Automotive Power Electronics Market

Automotive Power Electronics Market Outlook (2023 to 2033)

The global automotive power electronics market is anticipated to rise at a CAGR of 4.1% and reach a market valuation of US$ 6 billion by the end of 2033, up from US$ 4 billion in 2023.

Power electronics is the branch of electronics concerned with the control of power fluctuation in components such as monitoring diodes, transistors, and others. Power electronics are made up of a solid-state circuit device that transmits current from the source to the load and improves energy conservation by controlling power.

Power electronics permit current to flow in both directions, enhancing system efficiency by enduring high power temperatures. They are widely used in automobiles' interior and exterior, including telematics and infotainment systems, powertrain, safety and security systems, and body electronics.

The outbreak of COVID-19 adversely affected the global automotive industry. The industry's negative growth was due to delays in supply chain activities, disruptions in large-scale production, travel restrictions, and lower sales of light vehicles in 2020.

Furthermore, the trade war between the United States and China, as well as a halt in raw material exports from China, had an influence on the global automotive power electronics market. Nevertheless, economic activities resumed during the second half of 2020, and the market is expected to regain pace during the projection period.

The automotive industry is investing massively in research and development to produce high-performance electronics and energy storage technology at a reasonable cost. Furthermore, OEMs are increasingly relying on electronics to accomplish a superior level of safety.

The transition of the automobile industry from largely mechanized systems to the incorporation of electronic systems is playing a crucial role in boosting market growth. Furthermore, the significance of power electronics in the operation of body electronics, chassis systems, telematics, safety and security systems, and infotainment systems is adding to the market's continuous expansion.

Moreover, strict government regulations in several nations to reduce carbon footprint are considerably catalyzing vehicle electrification, consequently bolstering the market growth.

Rising consumer preference for innovative technologies with improved safety features for a greater driving experience is also driving market expansion. Furthermore, developments in automotive technologies and research activities to revolutionize power electronics to build a fuel economy are expected to propel the global market growth throughout the forecast period.

As per Fact.MR, a market research and competitive intelligence provider, such aspects are projected to raise the global demand for automotive power electronics over the next ten years.

Report Attributes	Details
Automotive Power Electronics Market Size (2023)	US$ 4 Billion
Projected Market Value (2033)	US$ 6 Billion
Global Market Growth Rate (2023 to 2033)	4.1% CAGR
Asia Pacific Market Share (2022)	38.7%
Passenger Cars Segment Growth Rate (2023 to 2033)	3.7% CAGR
Key Companies Profiled	Infineon Technologies AG Texas Instruments, Inc Mitsubishi Electric Corporation NXP Semiconductors NV Toshiba Corporation Robert Bosch GmbH

Which Factor is Pushing the Sales Growth of Automotive Power Electronics?

“Increasing Usage of Electric Vehicles across the World”

The introduction of electric vehicles (EVs) is one of the most significant advances in environmental conservation. Electric vehicles run on electricity rather than fossil fuels and are thus environmentally beneficial.

The move to electric mobility to decarbonize the transportation industry is boosting the manufacturing and sale of electric vehicles around the world, increasing the demand for automotive power electronics. This is because automotive power electronics are used to control and manage the flow of electrical energy in electric vehicle systems such as lighting, heating and ventilation, and entertainment. Power electronics are highly efficient, and the usage of MOSFETs in power electronic switches minimizes the overall size of the automotive powertrain.

Growing production and sales of hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) are predicted to open up considerable potential for the global market. Furthermore, the growing number of charging stations encourages the adoption of power electronic components, including insulated gate bipolar transistors (IGBT), intelligent power modules (IPMs), power management integrated circuits (PMICs), and standard & power integrated modules.

Developments by Start-ups

Leadrive, a start-up based in Germany, creates power modules for electric drive systems. The start-up's electrification solution includes fully automated production lines, high-performance drivetrain components, tailored software packages, and laboratory infrastructure for customization.

Its power modules also have improved loop inductance design, reliable ceramics and substrate material, and a direct water-cooling PinFin design. In this approach, Leadrive offers the automotive sector-wide bandgap components and modules that raise the effectiveness of vehicle systems.

Leapers Semiconductors, a Chinese start-up, specializes in the device design, wafer processing, and module packaging design of IGBT and SiC solutions. Its power electronics modules have been refined for high power density, low thermal resistance, and efficient heat dissipation. Leapers accomplishes this by using low inductance designs with symmetrical structures that are appropriate for high-frequency switching.

Leapers' packaging and processing technology also enables miniaturization and lightweight inverters and electrical drive systems to ensure high efficiency for electric vehicles.

