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ICV: 2022 Power Devices China Market Research Report

icv ꄲ Research ꄲ Automotive ꄲ ICV: 2022 Power Devices China Market Research Report

Introduction

Power electronic devices, also known as power semiconductor devices, are electronic components used in circuits for power conversion and control, specifically for high-power applications (typically referring to current in the range of tens to thousands of amperes and voltages of several hundred volts or higher). Power devices are capable of handling and controlling large currents and voltages, and they offer advantages such as high efficiency, high reliability, and high-speed operation. They play a critical role in various application scenarios. The main types of power semiconductor devices include diodes, thyristors, and transistors. Among them, diodes and thyristors have relatively mature and simple manufacturing processes, while transistors, particularly insulated-gate bipolar transistors (IGBTs), metal-oxide-semiconductor field-effect transistors (MOSFETs), and bipolar junction transistors (BJTs), have the largest market share.

MOSFETs and IGBTs are important components of the power semiconductor device market. As core components in the field of industrial control and automation, they can adjust voltage, current, frequency, phase, and other parameters in circuits based on signal instructions from industrial devices, enabling precise control. They find extensive applications in various fields such as motor energy saving, rail transportation, smart grids, household appliances, automotive electronics, renewable energy generation, and electric vehicles. The market prospects are very promising, and power semiconductor devices are expected to have the highest growth potential in the coming years.

As a technology-intensive industry, the field of new power semiconductor devices is dominated by international manufacturers such as Infineon, Onsemi, ROHM, STM, and Nexperia, who enjoy significant advantages in terms of product recognition and industry awareness, placing them in a leading position. Domestic power device manufacturers in China are currently in a catch-up phase, with relatively low levels of self-sufficiency in product supply. China has a vast market for automobiles, power, industrial applications, household appliances, and consumer electronics. In recent years, China has made continuous efforts in energy conservation and environmental protection, driving the increasing demand for new power semiconductor devices in areas such as new energy vehicles, photovoltaics, energy storage, industrial control, variable frequency household appliances, and consumer electronics. Consequently, the Chinese region has become an important market for new power semiconductor devices.

Market Size of Power Devices in the New Energy Vehicle Sector

In comparison to traditional fuel vehicles, new energy vehicles introduce power conversion systems such as motor drives, DC/DC modules, on-board chargers (OBC), and high-voltage auxiliary drives. This significantly increases the demand for power semiconductors. IGBT, MOSFET, and SiC are the core components of power semiconductors in vehicle applications. IGBTs are utilized in high-voltage power conversion scenarios, MOSFETs are employed in low-voltage system voltage regulation, and SiC, with its advantages of lower energy losses, high-temperature resistance, and high-voltage tolerance, gradually penetrates the main drive inverters. In comparison to traditional fuel vehicles, various systems in new energy vehicles experience a significant increase in power, necessitating corresponding improvements in the specifications of power devices, including working current and voltage.

Currently, the global market for power semiconductors in the new energy vehicle sector is experiencing sustained high growth. According to statistics, the market size of power devices in the global and Chinese new energy vehicle sectors was recorded as 3.631 billion USD and 2.297 billion USD, respectively, in 2022. It is projected that by 2026, the market sizes will reach 11.951 billion USD and 6.3 billion USD.

（1）MOSFET

According to the structural characteristics of MOSFETs, they find widespread application in automotive scenarios. For instance, in the electric functionality of fuel-powered vehicles, low-to-medium-voltage MOSFETs are extensively utilized, with an average of approximately 100 units per vehicle. In new energy vehicles, medium-to-high-voltage MOSFETs are widely employed in DC-DC converters, on-board chargers (OBC), and other components, with the average usage per vehicle increasing to over 200 units. In 2021, the global and Chinese sales of new energy vehicles amounted to 6.6 million and 3.521 million units, respectively. Calculated based on the average value of MOSFETs in new energy vehicles, which is approximately 30.4 USD per unit, the market size of MOSFETs in the global and Chinese new energy vehicle sectors in 2022 was estimated to be 0.28 billion USD and 0.167 billion USD, respectively.

With the development of intelligent automotive technologies, MOSFETs are also required for functions such as ADAS, safety systems, and infotainment. It is anticipated that the number of MOSFETs in mid-to-high-end vehicle models could increase to 400 units, leading to an estimated market size of 0.807 billion USD globally and 0.409 billion USD in China in the new energy vehicle sector by 2026.

