New Packages and Materials for Power Devices Market By Material Type (Ceramic Substrates, Copper and Advanced Interconnect Materials, Silver Sintering Materials, Thermal Interface Materials, Encapsulation Materials); By Packaging Technology (Discrete Power Packages, Power Modules, Embedded Power Packages, Double Sided Cooling Packages, Chip Scale Power Packages); By Device Technology (Silicon Power Devices, Silicon Carbide Devices, Gallium Nitride Devices); By Application (Electric Vehicles, Renewable Energy Systems, Industrial Automation, Data Centers and Telecom Infrastructure, Consumer Electronics); By Geography, Segment Revenue Estimation, Forecast, 2026–2032

New Packages and Materials for Power Devices Market Size, Growth and Forecast, 2025–2032

The Global New Packages and Materials for Power Devices Market is valued at USD 3.15 billion in 2025 and is projected to reach USD 5.65 billion by 2032, growing at a CAGR of 8.7%. Market growth is being led by electric-vehicle power systems, silicon carbide and gallium nitride devices, renewable-energy converters and high-density data-centre power supplies.

 

New packages and materials for power devices include ceramic substrates, copper interconnections, silver sintering materials, thermal interface materials, encapsulants and advanced cooling structures. These components connect the semiconductor die to the wider electrical system. They also remove heat, provide electrical insulation and protect the device from mechanical and environmental stress.

 

Demand for advanced packaging is increasing due to major shifts in key industries. In electric vehicles, compact and thermally robust power modules are needed to improve efficiency and reduce system size. The growing use of wide-bandgap semiconductors like silicon carbide (SiC) and gallium nitride (GaN) is also driving demand for advanced substrates and thermal management solutions. Renewable energy systems require durable power modules to handle high electrical loads and ensure long-term reliability. In addition, AI-driven data centers are increasing the need for efficient power conversion and better thermal control in high-density server designs. Overall, ongoing electronics miniaturization is further accelerating demand for smaller, more powerful, and highly integrated packaging solutions.

 

Why Are Electric Vehicles the Largest Application?

Electric vehicles account for USD 1.01 billion, or 32.0% of the market in 2025, and are forecast to grow at a CAGR of 9.8%. This rising share reflects accelerating demand for advanced power-device packaging, as traction inverters, onboard chargers and DC/DC converters must handle high voltage, repeated temperature changes and continuous electrical loads within limited vehicle space. For instance, Toyota’s adoption of Infineon’s silicon carbide devices in its bZ4X platform and DENSO’s development of dual-sided cooling inverters demonstrate how automakers are increasingly integrating advanced packaging solutions to support higher efficiency and power density in next-generation electric vehicles.

Power modules dominate this application because they combine multiple semiconductor dies, conductive layers, insulation and cooling interfaces within one assembly. This arrangement reduces the space required for high-power conversion and allows the module to be tested before integration into the inverter or charger.

 

Which Power-Device Packaging Materials Lead the Market?

Ceramic substrates are the largest material segment, accounting for 31.0% and USD 0.98 billion in 2025. They are widely used because they provide strong heat dissipation while keeping electrical insulation between the semiconductor and cooling system. Demand is rising with the expansion of SiC power modules in electric vehicles and industrial drives, where materials like aluminium nitride and silicon nitride are preferred for higher thermal reliability.

Copper and advanced interconnect materials represent 23.0% of the market, or USD 0.72 billion, and are growing at 8.7%. They reduce electrical resistance and improve efficiency through shorter current paths using copper clips, thick copper layers and direct-bonded structures. Adoption is increasing in EV inverters and renewable-energy systems, including SiC-based platforms such as Toyota’s inverter designs, where higher power density requires low-loss interconnects.

Thermal interface materials hold an 18.0% share, valued at USD 0.57 billion. They are essential for filling microscopic gaps between components and cooling surfaces, especially as power devices become smaller and more heat-intensive. Demand is being driven by EV and data-centre applications, where companies like DENSO and Navitas are focusing on improved thermal management in compact SiC and GaN systems.

Silver sintering materials account for 15.0%, or USD 0.47 billion, and show the fastest growth at 11.4%. They are replacing traditional solder because they offer better heat transfer and higher reliability at elevated temperatures. Adoption is increasing in EV and renewable-energy power modules, with suppliers such as Heraeus providing sinter materials for next-generation high-temperature SiC applications.

Encapsulation materials represent 13.0% and have the lowest material CAGR at 6.5%. They remain necessary for insulation and environmental protection, but mature formulations and price pressure limit their growth relative to silver sintering and advanced ceramics.

 

Which Packaging Technology Is Growing the Fastest?

