North America & Europe Power Electronics Market Overview based on Region during 2019-2027
Power electronics is a vast field that forms an integral part of electrical engineering and provides solutions for the effective power conversion. The introduction of newly developed power semiconductor integrated devices such as power MOSFET, thyristor and IGBT, has further led to growth in the demand for these devices.
The North America power electronics market is projected to attain a CAGR of 5.5% over the forecast period, i.e., 2019-2027. The market is segmented on the basis of country into U.S., Canada and Mexico, out of which, the market in the United States is anticipated to hold the largest share in the market of about USD 18,000 million by 2027. On the other hand, the power electronics market in Europe is anticipated to grow at a CAGR of 4.5% during the forecast period. Moreover, the market in Europe is anticipated to reach an estimated market value of USD 20,000 Million by the end of 2027.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada and Mexico) and Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Turkey, Rest of Europe).
Market Segmentation Synopsis
On the basis of type, the North America & Europe power electronics market is segmented into discrete, module and IC. Out of these, the IC segment is anticipated to hold the largest share in the market in the coming years and the discrete segment is projected to grow at the highest CAGR of around 7.5% over the forecast period. This can be attributed to the increased incremental opportunity created by the discrete segment in U.S. power electronics market in the next few years.
Based on voltage, the North America & Europe power electronics market is segmented into high, medium and low voltage, out of which, the segment for low voltage held the largest market share in 2019 along with the largest market size of around USD 5,000 million in the year. Further, this segment is anticipated to continue to hold the leading share in the market and grow at the highest CAGR throughout the forecast period.
By End User
On the basis of end user, the market is segmented into ICT, consumer electronics, power, industrial, automotive, aerospace & defense and others. Out of these, the segment for ICT is anticipated to hold the leading share in the market on account of rising applications of ICT in various industries that require the use of power electronics. However, the highest growth rate is estimated to be observed by the segment for automotive industry. The increasing use of power electronics in the various parts of vehicles as well as the increasing demand for power electronics in electric vehicles is predicted to result in the market growth in future.
Market Drivers and Challenges
The rising usage of power devices for a number of applications is anticipated to become a major growth driver for the power electronics market in North America & Europe. This can be attributed to the increasing use of power devices in various end user industries such as automotive industry. Growing production of electric vehicles and increasing government initiatives that further promote vehicle penetration are additional factors estimated to contribute towards the market growth.
The increasing demand for electronic power devices for reducing the power consumption, especially in regions such as the U.S., UK, France and Germany is another growth stimulating factor for the market. In addition to this, the growing sales of advanced consumer electronics as well as increasing employment in the field of renewable energy are factors further predicted to raise the market growth.
The high cost associated with power electronics is estimated to become a major factor hampering the growth of power electronics market in North America & Europe. As the cost of power electronics increases, the cost of products increases as well, this eventually impacts the overall sales and becomes a challenge for the industry. Moreover, the various technological challenges faced by the power electronics industry is another drawback which is predicted to restrict the market growth over the forecast period.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the North America & Europe power electronics market are International Rectifier, Vishay Intertechnology (Siliconix), Infineon Technologies, Pulse, The Bergquist Company, Bosch Rexroth, Rockwell Automation, SynQor, Artesyn and Power-One.