Press Releases

Global Demand for Electricity to Double by 2030; Can IGBT Help Meet the Demand?

January 05, 2016

Wellesley, Mass., January 05, 2016 – Rapidly growing emerging economies, most notably China and India in terms of both economy and population, have increased the demand for insulated gate bipolar transistors (IGBTs). BCC Research reveals in its new report that with more start-up and smaller companies in the Asia-Pacific region, IGBT production is increasing as new manufacturing facilities are established.

Insulated gate bipolar transistors (IGBTs) are used in applications such as motor drives for appliances and electric vehicles, uninterruptible power supplies, inverters and high-frequency welders. IGBTs also are used in industries such as power transmission, renewable energy, industrial electrical and electronics, automotive, locomotive, aerospace and defense, and consumer electronics. This report analyzes the market’s two primary packaging types: discrete and modular.

The global market for IGBT is projected to grow from nearly $5.7 billion in 2015 to $8.8 billion in 2020, registering a five-year compound annual growth rate (CAGR) of 9.1%.

The global market for insulated gate bipolar transistors (IGBTs) has been growing at a rate of 8.5% annually, mainly driven by growth in the power transmission sector and the industrial electrical and electronics sector. The Asia-Pacific region, North America and Europe primarily drive the market. The Asia-Pacific region, followed by North America and Europe, dominates the global IGBT market. IGBT sales are rising due to an increase in the power transmission, renewable energy, industrial electrical and electronics, automotive, locomotive, aerospace and defense, and consumer electronics industries.

The IGBT market for electric vehicle motor drives is expected to increase from $418.5 million in 2014 to $455.5 million in 2015 at a YOY growth rate of 8.8%. This market is expected to grow at a CAGR of 9.8% from 2015 to 2020, reaching a total of $725.8 million in the end year. IGBTs are used as switching devices, with the power handling capability suitable for this application to provide the electric vehicle motor with less power supply to drive, thus driving the market for IGBT.

In 2014, uninterruptible power supplies accounted for 11% of the global IGBT market by application. This market, which has a YOY growth rate of 4.5%, is expected to grow at a five-year CAGR of 5.5%, reaching $784.3 million in the end year. To protect against power fluctuations, installation of uninterruptible power supplies (UPS) make the load power independent of main voltage and maintain frequency fluctuations. IGBT-based PWM inverter switching technology is widely used to create the UPS systems, driving UPS sales growth and thus driving the IGBT market.

The global demand for electricity is expected to double between 2010 and 2030, growing at an annual rate of 3.5%. Of total energy consumption, electricity’s share is expected to rise from 18% in 2000 to 22% in 2030. The demand for electricity growth is strongest in developing regions, and demand will reach more than 4% per year over the projection period, more than tripling by 2030. The developing regions share of global electricity demand will jump from 27% in 2000 to 43% in 2030.

“Demand for electricity has been rising at a swift rate in both developed and emerging economies due to increasing industrialization, which requires electricity for commercial purposes. Global power shortages have necessitated the installation of additional power grids and networks,” says BCC Research analyst Aneesh Kumar. “The increase in electricity demand, mainly inChina,Indiaand theMiddle East, is due to increasing urbanization and industrial growth. In China alone, electricity consumption is expected to more than double by 2035.”

Insulated Gate Bipolar Transistors: Global Markets (SMC102A) examines the market by major packaging types, regions, property, applications and end-user industries. Revenue forecasts from 2015 to 2020 are estimated for each major IGBT type, with their applications and regional market. 

Editors and reporters who wish to speak with the analyst should contact Steven Cumming at steven.cumming@bccresearch.com.

Insulated Gate Bipolar Transistors: Global Markets( SMC102A )
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