Rising EV and AI data centre demand pushes power electronics towards $65 billion by 2036, with SiC and GaN adoption accelerating across high-efficiency applications globally.
The global power electronics market is projected to exceed US$65 billion by 2036, growing at a 10% compound annual growth rate (CAGR) over the next decade, according to IDTechEx. The growth is expected to be led by electric vehicles (EVs), with data centres also accounting for a significant share of revenue.
The report noted that rising demand for higher efficiency, compact design and reliability is accelerating the adoption of wide bandgap semiconductors across power electronics, as EVs, data centres, and renewable energy systems drive market expansion.
Original equipment manufacturers (OEMs) are increasingly deploying wide bandgap materials such as silicon carbide (SiC) and gallium nitride (GaN) to meet performance requirements.
These technologies enable higher-voltage operation, faster switching, and improved power density, supporting applications ranging from EV powertrains to AI-driven data infrastructure.
In the EV segment, silicon-based insulated-gate bipolar transistors (IGBTs) have dominated traction inverters for over 20 years. However, SiC MOSFETs are gaining share and are expected to form the majority of the EV traction inverter market by 2036, as well as lead in onboard chargers and DC-DC converters.
Their ability to operate at higher temperatures and frequencies enables improved efficiency and reduced system weight and size, contributing to extended vehicle range.
GaN devices are also being explored for automotive use, though wider adoption will depend on demonstrating long-term reliability and compatibility with high-voltage systems, particularly 800V architectures.
In data centres, the rapid expansion of artificial intelligence workloads since 2023 has significantly increased power requirements. Wide bandgap semiconductors are expected to see growing use in power supply units and point-of-load conversion, enabling higher efficiency in smaller form factors.
The sector is also moving towards 800V direct current (DC) architectures, which are expected to simplify system design, reduce the number of conversion stages, and support rack capacities of up to 1MW by the end of the decade.
Adoption trends differ in renewable energy. In wind power applications, where operating conditions include temperature extremes, humidity and salt exposure, silicon-based devices remain prevalent due to their proven reliability.
However, SiC is expected to see gradual uptake over the next ten years as confidence in its long-term performance improves.
The report highlights that varying operational demands and cost considerations across industries are shaping distinct innovation pathways, although cross-sector developments continue to influence the broader power electronics landscape.
