Power Module Packaging Market: Latest Trends, Shares, and Growth Forecasts

Dublin, Jan. 21, 2026 (GLOBE NEWSWIRE) -- The "Power Module Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering. The market segmentation spans components, power device types, power ranges, end-user applications, and geographies. Each segment supports varied industrial demands and forecasts in terms of USD value. The Power Module Packaging market is forecasted to reach a valuation of USD 3.01 billion by 2026, expanding from USD 2.74 billion in 2025 and projected to hit USD 4.78 billion by 2031, with a CAGR of 9.72% during 2026-2031. The industry's growth is fueled by the rise of wide-bandgap semiconductors, the adoption of 800V architectures in electric vehicles (EVs), and a heightened focus on energy efficiency in industrial motor drives. Advancements in packaging technology that reduce thermal resistance and enhance current density, especially in automotive sectors demanding reduced size without sacrificing reliability, are pivotal. Asia, particularly Malaysia, India, and Indonesia, is seeing diversification in manufacturing, helping mitigate geopolitical risks. Silicon carbide (SiC) and gallium nitride (GaN) devices are reshaping competitive dynamics, challenging traditional silicon solutions, while advanced ceramic substrates like aluminum nitride gain market share through innovations like double-sided cooling designs. Global Power Module Packaging Market Trends and Insights SiC and GaN power devices are increasingly adopted in EV traction inverters, with SiC penetration offering benefits such as range extension and faster charging capabilities. For example, Tesla's use of SiC has shown about a 7% range improvement over silicon alternatives. Innovations like Fraunhofer's Enhanced Direct-cooling Inverter architecture improve efficiency significantly, leading the migration to higher voltage vehicle systems. The demand for these advanced substrates and interconnects addresses insulation and discharge challenges, favoring suppliers who can innovate packaging. For industrial motor drives, which constitute about 70% of global industrial power use, there is untapped potential as only a small percentage use electronic speed controls. SiC-based drive modules promise significant energy savings, which aligns well with governmental efficiency mandates and increasing electricity prices. These modules allow for compact and cost-effective installation compatible with long industrial duty cycles. Despite the high capitalization required for advanced packaging equipment, such as the needs for wide-bandgap device production, the market sees robust demand. The financial burden affects companies without mature semiconductor clusters, impacting diversification efforts in South Asia and Latin America. Additional trends analyzed include the expansion of renewable-energy-linked inverters, miniaturization in e-mobility, and volatile market conditions due to consolidation among Tier-1 OSATs. Segment Analysis Substrates play a critical role with 27.85% of 2025 revenue, while die attach is expected to show substantial growth due to its technical advancements. Baseplates are being phased out in favor of direct-substrate-cooling schemes, and thermal interface materials are moving towards cutting-edge nanostructures, which offer minimal resistance. Suppliers focusing on integrating substrate pressing and metallization are performing well in this evolving landscape. IGBT modules, a crucial market component, hold a significant share, although the demand for SiC modules is growing at a rapid pace. GaN modules also see an upswing, particularly in high-frequency rectifier markets. Geography Analysis The Asia-Pacific region leads in expenditures, driven by China's technological momentum and key infrastructural investments in India and Malaysia. North America and Europe are also making strategic moves to bolster their capabilities through extensive funding initiatives like the CHIPS Act. Meanwhile, the Middle East and Africa are exploring renewable energy avenues for future growth. Companies Covered in This Report: Infineon Technologies AG Mitsubishi Electric Corporation (Powerex Inc.) Fuji Electric Co. Ltd. Semikron-Danfoss GmbH & Co. KG Hitachi Ltd (Power Electronics Systems) STMicroelectronics N.V. Amkor Technology Inc. ON Semiconductor Corporation Wolfspeed Inc. ROHM Semiconductor Texas Instruments Inc. Littelfuse Inc. (IXYS) Microchip Technology Inc. Nexperia B.V. Vishay Intertechnology Inc. Dynex Semiconductor Ltd. Danfoss Silicon Power GmbH Power Integrations Inc. SanRex Corporation Alpha & Omega Semiconductor Ltd. Kyocera Corporation Heraeus Electronics GmbH TT Electronics PLC Advanced Power Electronics Corp. Shanghai Electric Power Semiconductor Device Co. Ltd. Cissoid SA Celestica Inc. Key Topics Covered: 1 INTRODUCTION 1.1 Study Assumptions and Market Definition 1.2 Scope of the Study 2 RESEARCH METHODOLOGY 3 EXECUTIVE SUMMARY 4 MARKET LANDSCAPE 4.1 Market Overview 4.2 Market Drivers 4.3 Market Restraints 4.4 Industry Value Chain Analysis 4.5 Regulatory Landscape 4.6 Technological Outlook 4.7 Impact of Macroeconomic Factors on the Market 4.8 Porter's Five Forces Analysis 5 MARKET SIZE AND GROWTH FORECASTS (VALUE) 5.1 By Components 5.2 By Power Device Type 5.3 By Power Range 5.4 By End-user 5.5 By Geography 6 COMPETITIVE LANDSCAPE 6.1 Market Concentration 6.2 Strategic Moves 6.3 Market Share Analysis 6.4 Company Profiles 7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK 7.1 White-space and Unmet-need Assessment For more information about this report visit https://www.researchandmarkets.com/r/2wd7pz About ResearchAndMarkets.com ResearchAndMarkets.com is the world's leading source for international market research reports and market data. 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