Renewable Energy and Electric Vehicles Drive Power Electronics Market to $35.7 Billion

The global power electronics market is on track for impressive growth, expected to expand at a CAGR of 7% between 2023 and 2029, reaching a total market value of $35.7 billion by 2029, according to a report from Yole Group.

This growth is driven by the increasing demand for EVs, renewable energy systems, and high-efficiency consumer electronics, all underpinned by global sustainability initiatives aimed at reducing carbon emissions.

Wide bandgap semiconductors, specifically SiC and GaN technology, are playing a pivotal role in this growth with their superior efficiency compared to traditional silicon-based power devices is making them indispensable in high-demand applications like EVs, photovoltaic systems, and fast chargers. Yole Group projects that by 2029, these advanced materials will comprise over 15% of the power device market.

In the automotive sector, the shift to electric vehicles is intensifying investments in power electronics. Automakers are prioritizing the integration of SiC and GaN in systems such as inverters, converters, and onboard chargers to improve efficiency and performance.

For instance, STMicroelectronics has expanded its SiC offerings to meet these growing demands, and Onsemi's acquisition of GT Advanced Technologies has secured its position in the SiC supply chain. Making it easier for automakers transition to higher voltage systems like 800V EV platforms to handle the increased power efficiently

Infineon Technologies is also leading in this area, with its GaN-based solutions enabling advanced vehicle-to-everything (V2X) systems, further enhancing the energy efficiency of EV charging infrastructure. Moreover, the continued collaboration between companies such as Renesas and Wolfspeed highlights the importance of securing long-term supply chains for SiC wafers, essential for both automotive and industrial applications.

Beyond EVs, industries are increasingly adopting power electronics to reduce CO2 emissions. Applications in lighting, renewable energy generation, and EV charging infrastructure are driving demand for SiC and GaN-based systems, with companies like Navitas leading in GaN innovations for fast chargers and renewable energy, the power electronics market is poised for steady expansion. As industries push toward greater sustainability, the market’s growth is likely to remain robust over the next five years.