Power semiconductor market seen reaching $107.35 billion by 2035

Market Research Future projects the global power semiconductor market will grow from $60.85 billion in 2025 to $107.35 billion by 2035, driven by EVs, renewable energy, AI data centers and government-backed fab expansion. Asia-Pacific led the market in 2025, while wide-bandgap materials such as silicon carbide and gallium nitride are gaining share.

Why it matters: - Power semiconductors are moving from a cyclical chip segment to a structural growth market tied to electrification, grid buildout and AI infrastructure. - The shift from legacy silicon to wide-bandgap devices is changing what automakers, utilities and data center operators buy. - Government subsidies in the U.S., Europe and Japan are lowering the cost of new fabrication capacity and could reshape supply chains.

What happened: - Market Research Future said the global power semiconductor market reached $60.85 billion in 2025. - The market is projected to rise to $64.40 billion in 2026 and $107.35 billion by 2035. - The forecast implies a 5.84% compound annual growth rate from 2026 to 2035. - The report covers components, materials, end users and regional demand patterns. - The full sample report is available here.

The details: - The U.S. CHIPS and Science Act has committed more than $52 billion to domestic semiconductor manufacturing. - The European Chips Act channels an estimated EUR 43 billion into fabrication sovereignty. - The report links market growth to EV traction inverter and onboard charger adoption, renewable energy inverter deployment, data center power density gains from AI workloads and fab-reshoring subsidies. - Discrete devices held 47.7% of the market in 2025. - Power ICs are projected to grow at a 6.44% CAGR through 2035. - Silicon devices generated about $43.87 billion in 2025. - Gallium nitride is projected to grow at a 9.66% CAGR through 2035. - Silicon carbide is projected to grow at an 8.14% CAGR through 2035. - The automotive sector held a 33.2% share in 2025. - Energy and power end users are projected to grow at a 7.72% CAGR through 2035. - Asia-Pacific held 54.9% of revenue in 2025. - North America held 18.5% of revenue in 2025. - Europe held 17.8% of revenue in 2025.

Between the lines: - The report shows a market under pressure from both demand growth and supply constraints. - Wide-bandgap adoption is accelerating because silicon carbide and gallium nitride offer better thermal performance and switching efficiency at higher voltages. - Automakers are expected to consume more than $9 billion worth of SiC modules annually by 2030. - The move from 400V to 800V EV platforms will increase SiC MOSFET content per vehicle. - AI training racks can require 70 kW to 120 kW, compared with 15 kW to 20 kW for traditional compute racks, pushing demand for higher-efficiency power stages. - The SiC substrate supply bottleneck remains a major constraint, with six-inch device-grade wafer lead times averaging 30 to 40 weeks through 2024. - The report also cites U.S.-China export-control friction and high capital costs for wide-bandgap fabs as headwinds.

What's next: - EV makers are expected to keep adding 800V models through 2030, increasing demand for SiC devices and bidirectional onboard chargers. - Solar and battery storage buildouts should support inverter demand as annual solar PV additions are projected to exceed 700 GW by 2030. - Hyperscale data centers are likely to require more GaN-based and high-frequency power architectures as rack densities rise above 100 kW. - The report says AI-related power semiconductor content in hyperscale facilities could become a $4 billion to $6 billion annual market by 2030. - Vertical integration into SiC and GaN substrate production is likely to remain a key competitive advantage for leading suppliers.

The bottom line: - Power semiconductors are entering a long growth phase powered by electrification, AI infrastructure and policy-backed manufacturing expansion.