Double-sided cooling is the fastest-growing packaging technology, with an 11.5% CAGR and a 15.0% share (USD 0.47 billion in 2025). It removes heat from both sides of the semiconductor, improving thermal efficiency and enabling higher power density in smaller modules. It is mainly used in EV inverters, where compact size and cooling performance directly affect vehicle efficiency. DENSO has developed dual-sided cooling inverter systems for Toyota’s bZ4X, showing its move into production EV platforms.

Embedded power packages account for 10.0% of the market (USD 0.32 billion) and are growing at 10.5%. They integrate semiconductor dies inside ceramic or laminate structures, reducing electrical path length and improving switching speed. They are increasingly used in onboard chargers and industrial drives, with companies like Infineon and STMicroelectronics expanding embedded designs to support higher power density in automotive and industrial systems.

Chip-scale power packages also hold a 10.0% share and are forecast to grow at 9.1%. Their small size makes them suitable for consumer chargers, telecom equipment and low-power conversion. Demand is rising as Navitas Semiconductor expands GaN-based chip-scale solutions for fast chargers and data-centre power systems, driven by the need for compact, high-efficiency electronics.

Discrete power packages remain the second-largest segment at 28.0% (USD 0.88 billion). They are widely used due to low cost, availability and ease of integration in lower-power applications. Companies such as ON Semiconductor and Vishay continue high-volume supply for industrial motor drives and consumer electronics, supporting steady demand in cost-sensitive markets.

 

How Are Silicon Carbide and Gallium Nitride Changing Packaging Requirements?

Silicon remains the largest device-technology segment, accounting for 55.0% and USD 1.73 billion in 2025. It continues to dominate cost-sensitive and mature applications such as industrial drives and consumer electronics due to its established manufacturing base and low cost. Its 5.0% CAGR reflects steady but slower growth as the market gradually shifts toward advanced materials, while companies like Texas Instruments and STMicroelectronics continue to rely heavily on silicon power devices.

Silicon carbide holds 31.0%, or USD 0.98 billion, and is expected to grow at 11.8%. It is increasingly used in high-voltage applications because it improves efficiency by reducing switching and conduction losses. Adoption is accelerating in electric-vehicle inverters and fast-charging systems, with companies such as Infineon, Wolfspeed, and ON Semiconductor expanding production, and automakers like Tesla and Toyota integrating SiC modules to improve range and energy efficiency.

Gallium nitride accounts for 14.0%, or USD 0.44 billion, and shows the fastest growth at 13.8%. It is mainly used in high-frequency, compact power systems where smaller size and higher efficiency are critical. Demand is rising in fast chargers and data-centre power supplies, with companies like Navitas Semiconductor and GaN Systems supplying solutions, and brands such as Apple and Dell increasingly adopting GaN-based chargers for smaller, more efficient designs.

 

Why Are Data Centres and Renewable Energy Important Growth Markets?

Data centres and telecom infrastructure account for USD 0.50 billion, or 16.0% of market revenue, and are forecast to grow at 11.0%. This is the fastest-growing application segment, driven by rapid expansion of AI workloads and hyperscale data-centre buildouts. Operators such as Microsoft and Google are increasing deployment of high-density computing systems, which require efficient power modules and advanced thermal materials to manage higher rack power and continuous operation.

Renewable-energy systems account for 22.0%, or USD 0.69 billion, and are forecast to grow at 8.5%. Global renewable capacity additions reached 800 GW in 2025, led mainly by solar. Each new solar, wind, and storage installation requires inverters and grid-interface systems that depend on advanced power packaging for efficiency and thermal stability. Companies such as Siemens Energy and Sungrow are expanding high-efficiency inverter production, supporting demand for these materials.

Industrial automation represents 19.0% of the market and is forecast to grow at 6.9%. It is a steady-growth segment driven by motor drives, robotics, and factory systems. Companies such as ABB and Schneider Electric are upgrading to more energy-efficient drive and automation systems, which require compact and thermally reliable power device packages for continuous industrial use.

Consumer electronics account for 11.0% and grow at a 5.0% CAGR. Growth is supported by adoption of GaN-based fast chargers and compact adapters. Companies such as Apple and Xiaomi are increasingly using GaN charging technology, which requires smaller, high-frequency power packages to improve charging efficiency in compact devices.

 

Which Regions Lead, and What Could Limit Market Growth?

Asia-Pacific leads the global market with an estimated 48.0% share and 9.6% CAGR, supported by its strong EV, renewable energy, and semiconductor manufacturing base. China is a key driver, supplying about 60% of global electric cars in 2025 and adding nearly 500 GW of renewable capacity, which is boosting demand for power modules used in EV inverters and charging systems. Japan contributes advanced automotive power module and ceramic expertise, while Malaysia is expanding silicon carbide production to support global supply chains.

