Power module revenue is projected to grow from $8 billion in 2023 to $16 billion by 2029
Date: 12/03/2024
The power module packaging material market is on a trajectory of exponential growth, poised to double in value to $4.3 billion by 2029. With power modules emerging as indispensable components in power electronics systems, the packaging costs significantly influence the overall module expenses. Against this backdrop, Yole Group forecasts a robust 12.1% compound annual growth rate (CAGR) between 2023 and 2029, reflecting the escalating demand for innovative packaging solutions.
Power module revenue is projected to soar from $8 billion in 2023 to $16 billion by 2029, with packaging materials accounting for about 30% of total module costs.
The market is driven by advancements in die-attach and ceramic substrate materials, alongside the increasing size and complexity of power module packages.
Yole Group's latest report, "Status of the Power Module Packaging Industry 2024," delves into emerging applications, packaging technologies, and the evolving business models within the power electronics industry, with a focus on the xEV market segment and SiC-based power modules.
Leading power module suppliers are concentrated in Europe and Japan, including Infineon Technologies, Semikron Danfoss, Fuji Electric, and Mitsubishi Electric.
Key power module packaging material suppliers are predominantly located in the US, Europe, and Japan, with companies like Rogers Corporation, Heraeus, MacDermid Alpha, and FTH (formerly Ferrotec) leading the market.
Geographic expansion strategies are underway, with Japanese companies eyeing growth opportunities in Europe and the US, while European and US players target the Asian market, particularly China.
Shalu Agarwal, PhD Senior Technology & Market Analyst, Power Electronics & Battery at Yole Group “Today, continuous improvements in module materials and packaging design are needed to take advantage of the benefits of SiC technology. However, the development is simultaneously focused on reducing the costs of power modules through “good enough” performance and reliability.”
“The power module packaging supply chain is continually being reshaped, with new companies entering power module manufacturing,” asserts Shalu Agarwal from Yole Group. “These companies are expanding their product portfolios and forming new partnerships and M&As. In this dynamic context, the growth of Asian packaging material players puts intense cost pressure on European players.”
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