In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
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).
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. CLICK TO DOWNLOAD SAMPLE REPORT
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.
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.
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.
Ans: The rising usage of power devices for a number of applications, increasing use of power devices in automotive industry and growing production of electric vehicles are major growth factors.
Ans: The market in North America and Europe is anticipated to attain a CAGR of 5.5% and 4.5% respectively over the forecast period, i.e. 2020-2028.
Ans: The market in United States is anticipated to provide more opportunities for business growth in the market in North America.
Ans: The major players in the market are International Rectifier, Vishay Intertechnology (Siliconix), Infineon Technologies, Pulse, The Bergquist Company, Bosch Rexroth, Rockwell Automation, SynQor, Artesyn and Power-One.
Ans: Company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.