Europe holds an estimated 27.0% share with an 8.2% CAGR, driven by automotive electrification and investment in wide-bandgap semiconductors. A key development is the European Commission’s EUR 2 billion support for STMicroelectronics’ SiC facility in Catania, which will expand 200-mm SiC production for EVs, industrial drives, and renewable energy systems.

North America accounts for an estimated 25.0% share and 8.9% CAGR, led by growth in AI data centres, energy storage, EVs, and industrial power systems. Demand for advanced thermal and power packaging is rising with higher computing loads, but scaling challenges remain. For example, Wolfspeed reported USD 105.2 million in underutilization costs at its Mohawk Valley SiC facility in 2025, highlighting the gap between capacity expansion and actual production ramp-up.

 

Leading Companies Shaping the New Packages and Materials for Power Devices Market

Heraeus – Advanced Silver Sintering & Thermal Interface Solutions

Heraeus is a key materials supplier specializing in high-performance interconnect and die-attach technologies for power electronics. Its portfolio is centered on improving thermal conductivity and long-term reliability in high-power modules.

Product Portfolio:

• Silver sinter pastes for large-area die attachment

• High-thermal-conductivity bonding materials (≥200 W/mK)

• Low-pressure sintering solutions for power modules

• Advanced interconnect materials for SiC and GaN devices

• Thermal interface materials for automotive and industrial modules

 

Infineon Technologies – Wide Bandgap Power Semiconductor & Packaging Leader

Infineon is a global leader in power semiconductors and is heavily investing in next-generation SiC and GaN manufacturing and packaging ecosystems. The company focuses on scaling high-efficiency power conversion technologies for automotive, industrial, and energy systems.

Product Portfolio:

• 200-mm silicon carbide (SiC) wafer-based power devices

• GaN epitaxy and 300-mm GaN power semiconductor development

• CoolSiC MOSFETs for EV inverters and onboard chargers

• High-voltage power modules for automotive and renewable systems

• Integrated power packaging solutions for compact energy systems

 

Infineon & ROHM – Collaborative SiC Packaging Standardization

Infineon and ROHM are working together to improve compatibility across silicon carbide power device packages. The collaboration aims to simplify system design and reduce redesign effort for end applications.

Product Portfolio (Joint Focus Areas):

• Standardized SiC power module package formats

• Interchangeable onboard charger and inverter modules

• High-efficiency SiC-based power conversion platforms

• Compatible packaging for solar, storage, and data center systems

• Cross-vendor module integration frameworks

 

Wolfspeed – SiC Manufacturing & Global Supply Chain Integration

Wolfspeed is a major silicon carbide materials and device manufacturer with a vertically integrated supply chain spanning wafer production, device fabrication, and global assembly partnerships.

Product Portfolio:

• Silicon carbide (SiC) wafers and substrates

• High-voltage SiC MOSFETs and Schottky diodes

• Power modules for EV and industrial applications

• Wafer fabrication at U.S. manufacturing facilities

• Outsourced assembly and testing partnerships in Asia

 

Industry Role Summary

These companies collectively drive innovation across the power device packaging ecosystem by advancing:

• High-thermal-performance materials (Heraeus)

• Wide-bandgap semiconductor scaling (Infineon, Wolfspeed)

• Standardization and interoperability (Infineon & ROHM)

• Global manufacturing and supply chain expansion (all players)

 

Report Coverage Table

Report Attribute	Details
Forecast Period	2026 – 2032
Market Size Value in 2025	USD 3.15 Billion
Revenue Forecast in 2032	USD 5.65 Billion
Overall Growth Rate	CAGR of 8.7% (2026 – 2032)
Base Year for Estimation	2025
Historical Data	2019 – 2024
Unit	USD Million, CAGR (2026 – 2032)
Segmentation	By Material Type, By Packaging Technology, By Device Technology, By Application, By Geography
By Material Type	Ceramic Substrates, Copper and Advanced Interconnect Materials, Silver Sintering Materials, Thermal Interface Materials, Encapsulation Materials
By Packaging Technology	Discrete Power Packages, Power Modules, Embedded Power Packages, Double Sided Cooling Packages, Chip Scale Power Packages
By Device Technology	Silicon Power Devices, Silicon Carbide Devices, Gallium Nitride Devices
By Application	Electric Vehicles, Renewable Energy Systems, Industrial Automation, Data Centers and Telecom Infrastructure, Consumer Electronics
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East and Africa
Country Scope	U.S., Canada, UK, Germany, France, Italy, China, Japan, South Korea, India, Brazil, Mexico, Saudi Arabia, UAE, South Africa
Market Drivers	Rising adoption of silicon carbide and gallium nitride power devices, increasing electric vehicle production and charging infrastructure deployment, growing demand for high-efficiency power conversion in renewable energy and data centers, and stronger requirements for thermal management, power density, and package reliability
Customization Option	Available upon request