The intelligent power module market comprises power semiconductors that integrate multiple intelligent power components such as transistors, diodes and drivers on a single chip. The adoption of electric vehicles has boosted the demand for intelligent power modules due to their advantage of reducing power losses and increasing power efficiency.
The Global Intelligent Power Module Market is estimated to be valued at US$ 4.53 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the Intelligent Power Module market are Avalanche Technology Inc., Fuji Electric Co., Ltd., Hitachi, Ltd., Infineon Technologies AG, Intelligent Power and Energy Research Corporation, Mitsubishi Electric Corporation, ON Semiconductor, Powerex, Inc., Pre-Switch, Inc., Renesas Electronics Corporation, ROHM Semiconductor, Semikron, Semiconductor Components Industries, LLC, STMicroelectronics, and Toshiba Electronic Devices & Storage Corporation.
The growing demand for electric vehicles and renewable energy systems is boosting the Intelligent Power Module Market Demand. Intelligent power modules offer high efficiency and power density in electric vehicle powertrains compared to discrete IGBT and diode modules.
The increasing adoption of green energy solutions in developed economies is driving major players in the intelligent power module market to expand their global footprint. For instance, Infineon Technologies plans to invest $200 million by 2024 to expand intelligent power module production capacity in Europe and China to cater to growing EV market.
Market Key Trends
One of the key trends gaining traction in the intelligent power module market is the adoption of Gallium Nitride (GaN) and Silicon Carbide (SiC) based modules. GaN and SiC semiconductors have higher bandgaps than normal silicon and provide features such as higher switching frequencies, lower conduction losses and longer battery life. OEMs are increasingly using GaN and SiC materials for manufacturing intelligent power modules to improve efficiency of EV powertrains and charging infrastructure. GaN and SiC materials are expected to dominate the intelligent power module market beyond 2025.
Porter’s Analysis
Threat of new entrants: Low barriers to entry make threat high. However, established players have strong brand loyalty and greater resources to counter competition.
Bargaining power of buyers: Large automotive companies have considerable bargaining power due to their volume purchases. They negotiate on price and demand improvements in functionalities.
Bargaining power of suppliers: Few chip manufacturers exist with required technological expertise, giving them strong influence on pricing and product development roadmaps.
Threat of new substitutes: Alternatives like discrete IGBT and MOSFET modules pose threat. But IPMs integrate control and drive circuits for improved size and performance.
Competitive rivalry: Intense competition among major players to gain market share. Differentiation is through continuous technology and product innovations.
Geographical Regions
Asia Pacific leads the global market in terms of value, driven by substantial automotive production and electronics manufacturing in China, South Korea, and Japan. Massive investments are being made to strengthen industrial automation across diverse industries.
North America is projected to witness the fastest growth during the forecast period. Considerable research funding and rising deployment of renewable energy are bolstering demand for IPMs in the U.S. and Canada. Their use in motor control and electric vehicles is proliferating.