Global Power Converter Market 2025-2035

Power Converter Market Size, Share & Trends Analysis Report by Type (AC-DC Converter (Rectifiers), AC-AC Converter, DC-AC Converter (Inverters), and DC-DC Converter), Voltage (Low (Up to 1 kV), Medium (1 kV-10 kV), and High (Above 10 kV), and End-User Industry (Energy, Automotive, Healthcare, Industrial Automation, Cyberinfrastructure (Data Center, Telecommunication), Consumer Electronics, and Others (Marine, Defense)) Forecast Period (2025-2035)

Industry Overview

Power converter market is anticipated to grow at a CAGR of 7.4% during the forecast period (2025-2035). Power converter products are gaining traction in the global power conversion market owing to state-owned organizations' electrification initiatives in infrastructure and automotive sectors, increasing automation in industrial manufacturing, and expansion of cyberinfrastructure networks. Further, the sync in global initiatives such as smart grid deployment, carbon neutrality goals, and developing industry 4.0 infrastructure has also catalyzed the power converter market to grow.

Market Dynamics

Increasing Emphasis on Developing Renewable Energy Infrastructure

The growth of the power converter market is significantly associated with the global transition to renewable energy sources, primarily solar and wind. In recent years, private and public organizations have exponentially focused on developing infrastructure that is renewable energy-based due to persistent concerns around global warming, biodiversity, and the availability of natural resources that have continually fed the implementation & adoption of policies & goals related to renewable energy transition. This encompasses large-scale BESS projects, country-level improvements in solar energy capabilities, and long-term objectives for building alternate fuel dependency, such as hydrogen. For example, according to the International Energy Agency, investment in battery energy storage globally reached over $20 billion in 2022, with more than 65% of that investment in grid-scale deployments. Investments in battery energy storage would reach another record, crossing $35 billion in 2023, after strong growth in 2022. These are expected to relatively generate demand for several pivotal elements of the power converters in the energy supply chain.

Electrification of the Transportation Sector

The global transportation sector is experiencing constant pressure from national & international organizations to electrify transportation means, including roads, railways, and marine. This pressure is put into implication through the enactment of strict policy advocating 100% electrification in marine fleets or a shift from conventional fuel vehicles to alternate energy-sourced vehicles up to threshold years. This concern is more severe in countries highly dependent on international trade & exports, such as Singapore, and countries having a large fleet of on-road vehicles, such as the US. For instance, the Maritime & Port Authority of Singapore (MPA) developed the Maritime Singapore Decarbonization Blueprint to articulate long-term strategies for building a sustainable maritime hub that supports the climate commitments of Singapore. This is a blueprint for green growth with alternative fuels and technologies, for the sustenance of sustainability in shipping and port operations. This policy-based implication would fortify its stand soon to foster opportunities among the market players in developing a wider business footprint in the automobile industry.

Market Segmentation

• Based on the type, the market is segmented into AC-DC converter (rectifier), AC-AC converter, DC-AC converter (inverters), and DC-DC converter.
• Based on the voltage, the market is segmented into low (up to 1 kV), medium (1 kV-10 kV), and high (Above 10 kV).
• Based on the end-user industry, the market is segmented into energy, automotive, healthcare, industrial automation, cyberinfrastructure (data center, telecommunication), consumer electronics, and others (marine, defense).

High Voltage to Lead the Market with the Largest Share

The market for high voltage products is projected to hold an upward trend owing to increasing deployment of high voltage direct current (HVDC) infrastructure in the energy sector for better energy transmission, demand for high power applications in industries such as mining, and rapidly expanding fast charging EV infrastructure, among other reasons. Further, the development of advanced materials such as silicon carbide also promotes high power density utilization, which is based on the future outlook of power requirements.

Renewable Energy: A Key Segment in Market Growth

The renewable energy segment is expected to play a key role in expanding the power converter business footprint, as the deployment of large-scale solar and wind energy projects has gained substantial traction globally, aiding the growth of BESS & PV integration, which is ultimately expected to support the power converter market. Further, the global energy infrastructure is also experiencing upgradation in infrastructure through the incorporation of local grids and the employment of energy storage systems, which is likely to influence demand for power converters. For instance, according to IEA, renewable power capacity additions are expected to nearly triple over the next five years, with solar PV and wind accounting for 96% of the total. Additionally, solar and wind capacity is expected to almost double to more than 710 GW by 2028 from levels experienced in 2022.

Asia-Pacific Region Dominates the Market with Major Share

Asia-Pacific is the dominating region for the power converter market, supported by the presence of diverse local & global-level market players such as Mitsubishi, ABB, Yaskawa, Meanwell, XP Power, and Toshiba, among others, supply chain advantages for the procurement of vital materials & components from countries such as China and South Korea, and a rapidly expanding market for renewable energy & electric vehicles. Further, the regional-level aspiration to attain carbon neutrality, develop an advanced industrial ecosystem, and extend the cyberinfrastructure network are also contributing to the dominant positioning of the region. For instance, in September 2020, China set the ""30-60 goals"" to peak CO2 emissions before 2030 and carbon neutrality before 2060. The updated NDC, submitted ahead of COP26, aimed at cutting 65 % by 2030 in CO2 intensity from the level of 2005. Non-fossil fuel share in energy, wind, and solar capacity would be at 25% and 1,200 GW, respectively by 2030 under the goals.

Market Players Outlook

The major companies operating in the global power converter market include ABB Group, Delta Electronics Inc., General Electric, TDK-Lambda Corp., STMicroelectronics, Danfoss A/S, Schneider Electric., and Siemens AG, among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Developments

• In May 2024, Eaton launched its 48-volt DC/DC converter, which efficiently steps down power to 12 volts to maintain the operation of critical systems, such as antilock brakes and power steering, in case of power loss. The DC/DC Converter offers high efficiency, operates within temperatures up to 85°C, and supports dual voltage architectures in commercial and off-highway vehicles which optimize space while reducing current.
• In September 2022, ABB announced it would acquire PowerTech Converter (PTC), one of the largest suppliers of auxiliary power solutions for light rail and metro systems. PTC has its headquarters in Berlin, with facilities also located in Germany and the US. In 2021, it generated revenue worth $63 million.

The Report Covers

• Market value data analysis of 2024 and forecast to 2035.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global power converter market. Based on the availability of data, information related to new products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.