Glossary 2

Table of contents 3

Objectives of the report 4

Scope of the report 5

About the authors 6

Companies cited in this report 7

Who should be interested in this report 8

What we got right, what we got wrong 9

Methodology and definitions 10

Executive Summary 22

Context 55

• Power electronic applications – main drivers
• Driving applications – historical perspective
• Key application markets for power devices
• Power device technologies

Market forecasts 75

• Overall power electronics market
• Silicon, SiC and GaN market share
• Wafer forecast
• Global discrete forecast
• Global module forecast
• Power module packaging market
• Inverter market

Market trends 106

• Market trends, by segment
• EV, rail, charging infrastructure, PV, wind, UPS, computing, power supply, motor drives, consumer, home appliances, telecom & datacom, energy storage, HVDC, medical, automotive

COVID-19 Crisis’s Impact on the Power Electronics Industry 127

Market share and supply chain 134

• Supply chain overview and business models
• Power electronics manufacturers, packaging players, Li-Ion battery pack supply chain, passive landscape
• Market shares and company profiles of top 3 players
• Chip shortage
• IDM vs. Foundry business models
• Manufacturing capabilities for power electronics
• Power semiconductor industry worldwide
• Overview
• Focus on China, the US, EU, Korea, and Japan
• M&A and Major news

Technology trends 234

• Overview: Challenges, main requirements, and innovation axes
• Synergies between different markets
• Power electronics in automotive
• Fab 4.0
• Power device packaging
• Inverter trends
• Wide Bandgap
• EV charging solutions
• Batteries

Take-away and Outlook 313

Related reports 318

How to use our data 320

$26B MARKET BY 2026: MORE POWER ELECTRONICS FOR A GREENER WORLD

The power electronics market will reach an impressive $26B by 2026. The increase will be pushed across various axes, such as the increased volumes of power electronics systems, new applications, and the use of discretes versus modules in power systems. So, what will the future of the various power devices look like?

It is a fact that more electronic systems are required to meet the huge demand from end systems, specifically from the need to increase efficiency and reduce CO2 emissions. More green energy generation, more green cars, more charging stations, more energy storage, more industrial carbon-neutral goals… And 2026 is definitely not the end of this growing demand!

Looking closely at the different power electronics component types, three essential items must be considered. First, the low-power market, ruled by silicon MOSFET components, will keep growing at 3.8% CAGR2020-2026, pushed by consumer electronics, automotive auxiliary systems, and small power industrial applications. Consumer applications account for a significant portion of the silicon MOSFET demand. GaN will grab a share of the silicon MOSFET market, mainly for fast chargers for consumer electronics. Automotive auxiliary systems are also worth a closer look as there is an enormous increase in small auxiliary systems in the car.

Second, IGBT modules are expected to grow with a 7.8% CAGR2020-2026, pushed by Electric Vehicles (EV) and industrial applications. However, as shown in the report, there is also a market for other applications, such as Photovoltaic (PV), Wind, and Battery Energy Storage Systems (BESS).

Last but not least, there is very significant penetration of SiC MOSFET discretes and modules into EV applications, which will contribute largely to the $2.6B SiC MOSFET market expected by 2026. EV and its high-quality standards are also pushing for an enormous increase in the power module packaging market. You will find more about the incredible pace of the power electronics market in this report.

POWER MODULES VS. DISCRETE DEVICES: WHAT DEVICE TO CHOOSE?

Today, the majority of the power device market is represented by discretes, but the power module share will increase in the coming years. Different application trends work in favor of both discretes and modules, leading to good market growth for these device segments. IGBT and SiC power modules are largely used in applications such as EV, wind turbines, PV, BESS, and DC chargers for EV, driven mainly by the trend towards higher system power. On the other hand, discrete power components are mainly used in low power applications, such as low-power motor drives, PV microinverters, and residential string PV inverters, automotive auxiliary systems, DC-DC converters, and onboard chargers in EVs, etc.

As a rule of thumb, the systems below about 30 to 50 kW are built on discrete devices, while higher power systems are based on power modules. But the situation is more complex, as discrete devices offer many advantages also for large power systems, i.e., system design flexibility, cost, large supplier choice, and standardized product. Moreover, some high-power systems consist of several lower power sub-systems instead of a monolithic system design. For example, this is the case for modular PV inverters, BESS, and DC chargers for EV.

MORE CHIPS ARE NEEDED!

“More chips are needed”. This is the cry we hear over and over from different industrial players and media. The supply chain is susceptible to a volume increase, and any disruption in component supply might stop the end market shipments. For this reason, the race for volume increase already started 2-3 years ago with Infineon, Alpha and Omega, onsemi, and STMicroelectronics leading the increase in component manufacturing capabilities on 300mm wafers. The Chinese government started subvention plans to equip fabs and foundries to push for local manufacturing, and companies like HHgrace and Cansemi now have brand new 300mm lines. All of them want a piece of the $26B cake by 2026.

We note that the disruption in the power electronics supply chain is shaking up the actual primary business model (IDM), which is adopting foundries as a second source complementary to IDMs. This is leading to a capacity increase in foundries to deal with high customer demand and to guarantee the supply in case of supply chain disruption.

Last year there were many announcements about new manufacturing line plans for the next five years, including by players such as Toshiba, CRMicro, Nexperia, and Rohm. The last mentioned is already building a SiC fab and has just announced a new 300mm silicon one that will include power electronics. However, some players still opt for 200mm lines, such as BYD. Any approach is good if it increases volumes! There are even 150mm fabs being refurbished to 200mm, which is more cost-effective than building a fab from scratch.

Many manufacturing expansion options are possible, as analyzed in this report.

ABB, Alpha and Omega Semiconductor (AOS), Alstom, Amkor, Analog Devices, ASE Group, Bosch, BYD, Cree, CRRC, Danfoss, Denso, Dialog Semiconductor, Diodes Incorporated, Diotec Semiconductor, Episil, EXAGAN, Fuji Electric, GaN Systems, General Electric, Global Wafers, GTA Semiconductor, Hitachi, Honda, Huawei, Infineon, Ingeteam, LEM, Littelfuse, MACMIC, Magnachip, Microchip, Mitsubishi Electric, Monolithic Power Systems, Nexperia, NXP, Okmetic, onsemi, Panasonic, Powerex, Power Integrations, Qualcomm, Renesas, Rohm, Sanken, Semikron, Shindengen, ShinEtsu, Siemens, Silan Microelectronics, Siltronic, Sino-Microelectronics, Soitec, STMicroelectronics, StarPower, Sumco, Sungrow, Tamura, TDK, Tesla Motors, Texas Instruments, Toshiba, Toyota, Transphorm, UnitedSiC, UTAC, Valeo, Vishay, Volkswagen, and more.