Power Semiconductors Emerge as Strategic Infrastructure
A DataM Intelligence analysis forecasts significant growth in the power semiconductor market through 2035, driven by demand from AI, EVs, and renewable energy sectors.
Power semiconductors are increasingly becoming a critical infrastructure component, essential for AI data centers, electric vehicles (EVs), renewable energy systems, and industrial automation. A recent analysis by DataM Intelligence indicates substantial growth projected for the global power semiconductor market in the coming years.
The market, valued at $85.30 billion in 2025, is anticipated to reach $401.87 billion by 2035, reflecting a compound annual growth rate of approximately 15% between 2026 and 2035. This expansion is fueled by a confluence of demand from multiple end-markets, including the buildout of AI data centers, the electrification of transportation, the deployment of renewable energy, and the rise of industrial automation.
While the semiconductor industry has been largely defined by AI infrastructure and advanced manufacturing investments, the role of power semiconductors is becoming more pronounced. These components are vital for efficiently converting, controlling, and protecting electrical power. Every AI server, EV, solar inverter, and energy storage system relies on these critical elements.
The evolving landscape suggests that procurement of power semiconductors is shifting from a component-level decision to a strategic infrastructure consideration. Factors such as factory capacity, regional manufacturing capabilities, advanced packaging techniques, and connectivity are reshaping the demand profile for power semiconductor devices like ICs, MOSFETs, IGBTs, silicon carbide, and gallium nitride solutions.