Power semiconductor market to reach $75 billion by 2032
Countries like China, Japan, the US, Germany, India and France are leading this growth by adopting advanced technologies and backed by supportive government policies.
The power semiconductor market is set to increase from USD 48.77 billion in 2023 to USD 75.13 billion by 2032, growing at a CAGR of 4.94%, according to a report by market research agency SNS Insider.
The power semiconductor market gained significant momentum in 2023 and 2024, fueled by increased global focus on energy efficiency, renewable energy adoption and industrial electrification.
Countries like China, Japan, the US, Germany, India and France are leading this growth by adopting advanced technologies and backed by supportive government policies. For instance, China has emphasized clean energy, including subsidies for electric vehicle (EV) manufacturers, and has become a world leader in this sector.
The US’s Inflation Reduction Act (IRA) incentivizes investments in clean technologies. Japan’s green growth strategy prioritizes energy-efficient semiconductors for industrial and automotive sectors.
Technological advancements such as the commercialization of silicon carbide (SiC) and gallium nitride (GaN) semiconductors are offering better energy efficiency, higher power density, and reduced energy losses.
Global EV sales increased by more than 33% in 2023, and solar capacity grew by 27% worldwide in 2023. These trends are driving demand for power semiconductors in EV fast chargers, solar inverters, and wind turbines.
The discrete segment led the power semiconductor market in 2023, holding 53% of the market share, due to its widespread use in automotive and consumer electronics, especially in high-efficiency and reliable applications like inverters and motor drives.
The module segment is expected to grow at the highest CAGR of 5.50% from 2024 to 2032, driven by increasing applications in renewable energy systems and industrial automation. Power ICs, integrating multiple functions into compact designs, are also seeing high demand in portable consumer products and IoT applications. Advancements in SiC and GaN materials are further boosting efficiency in energy-intensive applications.
In terms of application, the IT & Telecommunication segment dominated the market in 2023, holding 29.67% of the share, driven by the rapid expansion of 5G infrastructure and data centers that require high-performance power semiconductors for energy efficiency and heat management.
The automotive segment is projected to grow at the fastest CAGR of 5.59% from 2024 to 2032, fueled by the rise of electric vehicles and autonomous driving technologies. Industrial applications, including automation and smart manufacturing, also play a key role in the market’s growth. The increasing use of power semiconductors across diverse industries emphasizes their importance in improving operational efficiency and sustainability.
In 2023, North America led the power semiconductor market with a 38% market share, fueled by substantial investments in renewable energy projects and electric vehicle infrastructure, particularly in the US. Government incentives, including tax credits for clean energy technologies, have further spurred market demand.
On the other hand, Asia Pacific is expected to experience the fastest growth, with a projected CAGR of 6.07% from 2024 to 2032. The region’s rapid industrialization and urbanization, especially in countries like China and India, are major growth drivers.
