Key Influences Shaping the Growing Demand in the Power Electronics Industry
The power electronics sector is experiencing significant growth, driven by the increasing demand for energy-efficient solutions and the rise of electric vehicles (EVs) in Europe.
Power electronics modules are now a common feature in various appliances, including air conditioners, smart TVs, HVAC control systems, robotic vacuums, smart energy meters, and other smart appliances. These components enhance power efficiency and prevent electrocutions, making them indispensable in today's technology-driven world.
The shift towards electric mobility is one of the primary factors driving the demand for power electronics systems. The increase in EV charging stations could further fuel this demand, particularly in Europe. In January 2021, there were 20,775 public electric vehicle charging devices in the UK, of which 3,880 were fast chargers. As the installation of EV charging stations continues across Europe, particularly in remote locations, the power electronics business outlook across the region is expected to augment.
The European power electronics market was valued at over USD 4 billion in 2020 and is anticipated to register a 4.5% Compound Annual Growth Rate (CAGR) between 2021 to 2027. This growth is largely due to the increasing demand for electronics modules in smart home appliances and advanced consumer electronics.
The trend towards Internet of Things (IoT) and Artificial Intelligence (AI) technologies in smart homes could generate new business opportunities for power electronic manufacturers. Companies in the power electronics sector are focusing on strategic initiatives like investing in R&D activities for developing technologically advanced products, and mergers & acquisitions.
Key players in the power electronics sector include NXP Semiconductor N.V., Texas Instruments Incorporated, Fuji Electric Co. Ltd., Mitsubishi Electric Corporation, STMicroelectronics N.V., ON Semiconductor Corporation, Infineon Technologies AG, TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION, among others. Notable developments include Toshiba's launch of a 1,200V silicon carbide (SiC) MOSFET in December 2020, which has applications in DC-DC converters, photovoltaic inverters, and AC-DC converters.
Infineon Technologies AG launched the HybridPack series of power modules, which have applications in electric vehicles, in May 2019. ABB and Mitsubishi Electric have developed technologically advanced products in power electronics in recent years, significantly increasing their market share. ABB, in particular, has introduced new frequency converters with integrated connectivity, cloud access, AI-driven analytics, and enhanced computing power, shaping global efficiency standards in industrial drives.
Government initiatives to promote sales of electric vehicles due to environmental concerns could stimulate the supply and demand of power electronics in the EV sector. Over the coming years, electric vehicles could become the preferred mode of transit due to advancements in longer-lasting and affordable batteries.
In conclusion, the power electronics market is poised for continued growth as Europe embraces electric vehicles and smart homes. The increasing demand for energy-efficient solutions, coupled with the rise of EVs, presents a promising future for the sector.