（2）IGBT

IGBT power devices are primarily employed in various systems of new energy vehicles, including motor drive control systems, thermal management systems, and power supply systems. In the main inverter, IGBTs play a crucial role in converting the direct current (DC) from high-voltage batteries into alternating current (AC) to drive the three-phase motor. In on-board chargers, IGBTs are responsible for converting AC power into DC power to charge the high-voltage battery. In DC-DC converters, IGBTs can convert the high voltage output from the battery into low voltage for the low-voltage power network in the vehicle. Additionally, IGBTs are extensively used in auxiliary inverters such as PTC heaters, water pumps, oil pumps, and air conditioning compressors, where they perform low-power DC-AC conversion tasks.

In the rapidly growing market of new energy vehicles, IGBTs have a promising development outlook. Calculated based on the average value of IGBTs per vehicle, which is approximately 261.24 USD, the market size of IGBTs in the global and Chinese new energy vehicle sectors in 2022 was estimated to be 2.403 billion USD and 1.437 billion USD, respectively. It is projected that by 2026, the market sizes will reach 6.936 billion USD globally and 3.511 billion USD in China.

IGBTs play a crucial role as core power devices in DC fast chargers for electric vehicles, in addition to their direct applications in electric vehicles. Similar to their function in onboard chargers (OBCs), IGBTs in DC fast chargers are responsible for DC-DC conversion. The charging process involves converting AC power into DC power through a power module, stabilizing and filtering the DC voltage using capacitors, performing DC-DC conversion, and then utilizing an inverter power module to invert the DC power into high-frequency AC power. Finally, the power is transformed into different levels of DC voltage through transformer coupling and rectification units to charge the electric vehicle.

With the increasing scale of the new energy vehicle market, the demand for charging stations is also growing. The global and Chinese IGBT market in the field of DC fast chargers was estimated to be 607 million USD and 382 million USD respectively in 2022. It is projected that by 2026, the market size will reach 1.526 billion USD globally and 962 million USD in China.

（3）SiC

In the future, as the electrification of automobiles continues to advance, new requirements and challenges are being presented to power devices in terms of switching frequency, heat dissipation, and withstand voltage performance. The third-generation semiconductor material, Silicon Carbide (SiC), offers a wider bandgap, higher thermal conductivity, stronger breakdown electric field strength, and higher electron mobility. Power devices made from SiC exhibit excellent performance and are more suitable for high-voltage, high-frequency, and high-temperature applications, making them complementary to IGBTs in the field of new energy vehicles.

However, SiC comes at a higher cost, approximately 3-5 times that of IGBTs, and is primarily used in vehicles with motor power exceeding 180 kW. As a result, SiC is still in its early stages of adoption. In 2022, the global and Chinese markets for SiC in new energy vehicles were valued at 948 million USD and 693 million USD, respectively. With advancements in technology and a decrease in SiC production costs, the penetration rate is expected to significantly increase. It is projected that by 2026, the global and Chinese markets for SiC in new energy vehicles will reach 4.208 billion USD and 2.381 billion USD, respectively.

Market Size of IGBT in the Photovoltaic (PV) Sector

Amid the dual pressures of energy crisis and environmental pollution, the demand for new energy sources such as solar photovoltaics and wind energy is pressing. Solar photovoltaics, with their characteristics of unlimited reserves, low noise, high flexibility, and high reliability, have become one of the most promising and potential new energy technologies in the world today. Driven by carbon neutrality, global and Chinese solar PV installed capacity has increased significantly.

According to data from the International Energy Agency (IEA), global solar PV capacity saw an addition of 151.10 GW in 2021, marking a year-on-year growth of 12.09%. It is projected that by 2026, the global solar PV capacity will reach a range of 262 GW to 345.30 GW. Based on data from the China Photovoltaic Industry Association, China's newly installed solar PV capacity in 2021 reached 54.88 GW, with a year-on-year growth of 13.9%, maintaining its position as the global leader. It is anticipated that by 2027, China's newly installed solar PV capacity will reach a range of 100 GW to 122 GW.

The solar photovoltaic (PV) cells generate direct current (DC) electricity, which needs to be converted into alternating current (AC). This conversion is achieved using solar PV inverters, often referred to as the "heart" of solar PV systems. With the significant increase in solar PV installations, the market for PV inverters has also witnessed growth. In 2021, the global demand for PV inverters reached 187.66 GW, with China accounting for a demand of 75.15 GW. In terms of PV inverter types, the market share of string inverters and microinverters has been steadily increasing, driven by the growing penetration of distributed PV systems, while the market share of central inverters has slightly declined.

