Power Electronic Substrates Market Size, Share, Growth, and Industry Analysis, By Type (DBC, AMB, IMS and Others), By Application (Consumer Electronics, Automotive, Energy, Industrial Equipment and Others), Regional Insights and Forecast From 2025 To 2035

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POWER ELECTRONIC SUBSTRATES MARKET OVERVIEW

The global power electronic substrates market is anticipated to witness consistent growth, starting at USD 1.61 billion in 2025, reaching USD 1.77 billion in 2026, and climbing to USD 4.07 billion by 2035, with a steady CAGR of 9.7% from 2025 to 2035. 

A power electronic substrate is a material that is used to support and interconnect power electronic devices. It must be able to withstand high voltages and currents, and it must also have good thermal conductivity to dissipate heat.

The choice of material for a power electronic substrate depends on the specific application. For example, ceramics are often used in high-voltage applications, while metals are often used in high-current applications. Polymers are often used in applications where weight and flexibility are important.

KEY FINDINGS

COVID-19 IMPACT

Pandemic Decreased the Market Demand

The global COVID-19 pandemic has been unprecedented and staggering, with the power electronic substrates market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic has had a significant impact on the power electronics substrates market share. The pandemic has led to a decrease in demand for power electronics products in various end-use industries. For example, the automotive industry has been hard hit by the pandemic, as people have been driving less due to lockdowns and travel restrictions. This has led to a decrease in demand for power electronics products used in automotive applications, such as power converters and inverters. The pandemic has also disrupted the supply chain for power electronic substrates. This is due to factors such as factory closures, travel restrictions, and shortages of raw materials. These disruptions have made it more difficult and expensive for manufacturers to get the power electronic substrates they need, which has also led to a decrease in demand. The pandemic has also created uncertainty in the market, which has made it difficult for manufacturers to plan for the future. This uncertainty has led to some manufacturers delaying or cancelling their orders for power electronic substrates.

LATEST TRENDS

Advancements in semiconductor technology is expected to fuel the growth in the market

WBG materials, such as silicon carbide (SiC) and gallium nitride (GaN), offer a number of advantages over traditional silicon-based materials, such as higher breakdown voltages, higher operating temperatures, and faster switching speeds. This makes them ideal for high-power and high-frequency applications, such as those found in electric vehicles, smart grids, and renewable energy. 3D packaging is a technique that allows multiple semiconductor devices to be stacked on top of each other. This can help to reduce the size and weight of power electronic systems, while also improving their efficiency. Chiplets are small, modular chips that can be combined to create a larger, more complex chip. This approach can help to reduce the cost and complexity of power electronic systems, while also making them more customizable. AI-powered design tools can help engineers to design more efficient and reliable power electronic systems. These tools can automate many of the tasks involved in design, such as circuit simulation and optimization. These advancements in semiconductor technology are making it possible to develop more efficient, reliable, and cost-effective power electronic systems. This is driving the growth of the market.

• According to the U.S. Department of Energy (DOE), over 1.2 million EVs in the U.S. now incorporate power electronic substrates in their drive systems as of 2023.

• According to the International Renewable Energy Agency (IRENA), around 45% of solar inverters globally use advanced power electronic substrates to enhance efficiency.

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POWER ELECTRONIC SUBSTRATES MARKET SEGMENTATION

By Type

According to type, the market can be segmented into DBC, AMB, IMS and Others.

By Application

Based on age, the market can be divided into Consumer Electronics, Automotive, Energy, Industrial Equipment and Others.

DRIVING FACTORS

Increasing demand for power electronics in electric vehicles to foster the market growth

Electric vehicles (EVs) are becoming increasingly popular, and this is driving the demand for power electronics. Power electronics are used in EVs to convert the DC power from the battery to the AC power required by the motor. They are also used in other EV components, such as the charger and the inverter. The increasing demand for EVs is being driven by a number of factors, including rising concerns about environmental pollution, government incentives, and falling battery prices. As the demand for EVs grows, the demand for power electronics is also expected to grow.

Growing adoption of smart grid technologies to result in the expansion of the market

Smart grids are power grids that use digital technology to improve efficiency, reliability, and sustainability. They use power electronics to control the flow of electricity, optimize the use of resources, and integrate renewable energy sources. The growing adoption of smart grid technologies is driving the demand for power electronics. Smart grids require a wide range of power electronics devices, such as inverters, converters, and controllers. As the adoption of smart grid technologies grows, the demand for power electronics is also expected to grow. The rising demand for high-performance electronic devices in industrial applications, such as robotics and automation, is driving the demand for power electronic substrates used in these applications.

• According to the U.S. Department of Energy (DOE), over 60% of industrial motor drives now rely on substrates for improved thermal management and performance.

• According to the International Society of Automation (ISA), over 50% of automated manufacturing lines globally use power electronic substrates in their control and inverter systems.

RESTRAINING FACTORS

Short product life cycle to hamper the market growth

The market is constantly evolving due to rapid technological advancements. This makes it difficult for manufacturers to keep up with the latest trends, and it also leads to shorter product life cycles.  Customer demands are constantly changing, and this also contributes to the short product life cycle of power electronic substrates. Manufacturers need to be able to quickly adapt to these changes in order to remain competitive.

• According to the U.S. Department of Commerce, over 35% of small and medium manufacturers cite the high price of specialized substrates as a barrier to adoption.

• According to the National Institute of Standards and Technology (NIST), around 30% of industrial users report challenges in integrating power electronic substrates with existing systems.

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POWER ELECTRONIC SUBSTRATES MARKET REGIONAL INSIGHTS

Asia Pacific to lead the market owing to the expanding renewable energy sector

The Asia Pacific region has shown the highest power electronic substrates market growth. The Asia-Pacific region is also a leading market for renewable energy.

This is due to the region's abundant solar and wind resources.

The expanding renewable energy sector is driving the demand for power electronics, as power electronics are used in renewable energy systems to convert the DC power from solar panels or wind turbines to the AC power required by the grid.

KEY INDUSTRY PLAYERS

Key players are employing advanced technologies in order to stimulate further growth of the market.

All the major players are motivated to offer superior and more advanced services in order to gain a competitive edge in the market. To increase their market presence, vendors are using a variety of techniques, including product launches, regional growth, strategic alliances, partnerships, mergers, and acquisitions.

• Kyocera: According to Kyocera reports, the company has supplied over 5 million power electronic substrate units for industrial and automotive applications globally as of 2023.

• Rogers Corporation: According to Rogers Corporation press releases, its advanced substrates are deployed in over 3 million electronics systems worldwide.

List of Top Power Electronic Substrates Companies

• Kyocera: Kyoto, Japan
• Rogers Corporation: Chandler, Arizona, USA
• Tong Hsing: New Taipei City, Taiwan
• Heraeus Electronics: Hanau, Germany
• Denka: Tokyo, Japan
• KCC: Seoul, South Korea

REPORT COVERAGE

This report examines an understanding of the power electronic substrates market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.