Alternative energy opportunities for chip suppliers

18 March 2009 News

Energy use has recently become a major concern for businesses, countries and consumers alike, due to both environmental concerns and high oil prices.

These issues are being addressed on two fronts. First, by power conversion technology innovators where solutions continue to enter the market for more efficient use of existing energy sources; and second, forging ahead with lower cost IC solutions for alternative energy generation efforts.

Databeans estimates that the alternative energy market will grow to over $115 billion in five years, up from $38 billion this year. Alternative energy generation technology includes solar power, wind power and fuel cells. Add biofuel to this mix and the revenue is even higher. Emerging alternative energy projects are fuelling demand for the semiconductor technology required to build this growing infrastructure. Leading OEMs in this space include First Solar, Solarworld, Evergreen, SunPower, General Electric, Ball, Delphi and Siemens.

Today, the market for chips used specifically in alternative power generation applications is very small, but clearly there is enormous potential. Semiconductor technologies surrounding the alternative energy markets include advanced IGBT design, optoelectronics, advanced power conversion ICs, digital signal processing, microcontrollers and advanced mixed-signal and analog circuits. Not including revenue from photovoltaic materials, the market size for these semiconductors is expected to grow from $300 million today to $1,8 billion by 2013.

Expectations are for a compound annual growth rate of 40% each year for the next five years and even higher longer term. Circuits used in fuel cell systems will outpace solar power and wind power, but all three segments have strong promise.

For more information visit www.databeans.net

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