Industrial Discrete Semiconductor Market Size
| Study Period | 2024 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 7.34 Billion |
| Market Size (2029) | USD 10.33 Billion |
| CAGR (2024 - 2029) | 7.08 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Industrial Discrete Semiconductor Market Analysis
The Industrial Discrete Semiconductor Market size is estimated at USD 7.34 billion in 2024, and is expected to reach USD 10.33 billion by 2029, growing at a CAGR of 7.08% during the forecast period (2024-2029).
- Industrial discrete semiconductors are widely used in industrial equipment, manufacturing equipment and machines, UPS, etc. The primary use of discrete semiconductors in the industrial sector is in large battery-driven applications, such as forklifts, uninterruptible power supply (UPS) systems, solar inverters, and smaller power-driven systems, like power tools. They also enable precise control and automation in industrial processes, such as power regulation, motor control, and sensor interfacing.
- It is essential to have individual components to maximize the effectiveness of industrial systems. These particular components guarantee a consistent energy supply to various parts of automated systems. Moreover, they boost the speed and functionality of industrial automation systems. In addition, their adaptability allows for simple customization to enhance overall performance.
- The industrial Internet of Things and Industry 4.0 is pivotal in advancing, manufacturing, and supervising the complete logistics process, also called smart factory automation. These technologies are currently leading the way in the industrial sector, as they facilitate the connection of machinery and devices through the internet.
- Smart factories are another prominent trend in the industrial sector. Smart factories help generate significant productivity gains and help industries make new markets accessible through breakthrough innovations and technological investments. The rising government investment in factory automation also supports the trend.
- For instance, in October 2023, the government of the United States announced that it would invest USD 22 million to support smart manufacturing at small and medium-sized facilities across the nation. The administration's Manufacturing Leadership Program, funded by the President's Bipartisan Infrastructure Act, aims to make smart manufacturing technologies and high-performance computing more available in the domestic manufacturing sector, accounting for more than one-sixth of the US carbon emissions.
- Rising demand for integrated circuits, also known as ICs or microchips, in the industrial sector will further hamper the market's growth. Integrated circuits, also known as ICs or microchips, are electronic components that integrate multiple electronic circuits onto a single semiconductor substrate. In contrast, discrete semiconductors are electronic components designed to carry out specific functions like regulating current flow, amplifying signals, and switching.
- The conflict between Russia and Ukraine has caused a notable price surge, constraining the availability of raw materials essential for manufacturing industrial discrete semiconductors. Additionally, escalating tensions between the United States and China have resulted in shortages of microchips and raw materials. The disturbance in the supply chain for engineering has had widespread implications, impacting product availability and causing a sharp increase in costs throughout the industry.
Industrial Discrete Semiconductor Market Trends
Power Transistor Segment Holds the Significant Market Share
- The demand for discrete semiconductors in the industrial sector is increasing as they offer high efficiency and performance improvements. They hold a crucial position in circumstances that require the management of high currents or voltages.
- The efficiency of motor drives is increasing as power transistors like IGBTs and MOSFETs are incorporated into them. Particularly, silicon carbide (SiC) MOSFETs are increasingly used in the power stage for motor drives. Due to their high current and high voltage ratings, IGBTs and SiC MOSFETs fit well in high-power AC power stage applications.
- SiC MOSFETs, however, differ from IGBTs in the switching frequency requirement. While IGBTs operate in a lower switching frequency range, SiC MOSFETs operate in a much higher switching frequency range. Switching at higher frequencies allows system benefits such as higher power density, efficiency, and heat dissipation.
- The rapidly advancing trend of Industry 4.0 has created a stream of opportunities for market participants, which is one of the factors driving the need for IGBTs in motor drive applications. Many businesses continue replacing conventional motors with advanced motor drives to simplify operations and improve output.
- For instance, in July 2023, Nexperia entered the insulated gate bipolar transistor (IGBT) market by introducing a series of 600 V devices led by the 30 A NGW30T60M3DF. These devices are designed to enhance power density in various applications, including power conversion, motor drives, and industrial uses such as UPS, servo motors ranging from 5kW to 20 kW at 20 kHz, robotics, grippers, elevators, power inverters, photovoltaic strings, and induction heating and welding.
