Many devices or tools used in our daily life must use power integrated circuits (Power ICs) to function properly. Power integrated circuits are used in nearly all electrical and electronic systems, from consumer electronics to aerospace.
There are many types of power ICs, including multi-channel power management integrated circuits (PMICs), DC/DC switching regulators, battery management integrated circuits (BMICs), linear regulators, supervisors, sequencers, voltage references, and more.
A Growing Mrket
The total power IC market size is expected to exceed $25.5 billion by 2026, growing at a CAGR of 3% between 2020 and 2026.
Despite COVID-19, the power IC market has been extremely resilient over the past two years, with a substantial increase of nearly 1.5% year-over-year between 2019 and 2020 as consumer demand has grown.
A closer look at power ICs reveals that four main types currently account for about 70% of the entire power IC market: multi-channel PMICs, DC/DC switching regulators, linear regulators, and BMICs.
The multi-channel PMIC market was valued at over $4.5 billion in 2020 and is expected to reach approximately $5.3 billion by 2026, growing at a CAGR of 2.6% during the forecast period. This type of assembly contains multiple DC/DC converters and linear regulators in the same package. Therefore, it is not surprising that they are mainly used in applications where size is important, such as smartphones and ADAS, to power multiple independent loads with different voltage and current requirements.
In 2020, multi-channel PMICs will account for 21% of the power IC market. Vendors such as Apple, Qualcomm, Intel, and Samsung S.LSI are very strong in this market, which involves most smartphone makers.
DC/DC switching regulators are the second largest component market, with a market share of about 17% in 2020. This market is over $3. 2.9% in 2020-2026. There are several types of DC/DC switching regulators, of which the buck converter is the most used, mainly to step down the input voltage to the desired output voltage. DC/DC switching regulators are used in almost all applications where the ratio of the available voltage to the desired voltage is high.
Another rapidly growing component is the BMIC, which is driven by the electrification of transportation and the batteryization of power and medical tools. With a market share of 14%, it represents the third largest power IC market in 2020.
Lastly, linear regulator components are prevalent in all applications, ranking fourth with a 13% market share in 2020. They are mainly used in power devices with very low voltage requirements and high sensitivity to noise.
Texas Instruments is expected to continue its leadership in the DC/DC switching, BMIC and linear regulator markets due to their comprehensive product portfolio. However, with the closing of the Maxim Integrated acquisition, Analog Devices will compete directly with TI in the DC/DC switching regulator and linear regulator markets.
Differences are observed at the device level, and they can also be seen from one app to another. Two applications symbolize this growing asymmetry: mobility and consumption, and automotive.
Mobile and Consumer Markets
The main areas of power ICs for mobile and consumer applications are mobile phones, home appliances, wearables and entertainment devices, which is also the largest market for power ICs. It is expected to grow from $10.7 billion in 2020 to over $11.6 billion in 2026, at a CAGR of 1.4% over the forecast period.
In 2020, the mobile and consumer power IC markets are dominated by multi-channel PMICs and DC/DC switching regulators with market shares of 42% and 16%, respectively. Qualcomm will continue to be the market leader due to the high demand for multi-channel PMICs in smartphones. Two other companies, Dialog Semiconductor and Texas Instruments, still play important roles in this market. However, after Apple decided - its largest customer - to manufacture PMICs entirely in-house, Dialog Semiconductor changed its strategy and was acquired by Renesas Electronics. With this acquisition, Renesas is expected to inherit Samsung, Xiaomi, Oppo and Panasonic as customers to strengthen its position in the market.
Automotive Power IC Market
Automotive is the most promising market for power ICs. It is expected to grow from approximately $2.25 billion in 2020 to over $3.7 billion in 2026, at a CAGR of 9% over the forecast period. This includes ADAS, in-vehicle infotainment, body and convenience, and powertrain. Two needs explain this high growth: transportation electrification and autonomous driving.
For some time now, the world has agreed on the need to decarbonize industries to reduce carbon dioxide emissions. Since transport is the most polluting part of the industry, electrification of this part will significantly reduce CO2 emissions.
Passenger cars and light commercial electric vehicles (hybrid and fully electric) are expected to account for nearly 47% of the market by 2026. Electric vehicles require many BMICs to manage the flow of power through the EV battery. Therefore, a large number of BMICs are required to support the rapid growth of vehicle electrification. According to Yole Développement, the automotive BMIC market will grow from $1 billion in 2020 to about $2 billion in 2026. As a result, its market share will grow from 45% of the automotive power IC market in 2020 to about 52% by 2026.
Another factor driving the automotive power IC market is autonomous driving. Modern cars are increasingly equipped with complex and sensitive features such as advanced driver assistance systems (ADAS) and infotainment systems. These complex and sensitive functions use power ICs as an interface to effectively ensure and monitor the correct power flow in the power system.
The number of these functions is expected to grow significantly in the coming years due to the increased level of automation in modern vehicles. The automotive power IC market is dominated by companies such as Texas Instruments, Qualcomm, and ADI, which are strong in both the multi-channel PMIC and BMIC markets.
The power IC market will continue to grow due to the need for power IC devices in many fields. In addition, the electrification of transportation, autonomous driving, batteryization of power and medical tools, and the development of building and factory automation will continue to drive market growth.
On the other hand, investment in in-house manufacturing by large players will continue as these companies maintain their rapidly growing market share and secure their supply chains.