In photovoltaic inverters, IGBT and other power devices are the main electronic components that realize their inversion function. Photovoltaic inverters are mainly composed of structural components, passive components, PCB circuit boards, integrated circuits, power devices, and other parts. IGBT generally accounts for about 10%-15% of the raw material cost. Based on publicly available information from some listed companies, it is estimated that the value proportion of IGBT in inverters is about 7% from the perspective of raw material cost proportion and gross profit margin.

Based on comprehensive estimates of the market demand, unit cost, and IGBT value proportion of the photovoltaic (PV) inverters, the IGBT market demand in the global and Chinese PV inverter markets is estimated to be 459 million USD and 170 million USD, respectively, in 2022. It is expected that by 2026, the market size of IGBTs in the global and Chinese PV fields will reach 633 million USD and 230 million USD, respectively.

Market Size of IGBT in the Energy Storage Sector

In the field of energy storage, power devices are mainly used in inverters. IGBT is needed to complete the voltage transformation and current inversion in energy storage inverters, and to output sine wave alternating current that meets the requirements. In 2021, the global newly installed capacity of energy storage reached 16 GW. As the main market for energy storage, China achieved a newly installed capacity of 2.6 GW in 2021.

The market size of energy storage inverters is growing in response to the significant increase in installed energy storage capacity. According to the procurement structure of energy storage inverter companies, the IGBT accounts for approximately 11% to 12% of the raw material procurement cost, while raw material costs constitute around 93% to 94% of the operating costs. Assuming a gross profit margin of 30% to 35% for energy storage inverters, we estimate that the IGBT value accounts for approximately 7% of the inverter market size. Accordingly, the global and Chinese IGBT market demand in the energy storage inverter sector for 2022 is estimated at 290 million USD and 51 million USD, respectively. With the continuous growth in energy storage installations, it is projected that by 2026, the global and Chinese IGBT market size in the energy storage inverter sector will reach approximately 720 million USD and 276 million USD, respectively.

Market Size of IGBT in the Industrial Control Sector

In the field of industrial control, as the manufacturing industry continues to upgrade, there is an increasing demand for high-efficiency motors in industrial processes such as production and logistics. IGBT power devices serve as core components in industrial applications such as variable frequency drives, arc welding machines, and UPS power supplies. Their usage in the industrial control sector is becoming more widespread.

The global and Chinese IGBT market size in the industrial control sector was 3.496 billion USD and 1.140 billion USD, respectively, in 2022. It is projected that by 2026, the global and Chinese IGBT market size in the industrial control sector will reach 4.095 billion USD and 1.677 billion USD, respectively.

（1）Industrial Variable Frequency Drives

Industrial variable frequency drives are power control devices for AC motors that control the motor's operation by altering the frequency of the power supply. They mainly consist of rectification (AC to DC), filtering, inversion (DC to AC), braking units, drive units, control units, and detection units. IGBTs play a crucial role in industrial variable frequency drives by enabling functions such as rectification, braking, and inversion, thereby adjusting the voltage and frequency of the output power supply. IGBTs account for approximately 11% of the raw material costs in industrial variable frequency drives.

Utilizing IGBTs for variable frequency speed control in industrial variable frequency drives offers several benefits. Firstly, it enhances labor productivity, improves product quality, increases equipment automation, and enhances overall quality of life. Secondly, it contributes to energy savings and reduces production costs.

The global and Chinese IGBT market size in the industrial variable frequency drive sector was 2.114 billion USD and 655 million USD, respectively, in 2022. It is projected that by 2026, the global and Chinese IGBT market size in the industrial variable frequency drive sector will reach 2.445 billion USD and 978 million USD, respectively.

（2）Inverter Welding Machines

Arc welding machines are currently the most widely used and essential welding equipment in modern times. Traditional arc welding power sources have limited capabilities in adjusting voltage and current parameters due to structural limitations. In today's industry, where the variety of processed materials is increasing and machining precision is improving, traditional arc welding power sources are no longer suitable for large-scale industrial welding applications. The emergence of power devices has addressed the shortcomings of traditional arc welding power sources, such as the inability to precisely control welding parameters, high material and energy consumption, and excessive noise. Power devices enable the use of low-power electronic circuits to control high-power output power circuits, reducing the size of equipment and improving the diverse output characteristics and precise control of arc welding power sources.

