Global Power Electronics For Renewable Energy Market Insights Forecasts to 2033

• The Global Power Electronics For Renewable Energy Market Size was Valued at USD 9.46 Billion in 2023
• The Market Size is Growing at a CAGR of 7.53% from 2023 to 2033
• The Worldwide Power Electronics For Renewable Energy Market Size is Expected to Reach USD 19.56 Billion by 2033
• Europe is Expected to Grow the fastest during the forecast period.

 

 

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The Global Power Electronics For Renewable Energy Market Size is Anticipated to Exceed USD 19.56 Billion by 2033, Growing at a CAGR of 7.53% from 2023 to 2033.

 

Market Overview

Power electronics are devices that convert and control electrical power using semiconductor switches. They are essential for integrating renewable energy sources into the power grid or independent systems. Power electronics can handle the conversion and regulation of electrical power between renewable sources and the load or the grid. The dynamics of electrical grids are starting to change due to the large-scale integration of power electronic converters into the grid to facilitate the utilization of renewable energy. The growing focus on lowering carbon emissions, developments in power electronics technology, and government subsidies for renewable energy projects that boost system dependability and efficiency are major opportunities in the power electronics for renewable energy market

 

According to U.S. Department of Energy, Renewable energy generates over 20% of all U.S. electricity, and that percentage continues to grow. Breaks down the shares of total electricity production in 2022 among the types of renewable power Renewable Energy Share of Total U.S. Electricity Production in 2022 is 10.3% wind, 6.0% hydropower, 3.4% solar, 1.2% biomass, 0.4% geothermal. In 2022, annual U.S. renewable energy generation surpassed coal for the first time in history. By 2025, domestic solar energy generation is expected to increase by 75%, and wind by 11%. The United States is a resource-rich country with enough renewable energy resources to generate more than 100 times the amount of electricity Americans use each year.

 

Report Coverage

This research report categorizes the market for power electronics for renewable energy based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the power electronics for renewable energy market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the power electronics for renewable energy market.

 

Driving Factors

The increased adoption of renewable sources of energy, including technologies in either solar photovoltaic or wind turbine, generates a correspondingly high demand for power electronic devices capable of efficiently handling conversion, control, and management of variable and intermittent power sources associated with these renewable technologies. Another major driving factor has been stringent regulations and policies, aiming to reduce carbon emissions and promote the application of sustainable energy solutions where power electronics definitely have a key role in making renewable energy sources grid-friendly. The need for stabilization and reliable electricity supply has hastened the upward growth of the power electronics market in the renewable energy sector and thereby raised the demand for grid integration and energy storage solutions. This has further led to the growth of this market.

 

Restraining Factors

One of the major challenges had to do with the higher cost of power electronic systems compared to the conventional technology in power transmission and distribution. This has therefore made some projects, particularly in developing regions; find it hard to justify the necessary investment in a power electronics-based solution. In addition, these difficulties in integrating power electronics with existing grid infrastructure and the need for specialized technical expertise in its design, installation, and maintenance have created barriers against wide adoption in some areas. Even the application of power electronic devices in renewable energy suffers from important drawbacks to their reliability and durability under harsh environmental conditions. Among the inhibitive factors in the power electronics market for renewable energy applications are regulatory policy uncertainties and non standardization in some regions.

 

Market Segmentation

The power electronics for renewable energy market share is classified into device type and application.

 

• The power module segment is estimated to hold the highest market revenue share through the projected period.

Based on the device type, the power electronics for renewable energy market is classified into power discrete, power module, and power IC. Among these, the power module segment is estimated to hold the highest market revenue share through the projected period. This is because power modules contribute to the effective conversion, control, and management of electric power harnessed from renewable energy. The key components in a majority of renewable energy power electronic applications include power modules, which are formed by the combination of power semiconductor devices, drivers, and often the engaging control circuitry, into inverters, converters, and motor drives. The growing complexity and power-handling requirements of renewable energy technologies especially utility-scale solar photovoltaic plants and large-scale wind turbines have created the need for power module solutions that are more advanced and efficient than ever before.

 

• The power generation segment is anticipated to hold the largest market share through the forecast period.

