Automotive Power Electronics Market Size (USD 7.8 Bn) by 2032

Overview

The automotive power electronics market, valued at USD 3.97 billion in 2023 is poised for substantial expansion, projected to reach USD 7.8 billion by 2032 with a CAGR exceeding 7.79% during the forecast period.

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The onset of the COVID-19 pandemic significantly disrupted the electric vehicle manufacturing industry on a global scale. The pandemic-induced challenges, including product cutbacks, manufacturing halts, travel restrictions, and a notable decline in car sales in 2020, collectively contributed to an economic slowdown. Moreover, the trade tensions between the United States and China, coupled with China's temporary suspension of raw material exports, further exacerbated the revenue downturn in the industry. Despite these challenges, as economic activities gradually rebounded in the latter half of 2020, the market began showing signs of recovery.

Driving the electric vehicle market's growth in the forecast period will be the escalating demand for vehicle connectivity, advanced infotainment systems, and the electrification of powertrains, all aimed at meeting stringent safety and vehicle emission standards. Additionally, the surging popularity of electric vehicles, fueled by environmental concerns and government incentives, is expected to be a key growth driver for the market.

Asia Pacific is anticipated to emerge as the dominant force in the electrical power electronics market during the forecast period, driven by the region's robust manufacturing capabilities and the increasing adoption of electric vehicles. Following closely behind, Europe and North America are poised for significant growth, spurred by the rising consumer demand for electric vehicles and the continuous advancement of related technologies.

Automotive Power Electronics Market Trends

The Passenger Vehicle Segment Anticipated to Hold Largest Market Share

The passenger segment has played a pivotal role in propelling the growth of the electric vehicle market. This surge in demand is primarily attributed to the escalating need for safety systems and energy-efficient components associated with electric vehicles, particularly in emerging markets.

In the past 5 to 10 years, passengers have witnessed a notable enhancement in various aspects of their driving experience, including safety, comfort, entertainment, and vehicle control functionalities. This transformation is spurred by government initiatives aimed at incentivizing car buyers to prioritize vehicle safety. Furthermore, original equipment manufacturers (OEMs) have been proactive in introducing new vehicle models equipped with advanced features tailored to meet the evolving demands of consumers. Additionally, the burgeoning population in the manufacturing sector has incentivized OEMs to integrate specialized features into their new vehicle models, thereby enhancing their competitiveness in the market.

To differentiate their products in a crowded market landscape, OEMs, along with Tier I and Tier II suppliers, continue to invest efforts in incorporating cutting-edge technologies and innovative features into production vehicles, particularly passenger cars. These endeavors have led to the passenger segment emerging as the dominant force driving the growth of the electric vehicle market.

The Asia-Pacific Region is Likely to Dominate the Market

The Asia Pacific automotive power electronics market is poised to emerge as a significant player in the industry during the forecast period. Notably, China, South Korea, and Japan hold the largest share in the electric vehicle market within the Asia-Pacific region. The market's growth in Asia Pacific can be primarily attributed to the substantial automobile production in countries like Japan, South Korea, and China, coupled with the increasing consumption of electronic products.

Recognizing the immense growth potential of the automotive industry, the governments of these countries have implemented various measures to incentivize major automobile companies to venture into their respective national markets.

For Instance,

• The Ministry of Road Transport and Highways in India has outlined plans to transition to electric energy usage by the year 2022.

Moreover, the region serves as a hub for retail semiconductor products and Tier 1 manufacturers. Consequently, the anticipated surge in the adoption of electronic components in vehicles following the pandemic is expected to propel market growth throughout the forecast period.

Automotive Power Electronics Industry Overview

The electric generator market has experienced a moderate level of consolidation, with several large companies emerging as dominant players in the industry. These companies are strategically focused on expanding their product portfolios and investing significantly in research and development to ensure the creation of high-quality products that meet the evolving needs of consumers and the market as a whole.

For Instance,

• In May 2022, STMicroelectronics forged a partnership with Microsoft aimed at facilitating the development of secure Internet of Things (IoT) devices. This collaboration underscores the commitment of companies to harness cutting-edge technologies and innovative solutions to enhance the security and functionality of electric generators and related devices.
• In March 2020, Infineon Technologies unveiled a new packaging process tailored for 80 V and 100 V MOSFETs, utilizing OptiMOS™ 5 technology to cater to various 48 V applications. This initiative reflects the company's dedication to advancing technology and addressing the diverse requirements of electric generator applications through state-of-the-art packaging solutions.

Among the major players dominating the electric generator market are renowned companies such as NXP Semiconductors, Infineon Technologies AG, Texas Instruments, Renesas Electronics, and STMicroelectronics. These industry leaders leverage their extensive expertise, technological prowess, and robust research capabilities to drive innovation, propel market growth, and maintain their competitive edge in the rapidly evolving landscape of electric generator technologies.

Automotive Power Electronics Market Leaders

• Infineon Technologies AG
• Texas Instruments Incorporated
• Renesas Electronics Corporation
• NXP Semiconductors
• STMicroelectronics
• Microsemi Corporation
• Vishay Intertechnology Inc.
• Semiconductor Components Industries LLC
• Toyota Industries Corporation
• Valeo Group

Automotive Power Electronics Market Recent Developments

• In November 2021, Texas Instruments (TI) unveiled its new GaN-based integrated power stage solution for automotive applications. The solution integrates GaN FETs and high-performance drivers into a single package, offering enhanced efficiency and power density for automotive power systems.
• In October 2021, ON Semiconductor introduced its latest GaN-based power solutions tailored for electric vehicle (EV) charging infrastructure. The new GaN power modules deliver high efficiency and compact form factors, enabling faster and more efficient EV charging stations.
• In September 2021, ROHM Semiconductor announced the development of its GaN-based power devices optimized for automotive use. These new GaN devices offer improved performance and reliability, meeting the stringent requirements of automotive applications such as electric power steering and onboard chargers.
• In January 2022, Infineon Technologies AG announced the release of its new GaN-based power modules designed specifically for electric vehicle (EV) applications. These modules offer higher efficiency and power density, contributing to the advancement of EV technology and charging infrastructure.
• In December 2021, NXP Semiconductors N.V. unveiled its latest GaN-based RF power transistors optimized for automotive radar applications. These transistors enable enhanced performance and reliability in radar systems, supporting the development of advanced driver assistance systems (ADAS) and autonomous driving technologies.
• In November 2021, STMicroelectronics introduced its next-generation GaN power devices for automotive onboard chargers (OBCs) and DC-DC converters. These advanced GaN devices offer improved efficiency and thermal performance, enabling faster charging times and greater energy efficiency in electric vehicles.

Automotive Power Electronics Industry Segmentation

Automotive power electronics is a modern technology that efficiently converts, conditions, and controls the electric power within an automobile.

The automotive power electronics market has been segmented by device, application, drive, vehicle, and geography.

Market Segmentation

By Device Type

• Power IC
• Module and Discrete

By Application Type

• Body Electronics
• Safety and Security Electronics
• Powertrain

By Drive Type

• IC Engine Vehicle
• Electric Vehicle

By Vehicle Type

• Passenger Cars
• Commercial Vehicles

By Geography

• North America
  • United States
  • Canada
  • Europe
  • Germany
• United Kingdom
  • France
  • Italy
• Asia-Pacific
  • India
  • China
  • Japan
• Latin America
  • Brazil
  • Middle-East and Africa
• South Africa