The power management IC market is expected to reach US$ 55,042.7 million by 2028 from US$ 37,772.0 million in 2021; it is estimated to grow at a CAGR of 5.5% from 2021 to 2028, according to Research and Markets.
Power management ICs are responsible for controlling the direction and flow of electric power.
These PMICs find significant application across various industrial verticals, such as telecom and networking, consumer electronics, and automotive and transportation. The demand for consumer electronics and home appliances is increasing globally, which is anticipated to drive the demand for integrated PMICs, high power PMICs, and monolithic PMICs.
The automotive and transportation sector contributes to the growing demand for power management ICs. Advanced driver assistance systems (ADAS), vehicle infotainment, navigation system, battery management, telematics, and automotive clusters require high-efficiency power management ICs.
Government subsidies, incentives, and tax exemptions are boosting the sales of electric vehicles globally. Such encouragement from government authorities along with stringent emission norms accelerates the demand for electric vehicles and respective power management ICs. With the rapid advancement in the Internet of Things (IoT) technology, connected devices tend to rise remarkably in the coming years.
The global power management IC market is segmented based on product type and end use. The market, based on product type, is segmented into voltage regulators, motor control, battery management, multi-channel ICs, and others. Based on end use, the market is categorized into consumer electronics, automotive, healthcare, IT & telecom, industrial, and others.
The adoption of electric vehicles is growing tremendously across the world. Sales of electric vehicles (EVs) have increased, with growth in all three top auto markets the US, China, and Europe. Sales of electric vehicles in the mentioned top three auto markets increased by almost 160% (around 2.5 million units) in the first half of 2021 compared to 2020.
This count of units represented approximately 25% of new sales in the global automotive market. Power management plays a significant role with respect to the efficiency of the device, whether it is an ultra-low-power wireless sensor network or automotive high-voltage power converter. With a rise in proper power management, companies are manufacturing customized power management integrated chips.
In India, the Ministry of Road, Transport, and Highways issued a draft notification that exempts people from paying for renewing or issuing registration certificates if they own a battery-operated vehicle. Also, stringent emission norms in European countries are driving the demand for electric vehicles to a notable extent. Thus, respective policies, guidelines, incentives, and subsidies promote the sales of electric vehicles across the world.
A PMIC is widely used in numerous automotive applications, such as ADAS, infotainment, battery management, navigation, telematics, and automotive cluster. Thus, rising sales for electric vehicles drive the demand for highly integrated system PMIC for applications requiring up to 8.5 A and high power PMIC used in quad-core processors up to 12 A.
NXP Semiconductors; Analog Devices, Inc.; INFINEON TECHNOLOGIES AG; ROHM CO., LTD.; Microchip Technology Inc.; Vishay Intertechnology, Inc.; Renesas Electronics Corporation; STMicroelectronics; Texas Instruments Incorporated; and Qorvo, Inc. are among the key players operating in the global power management IC market.