Automotive Power Electronics Market - By Device (Power IC, Power Module), By Component (Microcontroller, Sensor), By Material, By Application (Chassis & Powertrain, Safety & Security System, Infotainment & Telematics, Body Electronics), By Vehicle Type, By Propulsion Type & Forecast, 2023 – 2032

Automotive Power Electronics Market Size

Automotive Power Electronics Market size was valued at USD 4.8 billion in 2022 and is anticipated to grow at a CAGR of over 4.5% between 2023 & 2032. The increasing modernization of vehicles is a significant factor driving the global market growth. As vehicles become more advanced and sophisticated, the demand for power electronics components rises. These components are essential for efficient energy management, motor control, and the operation of electronic systems within vehicles. As modernization continues to enhance vehicle performance and features, the need for power electronics solutions is expected to grow steadily, propelling the overall industry forward.
 

Automotive power electronics refers to a specialized branch of electronics focused on the design, development, and application of electronic systems & components in vehicles. Their primary purpose is to control and manage electrical energy within the vehicle, facilitating tasks such as power distribution, electric propulsion in electric & hybrid vehicles, efficient energy conversion, and the operation of various vehicle systems including engine control units, infotainment systems, and Advanced Driver Assistance Systems (ADAS). Automotive power electronics play a crucial role in enhancing vehicle efficiency, performance, and functionality while reducing emissions & improving the overall driving experience.
 

The increasing overall cost of vehicles can be a pitfall for the automotive power electronics market as it reduces consumer affordability. Higher vehicle costs, driven by expensive power electronics components, can deter potential buyers and slow down-market adoption. This price sensitivity can hinder the widespread integration of advanced power electronics technologies in vehicles, potentially limiting market growth and the industry's ability to achieve economies of scale.
 

COVID-19 Impact

The COVID-19 pandemic impacted several markets including the automotive power electronics market in 2020. Lockdowns and supply chain disruptions caused production delays, leading to reduced product availability. Lower consumer spending and economic uncertainties hampered vehicle sales, affecting the demand for power electronics. The pandemic also reduced manufacturing capacity and increased production costs, impacting market growth. Supply chain bottlenecks including semiconductor shortages further strained the industry, limiting the availability of critical components. The pandemic also prompted a shift in consumer priorities away from vehicle purchases, impacting the market's recovery. Overall, COVID-19 exposed vulnerabilities in the automotive supply chain and disrupted the growth trajectory of the market.
 

Automotive Power Electronics Market Trends

The automotive power electronics industry is witnessing the rapid adoption of electric vehicles, driven by heightened environmental awareness and government incentives. This surge has fueled the demand for advanced power electronics components, such as inverters and battery management systems, to enhance EV efficiency & range. The emergence of wide-bandgap semiconductor technologies, such as silicon carbide & gallium nitride, is improving power electronics performance, enabling higher power densities and longer battery life. The integration of autonomous driving features, growing interest in connected vehicles, and the continuous push for more energy-efficient solutions further define the evolving landscape of the market.
 

Automotive Power Electronics Market Analysis

Based on vehicle type, the automotive power electronics market is divided into passenger vehicle, light commercial vehicle, and heavy commercial vehicle. The passenger vehicle segment dominated the market with USD 3 billion in revenue in 2022. Passenger vehicles are witnessing substantial growth due to their pivotal role in the industry's electrification drive. The rising popularity of electric & hybrid passenger vehicles in the region is a primary factor driving market growth. These vehicles heavily rely on advanced power electronics for their propulsion systems & energy management. Additionally, the increasing consumer demand for eco-friendly & energy-efficient transportation solutions amplify the adoption of power electronics in passenger cars. The integration of sophisticated infotainment systems, safety features, and connectivity further escalates the need for power electronics. As governments worldwide promote emission reductions and offer incentives for electric vehicles, the passenger vehicle segment remains a key growth driver for the market.
 

Based on device, the automotive power electronics market is divided into power IC and power module. The power IC segment held a market share of over 70% and generated a market revenue of over USD 3 billion in 2022. It is expected to grow at a lucrative pace by 2032. Power ICs offer high power density and thermal performance, enabling better energy management in vehicles. Their integration simplifies circuitry, reducing the space required, which is crucial in modern vehicles with limited room. Power ICs also enhance reliability by reducing the number of discrete components, minimizing failure points. This streamlining benefits electric & hybrid vehicle, where power electronics are pivotal. Furthermore, power ICs align with automakers' goals for lightweight, energy-efficient systems. As automotive electrification develops, power ICs will continue to play a pivotal role in optimizing power management, contributing to the industry's growth.
 

Asia Pacific held a significant market share of over 30% in 2022. The region, home to major automotive manufacturers & a burgeoning middle class, is witnessing an increased demand for vehicles. Governments in countries such as China and India are promoting electric & hybrid vehicles to reduce emissions and dependency on fossil fuels. This push aligns with the global shift toward sustainable transportation. Additionally, advancements in technology and manufacturing capabilities in the region have made it a hub for automotive power electronics production. These factors, coupled with the region's vast market potential, make Asia Pacific a significant growth driver for the automotive power electronics market.
 

Automotive Power Electronics Market Share

Major companies operating in the automotive power electronics market are

• ABB
• Analog Devices
• Continental AG
• Delphi Technologies
• Danfoss
• Fuji Electric
• Infineon Technologies AG
• Maxim Integrated
• Mitsubishi Electric Corporation
• NXP Semiconductor
• ON Semiconductor
• Renesas
• Robert Bosch GmbH
• STMicroelectronics
• Texas Instruments, Inc.
• Toshiba Corporation

The competitive landscape is characterized by continuous innovation as companies strive to improve their offerings with new technologies, integrations, and partnerships.
 

Automotive Power Electronics Industry News

• In March 2022, SEMIKRON and Danfoss Silicon Power announced a merger to create a joint business specializing in power electronics and focusing on power semiconductor modules. The joint business is operated in an accustomed manner, retaining the existing production facilities, customer & supplier relationships, and distribution channels.
   

The automotive power electronics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue & volume (USD Million) and shipment (Million Units) from 2018 to 2032, for the following segments:

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By Device

• Power IC
• Power module

By Component

• Microcontroller
• Sensor

By Material

• Silicon
• Silicon Carbide
• Gallium Nitride 
• Others

By Application

• Chassis & Powertrain
• Safety & Security System
• Infotainment & Telematics
• Body Electronics
• Others

By Vehicle Type

• Passenger Vehicle
• Light Commercial Vehicle
• Heavy Commercial Vehicle

By Propulsion Type

• ICE Vehicle
• Electric Vehicle

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

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA