Power semiconductor market to grow $9 billion over the next five years

The global power discrete and module market is forecast to grow by $9 billion to reach $26.2 billion in 2016, according to a new report from IMS Research.


IHS has acquired IMS ResearchThe global power discrete and module market is forecast to grow by $9 billion to reach $26.2 billion in 2016, according to a new report from IMS Research, recently acquired by IHS Inc.. Following good growth in the first half of 2011, the market fell away in the second to finish with only 9% growth over the whole year. Although market conditions have remained flat in the first half of 2012, the longer-term prospects remain positive, stated the research firm.  

With revenues growing 9% from 2010, it is clear that 2011 was, at best, an average year for the power semiconductor market. This follows the dramatic market fall in 2009 and spectacular recovery in 2010, so perhaps the industry was ready for a “normal” year. However, with business confidence uncertain and the recovery stalling, what are the prospects for the future? According to IMS Research’s soon to be published report on Power Semiconductor Discretes and Modules, there remains cautious long-term optimism, with the market projected to grow by almost $9 billion to $26.2 billion from 2011 to 2016, a compound annual growth rate of 8%.

According to IMS Research, the market for power semiconductor modules again grew faster than that for discrete power semiconductors in 2010, increasing by 32% to close on $4.6 billion. The power module market growth is continuing in 2012 despite slowing demand, as reduced business confidence is felt in industrial market sectors. “Power module revenues are predicted to grow by 14% in 2012 , and to be 80% higher than in 2011 in 2016” stated Richard Eden, senior analyst and author of ‘The World Market for Power Semiconductor Discretes & Modules’.

The power discrete market was worth an estimated $12.9 billion in 2011, having grown by just over 2% from 2010. Continued high demand for discrete IGBTs accounted for nearly all the growth. “The sudden surge in discrete IGBT demand was fuelled by sales of   domestic appliances such as room air-conditioning and variable speed washing machines in the Chinese market,” added Eden. “In contrast, sales of standard power MOSFETs and thyristors actually declined slightly in 2011.”

A high proportion of discrete power semiconductors are used in relatively fast-moving commodity items such as flat-screen televisions, notebook computers and mobile phone adapters. Sales of these products depend heavily on consumer confidence and the health of the global economy. Sales of power semiconductors in those sectors either declined or achieved negligible growth in 2011, and are not forecast to deliver much growth in 2012. Power semiconductor market growth will therefore be driven by increased content, either to improve power conversion efficiency or add functionality. In contrast, growth is forecast to accelerate in the automotive, renewable energy and transportation sectors. Overall discrete power semiconductor market growth is predicted to remain less than 5% in 2012; the market is forecast to reach almost $18 billion in 2016.

The latest findings and analysis on this important market can be found in IMS Research’s “The World Market for Power Semiconductor Discretes & Modules 2012” report, due for publication in August 2012.

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Raising the standard: What's new with NFPA 70E; A global view of manufacturing; Maintenance data; Fit bearings properly
Sister act: Building on their father's legacy, a new generation moves Bales Metal Surface Solutions forward; Meet the 2015 Engineering Leaders Under 40
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security
Upgrading secondary control systems; Keeping enclosures conditioned; Diagnostics increase equipment uptime; Mechatronics simplifies machine design
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
Building high availability into industrial computers; Of key metrics and myth busting; The truth about five common VFD myths

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.