Country-wise Insights

Why are Japan and South Korea Major Contributors to Asia Pacific Market Growth?

“Increasing Vehicle Production and Strong Use of Modern Electronics”

Asia Pacific is dominating the worldwide market for automotive power electronics. Asia Pacific captured 38.7% of the global market in 2022. The region's expanding vehicle production and the increasing presence of automotive power electronics manufacturers are driving market expansion. Furthermore, a large population base, rising middle-class income, and rapid urbanization drive significant vehicle demand, supporting the market development of automotive power electronics.

Japan and South Korea are major contributors to the regional market growth due to increasing vehicle manufacturing and greater use of modern electronics. The governments of these countries have acknowledged the automobile industry's potential for expansion and are adopting a variety of efforts to entice prominent OEMs to enter their domestic markets.

Japan is an important market for innovative electrical and electronic components.

• In 2021, the Ministry of Land, Infrastructure, Transport, and Tourism (MLITT) announced intentions to mandate autonomous emergency braking (AEB) on all new passenger vehicles. Current models will be equipped with AEB by December 2025, and all imported vehicles will be equipped with AEB by June 2024.

Will the United States Stand Out in the Global Market?

“Presence of Prominent EV Makers in the Country”

Demand for automotive power electronics is escalating in North America due to the increasing acceptance of advanced technologies in automobiles and the growing demand for connected cars in the region.

The United States is a leading market for automotive power electronics in the region. The presence of automotive behemoths such as Tesla and General Electric is pushing the large-scale manufacture of electric vehicles, which is increasing the demand for power electronics. Moreover, the rapid adoption of electric vehicles and new developments in battery technology are propelling the country's market growth.

How are Sales of Automotive Power Electronics Shaping Up in Germany?

“Huge Auto Industry in Germany to Make it a Prominent Market”

The European market is experiencing considerable growth. The sales of automotive power electronics are increasing in Germany due to the growing demand for electric vehicles as a result of strict government rules on vehicle emissions.

Category-wise Insights

Why are Automotive Power Electronics Finding Great Usage in Passenger Vehicles?

“High Customer Demand for Safety Systems and Fuel-efficient Technology”

Demand for automotive power electronics in passenger vehicles is estimated to expand at a CAGR of 3.7% during the forecast period. This is due to the rising demand for safety systems and fuel-efficient technology linked with vehicle powertrains in passenger vehicles.

Over the last five to ten years, passenger vehicles have been outfitted with a variety of comfort, safety, entertainment, and vehicle management technologies. This is due to reasons such as evolving car buyer preferences, which are backed by government legislation aimed at improving vehicle safety.

Manufacturers are also highly active in developing new variants and models of vehicles to meet customer demand. Growing populations in emerging countries are pushing OEMs to include specific features in new passenger vehicle models. OEMs are also attempting to adopt new technology or features in the mass-manufactured vehicle category, i.e., passenger vehicles.

Competitive Landscape

The global market is moderately concentrated, with big manufacturers dominating the market. Key players in the automotive power electronics market are focusing on increasing their product portfolios and investing in R&D operations to develop sophisticated products. Moreover, many start-ups are concentrating on new developments to gain market share.

• Panasonic Corporation and Infineon Technologies AG inked an agreement in September 2021 to collaborate on the research and manufacturing of the second generation (Gen2) of their renowned gallium nitride (GaN) technology, which will enable improved efficiency and power density levels.
• STMicroelectronics released STi2GaN solutions for automotive applications in June 2021. The STi2GaN series combines drivers and protections in GaN technology, a monolithic power stage, and System-in-Package (SiP) solutions for application-specific ICs with extra processing and control circuitry.
• Infineon Technologies AG acquired Cypress Semiconductor Company in April 2020. Cypress brings a distinct range of software ecosystems, microcontrollers, connectivity components, and high-performance storage.
• Infineon Technologies introduced the CoolMOS CFD7A series in April 2020. These high-performance, silicon-based components are suitable for use in both the PFC and DC-DC stages of onboard charger systems, as well as HV-LV DC-DC converters designed exclusively for EV applications.

Key Segments of Automotive Power Electronics Industry Research

• By Device Type :

  • Power ICs
  • Power Modules/Discretes

• By Drive Type :

  • IC Engine Vehicles
  • Electric Vehicles

• By Vehicle Type :

  • Passenger Cars
  • Commercial Vehicles

• By Electric Vehicle Type :

  • Battery Electric Vehicles
  • Hybrid Electric Vehicles
  • Plug-in Hybrid Electric Vehicles

• By Application :

  • Body Electronics
  • Chassis & Powertrain
  • Infotainment & Telematics
  • Safety & Security Systems

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa