Power electronics is the specialization of electrical engineering that covers design, control, and conversion from one form to another. High-powered electronics, industrial-level energy systems, and even our household appliances are applications of power electronics.


As we become more and more attuned to EVs, sustainable business practices, and clean energy in our daily lives, the larger the role of power electronics becomes. While power electronics is a highly specialized field, its real-world applications are better appreciated when we look at it through the lens of what electronic devices and systems we can’t live without today. 

Two good and simple examples of power electronics at work in our daily lives can be found right inside our homes. Modern air conditioning units have become inverters, which conserve energy better. We might also have a transformer or two to help us step up or step down our various appliances’ voltage requirements. These would not be possible without power electronics. 

A study from Global Market Insights Inc. says that by 2032, the power electronics market size is projected to surpass $40 billion. This is supported by a report made by Exactitdude Consultancy which says that the power electronics market is projected to grow at 5.1% CAGR from 2023 to 2029. By 2029, it is expected to reach above $39.6 billion from $26.6 billion in 2022. 

With power electronics top power players such as Texas Instruments Incorporated, Fuji Electric Co. LTD, Mitubishi Electric Corporation, and Toshiba Corporation leading the charge, it becomes worth looking into the leading aspects of the market and which segments are gaining momentum. 

(Also read: Top 10 EV Battery Innovations in 2023)

EMS Now released an article on the top drivers for the power electronics market for 2023-2032, citing industrial automation and amplified demand for renewable energy infrastructure as the main reasons for expansion in the power electronics market. 

There are three identified growth areas for power electronics, and these are:

Rising popularity and sales of EVs

The rising sales of electronic vehicles in the Northern American region play a vital role in the growth of the power electronics market. The demand for EVs will drive forward power electronics and boost its market shares to over $5 billion by 2032. Rapid developments and innovations for batteries in the industrial and automotive markets are also connected to this growth, especially in the interest of promoting more renewable energy systems and reducing carbon emissions. 

The power modules are taking over

EMS Now includes the application of power modules as a driver for growth for the power electronics market. According to the same article, the power modules segment is poised to surpass 35% share by 2032. Power modules are a vital component of EVs, AC-DC inverters and converters, household appliances, and medical equipment. Global manufacturing companies are coming up with better power modules for modern devices that regulate electric power more efficiently. 

Our appliances and devices are getting smarter

With many of our appliances and devices becoming smarter, IoT and interconnectivity between gadgets have become key features. Our air-conditioning units, TVs, microwaves, and washing machines run on sophisticated systems that not only allow them to communicate with each other but also use energy more efficiently. Manufacturers are constantly working on product design and development and introducing new products for consumers. 

In addition to the above, consider also the following growth areas and trends:

Changing and evolving outlooks on modern living

Our general outlooks and attitudes surrounding sustainable practices and smart gadgets that elevate our quality of life are also drivers that galvanize the power electronics market. Households in highly urbanized areas are especially reliant on electronic devices for everyday tasks. From the moment we wake to the moment we go to sleep, we interact with electronic devices all the time. These devices are becoming more sophisticated and integrated with other tasks, and therefore require complex systems to operate smoothly. These have become so ingrained in our culture that machines constantly need upgrading to keep up with our demands. 

Automation, digitization, and the Cloud

The demand for automation, digitization, and data storage is also growing. Data centers are required to store massive amounts of data. Energy storage, industrial drives, and control systems are only a few applications of power electronics. The more automation becomes a must for manufacturing and industrial markets, the bigger the role power electronics plays. 

Sophisticated medical equipment

Power electronics is also applied to medical equipment. Today’s advancements in surgical equipment make use of AI, machine learning, and IoT. Many imaging systems, life support systems, and therapeutic devices rely on high-powered electrical devices to provide accurate results. New products are constantly being introduced to the healthcare sector. 

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