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Powering ahead

Portrait of Michael Alexander
Senior Advisor
Munich Office, Central Europe
July 29, 2015

The market for power electronics – applications that supply the electric power to control motors and enable the conversion of direct current to alternating current or vice-versa – is experiencing rapid growth. Experts from Roland Berger estimate the growth of the global market at 7 percent per year for the period through 2018. The market looks set to reach a total volume in excess of 200 billion dollars and offer the prospect of margins ranging from 15 to more than 20 percent.There are three main growth drivers behind this development: higher productivity caused by increasing levels of automation and digitization in industry, greater regulation, and the growing awareness of environmental issues. All of these combine to create ever more applications for power electronics, as found by this study "Powering ahead – Developments in power electronics mean a prospective bonanza for smart players".

However, as Roland Berger Partner Michael Alexander points out, "Market players need to be aware that this growth in power electronics is not a sure-fire promise of success." He explains: "Established suppliers and new players in the market face different challenges. They need to position themselves appropriately in the international market and increase their capacity for innovation if they want to profit from the developments in this industry. New suppliers will need to have a lot of staying power."

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Think:Act

Powering ahead

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Developments in power electronics mean a prospective bonanza for smart players

Published July 2015. Available in
Portrait of Sven Siepen
Senior Partner, Managing Partner Switzerland
Zurich Office, Central Europe
+41 79 792-7374