With the maturity of inverter technology, arc welding power sources have further evolved into inverter-based arc welding power sources. The core component of an inverter-based arc welding power source is the inverter, where IGBT plays a crucial role. Currently, arc welding machines powered by IGBT-based inverter arc welding power sources have become important members of the welding industry.

In 2022, the global and Chinese IGBT market in the field of inverter welding machines reached 443 million USD and 251 million USD, respectively. It is projected that by 2026, the global and Chinese IGBT market in the field of inverter welding machines will reach 538 million USD and 327 million USD, respectively.

（3）UPS Power

As an essential power protection equipment, Uninterruptible Power Supply (UPS) can address issues such as power outages, low voltage, high voltage, surges, and noise in existing power supply. It finds widespread applications in computer information systems, communication systems, data centers, banking systems, industrial power supply, and other domains.

A UPS power system consists of rectifiers, inverters, batteries, bypass switches, and other components. Among these, IGBT serves as an ideal device for power conversion in charging, bypass switching, inverting, and rectifying within the UPS system. It accounts for approximately 12% of the raw material cost of a UPS power system.

In 2022, the global and Chinese IGBT market in the UPS power sector reached 939 million USD and 233 million USD, respectively. It is projected that by 2026, the global and Chinese IGBT market in the UPS power sector will reach 1.111 billion USD and 372 million USD, respectively.

Market Size of IPM in the Household Appliances Sector

Household appliances are the most frequently used devices in people's daily lives. Traditional fixed-frequency household appliances have non-adjustable motor speeds, which means that once they are started, they operate at a fixed speed regardless of the load, resulting in significant energy wastage. In today's era of advocating energy efficiency and environmental protection, it is imperative for household appliances, as the major electricity consumers in residential settings, to transition towards energy-saving solutions.

Variable frequency technology is a widely applied new technology in the field of energy conservation. With the widespread production and application of variable frequency technology in household appliances, it brings convenience to residents' lives. In variable frequency appliances, the motor can dynamically adjust its speed based on actual working conditions through control circuitry, thereby achieving reduced energy consumption. Additionally, variable frequency appliances offer advantages such as low noise levels and high efficiency.

The hardware of mainstream variable frequency household appliances mainly consists of motors, motor controllers, and power conversion modules. Among them, the power conversion module is the most expensive component in the electronic control system. Most of these modules are intelligent power modules (IPMs). Intelligent power modules (IPMs) in household appliances integrate power devices such as IGBTs and MOSFETs. Leveraging the switching characteristics of power devices, these modules convert the rectified and boosted DC voltage into controllable three-phase AC power, which is then supplied to the motor to achieve speed regulation. Each variable frequency air conditioner, variable frequency refrigerator, and variable frequency washing machine require 2, 1, and 1 IPM module(s) respectively.

The global and Chinese IGBT market size in the field of variable frequency white goods in 2022 was estimated at 2.172 billion USD and 1.061 billion USD respectively. It is projected that by 2026, the global and Chinese IGBT market size in the field of variable frequency white goods will reach 2.865 billion USD and 1.4 billion USD respectively.

Market Size of MOSFET in the Consumer Electronics Sector

Consumer electronic products encompass a wide range of devices, and power devices represented by MOSFETs are widely used in various consumer electronics such as smartphones, PCs, wearable devices, and LED lighting.

Taking standardized power adapters for switch-mode power supplies as an example, these adapters are known for their small size, light weight, and high efficiency, making them suitable for almost all electronic devices. Switch-mode power supplies typically consist of MOSFETs and pulse width modulation (PWM) control ICs. Among them, MOSFETs play a crucial role in switch-mode power supplies by controlling high-frequency switching and signal conversion, making them a critical component in such power supplies.

Driven by the continuous growth in demand for consumer electronic products such as laptops, smartphones, and smart homes, the global MOSFET market in the consumer electronics sector has been steadily expanding. In 2022, the global and Chinese MOSFET market sizes in the consumer electronics sector were 3.091 billion USD and 668 million USD respectively. It is projected that by 2026, the global and Chinese MOSFET market sizes in the consumer electronics sector will reach 3.34 billion USD and 722 million USD respectively.