- The industrial sector across the globe is witnessing a rise in automation as a prominent trend, thus creating new opportunities for the vendors operating in the market. According to the Industrial Federation of Robotics, the demand for industrial robots is witnessing stable growth globally. For instance, in the previous year, the global market for industrial robots was expected to grow by 7% to more than 590,000 units worldwide.
- Similarly, according to vdma.org, last year, the German robotics and automation industries were forecast to record a combined domestic and export turnover of around USD 17.58 billion, an increase from the year before that.
China is Expected to Hold the Significant Market Share
- China's economy has experienced substantial changes throughout the years. The policies implemented by the Chinese government have played a crucial role in fostering growth across different industries, with the goal of advancing the economy to higher-value-added activities.
- The rapid expansion of the industrial sector in China has positioned the country as a key player in global manufacturing. To continue fostering growth in this sector, the Chinese government has implemented various strategies in recent years, such as the ‘Made in China 2025’ initiative. This program aims to promote industrial companies' adoption of advanced technologies to improve production efficiency and uphold international quality standards.
- Similarly, in April 2024, China's Ministry of Industry and Information Technology (MIIT) and six other departments released a notice unveiling the Implementation Plan for Advancing Equipment Renewal in the industrial sector.
- The scope of China's initiative to upgrade industrial equipment in manufacturing is extensive, covering various aspects such as substitution of outdated equipment, particularly machine tools that have been in use for over a decade; enhancement of equipment in critical sectors like aerospace, solar energy, and battery manufacturing; integration of industrial robots and the industrial internet; and adoption of green technology to promote environmental sustainability. As a result, these developments are expected to create new opportunities within the market.
- According to the 2023 World Robot Conference report, China's robotics sector has made remarkable advancements. In 2022, the industry generated a revenue of over 170 billion yuan (equivalent to USD 23.3 billion). Moreover, China's sales of industrial robots accounted for more than half of the global market share in 2022, maintaining its position as the top global leader for ten consecutive years.
- China is characterized by a rise in industrial operations and an increase in manufacturing. For instance, data from the National Bureau of Statistics of China revealed that in 2023, China's industrial sector contributed around 31.7% to the nation's GDP, serving as the main engine of economic growth. It is essential to highlight that China, as the world's second-largest economy, produced more value from its industrial sector alone than the entire economy of Germany.
Industrial Discrete Semiconductor Industry Overview
The industrial discrete semiconductor market is fragmented and consists of several players. Companies in the market continuously try to increase their market presence by introducing new products, expanding their operations, or entering into strategic acquisitions and mergers, partnerships, and collaborations. Some of the major vendors include ABB Ltd, Infineon Technologies AG, Texas Instruments Inc., Analog Devices Inc., Eaton Corporation PLC, and many more.
- June 2024: Mitsubishi Electric Corporation started shipping its newest products: a 3.3kV/400A and a 3.3kV/200A model of a Schottky barrier diode (SBD) integrated silicon carbide (SiC) metal-oxide-semiconductor field-effect transistor (MOSFET) module. These modules are tailored for heavy-duty industrial applications, such as rolling stock and electric power systems.
- May 2024: Infineon Technologies broadened its SiC MOSFET development to cover voltages lower than 650 V. The introduction of the CoolSiCMOSFET 400 V family, based on the second-generation (G2) technology released earlier this year, marks the company's latest offering. This new lineup of MOSFETs is tailored explicitly for the AC/DC stage of AI servers, which is in line with Infineon's recent PSU roadmap. Apart from server applications, these devices also serve a purpose in inverter motor control, solar and energy storage systems and SMPS.
Industrial Discrete Semiconductor Market Leaders
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Texas Instruments Inc.
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ABB Ltd
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Infineon Technologies AG
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Eaton Corporation PLC
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Analog Devices, Inc.
*Disclaimer: Major Players sorted in no particular order
Industrial Discrete Semiconductor Market News
- February 2024: Onsemi introduced the 1200V SPM31 Intelligent Power Modules (IPMs), featuring the advanced Field Stop 7 (FS7) Insulated Gate Bipolar transistor (IGBT) technology. These IPMs are recognized for their exceptional efficiency and compact structure, offering a higher power density that leads to a lower total system cost than similar products in the market. With these enhanced IGBTs, the SPM31 IPMs are particularly well-suited for applications such as three-phase inverter drives, especially in heat pumps, commercial HVAC systems, servo motors, and various industrial pumps and fans.
