Power Semiconductor Market Trends

Market Driver - Rising Demand for Industrial Automation

Integration of automation across industries is increasing in order to optimize productivity and reduce costs. Thereby, the demand for power semiconductors that control and regulate industrial automation equipment has seen a significant rise. Many manufacturing plants have highly complex automated production lines equipped with machines, robots, and sensors that require power semiconductors to function properly.

The packaging industry has benefited hugely from automation with robots performing arduous and repetitive tasks like packing boxes at high speed. Similarly, automotive manufacturers are automating vehicle production lines to achieve mass production capabilities. Activities like welding, painting, and assembly that were previously done manually are now controlled by robots and other automated equipment powered by semiconductors. This has led OEMs to focus on building smart, connected factories of the future with end-to-end automation requiring advanced power devices. Other industries like food & beverage processing, plastic manufacturing, electronics assembly are also automating to improve productivity through 24/7 operations and meeting rising consumer demand.

Market Driver - Development of Energy-efficient Devices

With growing environmental concerns around the world, there is a strong push for reducing energy consumption and transitioning to cleaner sources of power. This presents a massive opportunity for power semiconductor manufacturers to develop more energy-efficient devices that can help optimize energy usage.

Consumer electronic devices like laptops and smart phones that people use daily rely on compact power management ICs containing efficient gallium nitride or silicon carbide transistors. In industries, switching from conventionally inefficient motor drive systems or linear power supplies to devices utilizing wide bandgap semiconductors can substantially cut energy bills. GaN and SiC power modules deliver higher power densities at much smaller sizes and lower power losses during operation.

As environmental consciousness rises globally and energy efficiency becomes a deciding factor, semiconductor companies will look to continuously enhance their wide bandgap offerings. Continuous R&D is focused on improving device performance metrics like lower on-resistance, higher breakdown voltage and higher operating temperatures. Such innovation will accelerate the growth of green applications and drive greater power semiconductor market revenues.

Market Challenge - High Costs and Complexity of Power Semiconductors

The power semiconductor market faces significant challenges due to the high costs and complexity associated with power semiconductors. Power semiconductors cater to industries with high power requirements such as automotive, industrial motors, and renewable energy.

However, producing power semiconductors involves complex manufacturing processes that utilize expensive raw materials like silicon carbide and gallium nitride. This makes power semiconductor devices more costly compared to regular semiconductors used in consumer electronics.

Additionally, intricate cooling mechanisms are required to dissipate heat generated during operation. The cooling systems add further to production expenses. The technical complexities also mean longer development cycles for new power semiconductor designs. This high level of complexity poses significant barriers for companies working in the power semiconductor market.

Market Opportunity - Increasing Application of Schottky Barrier Diodes

The power semiconductor market provides opportunities for companies focused on new device types and materials. One such technology gaining prominence is Schottky Barrier Diodes (SBDs). Their ability to function at high switching frequencies also provides design advantages over other alternatives. These benefits have led to increasing application of SBDs across various industries that rely on power management and conversion

In electric vehicles, SBDs allow more compact and effective onboard chargers. They are also facilitating more efficient wireless charging systems. With electrification trends accelerating globally, the demand for power conversion and management is growing rapidly.

This growing requirement provides a massive opportunity for wider usage of SBDs across different applications involved in new energy systems. Companies developing advanced SBDs using wide bandgap materials can gain significantly in the power semiconductor market.