Power Discretes Market to 2020 - Increased Demand from Hybrid Electric Vehicle, Solar Photovoltaic and Wind Energy Markets to Benefit MOSFETs and IGBT

20 Sep 2010 • by Natalie Aster

GBI Research’s new report, “Power Discretes Market to 2020–Increased Demand from Hybrid Electric Vehicles, Solar Photovoltaic and Wind Energy Markets to Benefit MOSFETs and IGBTsprovides the key market statistics and analysis on the discrete power semiconductor industry. The report covers the key market drivers, restraints and growth forecasts for major market segments in the power discretes Industry.

The rapid adoption of mobile and smart phones is expected to boost the demand power discretes. The use of smart phones is set to increase dramatically with the sales volume forecast to go from 174 million in 2009 to 500 million in 2014 at a Compound Annual Growth Rate (CAGR) of 16.28%. The deployment of next generation mobile networks such as 3G in India and 4G in South Korea is anticipated to aid the sales growth of smart phones.

The OEMs (Original Equipment Manufacturer) and ODMs (Original Device Manufacturer) of mobile and smart phones are increasingly using modern power discretes with superior capabilities, higher efficiency and the smaller form factor.

This report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research’s team of industry experts.

Emerging Markets such as China and Taiwan will Drive the Overall Demand for Discrete Power Semiconductors.

The emerging Asian countries such as China and Taiwan will lead to high demand growth for discrete power semiconductors. There has been an increase in industrial production due to demand in both domestic and other countries. This is due to rising consumer spending and positive sentiments. Increased production and the consumption of consumer electronics have created a significant demand for discrete devices.

These countries have large OEM (Original Equipment Manufacturer) base due to cheap labor, low production costs and favorable government policies. Due to large populations and an increase in the purchasing power of all income groups, there has been a sharp rise in demand for these devices.

After the government’s huge economic stimulus package, the Chinese domestic market is rebounding. In the 11th Five-Year Plan, the Chinese government has established a fund to support homegrown research into the semiconductor industry and more favorable tax policies.

The power discrete semiconductor market is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.6% in dollar revenue terms during the 2010–2020.

Consumer Electronics will Prove to be the Key Sector of Growth For Power Discrete Semiconductors

Power discrete semiconductors in consumer electronics will register a sharp rise in demand. The demand for these devices in consumer electronics applications is driven by their low cost and compact size. In consumer electronics, power discrete semiconductors are used in LCD televisions, portable media players, washing machines, notebooks, Uninterrupted Power Supply (UPS) and battery chargers.

The global power discrete semiconductor market for consumer electronics is expected to grow at a CAGR of 17.4% during the forecast period 2010–2020.

Increasing usage of Electronics in Automobiles will Lead to High Demand of MOSFETs and IGBTs.

Upcoming technologies such as HEVs and EVs use many electronic components, leading to a high demand for discrete power semiconductors, especially MOSFETs (Metal Oxide Semiconductor Field Effect Transistors) and IGBTs (Insulated Gate Bipolar Transistors)

Global warming and energy concerns have been forcing automobile vendors and also consumers to adopt green and energy efficient technologies such as HEVs and EVs.

During 2000–2008, the HEV market revenues grew at a CAGR of 42.8% with volumes growing at a CAGR of 46.8%. In 2008, the global HEV market earned revenues of $12.1 billion on shipments of 512,000 HEVs. The following graph shows the increase in sales revenue for the components used in HEVs.

High Growth in Wind and Solar Electricity Generation will Lead to Significant Demand for MOSFETs, IGBTs and Thyristors.

Alternative methods of electricity generation such as wind, solar and geothermal energy have been growing rapidly, leading to a robust demand growth in IGBTs (Insulated Gate Bipolar Transistors), MOSFETs (Metal Oxide Semiconductor Field Effect Transistors) and thyristors.

The worldwide market for solar photovoltaic (PV) power is growing rapidly with a growth rate exceeding 30% a year. The global solar PV market witnessed tremendous growth in 2008 and 2009 with 11,908 MW (Megawatts) of installed capacity coming online in these two years, compared to only 2,392 MW installed in 2007. The cumulative installed solar PV capacity has more than doubled since 2007. Installed capacity increased from 9,162 MW in 2007 to 21,070 MW in 2009. Europe is the leading solar PV market with a share of 66% followed by the Asia-Pacific with 17% in 2009. Power transistors play a significant role in wind, solar and geothermal energy. The rise in alternate methods of electricity generation is mainly due to global warming concerns.

Wind is the fastest growing energy source in the world. From an emerging fuel source twenty years ago, wind energy today has transformed into a commercial generating technology in over 70 countries with more effective and more reliable equipment and machinery. The global wind energy market is growing at an accelerating pace with wind energy installations increasing by 28.5% in 2008 over 2007. The global wind energy installed capacity increased at a CAGR of 26.10% from 23,900 MW in 2001 to 121,013MW in 2008, of which 26,900 MW came online in 2008.

Power transistors are expected to climb 31% in 2010 after a fall of 19% in 2009. IGBTs and thyristors are used as converters in wind energy harvesting.

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