- February 2024: Vishay Intertechnology unveiled a series of five new half-bridge IGBT power modules enclosed in the updated INT-A-PAK package. These specific models, known as the VS-GT100TS065S, VS-GT150TS065S, VS-GT200TS065S, VS-GT100TS065N, and VS-GT200TS065N, make use of Vishay's Trench IGBT technology. They allow designers to choose between two advanced technologies: low VCE(ON) or low Eoff. These modules are designed explicitly for high-current inverter stages in various industries, such as transportation, energy, and industrial applications.
Industrial Discrete Semiconductor Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for High-energy and Power-efficient Devices in the Industrial Automation
5.1.2 Increasing Adoption of Automation and Robotics in the Industrial Sector
5.2 Market Challenges
5.2.1 Rising Demand for Integrated Circuits
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Diode
6.1.2 Small Signal Transistors
6.1.3 Power Transistors
6.1.3.1 MOSFET Power Transistors
6.1.3.2 IGBT Power Transistors
6.1.3.3 Other Power Transistors
6.1.4 Rectifier
6.1.5 Thyristor
6.2 By Geography***
6.2.1 United States
6.2.2 Europe
6.2.3 Japan
6.2.4 China
6.2.5 South Korea
6.2.6 Taiwan
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 ABB Ltd
7.1.2 On Semiconductor Corporation
7.1.3 Infineon Technologies AG
7.1.4 STMicroelectronics NV
7.1.5 Toshiba Electronic Devices and Storage Corporation
7.1.6 NXP Semiconductors NV
7.1.7 Diodes Incorporated
7.1.8 Nexperia BV
7.1.9 Semikron Danfoss Holding A/S (Danfoss A/S)
7.1.10 Eaton Corporation PLC
7.1.11 Hitachi Energy Ltd (Hitachi Ltd)
7.1.12 Texas Instrument Inc.
7.1.13 Wolfspeed Inc.
7.1.14 Microchip Technology
7.1.15 Renesas Electronics Corporation
7.1.16 Mitsubishi Electric Corporation
7.1.17 Analog Devices Inc.
7.1.18 Vishay Intertechnology Inc.
7.1.19 Rohm Co. Ltd
7.1.20 Littelfuse Inc.
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Industrial Discrete Semiconductor Industry Segmentation
Discrete semiconductors are singular components contained within their own packaging, separate from other elements. Unlike integrated circuits (ICs) that have the capacity to contain thousands, or even billions, of transistors in a single package, discrete semiconductors are restricted to carrying out a single, designated task.
The study tracks the revenue accrued through the sale of industrial discrete semiconductors by various players in the global market. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
The industrial discrete semiconductor market report is segmented by type (diode, small signal transistors, power transistors [MOSFET power transistors, IGBT power transistors, and other power transistors], rectifiers, and thyristors) and by Geography (United States, Europe, Japan, China, Korea, Taiwan, and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |||||
| Diode | |||||
| Small Signal Transistors | |||||
| |||||
| Rectifier | |||||
| Thyristor |
| By Geography*** | |
| United States | |
| Europe | |
| Japan | |
| China | |
| South Korea | |
| Taiwan |
Industrial Discrete Semiconductor Market Research FAQs
How big is the Industrial Discrete Semiconductor Market?
The Industrial Discrete Semiconductor Market size is expected to reach USD 7.34 billion in 2024 and grow at a CAGR of 7.08% to reach USD 10.33 billion by 2029.
What is the current Industrial Discrete Semiconductor Market size?
In 2024, the Industrial Discrete Semiconductor Market size is expected to reach USD 7.34 billion.
Who are the key players in Industrial Discrete Semiconductor Market?
Texas Instruments Inc., ABB Ltd, Infineon Technologies AG, Eaton Corporation PLC and Analog Devices, Inc. are the major companies operating in the Industrial Discrete Semiconductor Market.
What years does this Industrial Discrete Semiconductor Market cover, and what was the market size in 2023?
In 2023, the Industrial Discrete Semiconductor Market size was estimated at USD 6.82 billion. The report covers the Industrial Discrete Semiconductor Market historical market size for years: . The report also forecasts the Industrial Discrete Semiconductor Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Industrial Discrete Semiconductor Industry Report
Statistics for the 2024 Industrial Discrete Semiconductor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Industrial Discrete Semiconductor analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
