Automotive Power Electronics Market Size, Share, Growth Analysis, By Device(power IC, and module & discrete), By Application(ADAS & safety, body control & comfort) - Industry Forecast 2024-2031

Automotive Power Electronics Market size was valued at USD 4.17 billion in 2022 and is poised to grow from USD 4.37 billion in 2023 to USD 6.30 billion by 2031, growing at a CAGR of 4.7% during the forecast period (2024-2031).

The automotive power electronics market is a rapidly evolving scene, with key players continuously pushing for progress and dominance. As the industry transitions towards integrated solutions on a single chip, there is immense competition to create innovative and highly efficient products that cater to the growing demand. Meeting the expectations of enhanced power efficiency, reduced switching losses, and smaller module sizes requires intricate design processes, making it a challenging yet engaging task for companies. This shift towards heightened performance also presents new obstacles, such as high switching frequencies and the intricacy of control algorithms, which can potentially impact the overall system performance. In this environment, companies are focused on overcoming design obstacles and optimizing thermal management solutions to ensure the seamless integration of power electronics into modern vehicles, positioning themselves strategically in a competitive market shaped by technological advancements and a growing emphasis on energy efficiency and electrification. 'Infineon Technologies AG', 'Texas Instruments Inc.', 'NXP Semiconductors N.V.', 'STMicroelectronics N.V.', 'Robert Bosch GmbH', 'ON Semiconductor Corporation', 'Toshiba Corporation', 'Mitsubishi Electric Corporation', 'Renesas Electronics Corporation', 'Silicon Labs', 'Maxim Integrated', 'Analog Devices Inc.', 'Vishay Intertechnology Inc.', 'Aptiv PLC', 'Cree Inc.', 'Rohm Co. Ltd.', 'Semikron International GmbH'

An accelerating trend towards electric vehicles (EVs) is propelling the conservation of our environment to new heights. With the shift from fossil fuels to electricity, EVs offer significant sustainability benefits. This transformation towards electric mobility in the transportation industry is driving demand for automotive power electronics. These crucial components are responsible for regulating and optimizing electrical energy flow within EV systems, including lighting, heating and ventilation, and entertainment. Due to their impressive efficiency, the use of MOSFETs in power electronic switches has led to a reduction in overall size, further fueling the demand for EVs worldwide.

The world of automotive power electronics is experiencing exciting leaps forward, with a particular focus on the ongoing advancements of power semiconductor devices. The ever-evolving landscape is largely fueled by the continuous development of state-of-the-art technologies such as insulated gate bipolar transistors (IGBTs), silicon carbide (SiC), and gallium nitride (GaN). These innovative semiconductor devices are revolutionizing electric drivetrains, unlocking higher power densities, and improving efficiency. With improved switching capabilities, reduced power losses, and greater thermal conductivity, IGBTs, SiC, and GaN devices are crucial for enhancing the efficiency and reliability of automotive power electronics systems. As the automotive industry shifts towards electrification, the continuous advancement of these semiconductor technologies highlights a dedication to achieving superior energy efficiency and performance in electric vehicles. This, in turn, drives the expansion of the automotive power electronics market.

China, South Korea, and Japan dominate the automotive power electronics market in the Asia Pacific region. This is thanks to the significant car production and rising adoption of advanced electronics in these countries. The governments of these nations have acknowledged the potential for growth in the automotive industry and have implemented various measures to attract major automakers to their domestic markets. Several prominent European and American car manufacturers, like Volkswagen (Germany), Mercedes Benz (Germany), and General Motors (US), have also moved their production facilities to emerging economies in the region. Additionally, the Asia Pacific region boasts top semiconductor suppliers, ensuring easy access to power electronic components.