Digital Power Conversion Market: A Report on Growth, Dynamics, and Contribution to Sustainable Development Goals

The global digital power conversion market is projected to expand to USD 64,455.1 million by 2035, advancing at a Compound Annual Growth Rate (CAGR) of 10.3% from an estimated USD 24,138.7 million in 2025. This growth reflects the increasing global imperative for advanced, energy-efficient power management solutions that align with international sustainability objectives.

Alignment with Sustainable Development Goals (SDGs)

Digital power conversion technology is a critical enabler for achieving several United Nations Sustainable Development Goals (SDGs). Its core function of optimizing energy use directly supports the global transition towards a more sustainable and equitable energy future.

• SDG 7 (Affordable and Clean Energy): The technology is fundamental to enhancing the efficiency and reliability of renewable energy systems, such as solar and wind power. By minimizing power loss during conversion, it makes clean energy more accessible and economically viable.
• SDG 9 (Industry, Innovation, and Infrastructure): Digital power conversion represents a key innovation that underpins sustainable industrialization. It is integral to the development of resilient infrastructure, including energy-efficient data centers, industrial automation systems, and smart grids.
• SDG 11 (Sustainable Cities and Communities): The technology facilitates the development of sustainable urban environments by powering electric vehicle (EV) charging infrastructure and enabling smart grid systems, which are essential for managing energy consumption in modern cities.
• SDG 12 (Responsible Consumption and Production): By significantly improving energy efficiency in applications from consumer electronics to industrial machinery, digital power conversion promotes more responsible energy consumption patterns and reduces the overall environmental footprint of production processes.
• SDG 13 (Climate Action): The widespread adoption of this technology contributes directly to climate action by reducing energy waste and facilitating the integration of low-carbon energy sources, thereby lowering greenhouse gas emissions.

Market Dynamics and Growth Analysis

Key Market Drivers

The market’s expansion is propelled by several factors directly linked to global sustainability and technological advancement:

• Demand for Energy Efficiency: A primary driver is the global push to reduce energy consumption across all sectors, in line with SDG 7 and SDG 13.
• Adoption of Renewables and EVs: The rapid growth of renewable energy installations and the electric vehicle market necessitates advanced power conversion solutions.
• Technological Advancements: Innovations in semiconductor materials like Silicon Carbide (SiC) and Gallium Nitride (GaN) are enabling the creation of more compact, efficient, and high-performance power converters.
• Infrastructure Investment: Significant public and private investment in sustainable energy infrastructure, smart grids, and data centers is fueling demand.
• Supportive Regulatory Frameworks: Government policies and regulations promoting energy efficiency standards and green initiatives are accelerating market adoption.

Market Challenges

A primary obstacle confronting the market is the lack of standardization and interoperability. The diverse requirements of various applications have led to a fragmented ecosystem, which can create integration challenges for end-users and impede scalability.

Segment Analysis

Product Type Insights

The AC/DC Power Conversion segment commanded the largest market share at 26.6% in 2024. Its dominance is due to its fundamental role in converting grid power (AC) to the direct current (DC) required by nearly all electronic devices and industrial equipment. This segment is critical for EV charging stations, renewable energy inverters, and data center power supplies, reinforcing its market leadership.

Application Insights

The Consumer Electronics segment is forecast to experience the most rapid growth, with a projected CAGR of 12.4% from 2025 to 2035. This growth is driven by consumer demand for smaller, more efficient devices with longer battery life and faster charging capabilities, aligning with the principles of responsible consumption (SDG 12).

Regional Market Analysis

North America

The United States is expected to lead the North American market, holding a 69.8% value share in 2025. This position is supported by a robust technological ecosystem, the presence of leading vendors, and government policies that encourage the adoption of renewable energy technologies (SDG 7).

Europe

Italy is emerging as a significant market in Europe, driven by its commitment to ambitious renewable energy targets and smart grid modernization projects. EU-backed green initiatives are further stimulating demand for advanced digital power solutions to support SDG 7 and SDG 9.

South Asia & Pacific

India is projected to exhibit the highest growth in the region, with a CAGR of 13.4%. This is fueled by the nation’s focus on electrification, large-scale investments in renewable energy (e.g., National Solar Mission), a rapidly expanding EV market, and industrial growth, all of which contribute to progress on multiple SDGs.

Competitive Landscape

The market is characterized by a competitive mix of established global leaders and specialized innovators.

