How should business markets be segmented

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How should business markets be segmented

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With strong price pressure and a very strong leader, how will the power electronics market and landscape evolve in the future? Vehicle hybridization is pulling the power electronics market The 21st century is full of challenges to overcome, including population growth, reducing CO2 emissions and developing energy sources to replace liquid fuel. Power electronics will play a key part in solving these problems. Among the applications Yole Développement follows, motor drives are helping increase motor efficiency, photovoltaics and wind turbines continue expand their role in energy supply, and rail networks are moving more people. But one application stands out thanks to the huge volumes involved: electric vehicles. In the 2000s MOSFETs drove growth, and in the early 2010s it was renewable energy. The late 2010s and 2020s could be the golden era for electric vehicles, if customers adopt it and governments keep on subsidizing the field. 2015 has been a difficult year for the power electronics market, with the global value of power ICs, power modules and discrete components decreasing from $15.7 billion to $15.2 billion, a 3% drop. This fall is explained mainly by strong Average Selling Price (ASP) decreases at IGBT module level. We expect this ASP trend to continue, mainly because of price pressure from the automotive market. But overall IGBT module and global power electronics market value should increase, as volume growth outweighs this ASP fall. The automotive market will strengthen its position, as we expect electric and hybrid electric vehicles (EV/HEV) to represent a major part of the IGBT module market by 2021. Over this time the power MOSFET market is expected to grow slightly for all applications, going from $1 billion to $1.2 billion value.

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