The Global Power MOSFET Market is estimated to be valued at US$ 9.29 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 To 2031. Power MOSFETs offer improved efficiency and compactness which is a crucial requirement for automotive and industrial applications. Electric vehicles are using power MOSFETs for various functions like battery management, DC-DC voltage conversion, on-board charger, and motor control systems. This is fueling the demand for power MOSFETs across the world.

Key Takeaways

Key players: Key players operating in the Power MOSFET Market Size  are Dow Inc. (US), Wacker Chemie AG (Germany), Momentive Performance Materials Inc. (US), Shin-Etsu Chemical Co., Ltd (Japan), China National Bluestar (Group) Co., (China), Reiss Manufacturing Inc. (US), and CHT Germany GmbH (Germany). Dow Inc. offers a wide range of silicone elastomers and adhesives for potting and encapsulating power MOSFETs. Wacker Chemie AG provides silicone gels and encapsulants for reliable protection of power semiconductor assemblies.

Growing demand: The demand for power MOSFETs is growing rapidly owing to the increasing adoption of electric vehicles globally. More than 6.5 million new registrations of electric passenger cars are expected between 2020 and 2025 indicating huge market opportunities. Countries like China, Germany, France are investing heavily in electrifying their transportation sector. This massive shift towards EVs will drive the power MOSFET market during the forecast period.

Global expansion: Leading power MOSFET manufacturers are expanding their production capacities globally to capture more share of the booming market. For instance, Infineon Technologies inaugurated a new 300mm thin-wafer fab in Villach, Austria in 2021 to meet the surging demand from EVs and renewable energy applications. Würth Elektronik also opened a new MOSFET plant in Tianjin, China in 2019 to serve the local automotive industry. Such strategic expansions will accelerate the global revenue growth rate.

Market drivers

Rising adoption of electric vehicles is a key driver contributing to the growth of the power MOSFET market. With strict emission standards and consumer awareness about environmental protection, global sales of electric passenger cars registered impressive growth in recent years. Power MOSFETs offer higher efficiency and power density which make them ideal for applications in battery packs, on-board chargers, and motor control systems of EVs. As more auto majors commit larger investments into electrification of their vehicle lineups, consistent demand will be generated for power MOSFETs over the next decade.

The current geopolitical situation is significantly impacting the growth of the Power MOSFET market. Ongoing tensions and conflicts in various parts of the world are disrupting global supply chains for semiconductor devices and components. The Russia-Ukraine war has heavily impacted the supply of raw materials like palladium, nickel, and neon gas which are important inputs for manufacturing Power MOSFETs. Palladium and nickel from Russia are crucial for chip packaging while Ukraine supplies over 90% of U.S. semiconductor-grade neon gas needs. With trade restrictions and sanctions on Russia, obtaining these raw materials has become difficult for global manufacturers. This shortage of materials is likely to constrain the production of Power MOSFETs in the coming years and hamper market growth. The supply-demand mismatch and rising input costs due to geopolitical factors are expected to drive up Power MOSFET prices as well in the forecast period. To deal with this issue, companies need to diversify their sourcing base, develop alternative materials where possible, and look at different geopolitical regions for strategic investments and partnerships. They also need to factor in potential trade disruptions and supply chain risks from ongoing and future geopolitical conflicts while making regional capacity and inventory management plans.

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