Converter Modules Market Size, Share, Trends, Growth and Forecast 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 15.56 Billion
CAGR (2026-2031)	7.45%
Fastest Growing Segment	DC-AC Converter Module
Largest Market	Asia Pacific
Market Size (2031)	USD 23.95 Billion

Market Overview

The Global Converter Modules Market will grow from USD 15.56 Billion in 2025 to USD 23.95 Billion by 2031 at a 7.45% CAGR. Converter modules are encapsulated power management devices designed to regulate and transform electrical energy between specific voltage levels, predominantly functioning as AC-DC or DC-DC units within larger electronic architectures. The market for these components is fundamentally supported by the intensifying requirements for energy efficiency in industrial automation and the rapid infrastructure development required for electric vehicle charging networks. These core drivers stimulate demand for reliable power conversion in environments where stability and space optimization are critical.

Despite this positive trajectory, the industry faces a significant hurdle regarding supply chain equilibrium and inventory management. According to the Electronic Components Industry Association, the Electronic Component Sales Trend sentiment index reached 108.4 in August 2024, indicating a resurgence in demand expectations across the broader component supply chain. However, manufacturers must still navigate the challenge of working through accumulated inventory levels from previous quarters, which continues to delay fresh procurement cycles and impede immediate market expansion rates.

Key Market Drivers

The accelerating adoption of electric and hybrid vehicle architectures forces a fundamental shift in power management requirements, necessitating converter modules to bridge high-voltage traction batteries with low-voltage auxiliary systems. These components are essential for maintaining the stability of onboard electronics and safety sensors within the electrified powertrain. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', almost 14 million new electric cars were registered globally in 2023, bringing the total number on the roads to 40 million. This surge in vehicle electrification directly escalates the production volume of automotive-grade power modules capable of handling thermal stress and high power density while adhering to strict automotive safety standards.

Concurrently, the expansion of renewable energy generation and grid integration creates a parallel demand channel for power conversion units that manage variable inputs from solar and wind assets. Converter modules are critical in stabilizing these fluctuating energy sources for efficient storage and transmission into the main utility grid. According to the International Energy Agency, January 2024, in the 'Renewables 2023' report, global annual renewable capacity additions increased by almost 50% to nearly 510 gigawatts in 2023, representing the fastest growth rate in two decades. This infrastructure growth is underpinned by a broader recovery in the electronics sector, where, according to the World Semiconductor Trade Statistics, in 2024, the global semiconductor market is projected to grow by 16.0 percent, signaling a favorable environment for component manufacturers.

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Key Market Challenges

The Global Converter Modules Market is currently impeded by significant supply chain disequilibria, specifically the persistence of accumulated inventory levels. This "inventory overhang" creates a substantial barrier to new manufacturing output, as distributors and end-users focus on digesting excess stock absorbed during previous periods of shortage fears. This saturation effectively freezes working capital and storage capacity, forcing suppliers to pause production lines and delay the initiation of fresh procurement cycles. Consequently, even when end-user demand in sectors like industrial automation exists, it does not immediately translate into new manufacturing orders for converter modules, causing a lag in realized revenue growth and stalling immediate market expansion.

This stagnation in transactional volume is evident in recent industrial performance metrics which highlight the ongoing contraction in flow. According to IPC, in May 2025, the Demand Index slipped 3 percent while both the New Orders Index and the Shipments Index fell 5 points compared to the previous month. Such data underscores the disconnect between positive market sentiment and actual operational reality; while long-term expectations may be high, the immediate ability of the market to grow is restricted by these inventory corrections. Until these stock levels normalize, the industry’s capacity to fully capitalize on infrastructure development trends remains constrained.

Key Market Trends

The widespread adoption of Wide Bandgap (WBG) semiconductors, specifically Silicon Carbide (SiC), is fundamentally reshaping the converter modules market by enabling superior efficiency in high-voltage applications. This material transition is critical for electric vehicles and industrial systems where thermal management is paramount. Manufacturers are witnessing rapid uptake as these components replace traditional silicon to minimize switching losses. According to onsemi, August 2025, in their 'Q2 2025 Earnings Presentation', the company reported that its Silicon Carbide (SiC) revenue in China doubled during the quarter, driven largely by new vehicle production ramps. This surge underscores the industry's aggressive pivot toward WBG technologies to meet the stringent power density and energy conservation mandates of modern electrification infrastructure.

Simultaneously, the explosive growth of artificial intelligence is forcing a decisive shift to 48V power architectures within data centers to mitigate distribution losses. As computational loads intensify, legacy 12V buses are becoming obsolete due to their inability to handle the excessive current without significant efficiency penalties. This transition is necessitated by the physical demands of next-generation server clusters. According to Schneider Electric, July 2025, in the article 'AI data center design and deployment are moving at an incredible pace', rack power densities for advanced AI configurations are projected to reach approximately 132 kilowatts, a level that mandates higher voltage distribution to ensure operational stability. Consequently, module manufacturers are prioritizing the development of 48V-to-load converters to support these ultra-dense computing environments.

Segmental Insights

The DC-AC Converter Module segment presently secures the position of the fastest growing category within the Global Converter Modules Market. This accelerated expansion is primarily fueled by the surging global demand for renewable energy infrastructure, specifically for solar photovoltaic systems that utilize these components to ensure grid compatibility. Additionally, the automotive sector contributes significantly to this upward trend due to the rapid electrification of public and private transport. Government mandates and regulatory policies enforcing lower carbon emissions further necessitate the deployment of efficient inversion technologies, thereby driving substantial market demand for these specific modules.

