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 2015 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...
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

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.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me