Intelligent Power Modules Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for intelligent power modules is growing at a fast pace, and by 2032, the market size for IPMs is expected to reach $ 3.1 billion. This growth rate reflects a strong CAGR of 8.05% over the forecast period. The main driver for the growth of this market is the increasing demand for energy-saving solutions in various industries, such as the automotive, automation, and the renewable energy industries. In order to optimize performance and reduce energy consumption, IPMs that integrate power semiconductor devices with control circuits are becoming increasingly popular. Technological developments, such as the development of wide bandgap semiconductors and improved thermal management, are also driving the market. The leading players in the market, such as Infineon, Mitsubishi Electric, and ON Semiconductor, are continuously investing in R & D to improve their product portfolio. Strategic alliances and collaborations are also influencing the market. As the demand for smart and energy-efficient power management solutions continues to rise, the market for intelligent power modules will continue to grow in the coming years.

Regional Market Size

Regional Deep Dive

INTEGRAL POWER COMBINATIONS (IPM) MARKET - A GROWING MARKET ACROSS VARIOUS REGIONS The IPM market is expected to grow at a significant rate in the coming years, driven by the rising demand for energy-efficient solutions and advancements in power-electronics technology. In North America, the market is characterized by a strong focus on renewable energy integration and electric vehicle (EV) adoption, while Europe is characterized by stringent regulations that promote energy efficiency. In the Asia-Pacific region, the IPM market is characterized by the rapid urbanization and industrialization processes, which are resulting in an increased demand for IPMs in the consumer and industrial sectors. The Middle East and Africa (MEA) region is gradually adopting IPMs, driven by increasing investment in energy and transport projects, while Latin America is focusing on sustainable energy solutions to address its energy challenges.

Europe

• The European Union's Green Deal aims to make Europe climate-neutral by 2050, driving demand for IPMs in renewable energy systems and electric mobility solutions.
• Companies such as STMicroelectronics and Siemens are leading the charge in developing next-generation IPMs that comply with the EU's stringent energy efficiency regulations, fostering innovation in the market.

Asia Pacific

• China's push for electric vehicles and renewable energy has led to significant investments in IPM technology, with companies like BYD and NXP Semiconductors at the forefront of this transformation.
• The region's rapid industrialization is increasing the demand for energy-efficient solutions in manufacturing, prompting local governments to support initiatives that promote the adoption of IPMs.

Latin America

• Brazil's National Electric Energy Agency (ANEEL) is promoting the use of energy-efficient technologies, including IPMs, to modernize the country's power infrastructure.
• Local companies are increasingly partnering with international firms to develop IPM solutions tailored to the unique energy challenges faced in the region, particularly in rural electrification projects.

North America

• The U.S. Department of Energy has launched initiatives to promote the development of advanced power electronics, including IPMs, to enhance energy efficiency in various sectors, particularly in renewable energy and electric vehicles.
• Key players like Infineon Technologies and ON Semiconductor are investing heavily in R&D to innovate IPM technologies, focusing on improving thermal management and efficiency, which is crucial for the growing EV market.

Middle East And Africa

• The UAE's Vision 2021 emphasizes sustainable energy, leading to increased investments in smart grid technologies and IPMs to enhance energy efficiency in the region.
• Companies like Schneider Electric are collaborating with local governments to implement IPM solutions in infrastructure projects, which is expected to drive market growth in the MEA region.

Did You Know?

“Intelligent Power Modules can integrate multiple functions, such as power conversion and control, into a single package, significantly reducing the size and complexity of power electronic systems.” — International Energy Agency (IEA)

Segmental Market Size

The IPM segment plays a crucial role in the power-electronics market, which is currently experiencing steady growth. The IPM market is being driven by the increasing need for electric vehicles and the rapid growth in the use of renewable energy. Moreover, the IPM market is being driven by the increasingly stringent carbon-reduction regulations. These drivers are accelerating the development and implementation of IPMs in various industries. Infineon and Mitsubishi Electric are currently the two main players in the IPM market. They are developing advanced IPMs for use in the automobile and industrial-electronics industries. The European and North American countries are the main adopters of IPMs, especially in the automobile industry, where IPMs are crucial for the EV powertrain. IPMs are also being used in power supplies and inverters for renewable energy, proving their versatility. The trends of sustainable development and the drive for cleaner technology are accelerating the growth of the IPM market. Moreover, the development of new semiconductors and new methods of integration will shape the evolution of this market.

Future Outlook

During the period from 2024 to 2032, the market for intelligent power modules is expected to grow at a compound annual growth rate (CAGR) of 8.05%. This growth is mainly driven by the increasing demand for energy-efficient solutions in the automotive, industrial automation and the wind power industries. Industry’s focus on energy efficiency and sustainability will continue to increase the demand for intelligent power modules. The penetration rate of intelligent power modules in key applications is expected to reach 25% by 2032. In addition, technological developments, particularly in the field of semiconductor materials and power electronics, will continue to improve the performance and efficiency of intelligent power modules. Among these developments, silicon carbide (SiC) and gallium nitride (GaN) will play a key role in improving the power density and heat dissipation, thereby increasing the application areas of intelligent power modules. The demand for intelligent power modules will also be bolstered by government initiatives to reduce CO2 emissions and promote the use of electric vehicles. In addition, the integration of artificial intelligence into power management systems and the development of smart grids will also shape the future of the market.