Power electronics industry in SEE

The power electronics sector is steadily becoming the foundation of the modern energy transition and industrial transformation. Europe`s role in this industry is to serve as a key global market and driver of innovation, with a large number of developers, manufacturers, research centers, distributors and system integrators in the segment.

Through various initiatives and organizations – policy frameworks, renewable energy targets and research networks and programs, the EU supports the development of power electronics, together with its general goals towards green energy transformation and decarbonization. In this context, South-Eastern Europe (SEE) is positioned as an important manufacturing and integration hub, serving as a bridge and an important supplier to the larger European market.

The region is not only a beneficiary but also a notable driver of growth, supported by the ambitious European renewable energy targets and the rapid growth of the electric vehicle (EV) market. SEE is developing into a major manufacturing base, attracting significant foreign investment from multinational companies due to its strategic geographical location and lower operating costs. The region focuses on the production of critical components for advanced power electronic solutions, including sensors and chips for power circuit control, inverters, battery management systems (BMS) and power modules for the automotive industry and smart grids.

SEE is an active participant in the global race, providing key manufacturing capacity and engineering expertise that drive the EU’s energy transition. European policies, such as the European Green Deal and the new Industrial Strategy, provide the necessary regulatory framework, stimulating sustainable production and the decarbonization of the energy sector and the modernization of the region’s industrial and transport infrastructure.

Market development

Power electronics includes the design and manufacturing of components such as semiconductor devices (diodes, transistors), passive components (capacitors, inductors, transformers), and control systems, used for converting and regulating electrical energy. The sector also encompasses sensors for condition monitoring and heat sinks for cooling.

Main products in the segment include power modules, discrete power elements and power integrated circuits (Power ICs). Popular manufacturing materials are silicon, silicon carbide, gallium nitride and sapphire. Power electronics find many applications in the automotive sector, aerospace and defense, IT, telecommunications, consumer electronics and energy. Main functions and characteristics of power electronics devices, such as ensuring efficient energy supply, high security, reliability and flexibility of the power system, are crucial for the transformation of existing power grids into next-generation networks. Growing concerns about the environment and grid capacity are further stimulating demand for renewable sources and for power electronics in particular.

According to Market Data Forecast, the European power electronics market is extremely dynamic. The segment was valued at over USD 12 billion in 2024 and is expected to grow to more than USD 19 billion by 2033. This growth is directly related to the European efforts to increase the share of renewable energy sources to 20% of total consumption by 2025 and to 27% by 2033.

The power electronics sector in South-Eastern Europe today is experiencing significant growth driven by the development of renewable energy sources, electric vehicles, industrial automation and the large-scale modernization of electricity transmission and smart grids. This is a result of regional efforts to decarbonize the energy sector and modernize industrial and transport infrastructure. By 2030, about 50% of electricity generation in SEE will come from renewable sources, forecasts say. Nearly 70% of them are expected to be generated by solar and wind energy, as the region has excellent potential for these technologies. This transition is critical and requires large-scale application of power electronics for efficient conversion and stability of the electricity supply.

A broad international and regional network, supporting the power electronics sector, functions in Europe and in SEE in particular. The IEEE Power Electronics Society (PELS) is a strongly represented in Europe international community of over 13 000 professionals, including academics and industry experts, who work to drive innovation forward. Among other key organizations is the European Power Electronics and Drives Association, focused on devices, packaging and system integration, converter topologies and design, measurement and control, electrical machines and drive systems, renewable energy systems, power grids and smart grids, power supply, e-mobility, etc.

An additional driver of innovation is the European Center for Power Electronics (ECPE), which has over 230 members and operates as an industry-driven research network whose mission is to promote education, innovation, science, research and technology transfer across Europe.

Growth drivers and trends in SEE

The main driver of growth of the power electronics sector in the region is the global expansion of the electric vehicle (EV) market. Electric and hybrid vehicles increase the demand for on-board chargers, DC/DC converters and battery management systems (BMS). This stimulates manufacturing and innovation activities in SEE. The development of wide bandgap (WBG) semiconductor technologies, such as silicon carbide (SiC) and gallium nitride (GaN), is also a key factor for market expansion. Innovative materials enable the creation of more efficient, high-performance and compact components. They are increasingly used in electric vehicles and renewable energy projects and industrial automation.

Technological advances are the main topic of significant regional events, such as the International symposium on power electronics in Novi Sad and Belgrade (Serbia) and the Regional conference for South-Eastern Europe (RSEEC) in Timisoara (Romania).

Manufacturing capacity in the region is mainly concentrated in Bulgaria, Romania, Serbia and Slovenia. SEE is attracting significant foreign investment from global brands, including Infineon Technologies, STMicroelectronics, ABB, Kostal Group, Lacroix Electronics, Vishay Intertechnology, etc. These companies benefit from the strategic geographical location of the region, its proximity to major European markets and competitive labor costs, which is key to regional manufacturing and its integration into global supply chains.

