Power Electronics Market Forecast 2025–2034: Where Businesses Should Invest Next

November 14, 2025 by The Business Research Company

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What Are The Forecasted Market Size Estimates For The Power Electronics Market Between 2025 And 2029?

The bulk of the power electronics market has experienced a consistent upward trajectory over the past few years, projected to expand from $\$48.26$ billion in the year 2024 to $\$49.78$ billion by 2025, reflecting a 3.1 percent compound annual growth rate (CAGR). Historic expansion within this sector owes its momentum to several key factors, including the burgeoning electronics and semiconductor landscape, the widespread adoption of renewable energy setups, a rising necessity for streamlined energy transformation, the increasing prevalence of electric vehicles, and stringent governmental mandates concerning energy conservation effectiveness.

Projections indicate robust expansion for the power electronics market in the coming years, with its valuation anticipated to reach $61.03 billion by 2029, reflecting a compound annual growth rate (CAGR) of 5.2%. This upward trajectory through the forecast period is powered by several factors, notably the increasing demand for bespoke power electronic implementations designed for particular use cases, the incorporation of power electronics within smart grid infrastructures, the push toward sustainable and energy-saving power electronic designs, advancements in electric aviation and vertical takeoff and landing (eVTOL) vehicles, and the proliferation of 5G networks requiring more power-efficient components. Key developments shaping this market moving forward encompass the adoption of Gallium Nitride (GaN) and Silicon Carbide (SiC) as primary power semiconductor materials, heightened focus on meeting safety regulations pertinent to power electronics, the application of power electronics in energy storage solutions and microgrids, the development of power converters that operate at higher frequencies and boast smaller physical dimensions, and the integration of the Internet of Things (IoT) within power electronics to enable smarter device functionality.

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What Are The Emerging Market Drivers Creating New Opportunities In The Power Electronics Industry?

The swift advancement within the realm of electric vehicles is a major catalyst fueling the expansion of the power electronics sector. Electric vehicles, defined as those operating solely or partially on electrical energy, heavily rely on power electronics integrated across various subsystems for efficient management and control of electrical energy transfer. Illustrating this momentum, data from the International Energy Agency (IEA), an autonomous, intergovernmental organization located in France, indicated that by the close of 2022, the global fleet of electric cars reached 26 million units, marking a substantial 60 percent surge compared to the figures from 2021. Consequently, the continuing proliferation of electric vehicles is projected to drive considerable future expansion within the power electronics market.

What Are The Major Segment Types Covered In The Power Electronics Market?

The power electronics market covered in this report is segmented –

1) By Product: Discrete, Module

2) By Material: Silicon, Silicon Carbide, Gallium Nitride

3) By Voltage: Low Voltage, Medium Voltage, High Voltage

4) By Application: Power Management, UPS, Renewable, Other Applications

5) By End User Industry: Automotive, Consumer Electronics, IT and Telecommunication, Military And Aerospace, Industrial, Energy And Power, Other End Use Industries

Subsegments:

1) By Discrete: Diodes, Transistors, Thyristors, Rectifiers

2) By Module: Power Modules, Intelligent Power Modules (IPMs), Multi-Chip Modules (MCMs)

What Trends Are Expected To Drive The Power Electronics Market?

Progress in technology represents a significant trend currently seeing increased adoption within the power electronics arena, signifying the creation of new knowledge that propels technology further forward. Leading firms engaged in the power electronics industry are directing their efforts toward creating cutting-edge innovations to satisfy what consumers require; to illustrate this, in the month of September in 2023, STMicroelectronics, a semiconductor and electronics firm headquartered in Switzerland, unveiled a novel category of Insulated Gate Bipolar Transistors (IGBTs) capable of withstanding a breakdown voltage of 1350V and functioning optimally at a top temperature of 175°C, thus boosting aspects like reliability, performance, and design latitude. Furthermore, the STPOWER IH2 line elevates power conversion effectiveness through a reduced saturation voltage, which consequently lessens power loss, and includes a freewheeling diode specifically engineered to boost efficiency within quasi-resonant converters operating within the 16kHz to 60kHz frequency range; these particular IGBTs prove highly suitable for induction heating tasks in domestic appliances, offering a potential decrease of up to 11% in power dissipation within 2kW setups.

Which Major Firms Are Strengthening Their Position In The Power Electronics Industry?

Major companies operating in the power electronics market include ABB Ltd., Fuji Electric Co. Ltd., Infineon Technologies AG, Microsemi Corporation, Mitsubishi Electric Corporation, Renesas Electronics Corporation, STMicroelectronics, Texas Instruments incorporated, Toshiba Corporations, Vishay Intertechnology, NXP Semiconductors, GaN Systems Inc., Littelfuse Inc., Maxim Integrated, ROHM Co. Ltd., Transphorm Inc., ON Semiconductor Corporation, Microchip Technology Inc., UnitedSiC Inc., Wolfspeed Inc., IXYS Corporation, Power Integrations Inc., Cree Inc., Diodes Incorporated, Semtech Corporation, Analog Devices Inc., Fairchild Semiconductor International Inc., International Rectifier Corporation, Linear Technology Corporation, Monolithic Power Systems Inc., Powerex Inc., Silicon Laboratories Inc., Sanken Electric Co. Ltd., TDK Corporation, Vicor Corporation, Yaskawa Electric Corporation, Murata Manufacturing Co. Ltd., Panasonic Corporation

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Which Global Regions Are Influencing The Competitive Landscape Of The Power Electronics Market?

Asia-Pacific was the largest region in the power electronics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the power electronics market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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