Based on the application, the power electronics for renewable energy market is divided into power transmission, power generation, power distribution, and power control. Among these, the power generation segment is anticipated to hold the largest market share through the forecast period. Due to the growing deployment of renewable energy technologies, such as solar photovoltaic systems and wind turbines, which rely heavily on power electronic converters and inverters to efficiently convert the variable, intermittent power generated by these sources into high-quality, grid-compatible electrical energy. As the global shift towards renewable energy continues, the demand for power electronic solutions in the power generation segment, including grid-tied inverters, power conditioning units, and energy management systems, is expected to increase significantly. The need to integrate renewable power generation with existing grid infrastructure, ensure grid stability and power quality, and enable the effective storage and distribution of renewable energy further drives the adoption of power electronics in this segment. Additionally, the ongoing technological advancements in power semiconductor devices, control algorithms, and power conversion topologies have improved the efficiency, reliability, and cost-competitiveness of power electronics for renewable energy generation applications, solidifying their dominance in the market during the forecast period.  

 

Regional Segment Analysis of the Power Electronics For Renewable Energy Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

 

North America is anticipated to hold the largest share of the power electronics for renewable energy market over the predicted timeframe.

 

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North America is anticipated to hold the largest share of the power electronics for renewable energy market over the predicted timeframe. The United States, in particular, has been exemplary in new technology for the renewable energy deployment of technologies, including solar photovoltaic and wind power, which have created demand for advanced power electronics solutions that effectively integrate the intermittent energy sources into the grid. In addition, the region's long-recognized and comprehensive infrastructure for power grids, coupled with the latest and ongoing activities in the modernization of power grids and integration with grid energy storage, is proving to be conducive for the penetration of renewable-based applications of power electronics. It is the presence of major power electronics manufacturers, research institutions, and workforce skills in the region that led to the development and commercialization of innovative power conversion and control technologies to be applied to the renewable energy sector. Supportive government policies, tax incentives, and an increasing focus on decarbonization and sustainability further provide the impetus for market growth in renewable energy in the forecast period.  

Europe is expected to grow at the fastest CAGR growth of the power electronics for renewable energy market during the forecast period. This can be brought on by a number of factors, the European Union has set very ambitious targets in regard to renewable energy use to increase the share of at least 32% of its fuel mix as far as renewable sources by 2030. Resultantly, there has been massive investment in renewable energy projects, and more so in the offshore wind sector, where advanced power electronic solutions are central to its effective integration with the grid and energy management in the AC systems. Secondly, the strong emphasis of the region on sustainability, decarbonization, and the transition to a low-carbon economy has spurred demand for power electronics technologies that can optimize both performance and reliability in renewable energy systems. Additionally, the presence of leading manufacturers, research institutions, and highly qualified manpower in the power electronics industry has been complemented by a slew of policies and incentives that have consolidated the status of Europe as a hub for innovation and technological advancements in the market.

 

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the power electronics for renewable energy market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

 

List of Key Companies

• Fuji Electric Co., Ltd.
• Toshiba International Corporation
• ROHM CO., LTD.
• ABB
• GaN Systems
• Hitachi, Ltd.
• Infineon Technologies AG
• Littelfuse, Inc.
• Microchip Technology, Inc.
• Renesas Electronics Corporation
• Semikron Danfoss
• UnitedSiC
• Others

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

 

Recent Developments

• In July 2024, in a breakthrough for green energy, researchers demonstrated a novel technique to efficiently convert ambient radiofrequency signals into DC voltage that can power electronic devices and sensors, enabling battery-free operation.

 

• In July 2024, GE Power India is selling its hydro business at a premium of Rs 100.19 crore and gas power business at a lumpsum of Rs 43.86 crore through a slump sale.

 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the power electronics for renewable energy market based on the below-mentioned segments: 

 

Global Power Electronics For Renewable Energy Market, By Device Type 

• Power Discrete
• Power Module
• Power IC

 

Global Power Electronics For Renewable Energy Market, By Application

• Power Generation
• Power Transmission
• Power Distribution
• Power Control

 

Global Power Electronics For Renewable Energy Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa