IGBT Market Size 2024-2028 

The IGBT market size is estimated to grow by USD 10.80 billion, at a CAGR of 15.31% between 2023 and 2028. Government incentives and subsidies are accelerating the adoption of energy-efficient vehicles (EVs) and hybrid electric vehicles (HEVs), fostering the infrastructure development. Simultaneously, there's a burgeoning demand for energy-efficient electronic devices like appliances and consumer electronics, spurring advancements in energy-saving technologies and propelling market expansion. Moreover, the proliferation of High Voltage Direct Current (HVDC) lines is enhancing electricity transmission efficiency across vast distances. This infrastructure not only facilitates the integration of renewable energy sources but also stimulates growth in the energy sector overall. Together, these trends underscore a pivotal shift towards sustainability and efficiency in both transportation and energy industries, driven by supportive policies, technological innovation, and evolving consumer preferences.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The market is driven by advancements in power device technologies and the increasing demand for inverter applications across various industries. IGBTs play a crucial role in power transistors, offering efficient heat dissipation and contributing to reducing carbon dioxide emissions. With the rising cost of electricity, there is a growing need for electronic products that can enhance energy efficiency, particularly in the EV market and solar and wind applications. The development of high-power semiconductor devices is crucial for renewable projects, enabling efficient conversion of DC voltage to AC voltage. IGBTs are integral components in solar inverter applications and play a vital role in managing frequency and voltage in electrical systems, including smart grids and power transmission & distribution systems. 

Key Market Driver

High demand for energy-efficient electronic products is notably driving the market growth. Governments worldwide are implementing policies like energy performance labels and standards to promote environmental safety, raise general awareness about energy conservation, and reduce utility bills. These policies, coupled with the increasing cost of energy, are driving manufacturers to develop more energy-efficient products. Efficient energy use is crucial for building a sustainable society, as it helps reduce carbon dioxide emissions and lower electricity consumption across various sectors such as transportation, household appliances, electric power, and industrial equipment.

Further, this efficiency is particularly important for advancing renewable projects and supporting the growth of the EV market, as well as for optimizing solar and wind applications. High-power semiconductor devices like IGBTs play a key role in enabling this energy efficiency. Energy-efficient products can lower power bills by around 20%. This has resulted in a growing demand for power electronic products like IGBTs, which provide stable electric power to applications, allowing for controlled power distribution based on requirements. This improves efficiency, performance, and device lifespan. These factors are expected to drive the demand for IGBTs, thus boosting the market during the forecast period.

Significant Market Trend

Functional consolidation of semiconductor devices is a major trend in the market. The trend toward digitalization can be seen in industries that push digital control of power to make inverters, drive controls, and other electrical equipment compatible with the Industrial Internet. As a result, the integration of other semiconductor components, such as sensors, ICs, and microcontrollers, with IGBT devices can happen for efficient and easier control. The consolidation of semiconductor devices can lead to improvements in performance and advances in semiconductor devices, including IGBTs.

Moreover, the integration of these devices will provide a lot of insights in the form of data, which can be analyzed to detect potential key areas for improvements in applications as well as in semiconductor devices. This will enhance the performance of semiconductor devices such as IGBTs, and these devices can be made more useful and efficient by addressing issues arising from analyzed data. This will make IGBTs more reliable devices as the efficiency and reliability of the entire circuit depend considerably on the IGBT's performance, and this possible combination of technologies can ensure a smooth flow of operations. Such benefits are expected to propel the growth of the market in focus during the forecast period. 

Major Market Challenge

Rising competition from wide bandgap (WBG) semiconductor materials is a major challenge in the market. WBG semiconductor materials allow devices to perform at high voltage, high temperature, and higher switching frequencies. WBG materials such as silicon carbide (SiC) and gallium nitride (GaN) have good thermal conductivity, and these can be exploited in power semiconductor devices. These are considered more efficient than the existing silicon devices because operating at high temperatures eliminates the need for outer cooling, and higher switching frequencies result in lesser noise. In addition, these materials can achieve a significant reduction in switching loss. The ampere capacity of SiC is superior to silicon. The use of these materials will significantly improve energy efficiency and will reduce system costs, which cannot be attained while using silicon-based IGBT devices.

SiC-based devices such as SiC MOSFET and SiC diodes, which are used in high-end power supply, are available, whereas GaN-based devices like GaN FET and GaN devices at 600V are available, but the use of GaN in appliances is still in experimental stages. SiC and GaN devices pose a threat to IGBT devices operating at a higher voltage as OEMs want compact, faster, and efficient devices, which is possible to achieve if these materials are explored further. However, IGBTs are less expensive than GaN or SiC devices and are comparatively easier to manufacture. Despite that, Industries that prefer precision over cost would like to move toward SiC and GaN-based devices. Such factors are hampering the focused market growth. 

Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Hitachi Ltd-  The company's key offerings include?IGB Transistors for various applications.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• ABB Ltd.
• Danfoss AS
• Infineon Technologies AG
• Jilin Sino Microelectronics Co. Ltd.
• Littelfuse Inc.
• MagnaChip Semiconductor Corp.
• Mitsubishi Electric Corp.
• Sanken Electric Co Ltd
• SEMIKRON Elektronik GmbH & Co. KG
• STAR POWER SEMICONDUCTOR Ltd
• STMicroelectronics NV
• Toshiba Corp.
• Fuji Electric Co. Ltd.
• IXYS Corp

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By Product

The market share growth by the IGBT modules segment will be significant during the forecast period. The IGBT modules have a dominant share in the market because IGBT modules are more expensive than discrete IGBTs. A single IGBT module consists of several discrete IGBTs, making them more compatible with high power.

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The IGBT module segment showed a gradual increase in the market share of USD 5.51 billion in 2018. Since the demand for high-power devices is growing at a rapid pace, the demand for IGBT modules is also expected to rise proportionally. Furthermore, applications like EV/HEVs and wind farms require IGBT devices with high power capability, which is often difficult to manage for discrete IGBT. Therefore, there are high prospects for future growth in the IGBT modules market compared with discrete IGBTs. The YoY growth will be high during the forecast period due to the increasing demand for high power density requirements globally. As governments across the globe adopt energy-saving measures, the demand for IGBT modules will increase. 

By Region

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APAC is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The APAC region is expected to grow at a strong rate during the forecast period due to the fast pace of industrialization in developing countries of the region and the increasing adoption of renewable energy and EVs. In addition, the demand for energy-efficient solutions, both on the industrial and consumer front, is the other reason for the high share of the region in the market. The major contributors to the market are China and Japan because companies from around the globe are dependent on the supply of IGBT products. 

Further, China will be the leading country during the forecast period because of the high adoption of EV/HEVs and renewable energy in the country. Additionally, the country has been promoting EV purchases by exempting purchase taxes. China is also the global leader in terms of renewable energy installation, both solar PV and wind installations. Japan is another major market for IGBTs. The country is the global leader in IGBT production and has the presence of several major IGBT manufacturers. EVs are widely popular in the country, which drives the market in Japan. The country became one of the early adopters of EVs because of its high industrialization rate, dense population, and shortage of fossil fuels. Japan continues to be one of the pioneers in the development of EVs, thus driving the growth of the market in the region during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Product Outlook 
  • IGBT modules
  • Discrete IGBTs

• Application Outlook 
  • EV or HEVs
  • Industrial
  • Motor drives
  • Consumer appliance
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is experiencing significant growth driven by the rising demand for electric vehicles (EVs) and hybrid electric vehicles (HEVs). These vehicles rely on IGBTs (Insulated Gate Bipolar Transistors) for efficient power control and conversion. The electronics manufacturing industry is a key consumer of IGBTs, especially for applications like UPS (Uninterruptible Power Supply), industrial systems, and medical devices. Advancements in silicon carbide (SiC) MOSFETs are enhancing the efficiency and performance of IGBTs in various applications. The market is also influenced by factors such as power consumption, thermal resistivity, and the need for low-cost alternatives in solar and wind power industries.

In addition, the market is witnessing substantial growth driven by the rapid adoption of electric vehicles (EVs) and hybrid electric vehicles (HEVs). These vehicles heavily rely on IGBTs (Insulated Gate Bipolar Transistors) for efficient power management and control. Additionally, the increasing focus on fuel efficiency and electrification is bolstering the demand for IGBTs in various applications. However, challenges such as high turn-off time and high reverse voltage issues need to be addressed. The market is also influenced by factors like humidity, aging power infrastructure, and the growing demand for green energy solutions. Moreover, advancements in solar power technologies and the need for efficient power control units (PCUs) are driving the demand for IGBTs in the solar energy industry and other sectors.

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What are the Key Data Covered in this Market Forecasting Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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