Ideal Power Inc (NASDAQ:IPWR) is penetrating the $2.4 billion solid-state switchgear and energy and power markets, expecting that this will drive an initial sales ramp in the second half of 2025 and support long-term profitability growth.
Additionally, this strategy does encompass various other markets, such as the $3.6 billion automotive market, which provides further opportunities for expansion.
During a presentation at the Emerging Growth Conference last week, Ideal Power’s chief financial officer Tim Burns highlighted the company’s focus on targeting the solid-state switchgear market.
The company’s B-TRAN technology offers ultra-low conduction losses, bi-directionality, and enhanced safety features, making it a “game-changer” for this market.
“We’re engaged with several very large companies that are interested in our technology for these markets,” Burns told investors.
“We are an enabling technology in these markets, which is why we have drawn so much interest from large companies. Unfortunately, we can’t name any yet. But if you look at some of the large players in this market, which would be the caliber of companies we are talking to, we’re talking about the Siemens, Schneider Electrics, Eatons, General Electrics, and ABBs of the world.”
In December, the company announced its first design win in this market with a large circuit protection equipment manufacturer in Asia, Burns highlighted.
The initial product development phase is underway, with commercial sales expected later in 2025 after the development of the customer’s initial product.
“We’re glad to have that first design win under our belt, and we’re trying to leverage that with other companies that want to be competitive and have first mover advantage in the market,” Burns said.
He noted that this deal could represent a million-dollar opportunity within two years.
“Being in the solid-state switchgear market is our path to revenue in the short term, but it’s also a path that could bring us to profitability without even considering the other markets where our technology applies, which there are several,” he said.
The company also announced last month that its SymCool IQ bidirectional intelligent power module could be used in circuit protection applications and open up additional markets including renewable energy, energy storage, and EV charging.
Burns said the company expects to share news about future design wins in the coming months.
While Ideal Power recognizes the long-term $3.6 billion opportunity in the electric vehicle market, the CFO highlighted that the company is focused on the $2.4 billion opportunity in solid-state switchgear and energy and power markets, which will drive the revenue ramp in 2025 and long-term profitability growth.
“That is what will drive us to profitability and the start of our revenue ramp later this year,” he concluded.