vehicles, from engine electronics and transmission electronics to chassis electronics, advanced driver assistance systems (ADAS), telematics, passenger comfort, and entertainment systems.
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Power Semiconductor Market Segmentation
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The Power Semiconductor Market is experiencing significant growth due to the increasing demand for semiconductors in various sectors. Key drivers include the adoption of electric vehicles (EVs), renewable energy, grid modernization, and 5G infrastructure. Advanced semiconductor technologies such as Power Integrated Circuits (PICs), Silicon Carbide (SiC), and Discrete semiconductors are in high demand for handling large currents and high energy consumption in these applications. Industrial automation, consumer electronics, defense spending, robotics, and microprocessors also contribute to the market's growth. Energy efficiency, thermal management, and power density are critical factors in the design of power semiconductors, which are essential for reducing switching losses and improving overall performance. The use of silicon wafers in semiconductor manufacturing is a significant trend in the industry, with germanium and silicon being the primary materials used for producing power semiconductors.
The global semiconductor materials and equipment market encompasses companies engaged in the production of semiconductor materials and equipment manufacturing/fabrication, as well as wafer processing and back-end semiconductor manufacturing equipment. According to Technavio, market size is determined by the revenue generated from sales of wafer processing, mask/reticle manufacturing, wafer manufacturing, fab facilities equipment, assembly and packaging, and test equipment. Market expansion will be fueled by escalating investments in fabrication, driven by the surging demand for integrated circuits (ICs) worldwide. Furthermore, the semiconductor industry will experience significant growth due to the increasing adoption of advanced technologies such as electric vehicles, renewable energy, grid modernization, 5G infrastructure, energy efficiency, thermal management, power integrated circuits, and discrete semiconductors. These technologies necessitate the production of increasingly complex semiconductor devices, driving demand for sophisticated manufacturing techniques and equipment.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
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