Company Tiers

1. Tier 1: Companies such as Texas Instruments, Infineon Technologies AG, and STMicroelectronics lead the market with extensive product portfolios, significant R&D investment, and global reach. They are at the forefront of developing advanced SiC and GaN technologies.
2. Tier 2: Players like ON Semiconductor, Mitsubishi Electric Corporation, and ABB Ltd. possess strong expertise in specific industries, such as industrial automation and smart grids, holding substantial market shares.
3. Tier 3: Niche companies including Vicor Corporation and Delta Electronics, Inc. focus on high-performance, specialized applications like compact power modules for data centers and telecommunications.

Recent Strategic Developments

• Infineon Technologies (October 2024): Launched the TDM2254xD series to enhance power efficiency in AI data centers.
• Mitsubishi Electric (May 2024): Acquired a majority stake in Fuji Bakelite Vietnam to expand its power conversion capabilities.
• ABB (December 2024): Agreed to acquire the power electronics unit of Siemens Gamesa to strengthen its renewable power conversion technology portfolio.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the digital power conversion market directly or indirectly addresses several Sustainable Development Goals (SDGs). The analysis identifies the following relevant SDGs:

• SDG 7: Affordable and Clean Energy – This is the most prominent SDG, as the article’s core focus is on technology that enhances energy efficiency and supports renewable energy systems.
• SDG 9: Industry, Innovation, and Infrastructure – The article extensively discusses technological advancements, innovation in semiconductors, investments in sustainable infrastructure, and industrial applications.
• SDG 12: Responsible Consumption and Production – The goal of minimizing power loss and improving efficiency in consumer electronics and industrial processes aligns with sustainable production and consumption patterns.
• SDG 13: Climate Action – By enabling greater energy efficiency and facilitating the integration of renewable energy sources, the technology discussed is a key tool for climate change mitigation, which is the central aim of SDG 13.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following specific SDG targets can be identified:

1. Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Explanation: The article states that the market growth is fueled by the “rapid adoption of renewable energy sources” and highlights the technology’s critical role in “renewable energy systems.” It also points to “ambitious renewable energy goals” and “significant investments in solar and wind energy projects” in countries like Italy and India as key market drivers.
2. Target 7.3: Double the global rate of improvement in energy efficiency.
   • Explanation: This target is central to the article. Digital power conversion is described as “critical for optimizing energy efficiency” and having the ability to “minimize power losses.” The entire market is driven by the “escalating demand for advanced power management solutions” and the “urgent global need for energy optimization and sustainability.”
3. Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
   • Explanation: The article discusses “substantial investments in sustainable energy infrastructure” and the use of digital power conversion in “industrial automation.” The development of “more compact and higher-performing” systems using advanced materials like SiC and GaN represents the adoption of cleaner and more efficient technologies in industry.
4. Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors… and encourage innovation.
   • Explanation: The text emphasizes “technological advancements,” “continuous innovations in semiconductor technologies,” and “robust R&D” by leading companies. The mention of specific innovations like wide-bandgap materials (SiC and GaN) and new product series from companies like Infineon directly points to enhanced research and technological upgrades.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions or implies several indicators that can be used to measure progress:

1. For Target 7.2 (Renewable Energy):
   • Indicator: Investment in renewable energy projects and infrastructure.
     • Evidence: The article explicitly mentions “substantial investments in sustainable energy infrastructure” and “significant investments in solar and wind energy projects” as market drivers.
   • Indicator: Rate of adoption of renewable energy technologies.
     • Evidence: The text points to the “rapid adoption of renewable energy sources” and the “aggressive focus on electrification” in regions like India, which includes the “National Solar Mission.”
2. For Target 7.3 (Energy Efficiency):
   • Indicator: Market growth rate for energy-efficient technologies.
     • Evidence: The projected market growth to “USD 64,455.1 million by 2035” at a “CAGR of 10.3%” serves as a direct financial indicator of the increasing adoption of these energy-efficient solutions.
   • Indicator: Demand for efficiency in consumer products.
     • Evidence: The article highlights the demand for “extended battery life, rapid charging capabilities” and more efficient devices in the consumer electronics segment, which is projected to be the fastest-growing.
3. For Target 9.4 (Sustainable Infrastructure & Industry):
   • Indicator: Adoption of advanced, efficient materials and technologies.
     • Evidence: The article points to the use of “wide-bandgap materials like Silicon Carbide (SiC) and Gallium Nitride (GaN)” which enable “more compact and higher-performing” systems, indicating a technological shift towards sustainability in industry.
4. For Target 9.5 (Innovation):
   • Indicator: Investment in Research & Development (R&D).
     • Evidence: The dominance of Tier 1 companies is attributed to their “robust R&D.”
   • Indicator: Rate of new technology and product launches.
     • Evidence: The article cites “Infineon’s TDM2254xD series for AI data centers” as a recent strategic move, which is an indicator of ongoing innovation.

4. Summary Table of SDGs, Targets, and Indicators

Source: openpr.com