Converter Modules Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Converter Modules Market is projected to expand from USD 15.56 Billion in 2025 to USD 23.95 Billion by 2031, achieving a CAGR of 7.45%. These modules, which primarily function as AC-DC or DC-DC units, are encapsulated devices critical for regulating and transforming electrical energy within complex electronic systems. The market's foundational growth is driven by increasing demands for energy efficiency in industrial automation and the necessary infrastructure expansion for electric vehicle charging networks, both of which require reliable power conversion solutions where space optimization and stability are paramount.

Despite this growth potential, the industry confronts substantial challenges related to supply chain balance and inventory management. Data from the Electronic Components Industry Association indicates that while the Electronic Component Sales Trend sentiment index rose to 108.4 in August 2024, signaling a revival in demand expectations, manufacturers remain burdened by backlog. The process of working through accumulated inventory from prior quarters continues to stall new procurement cycles and hinders immediate market expansion rates.

Market Drivers

The rising prevalence of electric and hybrid vehicle architectures is creating a paradigm shift in power management, mandating the use of converter modules to link high-voltage traction batteries with low-voltage auxiliary systems. These components are vital for ensuring the stability of onboard electronics and safety sensors within electrified powertrains. According to the International Energy Agency's 'Global EV Outlook 2024' published in April 2024, nearly 14 million new electric cars were registered globally in 2023, bringing the total on the road to 40 million, a surge that directly boosts the production of automotive-grade power modules designed to withstand thermal stress and high power density while meeting rigorous safety standards.

In parallel, the growth of renewable energy generation and grid integration is establishing a robust demand channel for power conversion units capable of managing variable inputs from wind and solar assets. Converter modules play a crucial role in stabilizing these fluctuating energy sources for effective storage and transmission to the main utility grid. As noted in the International Energy Agency's 'Renewables 2023' report from January 2024, global renewable capacity additions jumped by nearly 50% to approximately 510 gigawatts in 2023, the fastest growth in twenty years; this expansion is further supported by a recovery in the electronics sector, with the World Semiconductor Trade Statistics projecting a 16.0 percent growth in the global semiconductor market in 2024.

Market Challenges

The Global Converter Modules Market faces a significant obstacle in the form of supply chain imbalances, particularly the lingering issue of accumulated inventory levels. This inventory overhang acts as a major deterrent to new manufacturing output, as distributors and end-users prioritize depleting excess stock gathered during earlier periods of shortage concerns. This saturation ties up working capital and storage facilities, compelling suppliers to halt production lines and postpone new procurement cycles, meaning that existing demand in sectors like industrial automation does not immediately generate new manufacturing orders, thereby delaying revenue realization.

Evidence of this stagnation in transactional volume is reflected in recent industrial performance metrics that indicate a continued contraction in product flow. According to IPC data from May 2025, the Demand Index declined by 3 percent, while both the Shipments Index and New Orders Index dropped by 5 points relative to the prior month. This data highlights a clear disconnect between positive market sentiment and operational reality; although long-term expectations remain optimistic, the market's immediate growth capability is restricted by these inventory corrections, limiting the industry's ability to fully exploit infrastructure development opportunities until stock levels normalize.

Market Trends

The widespread integration of Wide Bandgap (WBG) semiconductors, particularly Silicon Carbide (SiC), is fundamentally transforming the converter modules market by facilitating superior efficiency in high-voltage applications. This material shift is essential for industrial systems and electric vehicles where effective thermal management is crucial, leading manufacturers to rapidly adopt these components over traditional silicon to reduce switching losses. In its 'Q2 2025 Earnings Presentation' from August 2025, onsemi reported that its Silicon Carbide revenue in China doubled over the quarter, driven primarily by new vehicle production ramps, underscoring the industry's aggressive move toward WBG technologies to satisfy the rigorous power density and energy conservation requirements of modern electrification infrastructure.

Concurrently, the rapid expansion of artificial intelligence is necessitating a decisive move toward 48V power architectures within data centers to alleviate distribution losses. As computational workloads increase, legacy 12V buses are rendering themselves obsolete due to their inability to manage excessive current without incurring significant efficiency penalties, a transition driven by the physical requirements of next-generation server clusters. According to a July 2025 article by Schneider Electric titled 'AI data center design and deployment are moving at an incredible pace', rack power densities for advanced AI setups are expected to reach roughly 132 kilowatts, necessitating higher voltage distribution for operational stability and prompting module manufacturers to prioritize 48V-to-load converter development.

Key Players Profiled in the Converter Modules Market

• ABB Group
• Siemens AG
• Mitsubishi Electric Corporation
• Schneider Electric
• Rockwell Automation
• Delta Electronics
• Danfoss Group
• Fuji Electric Co., Ltd.
• TMEIC Corporation
• Yaskawa Electric Corporation

Report Scope

In this report, the Global Converter Modules Market has been segmented into the following categories:

Converter Modules Market, by Type:

• DC-DC Converter Module
• DC-AC Converter Module
• AC-DC Converter Module

Converter Modules Market, by Industry Vertical:

• IT Telecommunication
• HealthCare
• Aerospace and Defense
• Industrial
• Automotive
• Transportation Logistics
• Others

Converter Modules Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Converter Modules Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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