AI data centres, electric vehicles, and renewable energy are driving demand for advanced power semiconductors, with SiC expected to lead the market by 2036.
The global power electronics market is projected to grow from $25.5 billion in 2026 to $65.2 billion by 2036, expanding at a 10 per cent compound annual growth rate (CAGR), according to a new report by market research firm IDTechEx. Growth will be driven by rising demand from artificial intelligence (AI) data centres, electric vehicles (EVs), and renewable energy systems.
While silicon (Si) has remained the industry’s dominant semiconductor for decades, silicon carbide (SiC) and gallium nitride (GaN) are gaining momentum due to their ability to operate at higher voltages, switch faster, and improve energy efficiency. These wide-bandgap materials are enabling more compact and efficient power electronics for next-generation applications.
AI data centres are expected to be a key growth driver as operators transition to 800V DC power architectures to support increasingly power-hungry AI servers. In these systems, GaN is expected to be used for low-voltage power conversion, while SiC will play a major role in high-voltage applications such as solid-state transformers.
The automotive sector is also accelerating SiC adoption through the shift to 800V EV platforms, which offer faster charging, lower power losses, and improved vehicle performance.
Despite the rapid adoption of wide-bandgap semiconductors, silicon is expected to remain important, particularly in renewable energy applications such as wind turbines, where cost and long-term reliability remain critical factors.
The report also highlights the potential of ultra-wide-bandgap (UWBG) materials, including gallium oxide, aluminium nitride, and diamond, for future high-voltage applications. However, manufacturing challenges and high costs are expected to limit their commercial adoption in the near term.
IDTechEx expects SiC to become the leading power semiconductor by 2036, while silicon, GaN, and emerging UWBG materials will continue to complement one another across AI infrastructure, EVs, and renewable energy.
