Power Electronics Industry Possesses Significant Potential for Growth and is Dynamic in Nature
by Susan Hill Business ConsultantA
Brief Introduction….
Power electronics is the application of solid-state
electronics to the conversion and control of electric power. Starting with the
first high power electronic devices in 1902 with mercury-arc valves,
the present day has seen much improvements in their design and structure.
Today, the conversions are performed using semiconductor switching
devices like diodes, thyristors, as well as power transistors like IGBT.
These devices possess optimum forwarding, reverse backing, simplified
circuitry, and compact designing capabilities.
Power electronics involves the processing of
substantial amounts of electrical energy, as opposed to electronic systems,
which are involved with transmission and processing of data and signals.
Switching electronic circuits used to regulate the flow of energy are known as
power electronic devices. The devices are useful in connecting power grids to
renewable energy resources and are used in electric trains, lightings, and
motor drives. The heat sinking and soft start of motors provided by power
electronics devices enable optimum energy consumption and efficiency at low
costs.
The devices have experienced several up gradations
and developments across different industry verticals. One of the most common
power electronics device is the AC/DC converter (rectifier), which
finds application in a number of consumer electronic devices like personal
computers and television sets. Manufacturers and researchers are undertaking
extensive R&Ds to achieve technological advancements. Smart grids have been
one of the biggest breakthrough in the field of power electronics in recent
times. They are expected to play a significant role in the transformation of
electrical networks.
Industry
Scenario
Optimization of energy consumption (for reducing
energy losses) and efficient usage of available resources are the areas that
manufacturers are focusing on. The power electronics industry is witnessing a
greater investment regarding the reduction in energy consumption and improving
productivity. Manufacturers are currently involved in finding ways to reduce
the complexity involved in the process of depositing materials such as Gallium
Nitride, Silicon Carbide, or Gallium Arsenide on the silicon material
which can impact device production.
Silicon, being a vital component in the
manufacturing of any electronic device, accounted for more than 80.0% of the
power electronics market share in 2016; however, in recent years, silicon
carbide (SiC) has emerged as a leading material to replace silicon, on
account of them being expected to have a critical role in electric
vehicles (EVs), as well as associated infrastructure, such as charging
stations. Sapphire is gaining considerable attraction in the
consumer electronics and telecom industries, owing to its increasing
applications in smartwatches, smart wearables, LED lights, and smartphone cover
glasses.
Jack
Of All Trades…
Power
integrated circuits (ICs) are being extensively used for power amplification and
high-frequency range applications in the industrial, ICT, aerospace, and
defense sectors. In terms of the type of device, there is a huge demand for
discrete power electronics, with the growth of hybrid and electric vehicles
expected to drive this segment in the coming years. Power discrete devices also
help in reduction of energy consumption, and are useful in various sectors such
as ICT, automotive, industrial, as well as energy and power.
Despite the strong growth of the automotive sector expected
over the forecast period, the power vertical is projected to retain its
dominance in the applications segment, owing to the trend of refurbishment of
the existing power generation, transmission, and distribution systems. Various
upgradations in the existing energy & power infrastructure are aiding the
power vertical in gaining maximum share and in catering the overall power electronics market. However, as mentioned
earlier, automotive, especially electric vehicles, have proved to be an
attractive sector for these products, and are expected to show continued growth
in the coming years.
Factors
behind industry growth:
- Use of renewable energy sources has gained a lot of
attention in recent years. Coupled with this, continued developments in
the power infrastructure sector has been a major growth
factor for the power electronics market.
- The European Commission has set a target to
achieve 20% and 27% of the total energy consumption from
renewable energy sources by 2020 and 2030 respectively,
and power electronics devices will have a significant role in achieving
this goal.
- Battery-powered
portable devices have witnessed high demand in the past few years, with
consumer electronics and automotive sector in particular seeing
exceptional growth, and this is expected to factor in the market growth.
- These devices can survive extreme environmental conditions, have an
extended life that suits rugged industrial applications, and are also
highly efficient and reliable, which increases market attractiveness of
power electronics.
- Rising adoption of electric vehicles across the globe has increased
the demand for these products, as they are also critical components in EV accessories.
However, a few hurdles remain. As devices are
getting smaller and slimmer, there is a continued effort by manufacturers to
offer multiple functionalities on a single chip, which has led to
increased complexities requiring careful approach, as well as the presence of
advanced toolset and powerful methodology, which increases cost of production
in power electronics sector significantly. There is also the issue of
integrating multiple ICs into a single device, and this can prove to be
challenge for competitors wanting to enter the market.
Recent
Developments
Major companies involved in the design and
development of power electronics devices include Texas Instruments, Inc.,
Renesas Electronics Corp, Mitsubishi Electric Corp., STMicrolelectronics, Fuji
Electric Co., Ltd., Qualcomm, Inc. and Infineon Technologies AG. These
companies contribute to the majority of the market revenue. Some of the recent
developments that have been overseen by the competitors in the power
electronics market include:
- ROHM announced
in January 2020 that it’s group company SiCrystal has
signed a multi-year silicon carbide (SiC) wafers supply
agreement with STMicrolelectronics. The agreement
details the supply of 150mm SiC wafers worth more than
USD 120 million, by SiCrystal to STMicroelectronics, during a 5-year period.
- Qualcomm completed
the acquisition of RF360 Holdings Singapore Pte. Ltd., a joint
venture between the former and TDK Corporation, in September
2019. The JV provides RF front-end filters that enables
Qualcomm to offer 4G/5G RFFE solutions.
- June 2019 saw the start of the European cooperation project
‘Power2Power’, which involves the R&D of innovative power
semiconductors through the involvement of 43 partners from 8
countries. Infineon Technologies Dresden GmbH & Co. KG is
the project co-ordinator.
- In March 2019, Texas Instruments added a smart
AC/DC linear regulator to its large linear regulator portfolio,
called the TPS7A78. The device offers 75% higher
efficiency and twice the power density of
general linear regulators.
Access
full research report on global power electronics industry:
www.grandviewresearch.com/industry-analysis/power-electronics-market
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Created on Mar 11th 2020 07:07. Viewed 356 times.