Automotive Integrated Power Module Market Size

The global automotive integrated power module market size was valued at USD 3.6 billion in 2024 and is estimated to register a CAGR of 9.2% between 2025 and 2034. Growing adoption of electric vehicles (EVs) is anticipated to propel market expansion. With governments globally tightening emissions regulations and providing incentives for eco-friendly transport, the demand for EVs has surged. In these vehicles, automotive integrated power modules are vital, overseeing power conversion between the battery, electric motor, and other essential components.

For instance, according to the International Energy Agency (IEA), electric car sales reached approximately 14 million in 2023. The share of electric vehicles in total sales has grown from about 4% in 2020 to 18% in 2023. This trend is expected to continue as more consumers and automakers embrace electric mobility, driving sustained demand for automotive integrated power modules.

Market growth is fueled by the rising demand for energy-efficient vehicles. With consumers placing a premium on sustainability, automakers are focusing on enhancing vehicle efficiency to reduce fuel consumption and lower carbon emissions. Integrated power modules optimize power conversion and bolster the performance of electric and hybrid vehicle powertrains. By managing energy flow, these modules significantly improve overall vehicle efficiency. The growing focus on reducing fuel consumption, alongside tightening emissions regulations, has led to a surge in the adoption of integrated power modules.

Automotive Integrated Power Module Market Trends

Innovations such as Silicon Carbide (SiC) and Gallium Nitride (GaN) semiconductor materials have significantly enhanced power module performance and efficiency. These advanced materials boast superior thermal conductivity, quicker switching speeds, and enhanced energy efficiency over conventional silicon-based semiconductors. Integrated power modules, capable of managing elevated power densities and functioning at higher temperatures, are now ideally suited for electric and hybrid vehicles with demanding powertrain systems. Moreover, advancements in system integration and miniaturization are enabling the creation of more compact, reliable, and cost-effective integrated power modules that are crucial for next-generation vehicles.

A significant pitfall for the market is the complexity of thermal management. Integrated power modules operate under high power loads and experience significant heat generation due to the power conversion and switching processes involved. Effective thermal management is crucial to prevent overheating, maintain system reliability, and ensure the longevity of modules. However, as vehicle powertrains become more powerful, managing the heat within IPMs becomes increasingly challenging.

Automotive Integrated Power Module Market Analysis

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Based on power, the market is divided into low power, medium power, and high power. In 2024, the medium power segment held a market share of over 40% and is expected to cross USD 3 billion by 2034. Medium power modules are essential for efficiently managing the energy flow between the internal combustion engine (ICE) and the electric motor in HEVs. These vehicles require power modules that balance the power needs of both systems while ensuring optimal energy efficiency. Medium power modules enable better power conversion, motor control, and battery management, enhancing overall vehicle performance and fuel efficiency.

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Based on sales channel, the automotive integrated power module market is categorized into OEM and aftermarket. The OEM segment held a market share of around 74% in 2024. The segment growth is driven by the advancements in power semiconductor technologies. The development of more efficient and cost-effective power semiconductors. It offers superior efficiency, higher thermal conductivity, and faster switching speeds compared to traditional silicon-based semiconductors.

OEMs are increasingly adopting these advanced semiconductor materials in their vehicle powertrains to enhance the performance and energy efficiency of electric and hybrid vehicles. As automakers embrace these cutting-edge technologies, the demand for high-performance modules is growing.

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U.S. automotive integrated power module market accounted for 80% of the revenue share in 2024, driven by the expansion of automotive manufacturing for hybrid and electric vehicle platforms. As automakers in the U.S. increasingly invest in hybrid and electric vehicle (HEV/EV) production, the demand for efficient, high-performance power electronics is rapidly growing. Furthermore, the U.S. government’s investment in EV infrastructure, including charging stations and incentives for electric vehicle buyers, is boosting the production and adoption of EVs, further driving the market demand.

A significant growth driver for the Europe market is the region's strong commitment to environmental sustainability and stricter emissions regulations. Europe has set ambitious targets to reduce carbon emissions, with regulations such as the European Green Deal and the European Union's Fit for 55 plan aiming to cut emissions by 55% by 2030. This has led to a major push toward electrification in the automotive industry, with a strong focus on electric and hybrid vehicles.

The Asia Pacific automotive integrated power module market is driven by the rapid industrialization and urbanization in emerging markets. Countries in Asia Pacific, particularly India, China, and Southeast Asia, are experiencing significant economic growth, leading to increased vehicle production and sales. As these markets expand, there is a rising demand for more energy-efficient and environmentally friendly vehicles to combat growing pollution levels and to meet government regulations. Automotive integrated power modules, which enhance power efficiency and thermal management in vehicles, are essential for meeting the demand for cleaner and more energy-efficient transportation.

Automotive Integrated Power Module Market Share

Infineon and Mitsubishi hold a market share of over 10% in the automotive integrated power module industry. Infineon focuses on leveraging its advanced semiconductor technologies to enhance the performance, efficiency, and thermal management of its IPMs. The company invests heavily in R&D to develop high-performance, reliable, and cost-effective solutions tailored for electric and hybrid vehicles. Infineon’s partnerships with leading automakers and its robust product portfolio, which includes IPMs for a wide range of automotive applications, help strengthen its market presence.

Mitsubishi Electric emphasizes its innovative power electronics solutions to meet the growing demand for electric mobility. The company is expanding its production capabilities and focusing on smart, efficient, and compact IPMs that cater to both traditional internal combustion engine (ICE) and electric vehicles. Mitsubishi also works closely with OEMs to provide tailored, high-quality IPM solutions, further bolstering its competitive edge in the market.

Automotive Integrated Power Module Market Companies

Major players operating in the automotive integrated power module industry include:

• Denso
• Fuji
• Infineon
• Mitsubishi
• NXP Semiconductors
• ON Semiconductor
• Renesas
• Rohm
• STMicroelectronics
• Texas
  

Automotive Integrated Power Module Industry News

• In September 2023, Vitesco Technologies developed an innovative power module. The company uses the scalability and modularity of its power electronics to develop an innovative power module. Manufactured at the Nuremberg electronics plant, the power modules will be delivered to a large global car maker from mid-2025 onwards.
  
• In January 2023, Renesas launched a new automotive Intelligent Power Device (IPD) that will safely and flexibly control power distribution within vehicles. The new RAJ2810024H12HPD is available in the small TO-252-7 package and reduces the mounting area by about 40% compared to the conventional TO-263 package product.
  

The automotive integrated power module market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and shipment (units) from 2021 to 2034, for the following segments:

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Market, By Power

• Low power
• Medium power
• High power

Market, By Application

• Powertrain system
• Battery management system
• Thermal management system
• Charging system
• Others

Market, By Vehicle

• Passenger vehicle
  • Hatchback
  • Sedan
  • SUV
• Commercial Vehicle
  • Light Commercial Vehicles (LCVs)
  • Heavy Commercial Vehicles (HCVs)

Market, By Sales Channel

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia