Global Automotive Power Electronics Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

Component type serves as a significant segmentation criterion, distinguishing between different types of power electronic components used in automotive applications. These components include power modules, semiconductors, capacitors, inductors, and resistors, each playing a unique role in controlling and converting electrical power within vehicles. Power modules, for instance, integrate multiple semiconductor devices and passive components into a single package, providing compact and efficient solutions for power conversion and motor control in electric and hybrid vehicles. Semiconductors such as insulated gate bipolar transistors (IGBTs) and silicon carbide (SiC) devices are essential for switching and regulating electrical currents in power electronics systems, offering high efficiency and reliability. Capacitors, inductors, and resistors complement semiconductor devices by storing energy, filtering noise, and managing voltage and current levels, ensuring stable and efficient operation of automotive power electronics.

Vehicle type is another key segmentation parameter in the automotive power electronics market, distinguishing between passenger cars, commercial vehicles, and electric vehicles (EVs). Each vehicle type presents unique requirements and opportunities for power electronics integration, driven by factors such as vehicle size, powertrain architecture, and intended use. Passenger cars, for instance, require power electronics solutions that balance performance, efficiency, and cost-effectiveness to meet the demands of everyday commuting and urban driving. Commercial vehicles, including trucks, buses, and delivery vans, demand robust and reliable power electronics systems capable of withstanding heavy-duty operation and harsh environmental conditions. Electric vehicles, encompassing battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs), rely heavily on power electronics for managing energy storage, propulsion, and onboard systems, driving significant demand for advanced power electronics solutions tailored to electric mobility.

Application-based segmentation further delineates the automotive power electronics market into specific areas within the vehicle where power electronics technologies are applied. These applications include powertrain, chassis, body electronics, and advanced driver assistance systems (ADAS), among others. In the powertrain, power electronics control the operation of electric motors, inverters, converters, and battery management systems, regulating power flow and optimizing energy efficiency. In the chassis, power electronics contribute to vehicle stability, traction control, and regenerative braking, enhancing safety and performance. In body electronics, power electronics manage lighting, HVAC (heating, ventilation, and air conditioning), and infotainment systems, providing comfort and convenience to vehicle occupants. In ADAS, power electronics enable functions such as adaptive cruise control, lane keeping assist, and automatic emergency braking, enhancing driver safety and convenience. By understanding the diverse applications of power electronics in automotive systems, manufacturers can develop tailored solutions that meet the specific needs of vehicle platforms and market segments, driving innovation and growth in the global automotive power electronics market.

Global Automotive Power Electronics Segment Analysis

In this report, the Global Automotive Power Electronics Market has been segmented by Electric Vehicle, Vehicle Type, Application, and Geography.

Global Automotive Power Electronics Market, Segmentation by Electric Vehicle

The Global Automotive Power Electronics Market has been segmented by Electric Vehicle into Battery Electric Vehicles (BEV), Hybrid Electric Vehicles (HEV), and Plug-in Hybrid Electric Vehicles (PHEV).

Battery electric vehicles (BEVs) rely solely on electric power from onboard batteries for propulsion, offering zero-emission transportation solutions. Power electronics in BEVs play a crucial role in managing the flow of electrical energy from the battery to the electric motor, controlling power conversion, and optimizing energy efficiency. In BEVs, power electronics components such as inverters, converters, and motor controllers regulate voltage, current, and frequency to deliver smooth and efficient power delivery to the electric drivetrain. As the demand for sustainable mobility grows, BEVs are increasingly recognized as key contributors to reducing greenhouse gas emissions and mitigating climate change, driving significant investments and innovation in automotive power electronics technology.

Hybrid electric vehicles (HEVs) combine an internal combustion engine with an electric motor and battery to optimize fuel efficiency and reduce emissions. Power electronics in HEVs coordinate the operation of the internal combustion engine, electric motor, and battery, managing power flow between the different propulsion sources and auxiliary systems. In HEVs, power electronics components such as hybrid control units, power inverters, and regenerative braking systems play a critical role in seamlessly integrating electric and combustion power sources, maximizing fuel economy and minimizing environmental impact. With increasing regulatory pressures to reduce emissions and improve fuel efficiency, HEVs continue to represent a significant market opportunity for automotive power electronics suppliers, driving innovation in hybrid powertrain technology.

