Automotive Power Electronics Market
Automotive Power Electronics Market Size, Share & Industry Analysis, By Component (Power IC, Power Module, Power Discrete), By Application (Powertrain & Chassis, Body Electronics, Safety & Security, Infotainment & Telematics), By Vehicle Type (Passenger Cars, Commercial Vehicles, Electric Vehicles), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa) - Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Market Overview:
The global Automotive Power Electronics Market is projected to grow at a CAGR of 5.8% from 2024 to 2031. The market value is expected to increase from USD XX in 2024 to USD YY by 2031, with Asia-Pacific emerging as the dominant region. Key metrics include increasing adoption of electric and hybrid vehicles, growing demand for advanced driver assistance systems (ADAS), and rising focus on vehicle electrification across the automotive industry.
The Automotive Power Electronics Market is expanding rapidly, driven by the automotive industry's shift towards electrification, autonomous driving technologies, and connected automobiles. The market is benefiting from continued technological developments in power semiconductor devices, as well as the increased integration of electronic components into modern cars.
Market Dynamics:
Market Trend: Increasing adoption of wide bandgap semiconductors for improved power efficiency
The Automotive Power Electronics Market is seeing a considerable shift towards the use of wide bandgap (WBG) semiconductors, specifically silicon carbide (SiC) and gallium nitride (GaN), to increase power efficiency and performance. These new materials have various advantages over typical silicon-based semiconductors, including as greater working temperatures, faster switching rates, and reduced power losses. The growing demand for more efficient power management systems in electric and hybrid vehicles is driving the transition to WBG chips. For example, a major electric vehicle manufacturer reported a 10% gain in driving range after incorporating SiC-based power electronics into their most recent model. Furthermore, the use of WBG semiconductors allows for the construction of smaller and lighter power electronic components, which helps to reduce overall vehicle weight and increase fuel efficiency. According to industry forecasts, the market for SiC and GaN power devices in automotive applications will expand at a CAGR of more than 30% over the next five years, demonstrating a significant trend towards the adoption of WBG semiconductors in vehicle power electronics.
Market Driver: Rapid growth in electric vehicle production and sales
The Automotive Power Electronics Market is expanding rapidly as a result of the global expansion in electric vehicle (EV) production and sales. The global shift towards sustainable transportation and rigorous emissions laws has spurred EV adoption, resulting in an increase in demand for advanced power electronics components.
According to the International Energy Agency (IEA), global EV sales were 6.6 million units in 2021, more than doubling from the previous year, and this trend is likely to continue. Power electronics are critical in EVs, controlling power flow between the battery, electric motor, and different car components. The rising complexity of EV powertrains, combined with the need for efficient power conversion and control systems, is driving demand for innovative power electronics solutions. For example, a major automotive supplier reported a 40% year-over-year rise in orders for EV power electronics components for 2023. Furthermore, the advancement of fast-charging technologies and the inclusion of bidirectional charging capabilities in EVs are opening up new prospects for power electronics producers. The EV segment is predicted to be the fastest-growing application area for automotive power electronics, with some industry analysts predicting a CAGR of more than 15% for EV-specific power electronics components by 2031.
Market Restraint: High costs associated with advanced power electronics components
Despite rapid developments in automotive power electronics, the sector faces a substantial hurdle in the form of high prices for advanced power electronics components. The incorporation of complex power management systems, notably in electric and hybrid vehicles, incurs significant expenses in vehicle manufacture.
According to industry statistics, power electronics can account for up to 20% of the overall cost of an electric vehicle's engine. This pricing factor may hold down the adoption of modern power electronics solutions, particularly in the mid-range and economy vehicle segments. Furthermore, while wide bandgap semiconductors provide performance improvements, the initial material and production costs are higher. According to a recent study, SiC-based power modules can cost 30-50% more than silicon counterparts, though this gap is projected to reduce as production ramps up.
Segment Overview:
The Power Module segment dominates the Automotive Power Electronics Market, driven by its crucial role in electric vehicle powertrains and advanced power management systems.
The Power Module category dominates the global Automotive Power Electronics Market. This dominance can be ascribed to increased car electrification and the complexity of automotive power systems. Power modules are crucial for managing and controlling power flow in electric and hybrid vehicles, as well as modern internal combustion engine vehicles with complex power management requirements.
Recent advances in the Power Module category have strengthened its leadership position. For example, a major automotive supplier reported a 25% increase in power module sales over the previous year, owing mostly to the introduction of new silicon carbide (SiC)-based power modules built exclusively for electric vehicle inverters. These advanced modules have more efficiency and power density than typical silicon-based modules, resulting in improved vehicle performance and range.
Furthermore, the Power Module category has made great progress in terms of thermal control and dependability. A renowned power electronics manufacturer recently introduced a new line of vehicle power modules that incorporate better cooling technologies and increased power cycling capability. This breakthrough was enthusiastically accepted by electric car makers, with early adopters claiming a 15% increase in power conversion efficiency and a 20% reduction in inverter size. The Power Module section of the Automotive Power Electronics Market is predicted to grow further due to a mix of performance and reliability improvements.
Regional Outlook:
Asia-Pacific leads the Automotive Power Electronics Market, driven by robust automotive manufacturing, rapid EV adoption, and strong government support for vehicle electrification.
Asia-Pacific currently dominates the global Automotive Power Electronics Market, with China being the biggest contributor. The region's supremacy can be ascribed to a number of factors, including its status as the world's largest automotive manufacturing hub, growing adoption of electric vehicles, significant government backing for vehicle electrification, and the presence of major semiconductor and electronics companies.
China, in particular, has led the electric vehicle revolution, resulting in high demand for automotive power electronics. The country's ambitious push towards vehicle electrification, backed by government incentives and regulations, has resulted in a thriving market for EV-related components, such as power electronics. China's strong supply chain for electronic components, as well as its investments in semiconductor manufacturing skills, have helped to strengthen its position in the automotive power electronics market.
Japan and South Korea, with their superior automotive and electronics sectors, make substantial contributions to the region's market leadership. These countries are home to several significant automotive power electronics firms, who are well-known for their technological achievements in the industry.
According to our research study, the Asia-Pacific Automotive Power Electronics industry will be worth $YY billion in 2023, growing at a 7.2% annual rate. China accounted for over half of the regional market share, followed by Japan and South Korea.
In terms of country-specific changes, India has seen a significant increase in automotive power electronics demand, owing to the government's push for electric mobility and the developing domestic EV industry. The Indian government's FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) plan has resulted in a 30% rise in EV manufacturing over the last two years, driving up demand for automotive power electronics components.
Competitive Intelligence:
The Automotive Power Electronics Market is characterised by fierce rivalry among prominent competitors, who prioritise technical innovation, strategic alliances with automakers, and capacity growth. Leading market players are investing extensively in research and development to expand their product portfolios and satisfy the changing demands of the automotive sector. Infineon Technologies AG, STMicroelectronics N.V., and ON Semiconductor Corporation account for approximately YY% of the global market share.
Infineon Technologies AG, a prominent player in the automotive semiconductor market, reported a 12% year-over-year increase in its automotive division, with power electronics playing a significant role. The company's success may be traced back to its extensive array of silicon and silicon carbide-based power solutions for electric vehicles. Infineon recently announced intentions to increase SiC production capacity by 25% over the next three years to accommodate rising demand from EV makers.
Emerging firms are also making major contributions to the industry through innovative product releases and strategic collaboration. For example, a US-based power electronics startup has unveiled a unique gallium nitride (GaN)-based power module for EV inverters, claiming a 30% decrease in power losses over typical silicon modules. This concept has sparked significant interest from major manufacturers and has the potential to alter current market dynamics.
