Semiconductor Power Systems Poised for Growth in EV and Renewable Sectors

2024-12-09 industry

Global, Monday, 9 December 2024.
A new report forecasts significant growth in semiconductor power systems, driven by their expanding use in electric vehicles and renewable energy, reshaping global power dynamics by 2034.

Market Growth Projections

The SiC and GaN power semiconductor market is set for extraordinary expansion, projected to surge from USD 2,170.8 million in 2024 to USD 23,718.0 million by 2034, representing a remarkable CAGR of 27.1% [2]. Silicon Carbide (SiC) currently dominates with a 78.3% market share, while Gallium Nitride (GaN) technology is showing even more aggressive growth potential with a projected CAGR of 29.1% [2]. This growth trajectory is particularly significant in China, which leads global expansion with a CAGR of 31.1% [2].

Technology Advancements and Applications

Wide bandgap semiconductors are revolutionizing power applications with their superior capabilities [6]. SiC-based power semiconductors demonstrate remarkable efficiency improvements, capable of increasing electric vehicle driving range by 7.5% and reducing charging time by 75% [3]. These technological advances are supported by significant investments, as evidenced by SK Siltron CSS’s recent USD 544 million loan agreement with the U.S. Department of Energy for SiC wafer production [3]. The automotive sector is positioned to become the dominant application, projected to account for 74.0% of revenue share by 2034 [2].

Manufacturing and Supply Chain Developments

The industry is witnessing substantial manufacturing capacity expansion to meet growing demand. The MOCVD market, crucial for semiconductor production, is expected to reach USD 2.8 billion by 2033, growing at a CAGR of 9.7% [4]. This growth is particularly concentrated in the Asia Pacific region, which currently holds a 55.4% market share [4]. Major industry players including Infineon Technologies AG, STMicroelectronics N.V., and ROHM Co. are focusing on product development and technology upgrades to maintain competitive advantages [2].

Future Outlook and Market Drivers

The transition toward renewable energy and increasing adoption of electric vehicles are creating substantial growth opportunities for the semiconductor power systems industry [2]. The global SiC device market alone is expected to grow from USD 2.7 billion in 2023 to USD 9.9 billion by 2029 [3]. This growth is supported by ongoing technological innovations and supportive government policies promoting clean energy initiatives [2]. The industry’s expansion is further bolstered by increasing demands in industrial automation and consumer electronics sectors [2].

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