Plug-in hybrid electric vehicles (PHEVs) offer a hybrid powertrain with a larger battery pack that can be recharged from an external power source, providing extended electric driving range compared to conventional HEVs. Power electronics in PHEVs manage the integration of the internal combustion engine, electric motor, battery, and charging system, allowing for flexible operation in electric-only mode or hybrid mode. In PHEVs, power electronics components such as onboard chargers, power inverters, and battery management systems enable efficient charging, discharging, and power distribution, optimizing energy use and vehicle performance. With the increasing popularity of PHEVs as a transitional technology towards full electrification, automotive power electronics suppliers are focusing on developing advanced solutions tailored to PHEV applications, driving growth and innovation in the global automotive power electronics market.

Global Automotive Power Electronics Market, Segmentation by Vehicle Type

The Global Automotive Power Electronics Market has been segmented by Vehicle Type into Passenger Cars (PC) and Commercial Vehicles (CV).

Passenger cars encompass a wide range of vehicles designed primarily for transporting passengers, including sedans, hatchbacks, SUVs, and coupes. In passenger cars, power electronics play a critical role in managing various electrical systems such as propulsion, infotainment, safety, and comfort features. Power electronics components in passenger cars include motor controllers, inverters, converters, and battery management systems, which regulate energy flow, control electric motors, and optimize vehicle performance and efficiency. With the increasing demand for electrified powertrains, advanced driver assistance systems (ADAS), and connected features in passenger cars, the market for automotive power electronics in this segment is experiencing significant growth and innovation.

Commercial vehicles encompass a diverse range of vehicles used for commercial purposes, including trucks, buses, vans, and other utility vehicles. In commercial vehicles, power electronics serve essential functions such as managing power distribution, controlling electric motors, and optimizing energy efficiency. Power electronics components in commercial vehicles are designed to withstand the rigors of heavy-duty operation and harsh environmental conditions, ensuring reliable performance and durability. With the increasing focus on emissions reduction, fuel efficiency, and electrification in the commercial vehicle sector, the demand for advanced power electronics solutions tailored to commercial applications is on the rise. Commercial vehicle manufacturers are investing in electrified powertrains, hybridization, and electrified auxiliary systems to meet regulatory requirements, reduce operating costs, and enhance sustainability, driving growth in the global automotive power electronics market for commercial vehicles.

Global Automotive Power Electronics Market, Segmentation by Application

The Global Automotive Power Electronics Market has been segmented by Application into Powertrain & Chassis, Body Electronics, Safety & Security Systems, Infotainment & Telematics and Others.

Powertrain and chassis applications represent a significant segment of the automotive power electronics market, encompassing components and systems involved in propulsion, energy management, and vehicle dynamics. In powertrain applications, power electronics regulate the operation of electric motors, inverters, and battery management systems, optimizing energy flow and maximizing drivetrain efficiency. In chassis applications, power electronics control functions such as traction control, stability control, and regenerative braking, enhancing vehicle stability, handling, and safety.

Body electronics applications focus on managing electrical systems and features within the vehicle's body and interior, including lighting, HVAC (heating, ventilation, and air conditioning), door locks, and windows. In body electronics, power electronics components control functions such as lighting intensity, climate control settings, and power window operation, providing comfort, convenience, and user customization options to vehicle occupants.

Safety and security systems applications involve the integration of power electronics technology into advanced driver assistance systems (ADAS), passive safety features, and vehicle security systems. In safety applications, power electronics enable functions such as adaptive cruise control, lane-keeping assist, automatic emergency braking, and airbag deployment, enhancing driver safety and reducing the risk of accidents. In security systems, power electronics control functions such as remote keyless entry, alarm systems, and vehicle immobilization, deterring theft and unauthorized access.

Infotainment and telematics applications focus on providing entertainment, communication, and connectivity features to vehicle occupants, enhancing the overall driving experience. In infotainment applications, power electronics enable functions such as audio amplification, touchscreen displays, navigation systems, and smartphone integration, providing entertainment and information access on the go. In telematics applications, power electronics facilitate functions such as vehicle diagnostics, remote vehicle monitoring, and over-the-air software updates, enabling remote connectivity and fleet management capabilities.

Global Automotive Power Electronics Market, Segmentation by Geography

In this report, the Global Automotive Power Electronics Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Automotive Power Electronics Market Share (%), by Geographical Region, 2023

North America commands a significant share of the global automotive power electronics market, driven by the region's established automotive industry, technological expertise, and strong consumer demand for advanced vehicle features. North America's market share is bolstered by the presence of leading automotive OEMs, suppliers, and technology providers, as well as a focus on innovation in areas such as electric vehicles, autonomous driving, and connected mobility solutions. Additionally, North America's stringent regulatory standards and consumer preferences for performance, safety, and convenience contribute to the adoption of advanced power electronics technologies in vehicles, supporting the region's leadership position in the global market.

Europe holds a substantial market share in the global automotive power electronics market, supported by the region's automotive manufacturing prowess, regulatory focus on emissions reduction, and emphasis on sustainable mobility solutions. Europe's market share is driven by leading automotive manufacturers, suppliers, and research institutions that are at the forefront of technological innovation in areas such as electrification, digitalization, and vehicle connectivity. Additionally, Europe's commitment to environmental sustainability and energy efficiency drives the adoption of power electronics solutions that enable cleaner, more efficient transportation options, contributing to the region's strong position in the global market.

Asia-Pacific emerges as a key growth driver in the global automotive power electronics market, fueled by the region's expanding automotive industry, rapid urbanization, and increasing consumer demand for vehicles. Asia-Pacific's market share is driven by countries such as China, Japan, South Korea, and India, which are leading the global automotive market in terms of vehicle production, innovation, and technology adoption. With a growing middle class, rising disposable incomes, and government initiatives to promote electric vehicles and advanced mobility solutions, Asia-Pacific represents a significant opportunity for automotive power electronics suppliers and technology providers. As the largest automotive market in the world, Asia-Pacific's influence on the global automotive power electronics market is expected to continue growing in the current year, driving innovation and shaping the future of transportation worldwide.

This report provides an in depth analysis of various factors that impact the dynamics of Global Automotive Power Electronics Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Regulatory Requirements for Vehicle Emissions
• Technological Advancements in Power Electronics
• Expansion of Charging Infrastructure

• Integration of Renewable Energy Sources - The integration of renewable energy sources into automotive power electronics presents a promising avenue for reducing carbon emissions and enhancing the sustainability of transportation systems. With the global shift towards renewable energy sources such as solar and wind power, there is increasing interest in leveraging these clean energy sources to power electric vehicles (EVs) and support auxiliary systems in conventional vehicles. One of the primary benefits of integrating renewable energy sources into automotive power electronics is the potential to reduce dependence on fossil fuels and mitigate the environmental impact of vehicle operations. By harnessing solar energy through photovoltaic panels installed on vehicles or charging stations, for example, EVs can be charged using clean, renewable energy, reducing greenhouse gas emissions associated with conventional electricity generation.

  The integration of renewable energy sources into automotive power electronics offers opportunities for enhancing energy efficiency and reducing operating costs. Solar-powered auxiliary systems, such as ventilation, cooling, and lighting, can help reduce the energy consumption of vehicles and improve overall efficiency. Additionally, smart charging systems that leverage renewable energy sources and advanced power electronics can optimize charging schedules based on factors such as solar availability, grid demand, and vehicle usage patterns, further enhancing energy efficiency and reducing electricity costs for EV owners. By integrating renewable energy sources into automotive power electronics, automakers can create more sustainable and cost-effective transportation solutions that align with evolving consumer preferences and environmental goals.

  Integration of renewable energy sources into automotive power electronics is driving innovation and collaboration across the automotive and energy sectors. Automakers, charging infrastructure providers, and renewable energy companies are partnering to develop integrated solutions that combine renewable energy generation, storage, and distribution to support electric vehicle adoption and enable grid integration. These collaborations are driving advancements in power electronics, energy management systems, and smart grid technologies, paving the way for a more decentralized, resilient, and sustainable transportation infrastructure. By leveraging renewable energy sources in automotive power electronics, stakeholders across the automotive ecosystem can contribute to the transition towards a low-carbon transportation system and accelerate the shift towards a more sustainable and resilient energy future.

Restraints

• Compatibility Issues
• Regulatory Compliance
• Competition from Alternative Technologies

• Limited Skilled Workforce - The automotive industry faces challenges associated with a limited skilled workforce, particularly in the context of rapid technological advancements and shifting market demands. As vehicles become increasingly complex and incorporate advanced technologies such as electric propulsion systems, autonomous driving capabilities, and connected features, there is a growing need for skilled workers with expertise in areas such as engineering, software development, and data analytics. However, the supply of skilled workers with the necessary qualifications and experience to meet these demands is often insufficient, leading to talent shortages and recruitment difficulties for automotive companies.

  Limited skilled workforce poses significant constraints on the ability of automotive companies to innovate and remain competitive in a fast-paced and dynamic industry. Without access to a skilled workforce, automakers may struggle to develop and implement new technologies, meet quality standards, and address evolving customer preferences effectively. Moreover, talent shortages can hinder the speed and efficiency of product development cycles, delaying time-to-market for new vehicle models and limiting the ability of automotive companies to capitalize on emerging market opportunities.

  Addressing the challenge of limited skilled workforce requires proactive measures from automotive companies, educational institutions, and government agencies to invest in workforce development and talent pipelines. This includes initiatives such as apprenticeship programs, vocational training courses, and partnerships with universities and technical colleges to equip students with the skills and knowledge needed to succeed in the automotive industry. Additionally, automotive companies can implement strategies to attract and retain top talent, such as offering competitive salaries, providing opportunities for career advancement, and fostering a supportive and inclusive work environment.

Opportunities

• Expansion of Charging Infrastructure
• Collaboration with OEMs for Custom Solutions
• Focus on Energy Efficiency and Sustainability

• Emerging Market Expansion - Expanding into emerging markets presents significant growth opportunities for automotive companies seeking to diversify their revenue streams and capitalize on growing consumer demand for vehicles. Emerging markets, which include regions such as Asia-Pacific, Latin America, and Africa, are characterized by rising incomes, urbanization, and increasing access to motorization, driving robust demand for automobiles. As consumers in these regions aspire to improve their quality of life and mobility, there is a growing appetite for personal vehicles, creating fertile ground for automotive companies to expand their market presence and establish strong footholds in key growth markets.

  Emerging market expansion offers opportunities for automotive companies to leverage technological innovations and digitalization to create innovative mobility solutions and enhance customer experiences. With the proliferation of smartphones, mobile apps, and digital platforms, there is growing demand for connected car technologies, telematics, and mobility-as-a-service (MaaS) solutions that offer convenience, efficiency, and affordability to consumers in emerging markets. By integrating digital technologies into their products and services, automotive companies can unlock new revenue streams, improve operational efficiency, and strengthen customer engagement in emerging markets.

  Emerging market expansion enables automotive companies to tap into new sources of talent, resources, and innovation, driving long-term growth and sustainability. By establishing local manufacturing operations, research and development centers, and partnerships with local suppliers and stakeholders, automakers can create jobs, stimulate economic development, and contribute to the overall prosperity of emerging market economies. Additionally, emerging markets provide opportunities for automotive companies to test and refine new technologies, business models, and market strategies that can be scaled and replicated globally, positioning them for continued success in a rapidly changing and competitive automotive landscape.

Key players in Global Automotive Power Electronics Market include :

• Infineon Technologies AG
• Texas Instruments Inc
• Maxim Integrated Products Inc
• NXP Semiconductors N.V
• ON Semiconductor

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis