LYON, France – The global power electronics industry is entering a new phase. After years of rapid expansion fueled by electrification and renewable energy, companies are now navigating a more complex environment shaped by overcapacity, pricing pressure, geopolitical tensions, and intensifying competition. Against this backdrop, Yole Group releases its latest report, Status of the Power Electronics Industry 2026, offering a comprehensive analysis of the market, ecosystem, supply chain, and technology trends shaping the industry’s future.
Following a turbulent 2024–2025 period marked by geopolitical uncertainty, lower-than-expected electric vehicle demand, and significant manufacturing overcapacity, the power electronics industry is entering a new phase focused on consolidation, cost optimization, and competitive positioning. Despite these challenges, Yole Group forecasts the power device market to continue growing at a 7.1% CAGR between 2025 and 2031, reaching $41.3 billion by 2031. While growth prospects remain robust, industry priorities are changing.
Milan Rosina, PhD, Principal Technology & Market Analyst, Power Electronics & Battery, at Yole Group: “The power electronics industry is entering a new phase: growth continues, but the focus has shifted from expansion to competitiveness, cost optimization, and market share.”
Xiran Zuo, Technology & Market Analyst, Power Electronics, at Yole Group: “Power electronics is entering a new chapter. Companies are moving from capacity expansion to profitability, operational excellence, and long-term market positioning.”
