The global metal-organic chemical vapor phase deposition (MOCVD) market for power electronics is will rise at a striking compound annual growth rate (CAGR) of over 40% to more than $205m in 2019, according to the report 'Global MOCVD Market in Power Electronics 2015-2019' by market research firm Technavio.
APAC region the largest market
With a massive market share of about 91% in 2014, APAC became the largest market for MOCVD in power electronics and will continue to lead the market over the next five years. The high concentration of original equipment manufacturers (OEMs) and original design manufacturers (ODMs) in the region is driving market growth, the report notes.
The growing demand for power electronic devices in renewable and utility applications in APAC is another factor that is expected to fuel the demand for power electronics. The availability of raw materials, low establishment and labor costs, and the business-friendly government policies of various countries have encouraged many companies to set up manufacturing sites in the region. Technological advances in MOCVD and power electronics, such as gallium nitride (GaN) power devices and GaN-on-silicon (GaN-on-Si) platforms are also adding to the market growth in the region.
"The rapid growth of the MOCVD market in the APAC is also because countries such as China, Japan, Taiwan and South Korea have many firms with a strong presence in the electronics manufacturing industry," says Asif Gani, Technavio's lead semiconductor equipment industry analyst.
The key vendors in the global MOCVD market in power electronics highlighted in the report are US-based Veeco Instruments Inc, Germany-based Aixtron SE, and Japan-based Taiyo Nippon Sanso Corp (although there are also a few small emerging players, mostly in China, manufacturing MOCVD equipment for power electronics).
Americas
Due to the rise in demand and procurement of MOCVD equipment used for power electronics in APAC, the global market share of the Americas is expected to fall gradually during the forecast period, says Technavio. The Americas (especially the USA and Canada) represent mature markets for technology products as the consumers in this region are early adopters of any emerging technology, the firm adds. The shifting and development of existing and new manufacturing units and their expansion to APAC is affecting the market share of the Americas.
Europe
The MOCVD market for power electronics in Europe is expected to grow steadily in terms of revenue during the forecast period, with countries such as Germany (home to Aixtron, the world's second largest MOCVD equipment supplier), France and the UK playing pivotal roles. Europe is the hub of the automotive industry, in which demand for energy-efficient power electronics is increasing significantly, the report notes.
"EMEA, like the Americas, will see a decrease in its global market share due to high demand and manufacturing of power electronics in APAC. However, the decrease is only from a global market share perspective and not in terms of revenue," says Gani.