In terms of regional plans, some corporations are growing into emerging markets, particularly Southeast Asia and Eastern Europe. These regions are experiencing rapid expansion in automobile manufacturing and increased usage of electric vehicles. A renowned automotive power electronics firm reported a 20% growth in sales in Southeast Asian countries over the previous fiscal year, owing to agreements with local EV startups and established automakers extending their electrified vehicle lines.
Looking ahead, larger companies are projected to acquire specialised enterprises with competence in areas such as wide bandgap semiconductors and advanced packaging technologies, resulting in further market consolidation. The emphasis on developing more efficient, compact, and cost-effective power electronics solutions for the next generation of electric and self-driving vehicles is projected to fuel future growth and determine competitive strategies in the years ahead.
Analyst Opinion:
The Automotive Power Electronics Market is expected to grow significantly in the next years, driven by the rapid shift to electric and hybrid vehicles, as well as increased electrification of vehicle systems. One notable development is the increasing integration of artificial intelligence (AI) and machine learning algorithms into power electronics control systems. This connection enables more adaptable and efficient power management, which optimises vehicle performance and energy consumption in real time. As vehicles grow more connected and autonomous, intelligent power electronics will play an increasingly important role in controlling complex power flows and allowing sophisticated functionality. Furthermore, the market is moving towards more modular and scalable power electronics architectures, which allow for greater flexibility in vehicle design and quicker updates. Companies who can successfully integrate sophisticated semiconductor technology, intelligent control systems, and scalable designs are expected to acquire a considerable competitive advantage in this quickly changing market scenario.
Major Players:
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Infineon Technologies AG
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STMicroelectronics N.V.
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ON Semiconductor Corporation
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Texas Instruments Inc.
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Renesas Electronics Corporation
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NXP Semiconductors N.V.
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Robert Bosch GmbH
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Mitsubishi Electric Corporation
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Toshiba Corporation
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Vishay Intertechnology, Inc.
Key Developments:
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July 2023: Infineon Technologies AG introduces a new series of silicon carbide (SiC) power modules built exclusively for electric vehicle traction inverters, with 20% higher power density than prior generations.
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In March 2024, STMicroelectronics N.V. established a strategic agreement with a top electric car manufacturer to co-develop next-generation power electronics solutions for ultra-fast charging systems.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Infineon Technologies AG
5.2. STMicroelectronics N.V.
5.3. ON Semiconductor Corporation
5.4. Texas Instruments Inc.
5.5. Renesas Electronics Corporation
5.6. NXP Semiconductors N.V.
5.7. Robert Bosch GmbH
5.8. Mitsubishi Electric Corporation
5.9. Toshiba Corporation
5.10. Vishay Intertechnology, Inc. (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Increasing adoption of wide bandgap semiconductors for improved power efficiency
6.1.2. Integration of AI and machine learning in power electronics control systems
6.1.3. Shift towards modular and scalable power electronics architectures
6.2. Market Drivers
6.2.1. Rapid growth in electric vehicle production and sales
6.2.2. Increasing demand for advanced driver assistance systems (ADAS)
6.2.3. Rising focus on vehicle electrification across the automotive industry
6.3. Market Restraints
6.3.1. High costs associated with advanced power electronics components
6.3.2. Complexity in designing and integrating power electronics systems
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY COMPONENT (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Power IC
7.2. Power Module
7.3. Power Discrete
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Powertrain & Chassis
8.2. Body Electronics
8.3. Safety & Security
8.4. Infotainment & Telematics
9. BY VEHICLE TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Passenger Cars
9.2. Commercial Vehicles
9.3. Electric Vehicles
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Component:
- Power IC
- Power Module
- Power Discrete
By Application:
- Powertrain & Chassis
- Body Electronics
- Safety & Security
- Infotainment & Telematics
By Vehicle Type:
- Passenger Cars
- Commercial Vehicles
- Electric Vehicles
By Region:
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
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