Power electronics market seen rising to $58.64B by 2035

The global power electronics market is projected to grow from $30.8 billion in 2025 to $58.64 billion by 2035, lifted by EV electrification, renewable energy buildout and AI data center demand. Wide-bandgap semiconductors such as silicon carbide and gallium nitride are reshaping both the product mix and pricing across the sector.

Why it matters: - Power electronics sits at the center of three major shifts: electric vehicles, renewable energy, and AI infrastructure. - The move from legacy silicon to wide-bandgap semiconductors is expanding demand for high-efficiency switching devices while also raising average selling prices. - The market is projected to grow at a 6.65% CAGR through 2035, making it one of the faster-growing semiconductor segments.

What happened: - Market Research Future said the global power electronics market reached an estimated $30.80 billion in 2025. - The market is expected to rise to $32.86 billion in 2026 and $58.64 billion by 2035. - The report covers applications including consumer electronics, automotive, industrial, renewable energy and telecommunication. - The report includes a sample copy and full report pages at the sample report and the full report.

The details: - Electric vehicle powertrain electrification is the biggest growth driver, contributing about 28% of CAGR. - Global EV sales topped 17 million units in 2024. - BloombergNEF projects annual EV sales will reach 40 million vehicles by 2030. - Each battery-electric vehicle contains about $350 to $800 in power semiconductor content across traction inverters, DC-DC converters, onboard chargers and thermal management systems. - Renewable energy inverter deployment contributes about 22% of CAGR. - Global solar PV capacity is expected to triple to more than 5,000 GW by 2030 under the IEA Net Zero Emissions scenario. - The U.S. Inflation Reduction Act directs more than $30 billion toward clean-energy manufacturing. - India’s Revamped Distribution Sector Scheme commits INR 3.03 trillion to grid modernization. - AI training clusters now consume 40 to 80 kW per rack, or four to eight times the density of conventional enterprise servers. - Hyperscale operators plan to deploy more than 100 GW of total data-center capacity globally by 2030. - Power components used in AI infrastructure include multi-phase voltage regulator modules, 3 kW-plus server power supplies, UPS systems, advanced power MOSFETs, GaN point-of-load converters and high-efficiency rectifier modules. - By component, discrete devices led with 49.2% of revenue in 2025. - Power modules were the fastest-growing component, with a 7.72% CAGR through 2035. - By device type, MOSFETs were the fastest-growing segment at 8.85% CAGR through 2035. - IGBTs were valued at $6.25 billion in 2025. - Diodes are projected to grow at 5.3% CAGR through 2035. - By material, silicon held 84.6% of revenue in 2025. - Silicon carbide was the fastest-growing material at 9.37% CAGR through 2035. - Gallium nitride was valued at $1.15 billion in 2025. - By application, consumer electronics was the largest segment at 25.6% share in 2025. - Automotive was the fastest-growing application at 9.85% CAGR through 2035. - Industrial applications held 18.9% of share in 2025. - Renewable energy is projected to grow at 7.4% CAGR through 2035. - ICT and telecommunication was valued at $5.12 billion in 2025. - By end use, the report highlights residential, commercial and industrial demand across power conditioning, charging, motor drives and automation systems.

Between the lines: - The market is shifting from cost-driven silicon demand to performance-led demand for SiC and GaN. - 800V EV platforms and higher-voltage renewable systems are increasing the value of each device sold. - AI infrastructure is creating a new demand pool for efficient power delivery, not just higher chip volume. - Supply-chain control matters more as fewer companies can produce commercial-grade silicon carbide materials.

What's next: - SiC capacity expansions by Wolfspeed, STMicroelectronics, onsemi and ROHM are expected to quadruple global SiC wafer output by 2030. - The report says silicon will remain the dominant material through 2035, even as its share gradually declines. - Automotive adoption of 800V and 1,200V platforms is expected to keep pushing demand toward SiC MOSFETs. - GaN adoption in consumer fast chargers and 5G infrastructure is likely to continue rising as power density needs increase.

The bottom line: - Power electronics is moving from a mature component category to a strategic enabler of electrification, renewable power and AI infrastructure.