Power electronics in flux: market grows, leaders shift, and strategies adapt

Yole Group releases its latest report, Status of the Power Electronics Industry, capturing a rapidly evolving industry at a crossroads. Nevertheless, the global power electronics device market is projected to grow robustly. The market research and strategy consulting company expects revenue to grow from $26.2 billion in 2024 to $43.3 billion in 2030, although 2024 has been marked by a series of challenges.

Milan Rosina, Principal Analyst, Power Electronics & Battery at Yole Group, said: "A surge in production has created significant overcapacity, leading to elevated inventory levels across the supply chain, from distributors to end customers. At the same time, average selling prices have declined, due to heightened cost pressures and the growing presence of low-cost Chinese alternatives."

As a result, many established players reported lower revenues in 2024 compared to 2023, as detailed in Yole Group’s power electronics report. The situation has been further complicated by geopolitical uncertainty, shifting government incentives in renewable energy and EV infrastructure, and trade tensions across major regions.

Despite these disruptions, long-term growth is underpinned by structural demand in electric mobility, renewables, and industrial electrification.

Ecosystem shifts: Chinese players rise
The power electronics competitive landscape is undergoing significant transformation. While European and Japanese companies continue to dominate the Top 20 rankings, Chinese manufacturers are moving up fast.

In 2024, four Chinese companies, including CRMicro, Silan, BYD, and CRRC, entered the global Top 20, capitalizing on strong domestic demand, state-led investment programs, and low-cost local wafer sourcing. Although these players still trail behind the top-tier suppliers in scale, their growth trajectory is steep, especially in silicon MOSFET, IGBT, and SiC devices. The Chinese government’s strategic push for semiconductor self-sufficiency is further fueling this rise.

However, Infineon Technologies, STMicroelectronics, and onsemi remain the top three players. Each company maintains a significant share in both market segments: discrete and module. Silicon-based devices continue to dominate in volume, but SiC modules and discrete devices, along with GaN-based solutions, are seeing the fastest growth rates, driven by increasing demand for high-efficiency, high-density power systems in EVs and renewables.

“The fundamentals are strong, but the industry has reached a turning point,” says Milan Rosina from Yole Group. “Companies that invested heavily in SiC and GaN are now adapting to a tougher pricing environment and evolving customer expectations.”

This shifting landscape signals a strategic reset. The era of rapid expansion must now give way to disciplined execution, refined product targeting, and localized supply strategies.

The power electronics industry is growing, but the rules are changing. New players, regional realignments, and compound semiconductor materials like SiC and GaN are reshaping how companies compete. 

Key takeaways
* The power electronics market to grow to $43.3 billion by 2030. Yole Group expects an 8.7% CAGR.
* Short-term turbulence in 2024 was driven by overcapacity, high inventories, and ASP declines.
* SiC and GaN technologies are gaining ground, though silicon devices still dominate.
* Ecosystem: Infineon Technologies, STMicroelectronics, and onsemi remain market leaders, while four Chinese players enter the Top 20. Chinese manufacturers are rapidly expanding, benefiting from local supply chains and government support.