Regional Insights

Asia Pacific commands the leading position in the global converter modules market, driven by its established infrastructure for electronics manufacturing and substantial investments in renewable energy. The region experiences high demand from the electric vehicle sector, supported by government policies in major economies like China and India that actively encourage the transition to green energy. Furthermore, the rapid expansion of telecommunications networks and industrial automation fuels the requirement for efficient power management solutions. This market leadership is sustained by the concentration of key component manufacturers and a continuous focus on upgrading power grids to support growing energy needs.

Recent Developments

In September 2025, Murata Manufacturing Co., Ltd. expanded its portfolio of power products by launching a new series of isolated DC-DC converters compliant with the IEEE802.3af standard. These compact modules were specifically engineered to meet the power and data requirements of Power over Ethernet applications, such as security cameras and biometric authentication devices. The company integrated essential protection features, including short-circuit and over-temperature safeguards, directly into the modules to simplify board layouts. This development addressed the growing market demand for efficient, space-saving power management solutions in network-connected equipment and industrial Internet of Things systems.
In August 2025, Infineon Technologies AG expanded its collaboration with Delta Electronics, Inc. to develop high-density power modules for vertical power delivery in hyperscale data centers. This partnership combined Infineon's silicon and packaging technologies with Delta's module design and manufacturing expertise to create efficient solutions for AI processors. The companies focused on reducing power delivery network losses and heat generation through this vertical architecture. They projected that these new modules would significantly lower carbon emissions compared to traditional lateral power solutions, thereby supporting the sustainability and performance goals of modern data infrastructure.
In November 2024, Flex Power Modules introduced two advanced power conversion solutions tailored for artificial intelligence data centers during the electronica 2024 exhibition. The new BMR352, a high-power DC-DC converter, and the BMR316, a non-isolated intermediate bus converter, were designed to address the escalating power demands of AI and machine learning applications. The company stated that these modules provided enhanced power density and thermal efficiency in compact form factors. These innovations aimed to support the rigorous requirements of cloud infrastructure by optimizing space and ensuring stable, regulated power delivery for high-performance graphics processing units.
In October 2024, Vicor Corporation released three new automotive-grade power modules designed to support 48V zonal architectures in electric vehicles. The newly introduced BCM6135, DCM3735, and PRM3735 modules facilitated the conversion of 800V to 48V, as well as 48V regulation and conversion for legacy 12V subsystems. These scalable modules were engineered to offer high power density and significantly reduce the weight of power systems in modern vehicles. The company highlighted that these components allowed automotive manufacturers to optimize power distribution networks and improve overall efficiency in next-generation electric vehicle designs.

Key Market Players

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

By Type	By Industry Vertical	By Region
DC-DC Converter Module DC-AC Converter Module AC-DC Converter Module	IT Telecommunication HealthCare Aerospace and Defense Industrial Automotive Transportation Logistics Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Converter Modules Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

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

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

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

Available Customizations:

Global Converter Modules Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

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

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Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Converter Modules Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type (DC-DC Converter Module, DC-AC Converter Module, AC-DC Converter Module)

5.2.2. By Industry Vertical (IT Telecommunication, HealthCare, Aerospace and Defense, Industrial, Automotive, Transportation Logistics, Others)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Converter Modules Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type

6.2.2. By Industry Vertical

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Converter Modules Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Type

6.3.1.2.2. By Industry Vertical

6.3.2. Canada Converter Modules Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Type

6.3.2.2.2. By Industry Vertical

6.3.3. Mexico Converter Modules Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Type

6.3.3.2.2. By Industry Vertical

7. Europe Converter Modules Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type

7.2.2. By Industry Vertical

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Converter Modules Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Type

7.3.1.2.2. By Industry Vertical

7.3.2. France Converter Modules Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Type

7.3.2.2.2. By Industry Vertical

7.3.3. United Kingdom Converter Modules Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Type

7.3.3.2.2. By Industry Vertical

7.3.4. Italy Converter Modules Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Type

7.3.4.2.2. By Industry Vertical

7.3.5. Spain Converter Modules Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Type

7.3.5.2.2. By Industry Vertical

8. Asia Pacific Converter Modules Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type

8.2.2. By Industry Vertical

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Converter Modules Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Type

8.3.1.2.2. By Industry Vertical

8.3.2. India Converter Modules Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Type

8.3.2.2.2. By Industry Vertical

8.3.3. Japan Converter Modules Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Type

8.3.3.2.2. By Industry Vertical

8.3.4. South Korea Converter Modules Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Type

8.3.4.2.2. By Industry Vertical

8.3.5. Australia Converter Modules Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Type

8.3.5.2.2. By Industry Vertical

9. Middle East & Africa Converter Modules Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type

9.2.2. By Industry Vertical

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Converter Modules Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Type

9.3.1.2.2. By Industry Vertical

9.3.2. UAE Converter Modules Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Type

9.3.2.2.2. By Industry Vertical

9.3.3. South Africa Converter Modules Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Type

9.3.3.2.2. By Industry Vertical

10. South America Converter Modules Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Type

10.2.2. By Industry Vertical

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Converter Modules Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Type

10.3.1.2.2. By Industry Vertical

10.3.2. Colombia Converter Modules Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Type

10.3.2.2.2. By Industry Vertical

10.3.3. Argentina Converter Modules Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Type

10.3.3.2.2. By Industry Vertical

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Converter Modules Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. ABB Group

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Siemens AG

15.3. Mitsubishi Electric Corporation

15.4. Schneider Electric

15.5. Rockwell Automation

15.6. Delta Electronics

15.7. Danfoss Group

15.8. Fuji Electric Co., Ltd

15.9. TMEIC Corporation

15.10. Yaskawa Electric Corporation

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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