According to the latest data released by semiconductor market research firm IC insights, global power semiconductor sales are expected to grow 11 percent year-over-year to $24.5 billion in 2022, achieving the sixth consecutive year of growth and reaching a record high level.
IC insights said the continued growth in power semiconductor sales is largely due to the highest increase in average selling price (ASP) for products in this large discrete semiconductor market segment in more than a decade. The average selling price of power semiconductors is expected to increase 8% year-over-year in 2021 and 11% year-over-year in 2022.
In 2021, sales of power semiconductors increased 26 percent, driven by a 13 percent increase in unit shipments and bottlenecks in capacity expansion that drove ASP growth. A series of record high sales for power semiconductors is expected to end in 2023, when revenues are expected to decline 2 percent to $24 billion due to slower global economic growth next year and a 4 percent decline in average device selling prices. The power semiconductor market is expected to begin another growth cycle in 2024, with annual sales growing steadily to $28.9 billion by 2026, at a compound annual growth rate (CAGR) of 5.5 percent, according to the updated outlook for the third quarter of 2022.
Power semiconductor prices have been moving higher since 2021, when many system manufacturers began increasing production in the wake of the Covid-19 virus pandemic outbreak and the global emergency embargo in 2020. Supply constraints and shortages of power transistors and other widely used semiconductors have kept average selling prices high in many manufacturing industrial sectors, particularly automotive and industrial equipment, despite the recent slowdown in economic growth, belt-tightening by consumers and companies in response to high inflation, and interest rate hikes initiated by the Federal Reserve in response to the risk of a full-blown recession.
The average selling price of power semiconductors is expected to rise 11 percent for all of 2022, the highest growth rate since 2010 when the economy recovered from the 2007-2008 financial crisis-induced recession. in 2020, power semiconductor ASPs grow 11 percent to about $0.24. Since then, the average sales price has grown at a compound annual growth rate of 3.3 percent, to just over $0.35 this year. Average sales prices for power semiconductors grow at a compound annual growth rate of only 2.1 percent over the 10 years leading up to the start of the global Covid-19 virus crisis in 2020, before growing 8 percent in 2021 and an expected 11 percent this year.
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