In SEE, there are a number of foreign and local companies that design, manufacture, distribute or integrate power electronics. These include Convesys Power Electronics Research, ConverterTec, TPEG (Tech Power Electronics Group), Benning Power Electronics Rom, Cefem Power, Danfoss Power Solution Belgrade, Miba Electronics Slovenia, Elaphe Aspect Power Electronics, and many others.

Hybrid Integrated Circuits operates in Bulgaria and designs and manufactures hybrid integrated circuits and power resistors, and Elsiel is a producer of DC-DC converters and inverters. Elprom Motors focuses on asynchronous electric motors related to power electronics. In Romania, Ems-Electra specializes in electronic modules for industrial electronics. Ebs Electric Group offers services in the manufacturing and testing of electronic components. Elemaster Romania is also active in the production of electromechanical boards. Another notable company, Kimball Electronics Romania, offers electronics manufacturing services.

In Slovenia, Kolektor Etra is active in the production of power transformers. Eti Elektroelement produces electrical protection and control products. Other Slovenian companies include Iskra, which supplies components and solutions for the energy sector, and Atech Elektronika, which provides electronics manufacturing services. In Serbia, Green Power Innovations develops power electronics solutions for renewable energy, and Mareton develops and manufactures industrial power electronics devices. Elektrokem Industrial Electronics is also involved in the production of industrial electronic equipment.

In Greece, Elpra designs and manufactures power electronics and embedded control systems. Ace Power Electronics manufactures energy solutions. In Croatia, Koncar Group is a major manufacturer of power equipment, including power transformers, and Helb manufactures electrical equipment for the energy sector.

National profiles and key players

Each country in the region demonstrates specific strengths and market trends in the field of power electronics. Bulgaria maintains a strong electrical and electronics industry, which is a main pillar of the economy and one of the largest exporters. In 2021, the sector’s exports amounted to around EUR 3,6 billion, with production volumes having more than tripled since 2007. Melexis produces microelectronics, including sensors and chips for power circuit control in the automotive industry, while Sensata Technologies develops sensors and power modules for energy management in industrial and automotive applications. Romania also has a significant electrical equipment market, estimated at around EUR 5 billion in 2025, with exports of electrical and electronic equipment reaching USD 17,92 billion in 2024. Continental Automotive produces electronic control units, inverters and power components for electric vehicles. Siemens Romania focuses on automation and power electronics for smart grids and industrial drives, while Elma Electronic is investing in an industrial hub in Timisoara for advanced power systems and electronic packaging.

Serbia has become an attractive center for foreign investment, especially in automotive electronics. Exports of electrical and electronic equipment reached USD 5,3 billion in 2024. Multinational companies such as Bosch, Continental and ZF Friedrichshafen have production and development centers focused on inverter technologies, battery management systems (BMS) and powertrain management for EVs. Johnson Electric is also actively producing motors and electronic motion control systems.
Slovenia has highly specialized suppliers. Iskraemeco specializes in power electronics for smart meters, MikroElektronika offers modules and components for energy management and motor control, and Kolektor develops components for electric drives and power transmission.

Turkiye has a strong and diversified electronics industry, with exports reaching USD 10,2 billion in 2017, mainly to the EU. Vestel is a major consumer electronics manufacturer that requires large volumes of switch-mode power supplies (SMPS) and inverters, while ASELSAN develops complex electronic systems, including high-power converters for the defense industry. Among other markets, Greece is showing growth, with Raycap, active in DC power systems and energy management for telecommunications and energy applications. In Croatia, Koncar Group produces traction converters for railway vehicles and inverters for renewable energy projects. North Macedonia has been influenced by foreign investment, with Amphenol expanding production of power distribution components in high-current EV systems, and Kromberg & Schubert focusing on high-voltage wire harnesses. Montenegro, Albania and Kosovo are also participating in the energy transition. Large energy corporations such as EPCG (Montenegro) and KESH (Albania) drive demand for modern control and stability systems that require power electronics for grid management and RES integration.

Challenges and opportunities

Despite optimistic market growth forecasts, the sector faces several key challenges. First, the shortage of skilled personnel is a serious problem, as the lack of specialized engineers and workers slows down the adoption of new technologies such as SiC/GaN. Also, the region faces a dependence on imports of high-tech components and needs significant modernization of production lines to increase its competitiveness against Asian suppliers. Grid stability is a challenge posed by the integration of large volumes of renewable energy.

Despite these difficulties, SEE has significant opportunities for the integration of IoT and AI solutions for the optimization of energy management systems. The sector is expected to play an increasingly key role in the energy transition and industrial modernization of SEE in the coming years.