Power management IC market: AI, EVs and semiconductor localization reshape demand

The global power management IC (PMIC) market was valued at USD 43.28 billion in 2025 and is projected to reach USD 83.81 billion by 2035, growing at a CAGR of 6.8% from 2026 to 2035. Asia-Pacific led the market with a 41.8% share in 2025, while voltage regulator ICs accounted for 32.8% and battery management ICs for approximately 27%. Consumer electronics represented 32.5% of demand, followed by automotive OEMs at 23.8%.

AI infrastructure is increasing power-management requirements

AI servers and high-performance computing are creating demand for PMICs capable of handling higher currents, faster transient response and greater power density. In 2026, Microchip Technology introduced its MCPF1525 power module, delivering 25A per module and supporting configurations up to 200A, targeting AI and high-performance computing applications. Cervicorn also identifies AI infrastructure as a key driver as computing workloads require increasingly sophisticated power-delivery architectures.

Texas Instruments is expanding its analog and power-management manufacturing capacity in the U.S. with its USD 11 billion 300-mm Sherman, Texas, semiconductor facility, which began production in 2026. The facility adds approximately 13,000 wafers per month of analog capacity, strengthening domestic supply for power-management and other analog semiconductor applications.

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Automotive electrification expands PMIC demand

PMIC content is increasing as vehicles adopt EV powertrains, ADAS, connected systems and zonal electrical architectures. Cervicorn estimates that modern battery-electric vehicles can incorporate approximately 150–200 PMICs per platform, compared with fewer than 80 in conventional vehicles. Global EV sales exceeded 17 million units in 2024, strengthening demand for battery-management, voltage-regulation and DC-DC conversion technologies.

Infineon's latest automotive platforms also illustrate this transition. Its AURIX TC4x platform incorporates multi-phase PMIC capabilities for 800-V battery systems, supporting the higher-voltage architectures being adopted in next-generation EVs.

India is increasing semiconductor investment

Government-backed semiconductor manufacturing is creating a new regional opportunity for PMIC suppliers. India's Semicon India Programme had approved 10 semiconductor projects with investment commitments of approximately ₹1.6 lakh crore by April 2026, with commercial production already underway at two plants.

The country's Electronics Component Manufacturing Scheme (ECMS) was also expanded to ₹40,000 crore in the 2026–27 Union Budget. By August 2026, 106 projects across 15 states had been approved, representing approximately ₹69,548 crore of investment, while production had begun at 38 approved plants.

India is also attracting additional global semiconductor investment. At SEMICON India 2026, the government reported USD 11–12 billion of new investment proposals under Semicon 2.0 across semiconductor equipment, materials, gases, chemicals and substrates. Applied Materials separately announced plans to invest USD 5 billion in India over the next decade.

PMIC manufacturing is becoming strategically important

India's semiconductor ecosystem is particularly relevant to PMICs because the country's planned USD 11 billion Tata Electronics–PSMC fab in Dholera is designed to manufacture chips including power management ICs, display drivers, microcontrollers and high-performance computing logic. The facility is targeting capacity of up to 50,000 wafers per month and has government support under the India Semiconductor Mission.

Nexperia has also partnered with Tata Electronics to manufacture and package power-control chips in India, further demonstrating the industry's shift toward geographically diversified semiconductor supply chains.

Data centers create another high-value opportunity

Beyond automotive and consumer electronics, AI data centers are creating demand for highly efficient power-conversion systems. Cervicorn identifies high-current, multi-phase architectures and improved thermal performance as important requirements for next-generation PMICs used in AI servers and data-center infrastructure.

This is pushing PMIC suppliers toward higher power density, faster transient response, digital power management and improved thermal performance, while wide-bandgap technologies such as GaN and SiC are creating additional opportunities in high-efficiency power-conversion systems.

The market is moving toward higher integration

The latest investment and manufacturing activity indicates that PMIC demand is being shaped by three major structural trends: AI computing, vehicle electrification and semiconductor supply-chain localization.

For suppliers, opportunities are expanding across battery-management ICs, voltage regulators, DC-DC converters, automotive PMICs, AI/data-center power delivery, IoT devices and energy-storage systems. At the same time, increasing power density and thermal requirements are making integration, reliability and efficiency increasingly important.

The competitive advantage is therefore shifting from simply supplying power-management components toward developing high-efficiency, highly integrated PMIC solutions capable of supporting AI processors, 800-V EV architectures and increasingly compact electronic systems.

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