The global power semiconductor market, including both power discretes and power modules, is projected to grow 5 percent in 2015 to reach $17 billion. In 2014, year-over-year revenues in power discretes grew 5 percent and power module revenues grew 12 percent, according to IHS.
 
Power modules contain multiple discrete power semiconductor devices. Compared to discrete power semiconductors, power module packages provide higher power density and greater reliability, according to IHS Technology's latest "Power Semiconductor Discretes and Modules Report." "
OEMs will continue to want modular power solutions, which can be easily integrated into various subsystems and used in many different devices," said Richard Eden, senior semiconductor value chain analyst for IHS Technology. "Power modules are widely found in inverters for wind turbines, photovoltaic solar power systems, and other renewable energy applications. They are also found in industrial motor units and hybrid and electric vehicles."
"Standardized discrete power semiconductors have become mass-produced with little differentiation," said Victoria Fodale, senior semiconductor value chain analyst for IHS Technology. "OEMs and ODMs are typically multi-source discrete products through distributors. Suppliers will continue to face challenges when it comes to increasing profitability in the commodity segments of the discrete power market."

Mergers and acquisitions are redistributing market share.
Infineon remained the leading supplier to the global power semiconductor market in 2014, with an estimated market share of 13 percent. Mitsubishi held second place with 7 percent. STMicrosystems moved into third place, displacing Toshiba, with an estimated market share of 6 percent.
With Infineon's acquisition of International Rectifier (IR) last year, the power semiconductor market landscape is changing. The merged companies held nearly 27 percent of the power transistor market in 2014. The transistor product category includes bipolar transistors, MOSFETs, and IGBTs, representing about two-thirds of the total discrete power semiconductor market.
Mitsubishi Electric was the largest supplier of power modules in 2014, although the company's estimated market share remained at 24 percent for both 2013 and 2014. Infineon held second place with 20 percent. The four leading power module suppliers—Mitsubishi, Infineon, Semikron, and Fuji Electric—accounted for 65 percent of the global power module market in 2014.